HomeMy Public PortalAbout14) 11A Rocognized Obligation Pymt ScheduleCity of Temple City
March 6, 2012
Page2
litigation had caused delay in the implementation of ABx1 26, the Supreme Court
reformed the legislation to set new statutory deadlines, the most weighty of which is
the dissolution of redevelopment agencies on February 1, 2012 instead of on
October 1, 2011.
5. In August 2011 and January 2012, the Agency adopted an original and amended
EOPS.
6. Now, the City, acting as successor agency, must adopt this ROPS as required by
ABx1 26 and covering the period April through December 2012. With the dissolution
pushed back four months, the Supreme Court pushed most other statutory deadlines
back four months but left some deadlines in place, and in so doing created a great
deal of confusion with respect to the adoption, audit, and State approval of financial
documents related to the dissolution. Because of this, the ROPS, which was
intended to take effect January 1 under the original ABx1 26 statutory scheme, now
takes effect April 1 and apparently covers only April, May, and June of 2012. In an
abundance of caution, however, City staff has prepared a ROPS that covers both
that period and the first half of the 2012-2013 fiscal year.
ANALYSIS:
Pursuant to ABx1 26 and the CRA v. Matosantos decision, the Agency ceased
operations and dissolved on February 1 of this year. At that time, the City became
successor agency and is administering the dissolution of the Agency. Under ABx1 26,
the City may make payments only as set forth in the ROPS. The ROPS was intended
by ABx1 26 to cover the period of time from January 1, 2012 through June 30, 2012.
Because of the Matosantos decision and the Court-ordered changes to some, but not
all, statutory deadlines, the ROPS now covers the period April 1, 2012 through June 30,
2012. As this is a very short period of time, and as the ROPS must be audited by the
County of Los Angeles and approved by the successor entity oversight board, City Staff
and the City Attorney's office determined that a ROPS covering the remainder of the
calendar year was advisable.
Adoption of a ROPS that covers the remainder of the fiscal year and the first half of the
next fiscal year will set the stage for later ROPS to be adopted by the City, as successor
entity to the Agency, on a twice-a-year basis -once in the spring to correspond with the
first half of each fiscal year and once in the fall to correspond with the second half. After
adoption, the ROPS will be sent to the County of Los Angeles to be audited and will
then be taken to the oversight board that will be set up to oversee the administration of
the Agency's dissolution, approved by that Board, and used to pay the former Agency's
obligations for the period of the ROPS.
City of Temple City
March 6, 2012
Page 3
The payment schedule provided by Exhibit 1 of Attachment A includes a list of existing
enforceable obligations through December 31, 2012.
CONCLUSION:
ABx1 26 requires the City, acting as successor agency to the former Community
Redevelopment Agency, to adopt a ROPS. The ROPS includes a list of the former
Agency's existing financial obligations through December 31, 2012. -.
Adoption of a recognized obligation payment schedule ensures that the City Council will
be able to continue payment of former Agency obligations through the end of the fiscal
year and the first half of the next fiscal year.
FISCAL IMPACT:
None. The ROPS will allow the City, as the successor to the Agency, to pay the former
Community Redevelopment Agency's existing obligations on an ongoing basis.
Payments will be made from former Agency funds and represent obligations previously
incurred by the former Agency.
ATTACHMENT:
A. Resolution (with amended ROPS)
Attachment A
RESOLUTION NO. 12-4799-SA
A RESOLUTION OF THE CITY OF TEMPLE CITY, ACTING AS SUCCESSOR
AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT
AGENCY, ADOPTING A RECOGNIZED OBLIGATION PAYMENT
SCHEDULE PURSUANT TO SECTION 34169(g) OF THE CALIFORNIA
HEALTH AND SAFETY CODE
WHEREAS, the Temple City Community Redevelopment Agency ("Agency") was
a redevelopment agency organized and existing under the California Community
Redevelopment Law (Health & Safety Code § 33000 et seq.) ("CRL") and formerly was
authorized to transact business and exercise the powers of a redevelopment agency
pursuant to action of the City Council of the City of Temple City ("City Council" or "City,"
as applicable); and
WHEREAS, pursuant to the CRL, the City Council approved and adopted the
Redevelopment Plan ("Redevelopment Plan") for the Rosemead Boulevard
Redevelopment Project on May 16, 1972, by Ordinance No. 72-350, as amended to
date, (the "Project"), and the Agency is vested with the responsibility for implementing
and carrying out the Redevelopment Plan; and
WHEREAS, in connection with approval and adoption of the State Budget for
Fiscal Year 2011-12, the California Legislature approved, and the Governor
signed ABx1 26 (Stats. 2011, chap. 5, "ABx1 26"), which purported to dissolve the
Agency effective October 1, 2011; and
WHEREAS, implementation of ABx1 26 was delayed by the pendency of the
CRA v. Matosantos litigation, which litigation was concluded and a decision of the
California Supreme Court issued on December 29, 2011; and
WHEREAS, the Supreme Court upheld the validity of ABx1 26 but, delayed its
implementation for a period equal to the length of the litigation, setting February 1, 2012
as the date for dissolution of redevelopment agencies and setting substantially all other
short-term statutory deadlines back four months from their original dates; and
WHEREAS, the Agency was dissolved on February 1, 2012, and the City of
Temple City is currently serving as successor agency to the former Agency; and
WHEREAS, under ABx1 26 the City, in its capacity as successor to the now-
dissolved Agency, must adopt a Recognized Obligation Payment Schedule ("ROPS")
twice per year, setting forth the enforceable obligations which it will pay during the six
(6) month period covered by each ROPS; and
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WHEREAS, due to the timing of the Matosantos litigation, the Supreme Court
· delayed most ABx1 26 statutory deadlines by a period of four (4) months, but the City
desires that its ROPS be adopted, audited, and approved in a manner that will
correspond with the two halves of the City's fiscal year; and
WHEREAS, this Recognized Obligation Payment Schedule attached as Exhibit A
includes all obligations of the Agency from April 1, 2012 through December 31, 2012, a
period of eight (8) months but also a period that will allow future ROPS to correspond to
the two halves of the City's fiscal year;
NOW, THEREFORE, THE CITY COUNCIL, ACTING IN ITS CAPACITY AS THE
SUCCESSOR AGENCY TO THE TEMPLE CITY COMMUNITY REDEVELOPMENT
AGENCY, HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS
FOLLOWS:
Section .1. The City Council hereby adopts the Recognized Obligation
Payment Schedule, attached hereto as Exhibit A.
Section 2. The City Clerk is hereby directed to transmit a copy of the
Recognized Obligation Payment Schedule to the County of Los Angeles Auditor
Controller's Office and the Oversight Board for the successor entity to the former
Agency in accordance with Section 34177 of the Health and Safety Code.
Section 3. The City Clerk shall certify to the passage and adoption of this
Resolution.
PASSED, APPROVED AND ADOPTED this 6th day of March, 2012.
Mayor
ATIEST:
City Clerk
OAK #4813-7410-9449 v2 2
I hereby certify that the foregoing Resolution was duly passed and adopted by
the City Council of the City of Temple City at its regular meeting held on the 6th day of
March, 2012, by the following vote of the members:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk
Councilmember-
Councilmember-
Councilmember-
Councilmember-
OAK #4813-7410-9449 v2 3
1)
2)
3)
4)
NAME: Temple Clly Community Redevelopment Agency
PROJECT AREA: Rosemead Boulevard
OTHER OBLIGATIONS I ASSETS
FEBRUARY 2012 DRAFT INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE PREPARED BY CITY OF TEMPLE CITY, AS SUCCESSOR AGENCY
Per AB 26-Section 34169 and 34177•
Payment Total Outstanding Month
Project Name I Debt Obligation Payee Description Source'"'* Debtor
Obligation Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
FY 2011/12 Statutory Pass· City of Temple City Pursuant to HSC 33607.5 (E) $2,450 $2,450 Through Payments"' and 33607.7.
FY 2011112 Statutory Pass· Other Taxing Pursuant to HSC 33607.5 (E) $32,450 $32,450 Through Payments'" Entities and 33607.7.
City of Temple City, Repayment of deferred
FY1985/86-FY1995/96 Housing Fund Deficit Repayment as Successor Housing Fund deposits (E) $753,736 $226,122
Housing Agency pursuant to HSC 33334.6.
City of Temple City,
Housing Bond Proceeds" .. " as Successor (B) $463,738 $463,738
Housing Agency
Total Due
During 2012
Year
$2,450
$32,450
$226,122
$463,738
!~ot!Wri5bliQBiiOris-I I I--I I $724.76o! ____ r ___ I ___ T __ :::J ___ I I $724,760(
• The draft Initial ROPS must be prepared by the Successor Agency by 3/1/11, subject to certification of an external auditor and approval of the Oversight Board.
" Payment Sources [CAL §34177 (1)(1]: (A) Low and Moderate Income Housing Fund, (B) Bond proceeds, (C) Reserved balances, (D) Administrative cost allowance, (E) Redevelopment Property Tax Trust Fund, (F) Other revenue sources including rents, concessions,
asset sale proceeds, Interest earnings, and any other revenues derived from the fanner Redevelopment Agency, as approved by the Oversight Board.
"'Estimated for FY 2011/12 based on 50% of projected FY 2011/12 tax increment revenues (the 1st remittance portion only). The remaining pass through obligations for FY 2011/12 are assumed to be made by the County Auditor-Controller's Office .
.... Unspent bond proceeds obligated by the 2005 TAB Covenants are to be spent on affordable housing (proceeds are housing assets, and must be transferred to the City of Temple City, as the Successor Housing Agency) •
.... , Transfer to the Successor Housing Agency if SB 654 or AB 1585 are enacted.