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CC - Item 4B - ROPS Submittal for July 2020 Throught June 2021ROSEMEAD SUCCESSOR AGENCY BOARD TO: THE HONORABLE CHAIR AND BOARD MEMBERSR FROM: GLORIA MOLLEDA, EXECUTIVE DIRECTO, l) ^ \ - DATE: DECEMBER 17, 2019 SUBJECT: ROPS SUBMITTAL — JULY 2020 THROUGH JUNE 2021 SUMMARY The Department of Finance (DOF) requires the Recognized Obligation Payment Schedule (ROPS) for the period July 1, 2020 through June 30, 2021 be submitted to the DOF by February 1, 2020. Prior to that, the ROPS must be reviewed and approved by the Los Angeles County Consolidated Oversight Board. The deadline to submit the ROPS to the Oversight Board is December 23, 2019. STAFF RECOMMENDATION That the Rosemead Successor Agency Board approve Resolution 2019-14 SA, approving the ROPS for the period of July 1, 2020 through June 30, 2021 and, further, directing that staff submit the ROPS to the Los Angeles County Consolidated Oversight Board. ANALYSIS The following worksheets are included, as follows: 1. Exhibit 1: The "ROPS Detail" report reflects the ROPS period of FY 20-21 A and B (July 1, 2020 through June 30, 2021). As in prior years, Items 1-2 and 4-21 will no longer be used. Item 34 is used to consolidate all administrative costs into one line. Item 35 is used to represent the 2016 Subordinate Tax Allocation Refunding Bonds. 2. Exhibit 2: The "Summary" worksheet summarizes the amounts on both the ROPS Detail report and the Report of Cash Balances. 3. Exhibit 3: The "Report of Cash Balances" includes cash balance information for ROPS 17-18. 4. Exhibit 4: Reports "Prior Period Adjustments". The LA County Auditor -Controller has made a Prior Period Adjustment (PPA), disallowing $269,382 in prior period AGENDA ITEM 5.13 Rosemead Successor Agency Board December 17, 2019 Page 2 of 2 administrative cost funding requested by the Rosemead Successor Agency, as a result of actual Agency expenditures being lower than authorized expenditures. 5. Exhibit 5: Reports the Successor Agency "Administrative Budget". PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process in accordance with the Brown Act. Prepared by: Robert Torrez, Interim Finance Director Attachment A: Resolution No. 2019-14 SA Attachemetn B: Draft Oversight Board Resolution Exhibits 1-5 Attachment A Resolution No. 2019-14 SA RESOLUTION NO. 2019-14 SA A RESOLUTION OF THE SUCCESSOR AGENCY TO THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULES FOR THE PERIOD OF JULY 1, 2020 THROUGH JUNE 30, 2021 WHEREAS, pursuant to California Health and Safety Code Section 34179 (q), commencing on and after July 1, 2018, the County of Los Angeles shall have five consolidated oversight boards encompassing five supervisorial districts; and WHEREAS, the First Supervisorial District Consolidated Oversight Board (Oversight Board) has jurisdiction over the Successor Agency to the Former Redevelopment Agency to the City of Rosemead; and WHEREAS, Section 34177 requires each Successor Agency to prepare a draft Recognized Obligation Payment Schedule (ROPS) and section 34180 requires the First Supervisorial District Consolidated Oversight Board to approve same; and WHEREAS, Section 34177 provides that each ROPS shall be forward looking to the next full year; and WHEREAS, Section 34177 requires that the ROPS be transmitted to the County Auditor -Controller, the State Controller and the State Department of Finance; and WHEREAS, notwithstanding the sequencing contemplated in section 34177, the Department of Finance (DOF) is requesting the ROPS be considered by the Oversight Board and transmitted to the DOF no later than February 1, 2020; and WHEREAS, the County will not make any payments of property taxes to the Successor Agency for use in payment of the obligations listed on the ROPS until the ROPS has been approved by the Oversight Board. Any delay in payment could impair the Successor Agency's ability to make payments for the enforceable obligations; and WHEREAS, the Successor Agency prepared draft ROPS for the period July 1, 2020 through June 30, 2021 is attached hereto. NOW THEREFORE, THE SUCCESSOR AGENCY TO THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION HEREBY RESOLVES: 1. The ROPS for the period July 1, 2020 through June 30, 2021 attached hereto is hereby approved. 2. Successor Agency staff is directed to provide to the First Supervisorial District Consolidated Oversight Board (a) a copy of this Resolution along with (b) the Successor Agency approved ROPS and (c) a Resolution for the Oversight Board to approve. PASSED, APPROVED AND ADOPTED this 17th day of December 2019. Margaret Clark, Chairperson ATTEST: Ericka Hernandez Successor Agency Secretary Rachel Richman Successor Agency Attorney Attachment B Draft Oversight Board Resolution RESOLUTION NO. 2019- A RESOLUTION OF THE LOS ANGELES COUNTY FIRST SUPERVISORIAL DISTRICT CONSOLIDATED OVERSIGHT BOARD APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULES AND ADMINISTRATIVE BUDGETS FOR THE PERIOD OF JULY 1, 2020 THROUGH JUNE 30, 2021 OF THE SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY TO THE CITY OF ROSEMEAD. WHEREAS, pursuant to Abx 126, enacted on June 28, 2011, and as subsequently amended by AB 1484, SB 341 and SB 107 (Dissolution Act), the Redevelopment Agency to the City of Rosemead was dissolved as of February 1, 2012, and the City of Rosemead elected to serve as the Successor Agency to the former Redevelopment Agency to the City of Rosemead; and WHEREAS, pursuant to California Health and Safety Code Section 34179 (q), commencing on and after July 1, 2018, the County of Los Angeles shall have five consolidated oversight boards encompassing five supervisorial districts; and WHEREAS, the First Supervisorial District Consolidated Oversight Board (Oversight Board) has jurisdiction over the Successor Agency to the Former Redevelopment Agency to the City of Rosemead; and WHEREAS, Section 34177 requires each Successor Agency to prepare a draft Recognized Obligation Payment Schedule (ROPS) and section 34180 requires the First Supervisorial District Consolidated Oversight Board to approve same; and WHEREAS, Section 34177 provides that each ROPS shall be forward looking to the next full year; and WHEREAS, Section 34177 requires that the ROPS be transmitted to the County Auditor -Controller, the State Controller and the State Department of Finance; and WHEREAS, notwithstanding the sequencing contemplated in section 34177, the Department of Finance (DOF) is requesting the ROPS be considered by the Oversight Board and transmitted to the DOF no later than February 1, 2020; and WHEREAS, the County will not make any payments of property taxes to the Successor Agency for use in payment of the obligations listed on the ROPS until the ROPS has been approved by the Oversight Board. Any delay in payment could impair the Successor Agency's ability to make payments for the enforceable obligations; and WHEREAS, the Successor Agency prepared draft ROPS and Administrative Budget for the period July 1, 2020 through June 30, 2021 are attached hereto. NOW THEREFORE, THE LOS ANGELES COUNTY FIRST SUPERVISORIAL DISTRICT CONSOLIDATED OVERSIGHT BOARD DOES HEREBY RESOLVE AND FIND AS FOLLOWS: Section 1. Pursuant to its responsibility set forth in Section 34180(g) of the California Health and Safety Code, the First District Consolidated Oversight Board hereby approves the Successor Agency's Recognized Obligation Payment Schedule (ROPS), attached hereto., Section 2: The First District Consolidated Oversight Board's Clerk Shall certify the adoption of this Resolution. Section 3. The Successor Agency's officials and staff are hereby authorized and directed to transmit this Resolution and take all other necessary and appropriate actions as required by law in order to effectuate its purposes. SIGNATURE BLOCK: PASSED, APPROVED AND ADOPTED this 13th day of January 2020, by the following vote: Ayes: Noes: Abstain: Absent: Michael Gregoryk, First Supervisorial District Consolidated Oversight Board, Chair ATTEST: Deputy Clerk Attachment B Exhibit 1 - 5 EXHIBIT 1 Rosemead Recognized Obligation Payment Schedule (ROPS 20-21) - ROPS Detail July 1, 2020 through June 30, 2021 A B C D E F G H I J K L M I N 1 O P Q R I S I T U V W ROPS 20-21A (Jul - Dec) ROPS 20-21 B (Jan - Jun) Item Obligation Agreement Agreement Project Total ROPS 20-21A 20-21B Fund Sources Fund Sources # Project Name Type Execution Termination Payee Description Area Outstanding Retired 20-21 Total Date Date Obligation Total Bond Reserve Other Admin Bond Reserve Other RPTTF AdminTotal Proceeds Balance Funds ;;RPTTF RPTTF Proceeds Balance Funds RPTTF $48,517,614 $4,082,075 $- $- $- 92,225 $60,000 $3,252,225 $- $- $- $769,850 $60,000 $829,850 3 2010 Tax Bonds Issued 06/29/ 12/01/2023 US Bank Tax Merged 4,723,625 N $1,188,000 1,105,875 - $1,105,875 82,125 - $82,125 Increment On or Before 2010 Increment Bonds 12/31/10 Bond Debt Service 22 Senior Miscellaneous 08/13/ 12/31/2099 Rosemead Cost of Merged 1,824,000 N $91,200 45,600 - $45,600 45,600 - $45,600 Housing Land 2002 Housing annual land Lease - Development lease for Angelus Corporation property 23 Senior Miscellaneous 08/13/ 12/31/2099 Rosemead Cost of Merged 2,262,000 N $113,100 56,550 - $56,550 56,550 - $56,550 Housing 2002 Housing annual Operations Development operations Overhead - Corporation and overhead Angelus subsidy 24 Senior Miscellaneous 08/13/ 12/31/2099 Rosemead Cost to cover Merged 2,785,088 N $32,000 16,000 - $16,000 16,000 $16,000 Housing 2002 Housing shortfall Shortfall Development between Subsidy - Corporation rents and Angelus operations/ maintenance 25 Senior Miscellaneous 08/13/ 12/31/2099 Rosemead Cost of Merged 3,465,184 N $181,300 - 126,275 - $126,275 - 55,025 $55,025 Housing Land 2002 Housing annual land Lease - Development lease for Garvey Corporation property 26 Senior Miscellaneous 08/13/ 12/31/2099 Rosemead Cost of Merged 4,250,675 N $113,100 - 56,550 - $56,550 - 56,550 $56,550 Housing 2002 Housing annual Operations Development operations Overhead - Corporation and overhead Garvey subsidy 27 Senior Miscellaneous 08/13/ 12/31/2099 Rosemead Cost to cover Merged 1,282,729 N $10,000 5,000 $5,000 5,000 $5,000 Housing 2002 Housing shortfall Shortfall Development between Subsidy - Corporation rents and Garvey operations/ maintenance 30 Loan Bond Funded 09/18/ 06/30/2014 City of Short-term Merged 538 N$ - Repayment to Project - 2013 Rosemead loan from City City of Pre -2011 to front the Rosemead costs of Bond Proceeds A B C D E F G H I J K L M I N 1 O P Q R I S I T U V W ROPS 20-21A (Jul - Dec) ROPS 20-21 B (Jan - Jun) Item Obligation Agreement Agreement Project Total ROPS 20-21A 20-21B Fund Sources Fund Sources Project Name Execution Termination Payee Description Outstanding Retired 20-21 Bond Reserve Other Admin Bond Reserve Other Admin # Type Date Date Area Obligation Total Total Total Proceeds Balance Funds RPTTF RPTTF Proceeds Balance Funds RPTTF RPTTF Funded Projects. 34 Administrative Admin Costs 07/01/ 06/30/2015 City of Administrative Merged 120,000 N $120,000 - 60,000 $60,000 - 60,000 $60,000 Cost 2014 Rosemead Cost Allowance Allowance 35 2016 Bonds Issued 12/14/ 10/01/2033 US Bank Tax 27,803,775 N $2,233,375 1,780,375 - $1,780,375 453,000 - $453,000 Subordinate After 12/31/10 2016 Increment Tax Allocation Bond Debt Bonds Service EXHIBIT 2 Recognized Obligation Payment Schedule (ROPS 20-21) - Summary Filed for the July 1, 2020 through June 30, 2021 Period Successor Agency: Rosemead County: Los Angeles Current Period Requested Funding for Enforceable Obligations (ROPS Detail) A Enforceable Obligations Funded as Follows (B+C+D) B Bond Proceeds C Reserve Balance D Other Funds E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) F RPTTF G Administrative RPTTF H Current Period Enforceable Obligations (A+E) Certification of Oversight Board Chairman Pursuant to Section 34177 (o) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency. 20-21A Total 20-21B Total ROPS 20-21 (July - (January - Total December) June) $ 3,252,225 $ 829,850 $ 4,082,075 3,192,225 769,850 3,962,075 60,000 60,000 120,000 $ 3,252,225 $ 829,850 $ 4,082,075 Name Title /s/ Signature Date EXHIBIT 3 Rosemead Recognized Obligation Payment Schedule (ROPS 20-21) - Report of Cash Balances July 1, 2017 through June 30, 2018 (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177 (1), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. A B C D E F G H ROPS 17-18 Cash Balances Fund Sources Comments (07/01/17 - 06/30/18) Bond Proceeds Reserve Balance Other Funds RPTTF Bonds issued Bonds issued Prior ROPS Rent, grants, Non -Admin on or before on or after RPTTF and interest, etc. and Admin 12/31/10 01/01/11 Reserve Balances retained for future period(s) 1 Beginning Available Cash Balance (Actual 07/01/17) 522,518 - RPTTF amount should exclude "A" period distribution amount. 2 Revenue/Income (Actual 06/30/18) 522,306 4,414,852 RPTTF amount should tie to the ROPS 17-18 total distribution from the County Auditor -Controller 3 Expenditures for ROPS 17-18 Enforceable Obligations 1,044,019 4,182,615 (Actual 06/30/18) 4 Retention of Available Cash Balance (Actual 06/30/18) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 5 ROPS 17-18 RPTTF Prior Period Adjustment RPTTF amount should tie to the Agency's ROPS 17-18 PPA No entry required form submitted to the CAC 6 Ending Actual Available Cash Balance (06/30/18) $805 $- $- $- $232,237 C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5) Rosemead Recognized Obligation Payment Schedule (ROPS 20-21) - Notes July 1, 2020 through June 30, 2021 I Item # I Notes/Comments I 22 23 24 25 Lease agreement requires annual CPI adjustment and Agency has not increased the lease payment :since 2011. According the CPI index the increase for FY 2011-12 to FY 2016-17 each annual increase :was 2%, FY 2017-18 was 3.9%, FY 18-19 was 3.2% and FY 2019-20 was projected 2%. Rosemead Report of Prior Period Adjustments ROPS 17-18 Period (July 1, 2017 to June 30, 2018) (Repo Amounts in Whole Dollars) EXHIBIT 4 A B C I D I E I F I G H I J K L I M I N 1 O P Q R S T U V I W I X I Y I Z AA AB SA Reported Non-RPTTF Expenditures SA Reported RPTTF Expenditures CAC Reported RPTTF Expenditures RPTTF RPTTF and and Item Project Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF AdminSA RPTTF Admin RPTTF Admin CAC # Name RPTTF Comments RPPAF Comments Lesserof Lesserof Total Lesser of Lesserof Total Authorized Actual Authorized Actual Authorized Actual Authorized Available Authorized Actual Difference Authorized Available Authorized Actual Difference Difference Authorized Actual Difference Authorized Actual Difference /Available /Available (M+R) /Available /Available Difference 522,191 521,9801 4,164,852 4,164,852 4,164,852 4,126,516 38,3361 250,000 250,000 250,000 54,450 195,5501 233,886 4,164,852 4,091,020 73,8321 250,000 54,450 195,5501 269,382 3 2010 Tax - - - - - - 1,198,788 1,198,788 1,198,788 1,198,788 - - - - - - - 1,198,788 1,178,729 20,059 - - - - Proof of Increment Payment is Bonds $1,178,729 22 Senior - - - - - - 91,200 91,200 91,200 91,200 - - - - - - - 91,200 91,200 - - - - - Proof of Housing Payment is Land Lease $91,200 - Angelus 23 Senior - - - - - - 113,100 113,100 113,100 113,100 - - - - - - - 113,100 113,100 - - - - - Proof of Housing Payment is Operations $113,100 Overhead - Angelus 24 Senior - - - - - - 16,404 16,404 16,404 10,878 5,526 - - - - - - 16,404 8,202 8,202 - - - - Proof of Housing Payment is Shortfall $8,202 Subsidy - Angelus 25 Senior - - - - - - 92,200 92,200 92,200 92,200 - - - - - - - 92,200 92,200 - - - - - Proof of Housing Payment is Land Lease $92,200 Garvey 26 Senior - - - - - - 113,100 113,100 113,100 113,100 - - - - - - - 113,100 113,100 - - - - - Proof of Housing Payment is Operations $113,100 Overhead - Garvey 27 Senior - - - - - - 32,810 32,810 32,810 - 32,810 - - - - - - 32,810 - 32,810 - - - - Housing Shortfall Subsidy - Garvey 30 Loan 522,191 521,980 - - - - - - - - - - - - - - - Repayment to City of Rosemead 35 2016 - - - - - - 2,507,250 2,507,250 2,507,250 2,507,250 - - - - - - - H+H - - Proof of Subordinate Payment is Tax $2,494,489.33 Allocation Bonds EXHIBIT 5 SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET (JULY 1, 2020 TO JUNE 30, 2021) ROPS FY 20-21 SALARIES AND BENEFITS PROFESSIONAL SERVICES $ 60,000.00 Auditing Services $ 5,000.00 Legal Services $ 5,000.00 Property Tax Services $ 12,600.00 Continuing Disclosure Services $ 6,400.00 Trustee Fees $ 6,000.00 Consulting Services $ 25,000.00 TOTAL $ 120,000.00 Note: The Administrative Budget covers the costs incurred by the City of Rosemead and professional services for the operations to the Successor Agency of the Rosemead Community Development Commission