OB - Item 3D - Assembly Bill 1484 UpdateROSEMEAD SUCCESSOR
AGENCY STAFF REPORT
TO: THE HONORABLE CHAIR AND BOARD MEMBERS
FROM: MATTHEW HAWKESWORTH, ASSISTANT CITY MANAGER
DATE: JULY 18. 2012
SUBJECT: ASSEMBLY BILL 1484 UPDATE
SUMMARY
As part of the State's budget process, Assembly Bill 1484 (AB 1484) was adopted to
provide clarifying language to ABx1 26 involving the dissolution of redevelopment
agencies and the ongoing operations by the successor agencies. As a result of AB
1484, there are a number of new requirements and deadlines for successor agencies to
meet in order to avoid penalties and takings by the Department of Finance (DOF).
Aside from the housing assets report, several additional deadlines have been
established between now and the end of the calendar year.
In addition to the new timeline imposed, several new incentives have been provided in
AB 1484 to successor agencies which meet all the requirements and receive a "finding
of completion" by the DOF. For Rosemead, the key incentive is the clarifying language
in regards to the use of existing bond proceeds. Once the "finding of completion" is
received from the DOF, the City of Rosemead in conjunction with the Oversight Board
and Successor Agency will be permitted to complete the previously presented capital
improvement projects from the existing bond proceeds being held by the Successor
Agency. This incentive is a tremendous asset to Rosemead and is one that will provide
the resources necessary to complete many key projects.
Staff Recommendation:
That the Oversight Board receive and file this report. No formal action is required.
BACKGROUND
AB 1484 established numerous clarifying Government Code amendments related to
ABx1 26 regarding the dissolution of Redevelopment. Included in AB 1484 are time
deadlines for the next nine months to facilitate many of the processes which need to be
undertaken the successor agencies and oversight boards. Provided below is a list of
the key deadlines and some background of what is required to meet each deadline.
September 1:ROPS for January 1, 2013 through June 30, 2013 must be
submitted electronically to DOF after oversight board approval.'
DOF makes determinations within 45 days. Within 5 days of
determination, successor agency may request additional review
and meet and confer.
i Section 34177(m). Future ROPS must be submitted to DOF 90 days prior to property tax distribution. City
subject to civil penalty of $10,000 per day for successor agency's failure to timely submit ROPS (Section
34177(m)(2)).
i 1 EM NO.
Rosemead Successor Agency Oversight Board
July 18, 2012
Page 2 of 3
October 1: Successor agency submits to oversight board, county auditor - controller,
State Controller, and DOF results of the review of the Low -
Moderate Income Housing Fund (LMIHF conducted by the
licensed accountant agency must retain. Note: licensed
accountant must be approved by the county auditor - controller.
October 15: Oversight Board must review, approve, and transmit LMIHF audit to DOF,
auditor-controller .3 The Oversight Board shall convene a public comment
session to take place at least five business days before the Oversight
Board holds the approval vote.
November 9: DOF completes review of LMIHF audit and reports findings,
determinations, and decision to overturn oversight board decision to allow
retention of successor agency assets.
November 16: Successor agency may request meet and confer to resolve disputes with
DOF findings on LMIHF audit. DOF must confirm or modify its
determination and decisions within 30 days.
November 28: Successor agency to transfer LMIHF funds to auditor - controller. City
sales tax/property tax may be offset for unfunded amounts.
December 15: Successor agency submits to oversight board, county auditor - controller,
State Controller, and DOF results of the review of all other fund and
account balances by licensed accountant.
January 15: Oversight board must review, approve, and transmit other funds audit to
DOF, auditor-controller .7 The Oversight Board shall convene a public
comment session to take place at least five business days before the
Oversight Board holds the approval vote.
April 1: DOF completes review of other funds audit and reports findings,
determinations, and decision to overturn oversight board decision to allow
retention of successor agency assets.
April 1: County auditor - controller provides estimate of property tax payments to
successor agency for upcoming six -month period.
April 6: No later than 5 days after receiving DOF determination on other funds
audit, successor agency may request meet and confer to resolve disputes
with DOF findings. DOF must confirm or modify its determination and
decisions within 30 days.
April 10: Successor agency to transfer other "cash and assets" audit payment to
auditor - controller if meet and confer process complete. City sales
tax /property tax may be offset for unfunded amounts.
2 Section 34179.6(a). The requirement to retain a licensed accountant is found in section 34179.5. The audit
provided by the county auditor - controller can be substituted for an audit by a licensed accountant if it contains
the information required by Section 34179.5.
3 Section 34179.6(c)
a Section 34179.6(d)
s Section 34179.6(e)
9 Section 34179.6(a).
7 Section 34179.6(a).
Rosemead Successor Agency Oversight Board
July 18, 2012
Page 3 of 3
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process in
accordance with the Brown Act.
Prepared by:
e Section 34179.6(a)
9 Section 34182 (c) (3)
io Section 34179.6(f). The statute does not allow sufficient time between completion of DOF review on April 1 and
required payment on April 10.
Matthew E.
1
Hawkesworth
Assistant City
Manager
e Section 34179.6(a)
9 Section 34182 (c) (3)
io Section 34179.6(f). The statute does not allow sufficient time between completion of DOF review on April 1 and
required payment on April 10.