| | | | | | | | Agenda Item - 2.a.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Lisa L. Kim
| | Dept.: | Director
| Dept.: | Community & Economic Development
| | Subject: | Adoption of a Resolution approving the Amended Recognized Obligation Payment Schedule (ROPS 20-21 B). (Action Item) | Date: | 9/8/2020 |
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| | | | | | | | OBJECTIVE
The purpose of this report is to request the Successor Agency to the Garden Grove Agency for Community Development (“Successor Agency”) adopt a Resolution approving the Amended Recognized Obligation Payment Schedule for the 20-21 B period of January 1, 2021 to June 30, 2021 (“ROPS 20-21 B”), subject to review and approval by the Countywide Oversight Board and the State Department of Finance (“DOF”).
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| | | | | | | | BACKGROUND
The Successor Agency is performing its functions under Parts 1.8 and 1.85 of the California 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 established 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 20-21 covering the B period of January 1, 2021 to June 30, 2021, and the Amended ROPS 20-21 B must be submitted to the DOF no later than October 1, 2020. |
| | | | | | | | DISCUSSION
An amendment to ROPS 20-21 has been prepared to increase Redevelopment Property Tax Trust Fund (“RPTTF”) funding for the B period for one Line Item. The amended Line Item on ROPS 20-21 B is detailed as follows.
- Line Item #6 - Katella Cottages OPA, increase RPTTF budget by $700. Allowable expenses incurred during ROPS 19-20 B, were over the approved budgeted amount by $700 and paid in ROPS 20-21.
The $700 represents higher property taxes than originally estimated in calculating the financial assistance to the project. The table below highlights the proposed amendment to the B period in ROPS 20-21 that would increase the B period budget by $700.00 from the Redevelopment Property Tax Trust Fund (“RPTTF”).
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Approved B Period
(1/1/21-6/30/21)
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$ 6,799,515
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Amended B Period
(1/1/21 - 6/30/21)
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$ 6,800,215
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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 20-21 B distribution amount of $6,799,515 to $6,800,215 a difference of $700.00 in RPTTF funds for the period of January 1, 2021 to June 30, 2021, to pay the Successor Agency’s enforceable obligations. |
| | | | | | | | RECOMMENDATION
It is recommended that the Successor Agency:
- Adopt the attached Resolution approving Amended ROPS 20-21 B for the period of January 1, 2021 to June 30, 2021, subject to the submittal to and review by the Countywide Oversight Board and then by the State Department of Finance; and
- Authorize posting and transmittal of the ROPS. Further, the Assistant City Manager and 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 Department of Finance.
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