I. RECOMMENDATION:
Financial Services Director recommends that the Agency Adopt Resolution No. SA-339 Approving the Recognized Obligation Payment Schedule 21-22 for July 2021 through June 2022 and the Fiscal Year 2021-21 Administrative Budget.
II. BACKGROUND:
A Recognized Obligation Payment Schedule (“ROPS”) covering the period of July 1, 2021 through June 30, 2022 is due by February 1, 2021 pursuant to Health and Safety Code (“HSC”) Section 34177(o). The ROPS requests necessary payments for each enforceable obligation of the former Coalinga Redevelopment Agency for Fiscal Year (“FY”) 2021-22.
ROPS 21-22 has been prepared for the Successor Agency Board’s consideration and is attached to this staff report. The Fresno Countywide Oversight Board (“Oversight Board”) would also review the ROPS 21-22 at its meeting on January 21, 2021. Once approved, staff would transmit it electronically to the Department of Finance (“DOF”), State Controller, and Fresno County Auditor-Controller (“CAC”) for their review. The adopted ROPS must be transmitted by February 1, 2021, or the Successor Agency would be subject to a penalty of $10,000 per day. With DOF approval, the Auditor-Controller would be authorized to disperse property tax revenue to pay ROPS obligations on June 1, 2021 and January 2, 2022.
Recognized Obligation Payment Schedule
As per their practice, the DOF provides successor agencies a partially completed ROPS form to standardize the form and make it consistent with the automated tracking system. DOF continues to make minor annual changes to the ROPS forms and process for submitting the ROPS.
III. DISCUSSION:
Redevelopment Property Tax Trust Funds (“RPTTF”) requested for 21-22 ROPS period payments are net of cash carried over from the ROPS 18-19 period; this cash is referred to as the “prior period adjustment”. The Prior Period Adjustment for ROPS 18-19 was reported by the Coalinga Successor Agency staff to the County Auditor-Controller in September of this year and reported a total of $4,117 of unspent RPTTF funds from carried over from the ROPS 18-19 period.
For ROPS 21-22, the Successor Agency is requesting a total of $1,683,494 in Redevelopment Property Tax Trust Fund money to fund ROPS obligations, $1,571,942 for the first half of the fiscal year and $111,552 for the second half of the fiscal year. The obligations listed on the ROPS include:
- 1993 B Refunding Tax Allocation debt service payment
- 1993 B Revenue Bonds Police Station debt service payment
- Fiscal Agent Fees for the 1993 bonds
- 2018 Tax Allocation Refunding Bonds debt service payment
- 2018 TARB Fiscal Agent Fees
- 2018 TARB Continuing Disclosure report
- 2021 Bond Expenditure Report (considered by the Successor Agency prior to the ROPS)
- Successor Agency Administrative Budget of $122,000
With its approval, the Successor Agency ROPS 21-22 would continue the process of dissolving the financial affairs of the former redevelopment agency, which should, based on current obligations, be completed after June 30, 2022.
Once approved by the Successor Agency, the ROPS 21-22 and the accompanying administrative budget would be considered by the Fresno Countywide Oversight Board.
IV. ALTERNATIVES:
None.
V. FISCAL IMPACT:
There is no fiscal impact to the General Fund for this item. For ROPS 21-22, the Successor Agency is requesting a total of $1,683,494 in Redevelopment Property Tax Trust Fund money to fund ROPS obligations, $1,571,942 for the first half of the fiscal year and $111,552 for the second half of the fiscal year.
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