Oversight Board of the Successor Agency to the Redevelopment Agency

OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY REGULAR MEETING AGENDA January 15, 2025 @ 2:00 p.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 and adopt the January 26, 2024 meeting minutes of the Oversight Board of the Successor Agency to the Redevelopment Agency of Crescent City NEW BUSINESS 2. Approve a Recognized Obligation Payment Schedule for the Period July 1, 2025 through June 30, 2026 • Recommendation: Hear staff report • Receive public comment • Consider and adopt Resolution OB2025-01, 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, 2025 THROUGH JUNE 30, 2026. ➢ 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 16, 2025 at 2:00 p.m. in the Wastewater Treatment Facility Conference Room, 210 Battery Street, Crescent City, CA 95531 POSTED: January 9, 2025 /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 26, 2024 CALL TO ORDER Chairman Greenough called the meeting to order at 11:00 a.m. PLEDGE OF ALLEGIANCE led by Chairman Greenough ROLL CALL Board Members present: Board Member Jeff Harris, Board Member Darrin Short, Board Member Eric Wier, and Chairman Jason Greenough Board Members absent: Board Member Ericka Barber and Board Member Brian Stone Staff members absent: Finance Director Linda Leaver and Secretary to the Board Robin Altman PUBLIC COMMENT PERIOD There were no comments from the public. 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 There were no comments from the public on the consent calendar. On a motion by Board Member Wier, seconded by Board Member Harris, and carried on a 4-0 polled vote with Board Member Barber and Board Member Stone being absent, the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Crescent City approved 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 Oversight Board Minutes January 26, 2024 THROUGH JUNE 30, 2025. Board Member Wier stated that the purpose of this item is to wind down the funds from the Successor Agency to the Dissolved Redevelopment Agency of the City of Crescent City. He stated this is done on an annual basis to adopt the Recognized Obligation Schedule. This year there is $170,419 for the Successor Agency to pay off those obligations. There is one outstanding loan to the City’s Water Fund and some for admin. There is $5k for admin, which leaves $165,419 to be paid to the City to pay off that obligation. Once that is paid off, the remaining balance is $247k with the Water Fund, the estimate is for the pay off to be FY 28/29 and the RDA will completely dissolved at that point. Board Member Short made an initial motion that was erroneously made on the resolution from the minutes, instead of the agenda. On an amended motion by Board Member Short, seconded by Board Member Harris, and carried 4-0 with Board Member Barber and Board Member Stone being absent, the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Crescent City approved 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 – Board Member Wier stated that the obligation is being close to being paid off, therefore once it is done, there will be no need for the Oversight Board. Chairman Greenough asked if due to Housing Set Aside Funds, would there still be a need for the Oversight Board; Board Member Wier stated that is a City Council action, not for the Oversight Board since the City has control over those funds. ADJOURNMENT There being no further business to come before the Board, Chairman Greenough adjourned the meeting at 11.08 a.m. 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 ATTEST: _____________________________ Robin Altman, Secretary to the Board Minutes taken from the audio of the meeting 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 15, 2025 SUBJECT: APPROVE A RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD JULY 1, 2025 THROUGH JUNE 30, 2026 RECOMMENDATION • Consider and adopt Resolution OB2025-01, 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, 2025 THROUGH JUNE 30, 2026 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 25-26 January 15, 2025 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 is scheduled to review and approve the attached ROPS at its January 13, 2025 meeting by way of Resolution No. SA2025-01. 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, 2025. ANALYSIS Attached is the ROPS for the period July 1, 2025 through June 30, 2026. It is organized into the following sections as required by the California Department of Finance: Recognized Obligation Payment Schedule (ROPS 25-26) – 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 25-26 estimates $89,244 will be available to make recognized obligation payments (toward the Water Fund loan). The Successor Agency is not expected to have funds remaining, so the entire amount is requested from RPTTF. After the ROPS 25-26 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. 2 Oversight Board Staff Report ROPS 25-26 January 15, 2025 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 25-26 would authorize the Successor Agency to request $89,244 in RPTTF funds, all of which will be used to make a payment on the Water Fund loan. 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 estimates. If necessary, the DOF will make adjustments to the ROPS when final RPTTF amounts are known. The total amount to be repaid each year will depend on the RPTTF residual, which fluctuates from year to year. Prior estimates for the payoff of this final loan show the last payment in 2029, although this could change depending on actual RPTTF amounts available each year. ATTACHMENTS • Resolution No. OB2025-01 • ROPS 25-26 3  OVERSIGHT BOARD RESOLUTION NO. OB2025-01 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 25-26”) for the period of July 1, 2025 through June 30, 2026, 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 25-26 must be submitted to the DOF and the County Auditor-Controller by February 1, 2025, 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, 2025; 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 25-26 through this Resolution does not commit the Oversight Board to any action that may have a significant effect Oversight Board Resolution No. OB2025-01 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 25-26, 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, 2025, 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 15th day of January 2025, by the following vote: AYES: NOES: ABSTAIN: ABSENT: _____________________________ Chairperson ATTEST: _______________________________ Robin Altman, Secretary to the Board Page 2 Oversight Board Resolution No. OB2025-01 EXHIBIT A RECOGNIZED OBLIGATION PAYMENT SCHEDULE 25-26 [Attached behind this page]  Recognized Obligation Payment Schedule (ROPS 25-26) - Summary Filed for the July 1, 2025 through June 30, 2026 Period Successor Agency: Crescent City County: Del Norte 25-26A 25-26B ROPS Requested Funding for Obligations Total Total Total Obligations Funded as A - - - Follows (B+C+D) B Bond Proceeds - - - C Reserve Balance - - - D Other Funds - - - Redevelopment Property Tax Trust E 89,244 - 89,244 Fund (RPTTF) (F+G) F RPTTF 89,244 - 89,244 G Administrative RPTTF - - - H Current Period Obligations (A+E) 89,244 - 89,244 Certification of Oversight Board Chairman: Name Title Pursuant to Section 31477 (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. Signature Date  ROPS 25-26A (Jul-Dec) ROPS 25-26B (Jan-June) Fund Sources Fund Sources Agreement Agreement Total Obligation Execution Termination Outstanding ROPS 25- 25-26 A 25-26 B Item # Name Obligation Type Date Date Payee Description Obligation Retired 26 Total Bonds Reserves Other RPTTF Admin Total Bonds Reserves Other RPTTF Admin Total City/County Loan Water Fund (Prior 06/28/11), City of Crescent Debt to fund non- 319,844 N 89,244 89,244 89,244 0 1 Loan * Other 1/1/1996 6/30/2032 City Water Utility housing projects  July 1, 2022 through June 30, 2023 (Report Amounts in Whole Dollars) A B C D E F G H ROPS 22-23 Cash Balances Fund Sources (07/01/22 - 06/30/23) Bond Proceeds Reserve Balance Other Funds RPTTF Prior ROPS RPTTF and Rent, Non-Admin Comments Bonds issued on or Bonds issued on or after Reserve Balances Grants, and before 12/31/10 01/01/11 retained for future Interest, etc. Admin 1 Beginning Available Cash Balance (Actual 07/01/22) 70,498 1,874 Adjusted to reflect actual cash RPTTF amount should exclude "A" period distribution amount 2 Revenue/Income (Actual 06/30/23) 2,368 87,000 RPTTF amount should tie to the ROPS 22-23 total distribution from the County Auditor-Controller 3 Expenditures for ROPS 22-23 Enforceable Obligations (Actual 06/30/23) 63,000 87,000 4 Retention of Available Cash Balance (Actual 06/30/23) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 5 ROPS 22-23 RPTTF Prior Period Adjustment Certification of Oversight Board Chairman: 6 Ending Actual Available Cash Balance (06/30/23) 0 0 0 9,866 1,874 C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)