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HomeMy WebLinkAbout2025-01-14 - AGENDA REPORTS - FY 2025 26 RECOGNIZED OBLIGATION PAYMENTSO Agenda Item: 8 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: Lj ' DATE: January 14, 2025 SUBJECT: FISCAL YEAR 2025-26 RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR SUBMITTAL TO THE DEPARTMENT OF FINANCE DEPARTMENT: Administrative Services PRESENTER: Brittany Houston RECOMMENDED ACTION City Council acting as the Successor Agency to the former Redevelopment Agency adopt a resolution approving the Fiscal Year 2025-26 Recognized Obligation Payments Schedule for submittal to the Department of Finance. BACKGROUND The Redevelopment Agency (RDA) of the City of Santa Clarita (City) was activated by the City Council on November 28, 1989, pursuant to the Community Redevelopment Law. At the time of its establishment, the City Council declared itself to be the governing board of the RDA. As a result of AB X1 26 and the decision of the State Supreme Court, as of February 1, 2012, all redevelopment agencies in the state, including the City's RDA, were dissolved, and successor agencies were designated as successor entities to the former redevelopment agencies to expeditiously wind down the affairs of the former redevelopment agencies. On January 24, 2012, pursuant to Resolution 12-3 and Section 34173 of the Dissolution Act, the City Council elected to serve as the successor agency to the RDA. Section 34173(g) of the Dissolution Act, added by AB 1484, expressly affirms that the Successor Agency is a separate public entity from the City, that the two entities will not merge, and that the liabilities of the RDA will not be transferred to the City nor will the assets of the RDA become assets of the City. The Dissolution Act requires successor agencies to prepare a Recognized Obligation Payment Schedule (ROPS) detailing the enforceable obligations of the successor agency and the source of funds to be used to pay for each enforceable obligation. Pursuant to Health and Safety Code (HSC) Section 34177 (o)(1), commencing with the ROPS covering the period July 1, 2016, to June 30, 2017, and thereafter, successor agencies shall submit an Oversight Board approved Page 1 Packet Pg. 46 O annual ROPS to the Department of Finance and the County Auditor -Controller by February 1, 2016, and each February 1 thereafter. During the January 2021 Los Angeles County Fifth Supervisory District Consolidated Oversight Board Meeting, the Oversight Board requested the City Council acting as the Successor Agency to the former Redevelopment Agency (Successor Agency Board) approve the annual ROPS in addition to the Oversight Board. Upon Successor Agency and Oversight Board approval of the Fiscal Year 2025-26 ROPS, the ROPS will be submitted to the Department of Finance and County Auditor -Controller to allow the Successor Agency to pay for enforceable obligations totaling $4,971,191 as outlined in the ROPS; debt service ($3,787,316); debt related expenses ($5,556) and loan repayment to the City ($1,178,320). With the estimated loan repayment to the City of $1,178,320, the Successor Agency's outstanding loan balance as of June 30, 2026, is anticipated to be $12,914,480. ALTERNATIVE ACTION No alternative action recommended, as an approved ROPS is a requirement of the Department of Finance. FISCAL IMPACT Approval will allow the Successor Agency to pay for enforceable obligations totaling $4,971,191 as outlined in the ROPS: debt service ($3,787,316), debt related expenses ($5,556), and loan repayment to the City ($1,178,320). ATTACHMENTS Resolution Page 2 Packet Pg. 47 8.a RESOLUTION SA 25- RESOLUTION OF THE GOVERNING BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE FISCAL YEAR 2025-26 RECOGNIZED OBLIGATION PAYMENTS SCHEDULE (ROPS) WHEREAS, pursuant to AB X1 26, enacted on June 28, 2011, and as subsequently El amended by AB 1484, SB 341, and SB 107 (Dissolution Act), the Redevelopment Agency to the 0 City of Santa Clarita was dissolved as of February 1, 2012, and the City of Santa Clarita elected z to serve as the Successor Agency to the former Redevelopment Agency to the City of Santa Q Clarita; and 0° 0 WHEREAS, pursuant to Health and Safety Code Section 34179 (q), commencing on and 0 after July 1, 2018, the County of Los Angeles, where more than 40 oversight boards were created by the Dissolution Act, shall have five consolidated oversight boards each encompassing the five supervisorial districts; and m WHEREAS, the Fifth Supervisorial District Consolidated Oversight Board (5th District Consolidated Oversight Board) has jurisdiction over the Successor Agency of the Former Redevelopment Agency to the City of Santa Clarita; and WHEREAS, the Governing Board of the Successor Agency to the Redevelopment Agency of the City of Santa Clarita held a regular meeting on January 14, 2025. NOW, THEREFORE, the Governing Board of the Successor Agency to the Redevelopment Agency of the City of Santa Clarita, California, does hereby resolve as follows SECTION 1. The Governing Board of the Successor Agency to the Redevelopment Agency of the City of Santa Clarita hereby approves the Successor Agency's Recognized Obligation Payment Schedule (ROPS), attached hereto as Exhibit A. SECTION 2. The Secretary of the Successor Agency to the Redevelopment Agency of the City of Santa Clarita 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. Page 1 of 2 Packet Pg. 48 8.a PASSED, APPROVED, AND ADOPTED this 14th day of January 2025. CHAIR LL ATTEST: O 0 0 z Q m O O SECRETARY ~ J Q H H DATE: S STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, Secretary of the Successor Agency to the Redevelopment Agency of the City of Santa Clarita do hereby certify that the foregoing Resolution No. SA 25- was duly adopted by the Governing Board of the Successor Agency to the Redevelopment Agency of the City of Santa Clarita at a regular meeting thereof, held on the 14th day of January 2025, by the following vote: AYES: BOARDMEMBERS: NOES: BOARDMEMBERS: ABSENT: BOARDMEMBERS: SECRETARY Page 2 of 2 Packet Pg. 49 Exhibit A 8.a Recognized Obligation Payment Schedule (ROPS 25-26) - Summary Filed for the July 1, 2025 through June 30, 2026 Period Successor Agency: Santa Clarita County: Los Angeles Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 25-26A Total 25-26B Total ROPS 25-26 (July - (January - Total December) June) U- A Enforceable Obligations Funded as Follows (B+C+D) $ 1,627,271 $ 8,827 $ 1,636,098 0 B Bond Proceeds 0 Z Q - - C Reserve Balance 1,627,271 - 1,627,271 m O D Other Funds - 8,827 8,827 O E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 1,181,599 $ 2,153,495 $ 3,335,094 Q F RPTTF 1,181,599 2,153,495 3,335,094 G Administrative RPTTF - - m M H Current Period Enforceable Obligations (A+E) $ 2,808,870 $ 2,162,322 $ 4,971,192 cn 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. Lr- O LL a O N Name Title Lo N 0 N w /s/ 0 Signature Dat( a a Q 0 :a _ 0 a� a� E Q Packet Pg. 50 8.a Santa Clarita Recognized Obligation Payment Schedule (ROPS 25-26) - ROPS Detail July 1, 2025 through June 30, 2026 A B C D E F G H I J K L M I N 1 O P Q R I S I T I U V W ROPS 25-26A (Jul - Dec) ROPS 25-26B (Jan - Jun) Item Obligation Agreement Agreement Project Total ROPS 25-26A 25-26B Fund Sources Fund Sources # project Name Type Execution Termination Payee Description Area Outstanding Retired 25-26 Total Total Date Date Obligation Total Bond Reserve Other RPTTF Admin Bond Reserve Other RPTTF Admin Proceeds Balance Funds RPTTF Proceeds Balance Funds RPTTF $49,391,544 $4,971,192 $- $1,627,271 $- $1,181,599 $- $2,808,870 $- $- $8,827 $2,153,495 $- 2,162,322 46 Reinstatement City/County 02/24/ 07/08/2043 City of Repayment of Newhall 12,914,480 N $1,178,320 1,178,320 $1,178,320 - $- of loans made Loan (Prior 2015 Santa loans made to by the City to 06/28/11), Clarita former RDA by the former Cash the City of RDA exchange Santa Clarita. 52 Series 2017 Refunding 02/02/ 10/01/2042 Bank of Advance 36,471,508 N $3,787,316 1,627,271 1 $1,627,272 8,827 2,151,217 $2,160,044 Tax Allocation Bonds 2017 New York Refunded: 1) Refunding Issued After Tax Allocation Bonds 6/27/12 Bonds Series 2008(bonds issued to fund redevelopment projects) and 2) Housing Set -Aside Tax Allocation Bonds Series 2008(bonds issued to fund low and moderate income housing projects and programs) 53 Annual Professional 07/01/ 06/30/2026 Bank of Bonds issued 2,000 N $2,000 $- 2,000 $2,000 Trustee Fee Services 2025 New York to fund for Series redevelopment 2017 Tax projects and Allocation low and Bond moderate income housing projects and programs 54 Continuing Professional 07/01/ 06/30/2026 Digital Continuing 278 N $278 $- 278 $278 Disclosure/ Services 2025 Assurance disclosure/ Post Issuance Certification post issuance Compliance LLC compliance for Series 2017 Tax Allocation Refunding Bonds Packet Pg. 51 8.a A B C D E F G H I J K L M I N 1 O P Q R I S I T I U V W ROPS 25-26A (Jul - Dec) ROPS 25-26B (Jan - Jun) Item Obligation Agreement Agreement Project Total ROPS 25-26A 25-26B Fund Sources Fund Sources # project Name Type Execution Termination Payee Description Area Outstanding Retired 25-26 Total Total Date Date Obligation Total Bond Reserve Other RPTTF Admin Bond Reserve Other RPTTF Admin Proceeds Balance Funds RPTTF Proceeds Balance Funds RPTTF 55 Auditing Fees 07/01/ 06/30/2026 The Pun Auditing 3,278 N $3,278 3,278 - $3,278 $- Services 2025 Group, LLP services for Fiscal Year 2024-2025. Packet Pg. 52 8.a Santa Clarita Recognized Obligation Payment Schedule (ROPS 25-26) - Report of Cash Balances July 1, 2022 through June 30, 2023 (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 Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Prior ROPS ROPS 22-23 Cash Balances RPTTF and Comments (07/01/22 - 06/30/23) Bonds issued Bonds issued Reserve Rent, grants, Non-Admin on or before on or after Balances retained interest, etc. and Admin 12/31/10 01/01/11 for future period(s) 1 Beginning Available Cash Balance (Actual 07/01/22) 892,575 10,165 "E1: Figure should match reserve on 22-23 RPTTF amount should exclude "A" period distribution ROPS . F1: Prior year cash balance. G1: 19/ amount. 20 PPA ROPS 22-23:$2,010 20/21 PPA ROPS 23-24: $455 21/22 PPA ROPS 24-25: $7,700" 2 Revenue/Income (Actual 06/30/23) 8,827 3,609,350 72: Should match current year interest RPTTF amount should tie to the ROPS 22-23 total income. G2: Should match 22-23A distribution from the County Auditor -Controller ($1,452,668) +22-23B ($2,156,682) Distribution." 3 Expenditures for ROPS 22-23 Enforceable Obligations 892,575 6,020 2,036,548 This line matches 22-23 PPA Form actuals, (Actual 06/30/23) LESS reserve of $1,572,647.12 (which is included in G4 line). 4 Retention of Available Cash Balance (Actual 06/30/23) 2,807 1,580,802 "G4: $1,572,647.12 Reserve 23/24 ROPS 20/ RPTTF amount retained should only include the amounts 21 PPA ROPS 23-24:$455; 21/22 PPA ROPS distributed as reserve for future period(s) 24-25:$7,700" 5 ROPS 22-23 RPTTF Prior Period Adjustment No entry required 2,165 RPTTF amount should tie to the Agency's ROPS 22-23 PPA form submitted to the CAC Packet Pg. 53 Cn a. O N N N 0 N LL LL w O M a. a. 8.a 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 Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Prior ROPS ROPS 22-23 Cash Balances RPTTF and Comments (07/01/22 - 06/30/23) Bonds issued Bonds issued Reserve Rent, grants, Non-Admin on or before on or after Balances retained interest, etc. and Admin 12/31/10 01/01/11 for future period(s) 6 Ending Actual Available Cash Balance (06/30/23) $- $- $- $- $- C toF=(1+2-3-4),G=(1+2-3-4-5) Packet Pg. 54 Cn a. O a N N N O N } LL W O M a. a. 8.a Santa Clarita Recognized Obligation Payment Schedule (ROPS 25-26) - Notes July 1, 2025 through June 30, 2026 Item # Notes/Comments 46 :Amount was calculated using Loan Repayment Calculator based on ROPS 24-25A and ROPS 24-25B :Actual Residuals. 24-25A residual: $1,994,426.07 24-25B residual: $362,212.93 Total: $ / 2 = $1,178,320 ..................................:........................................................................................................................................................................................................................................................................................................................................................... 52 Debt service for calendar year 2026 is claimed on the 25-26B ROPS to comply with the bond covenant: Page 18 of the Official Statement states: "...the Successor Agency has covenanted to :submit an Oversight Board approved Recognized Obligation Payment Schedule to the State Department of Finance and to the County Auditor -Controller, which shall include all scheduled interest, principal and mandatory sinking fund payments that are due and payable on all Bonds and Parity Bonds of the Successor Agency during the next ensuing calendar year, together with any amount required to replenish the Reserve Fund, and any amounts due and owing to the Insurer under the Indenture." 53 ..................................:........................................................................................................................................................................................................................................................................................................................................................... 54 55 E O 0 0 z Q m O O J Q m U) W O LL a O N LO N O N LL W O a a Q Packet Pg. 55