STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE AUTHORITY

Adopt Resolution No. SA-350 Approving the Recognized Obligation Payment Schedule 26-27 for July 2026 through June 2027 and the Fiscal Year 2026-27 Administrative Budget

A Recognized Obligation Payment Schedule (“ROPS”) covering the period of July 1, 2026 through June 30, 2027 is due by February 1, 2026 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”) 2026-27. 

ROPS 26-27 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 26-27 at its meeting on January 22, 2026. 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, 2026, 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, 2026 and January 2, 2027.

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. 

Redevelopment Property Tax Trust Funds (“RPTTF”) requested for 26-27 ROPS period payments are net of cash carried over from the ROPS 23-24 period; this cash is referred to as the “prior period adjustment”. The Prior Period Adjustment for ROPS 23-24 was reported by the Coalinga Successor Agency staff to the County Auditor-Controller in September of this year and reported a total of $12,157 of unspent RPTTF funds carried over from the ROPS 23-24 period.

For ROPS 26-27, the Successor Agency is requesting a total of $699,571 in Redevelopment Property Tax Trust Fund money to fund ROPS obligations, $638,571 for the first half of the fiscal year and $61,000 for the second half of the fiscal year. The obligations listed on the ROPS include:

• Item #9: $122,000 for Successor Agency Administrative Budget
• Item #46: $5,000 for 2018 TARB Continuing Disclosure report
• Item #49: $5,000 for 2000 Tax Allocation Bonds (TAB) Fiscal Agent Fees
• Item #50: $3,000 for 2000 TAB Continuing Disclosure report
• Item #51: $564,571 for 2000 TAB Accreted Interest

It is important to note in advance, that the 2018 TARB were paid off on September 15, 2025 or during the ROPS 25-26 period. Despite this, the Successor Agency will need to remain in existence in order to pay down items #49, #50, #51. These enforceable obligations cover unfunded existing obligations related to the 2000 TAB Accreted Interest portion. The 2000 Bonds were mostly refunded with the 2018 TARB. All line items relating to the 2000 TAB were then retired off of the ROPS in 2018, However, the Accreted Interest portion of the 2000 Bonds, and related fees and disclosure costs, remained outstanding. The Agency has thus far been able to cover the fiscal agent fees (#49) and continuing disclosure costs (#50) for the 2000 TAB with existing RPTTF distributions. In 2026, however, the first 2000 TAB Accreted Interest payment (#51) of $564,571 will come due. Staff prepared the ROPS 24-25 to include these new items to accurately reflect the situation and prepare for the Accreted Interest payment. DOF approved the return of the 2000 TAB obligations on April 12, 2024. The ROPS 26-27 presented currently continues the inclusion of the 2000 TAB obligations.

With its approval, the Successor Agency ROPS 26-27 would continue the process of dissolving the financial affairs of the former redevelopment agency, which should, based on current obligations, be completed after September 15^th, 2030, or the end of the accreted interest portion of the 2000 TAB (Item #51).

Once approved by the Successor Agency, the ROPS 26-27 and the accompanying administrative budget would be considered by the Fresno Countywide Oversight Board.