| | | | | | | | Agenda Item - 4.b.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles, Director
| From: | Lisa L. Kim
| | Dept.: |
| Dept.: | Economic Development
| | Subject: | Adoption of a Resolution approving the Amended Recognized Obligation Payment Schedule (ROPS 17-18B). (Action Item) | Date: | 9/20/2017 |
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| | | | | | | | OBJECTIVE
The purpose of this report is to request that the Oversight Board adopt a Resolution approving the Amended Recognized Obligation Payment Schedule for the 17-18 B period of January 1, 2018 to June 30, 2018 (“ROPS 17-18 B”), subject to review and approval by the Oversight Board and the State Department of Finance (“DOF”). |
| | | | | | | | BACKGROUND
The Successor Agency to the Garden Grove Agency for Community Development (“Successor Agency”) is performing its functions under the Dissolution Law, Parts 1.8 and 1.85 of the Health and Safety Code, as amended by Assembly Bill 1484 and other subsequent legislation including Senate Bill 107 (“SB 107”) (together, “Dissolution Law”), to administer the enforceable obligations and wind-down activities of the former Agency, all subject to the review and approval by an Oversight Board.
SB 107 modified the ROPS process and establishes an annual ROPS starting with ROPS 16-17 and provides for a one time amendment to annual ROPS. The ROPS is “the document setting forth the minimum payment amounts and due dates of payments required by enforceable obligations for each fiscal year as provided in subdivision (o) of Section 34177.”
Under the Dissolution Law, the Successor Agency may consider an amendment to ROPS 17-18 covering the B period of January 1, 2018 to June 30, 2018, and the Amended ROPS 17-18 B must be submitted to the DOF no later than October 1, 2017.
An amendment to ROPS 17-18 has been prepared to carryover Redevelopment Property Tax Trust Fund (“RTTPF”) from the A period to the B period for certain Line Items. The amended Line Items on ROPS 17-18 B are detailed as follows.
1. Line Item #9 – Coastline Lease Payments, increase budget by $132,699. Unanticipated allowable expenses incurred during calendar year 2016 were submitted for payment in April 2017 subsequent to ROPS 17-18 being submitted to the DOF for approval.
The table below highlights the proposed amendment to the A and B periods in ROPS 17-18 that would increase $132,699 into the B period from the Redevelopment Property Tax Trust Fund (“RPTTF”).
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Approved B Period
(1/1/18-6/30/18)
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$12,923,611
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Amended B Period
(1/1/18-6/30/18)
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$13,056,310
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| | | | | | | | FINANCIAL IMPACT
None until approved by the DOF. If the DOF approves the Amended ROPS as submitted, the Successor Agency will increase its previously authorized ROPS 17-18 B distribution amount of $12,923,611 to $13,056,310, a difference of $132,699 for the period of January 1, 2018 to June 30, 2018, to pay the Successor Agency’s enforceable obligations. |
| | | | | | | | RECOMMENDATION
It is recommended that the Oversight Board:
- Adopt the attached Resolution approving Amended ROPS 17-18 B for the period of January 1, 2018 to June 30, 2018, subject to submittal to and review by the State Department of Finance, and authorizing posting and transmittal of the Amended ROPS. Further, the Community and Economic Development Director and her designees, in consultation with legal counsel, shall be authorized to make augmentations, modifications, additions or revisions as may be necessary or directed by DOF.
By: Monica L. Covarrubias, Project Manager
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