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Agenda Item 2.

Oversight Board Successor Agency

Meeting Date:	01/23/2018
FROM:	David Crabtree

Subject:

Resolutions approving the Fiscal Year 2018-2019 Recognized Obligation Payment Schedule (ROPS 18-19) and the Administrative Budgets.

RECOMMENDATION

Adopt Resolutions OB 2018-01 and OB 2018-02 approving the Fiscal Year 2018-2019 Recognized Obligation Payment Schedule (ROPS 18-19) and the Administrative Budgets.

BACKGROUND

The Dissolution Act, as amended by Senate Bill 107, now requires that oversight boards of successor agencies to former redevelopment agencies review and adopt the Recognized Obligation Payment Schedule (ROPS) and Administrative Budgets once every year via resolution.

DISCUSSION

The ROPS currently before the Oversight Board covers the period of July 1, 2018 to June 30, 2019. This is the twelfth ROPS to be prepared and submitted to the Department of Finance (DOF). The completed forms attached to the resolutions include:

Summary of ROPS 18-19
Report of Cash Balances
ROPS 18-19 Detail
ROPS 18-19 Optional Notes
Administrative Budgets

New items on this ROPS include:

2011A Bond Proceeds Funding Agreement
2017 Successor Agency Project Area AB Tax Allocation Refunding Bonds, Series A and B

The 2011A Bond Proceeds Funding Agreement is being presented in a separate staff report.

During November 2017, the Successor Agency issued 2017 Project Area AB Tax Allocation Refunding Bonds, Series A and B and are reflected on ROPS 18-19 as new item numbers 62 through 65. These refunding bonds refinanced the former Redevelopment Agency 2011 Project Area AB Tax Allocation Bonds, Series A and B and were reported on ROPS 17-18 as item numbers 7, 8, 16 and 17 and noted as retired.

The Administrative Budgets show the breakdown of costs to be incurred by the City of Brea for the operation of the Successor Agency. Per the legislation, these costs will be reimbursed by the Successor Agency. While costs have continued to drop, it is projected that staffing costs will experience a significant drop once the Last and Final ROPS is approved by DOF. This is anticipated to happen during Fiscal Year 2017-18. Staff believes the recommended budgeted amount is realistic. The goal continues to be to complete the wind down process as expeditiously and cost effectively as possible. Any savings realized beyond the budget projections will be captured in future Reports of Prior Period Adjustments, which is part of the ROPS process. Due to the transition to a one year ROPS, there is no Prior Period Adjustment form in this ROPS.

The Oversight Board is asked to review ROPS 18-19 and the Successor Agency Administrative Budgets and to adopt resolutions approving both documents. Per the legislation, the approved documents will be posted on the City's website and submitted to the DOF, the County Auditor-Controller, and the State Controller. The deadline for submitting the Oversight Board approved ROPS 18-19 to DOF is February 1, 2018.

FISCAL IMPACT

Adopting the ROPS 18-19 and Administrative Budgets for ROPS 18-19A period and 18-19B period is a required step in winding down the former Brea Redevelopment Agency, which includes completing contractual obligations and projects which are currently underway, as well as following a number of state required steps to conclude the activities of the former agency.

SIGNATURE BLOCK

Respectfully submitted: David Crabtree, Community Development Director
Prepared by: Lee Squire, Financial Services Manager/Accounting
Concurrence: Kathie DeRobbio, Economic Development Manager

Attachments
Resolution OB 2018-01
Exhibit A ROPS 18-19
OB Resolution 2018-02