Oversight Board for the RDA Successor Agency Meeting

OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY REGULAR MEETING AGENDA January 26, 2024 @ 11:00 a.m. Wastewater Treatment Facility Conference Room 210 Battery Street Crescent City, California 95531 CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL PUBLIC COMMENT PERIOD CONSENT CALENDAR 1. Meeting Minutes • Recommendation: Approve the January 18, 2023 meeting minutes of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Crescent City NEW BUSINESS 2. Approve a Recognized Obligation Payment Schedule for the Period July 1, 2024 through June 30, 2025 • Recommendation: Hear staff report • Receive public comment • Consider and adopt Resolution OB2024-01, A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(I) FOR THE PERIOD JULY 1, 2024 THROUGH JUNE 30, 2025. ➢ Finance Director Report – brief update from the Finance Director on matters pertaining to the Oversight Board. ADJOURNMENT Adjourn to the next scheduled meeting on July 17, 2024 at 2:00 p.m. in the Wastewater Treatment Facility Conference Room, 210 Battery Street, Crescent City, CA 95531 POSTED: January 24, 2024 /s/ Robin Altman, Secretary to the Board  OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY REGULAR MEETING MINUTES January 18, 2023 @ 2:00 p.m. Wastewater Treatment Facility Conference Room 210 Battery Street Crescent City, California 95531 CALL TO ORDER Chair Greenough called the meeting to order at 2:04 p.m. PLEDGE OF ALLEGIANCE Led by Chair Greenough ROLL CALL Board Members present: Board Member Chris Howard, Board Member Eric Wier, Vice-Chair Jeff Harris and Chair Jason Greenough Board Members absent: Board Member Ericka Barber and Board Member Brian Stone Staff Members present: Finance Director Linda Leaver and City Clerk/Administrative Analyst Robin Altman PUBLIC COMMENT PERIOD – There were no members of the public in attendance and no public comment submitted for this meeting. CONSENT CALENDAR - None NEW BUSINESS 1. Approval of a Recognized Obligation Payment Schedule Pursuant to Health and Safety Code Section 34177(1) for the Period July 1, 2023 through June 30, 2024 • Recommendation: Hear staff report • Receive public comment • Adopt Resolution OB2023-01, A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(I) FOR THE PERIOD JULY 1, 2023 THROUGH JUNE 30, 2024. Finance Director Leaver gave a brief overview on how the funds will be spent on the obligations. Vice-Chair Harris asked how much money was left; Director Leaver stated there is $570 in the fund. Chair Greenough asked when the funds would be completely dispersed; Director Leaver stated it will be five years from now. On a motion by Board Member Howard, seconded by Board Member Wier, and carried Oversight Board Minutes January 19, 2022 on a 4-0 polled vote with Board Members Barber and Stone being absent, the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Crescent City approved a Recognized Obligation Payment Schedule pursuant to Health and Safety Code Section 34177(1) for the period July 1, 2023 through June 30, 2024 ➢ Finance Director Report – brief update from the Finance Director on matters pertaining to the Oversight Board ADJOURNMENT There being no further business to come before the Oversight Board, Chair Greenough adjourned the meeting at 2:09 p.m. to the next scheduled meeting on July 18, 2023 at 2:00 p.m. at the Wastewater Treatment Facility, 210 Battery Street, Crescent City, CA 95531 ATTEST: __________________________ Robin Altman, Secretary to the Board 2  OVERSIGHT BOARD AGENDA REPORT TO: CHAIR AND MEMBERS OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY FROM: LINDA LEAVER, FINANCE DIRECTOR (CITY OF CRESCENT CITY) DATE: JANUARY 26, 2024 SUBJECT: APPROVE A RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD JULY 1, 2024 THROUGH JUNE 30, 2025 RECOMMENDATION • Consider and adopt Resolution OB2024-01, A Resolution of the Oversight Board of the Successor Agency to the Dissolved Redevelopment Agency of the City of Crescent City Approving a Recognized Obligation Payment Schedule (ROPS) Pursuant to Health and Safety Code Section 34177(I) for the period July 1, 2024 through June 30, 2025 BACKGROUND Pursuant to Health and Safety Code Section 34172, the Redevelopment Agency of the City of Crescent City was dissolved as of February 1, 2012. The City of Crescent City (“RDA Successor Agency”) is the successor agency of the Redevelopment Agency, and pursuant to Health and Safety Code Section 34173(g), the RDA Successor Agency is now a separate legal entity from the City. The sole purpose of the Successor Agency is to wind down (close out) the affairs of the former RDA. This involves disposing of all assets and paying off all enforceable obligations. The Successor Agency has sold or transferred all real property owned by the former RDA in accordance with the Long Range Property Management Plan, and all outstanding notes receivable have been collected and disbursed to the taxing entities as required by State regulation. The only remaining business of the Successor Agency is to pay off the enforceable obligations, of which only one remains outstanding (Water Fund loan). These obligations are paid off over time, through the annual approval of a Recognized Obligation Payment Schedule (ROPS). Through the ROPS process, the Successor Agency estimates its own resources available (if any) to pay the obligations and requests additional funding from the Redevelopment Property Tax Trust Fund (RPTTF) as available. The total amount the Successor Agency is allowed to pay out each year is based on a formula and the actual amount changes Oversight Board Staff Report ROPS 24-25 January 17, 2024 from year to year. The Successor Agency utilizes the maximum amount allowed under the formula to make payments on any outstanding loans. The Oversight Board is responsible for approving the actions of the RDA Successor Agency pursuant to Health and Safety Code Section 34179, including approval of the ROPS each year. The Successor Agency reviewed and approved the attached ROPS at its December 18, 2023 meeting by way of Resolution No. SA2023-02. After the Successor Agency approves the ROPS, the Oversight Board must review and approve the ROPS before it is submitted to the State Department of Finance and the County Auditor. The ROPS must be submitted by February 1, 2024. At the Successor Agency’s meeting, the final amounts for current year RPTTF were not yet known. The formula which determines the available funding for the ROPS 24-25 loan repayment is based on current year RPTTF, so an estimate was used. The Successor Agency approved the ROPS 24-25 and included direction to staff to update the amount available to make loan payments for the ROPS 24-25 if such information became available prior to the meeting of the Oversight Board. That information was subsequently provided by the County, and the ROPS 24-25 attached to this report has been updated. ANALYSIS Attached is the ROPS for the period July 1, 2024 through June 30, 2025. It is organized into the following sections as required by the California Department of Finance: Recognized Obligation Payment Schedule (ROPS 24-25) – Summary and Detail This report shows the estimated amounts to be expended and the funding source for those amounts. The Successor Agency has two potential sources of funding to make payments on recognized obligations and to cover administrative costs: • Existing assets / fund balance • Redevelopment Property Tax Trust Fund (RPTTF) Of these amounts, the Successor Agency is required to use its assets first and then may apply for RPTTF to cover any shortfall to make approved payments toward recognized obligations. RPTTF is collected by the County and distributed to taxing entities pursuant to Health and Safety Code Section 34183. The remaining amount (called the residual) is potentially available to fund Successor Agency obligations. However, the Successor Agency may only request up to 50% of the difference between the projected residual and the actual residual from the base year 2012-13. The proposed ROPS 24-25 estimates $165,419 will be available to make recognized obligation payments (toward the Water Fund loan) plus a request of $5,000 for admin 2 Oversight Board Staff Report ROPS 24-25 January 17, 2024 costs, for a total ROPS of $170,419. The Successor Agency is not expected to have funds remaining, so the entire amount is requested from RPTTF. After the ROPS 24-25 is submitted to the State Department of Finance, the DOF will perform its own review and calculations. If the State’s amounts differ from the ROPS, the DOF will adjust the ROPS amount. If the State adjusts the ROPS amounts, the Successor Agency will adjust the payment accordingly and no additional action will be required from the Successor Agency or the Oversight Board. Cash Balance Report The Report of Cash Balances tracks Successor Agency cash flow and ending balances across several ROPS periods. This form helps provide transparency over the continual estimation and tax distribution true-up processes embedded in the State dissolution law. FISCAL IMPACT The ROPS 24-25 would authorize the Successor Agency to request $170,419 in RPTTF funds for a loan payment of $165,419 plus $5,000 for administrative costs. This is in accordance with the purpose of the Successor Agency, which is to wind down the affairs of the former Redevelopment Agency and pay its enforceable obligations. Due to the timing of when RPTTF information is available compared to the deadline for ROPS submission, the amounts provided are based on estimate. If necessary, the DOF will make adjustments to the ROPS when final RPTTF amounts are known. At this time, the Water Fund loan (the only remaining item for the Successor Agency) is estimated to be paid off in FY 28-29. ATTACHMENTS • Resolution No. OB2024-01 • ROPS 24-25 3  OVERSIGHT BOARD RESOLUTION NO. OB2024-01 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(l) WHEREAS, pursuant to Health and Safety Code Section 34173(d), the City of Crescent City (“RDA Successor Agency”) is the successor agency to the dissolved Redevelopment Agency of the City of Crescent City (“Agency”), confirmed by Resolution No. 2012-03 adopted on January 17, 2012, and pursuant to Health and Safety Code Section 34173(g), the RDA Successor Agency is now a separate legal entity from the City; and WHEREAS, Health and Safety Code Section 34179(a) provides that each successor agency shall have an Oversight Board composed of seven members; and WHEREAS, the Oversight Board is the RDA Successor Agency’s oversight board pursuant to Health and Safety Code Section 34179(a); and WHEREAS, Health and Safety Code Section 34177 requires the RDA Successor Agency to prepare a “recognized obligation payment schedule” (“ROPS 24-25”) for the period of July 1, 2024 through June 30, 2025, listing outstanding obligations of the Agency to be performed by the RDA Successor Agency; and WHEREAS, Health and Safety Code Section 34177(l)(2) requires the RDA Successor Agency to submit the ROPS to the California Department of Finance (DOF), State Controller’s Office and County of Del Norte Auditor-Controller; and WHEREAS, Health and Safety Code Section 34180(g) requires the Oversight Board to approve the RDA Successor Agency’s establishment of the ROPS; and WHEREAS, Health and Safety Code Section 34177(m) requires that the ROPS 24-25 must be submitted to the DOF and the County Auditor-Controller by February 1, 2024, and the DOF shall make its determination of the enforceable obligations and the amounts and funding sources of the enforceable obligations no later than April 15, 2024; NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. SECTION 2. CEQA Compliance. The approval of the ROPS 24-25 through this Resolution does not commit the Oversight Board to any action that may have a significant Oversight Board Resolution No. OB2024-01 effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act. SECTION 3. Approval of the ROPS. The Oversight Board hereby approves and adopts the ROPS 24-25, in substantially the form attached to this Resolution as Exhibit A, pursuant to Health and Safety Code Section 34177. SECTION 4. Implementation. The Oversight Board hereby directs the RDA Successor Agency to submit copies of the ROPS approved by the Oversight Board to the County of Del Norte Auditor-Controller, the State of California Controller and the State of California Department of Finance after the effective date of this Resolution and by no later than February 1, 2024, and to post the ROPS on the RDA Successor Agency’s website. SECTION 5. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Oversight Board declares that the Oversight Board would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. SECTION 6. Certification. The City Clerk of the City of Crescent City, acting on behalf of the Oversight Board as its Secretary, shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED by the Oversight Board of the Successor Agency to the dissolved Redevelopment Agency of the City of Crescent City this 17th day of January 2024, by the following vote: AYES: NOES: ABSTAIN: ABSENT: _____________________________ Chairperson ATTEST: _______________________________ Robin Altman, Secretary to the Board Page 2 Oversight Board Resolution No. OB2024-01 EXHIBIT A RECOGNIZED OBLIGATION PAYMENT SCHEDULE 24-25 [Attached behind this page]  Recognized Obligation Payment Schedule (ROPS 24-25) - Summary Filed for the July 1, 2024 through June 30, 2025 Period Successor Agency: Crescent City County: Del Norte 24-25A Total 24-25B Total Current Period Requested Funding for Enforceable ROPS 24-25 (July - (January - Obligations (ROPS Detail) Total December) June) A Enforceable Obligations Funded as Follows (B+C+D) $ - $ - $ - B Bond Proceeds - - - C Reserve Balance - - - D Other Funds - - - E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 170,419 $ - $ 170,419 F RPTTF 165,419 - 165,419 G Administrative RPTTF 5,000 - 5,000 H Current Period Enforceable Obligations (A+E) $ 170,419 $ - $ 170,419 Certification of Oversight Board Chairman: Name Title 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. /s/ Signature Date  Crescent City Recognized Obligation Payment Schedule (ROPS 24-25) - ROPS Detail July 1, 2024 through June 30, 2025 A B C D E F G H I J K L M N O P Q R S T U V W ROPS 24-25A (Jul - Dec) ROPS 24-25B (Jan - Jun) Agreement Agreement Total ROPS Item Obligation Project Fund Sources 24-25A Fund Sources 24-25B Project Name Execution Termination Payee Description Outstanding Retired 24-25 # Type Area Bond Reserve Other Admin Total Bond Reserve Other Admin Total Date Date Obligation Total RPTTF RPTTF Proceeds Balance Funds RPTTF Proceeds Balance Funds RPTTF $457,525 $170,419 $- $- $- $165,419 $5,000 $170,419 $- $- $- $- $- $- 1 Water Fund City/County 01/01/ 06/30/2032 City of Debt to fund RDA 1 412,525 N $165,419 - - - 165,419 - $165,419 - - - - - $- Loan * Loan (Prior 1996 Crescent non-housing &2 06/28/11), City Water projects Other Utility 7 Administrative Admin Costs 07/01/ 06/30/2030 City of Administrative RDA 45,000 N $5,000 - - - - 5,000 $5,000 - - - - - $- allowance 2016 Crescent allowance 1&2 City  Crescent City Recognized Obligation Payment Schedule (ROPS 24-25) - Report of Cash Balances July 1, 2021 through June 30, 2022 (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177 (l), 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 21-22 Cash Balances RPTTF and Bonds issued Bonds issued Comments (07/01/21 - 06/30/22) 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 07/01/21) 100,365 - Corrected beginning balance RPTTF amount should exclude "A" period distribution amount. 2 Revenue/Income (Actual 06/30/22) (1,499) - RPTTF amount should tie to the ROPS 21-22 total distribution from the County Auditor-Controller 3 Expenditures for ROPS 21-22 Enforceable Obligations 28,139 - (Actual 06/30/22) 4 Retention of Available Cash Balance (Actual 06/30/22) 63,000 Amount used in 22-23 RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 5 ROPS 21-22 RPTTF Prior Period Adjustment No entry required RPTTF amount should tie to the Agency's ROPS 21-22 PPA form submitted to the CAC 6 Ending Actual Available Cash Balance (06/30/22) $- $- $- $7,727 $- C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)  Crescent City Recognized Obligation Payment Schedule (ROPS 24-25) - Notes July 1, 2024 through June 30, 2025 Item # Notes/Comments 1 7