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Resolution Number SACRA 23-01-17-011 1/17/2023 SACRA RESOLUTION NO. 23-01-17-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE SAN JUAN CAPISTRANO REDEVELOPMENT AGENCY ADOPTING AN ANNUAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD FROM JULY 1, 2023, THROUGH JUNE 30, 2024 WHEREAS, the San Juan Capistrano Community Redevelopment Agency (“Agency”) was a community redevelopment agency duly organized and existing under the California Community Redevelopment Law, Health & Safety Code Section 33000, et seq., which was authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council (“City Council”) of the City of San Juan Capistrano (“City”); and, WHEREAS, Assembly Bill X1 26 added Parts 1.8 and 1.85 to Division 24 of the California Health & Safety Code, which laws cause the dissolution and wind down of all redevelopment agencies (“Dissolution Act”); and, WHEREAS, on December 29, 2011, in the petition California Redevelopment Association v. Matosantos, Case No. S194861, the California Supreme Court upheld the Dissolution Act and thereby all redevelopment agencies in California were dissolved as of and on February 1, 2012, under the dates in the Dissolution Act that were reformed and extended thereby; and, WHEREAS, the Agency is now a dissolved redevelopment agency pursuant to the Dissolution Act; and, WHEREAS, by a resolution considered and approved by the City Council at an open public meeting the City chose to become and serve as the successor agency to the dissolved Agency under the Dissolution Act; and, WHEREAS, as of and on and after February 1, 2012, the City Council serves and acts as the “Successor Agency” and will perform its functions as the successor agency under the Dissolution Act to administer the enforceable obligations of the Agency and otherwise unwind the Agency’s affairs, which are now subject to review and approval by the Orange Countywide Oversight Board (“Oversight Board”); and, WHEREAS, Assembly Bill 1484, enacted on December 27, 2012, made certain amendments to the Dissolution Act, including with respect to the process for adopting Recognized Obligation Payment Schedules; and, WHEREAS, pursuant to Section 34171(h) of the Dissolution Act, a “Recognized Obligation Payment Schedule" means the document setting forth the minimum payment amounts and due dates of payments required by enforceable obligations for each six- month fiscal period as provided in subdivisions (l) and (m) of Section 34177 of the Dissolution Act; and, 2 1/17/2023 WHEREAS, pursuant to subdivision (o) (1) of Section 34177, for each period from July 1 to June 30, the Successor Agency is required to submit an annual ROPS to the State Department of Finance and the County Auditor-Controller no later than February 1, of each year; and, WHEREAS, pursuant to subdivisions (l), (m) and (o) (1) of Section 34177 of the Dissolution Act, staff of the City, acting on behalf of the Successor Agency, has prepared the annual Recognized Obligation Payment Schedule for the period covering July 1, 2023, through June 30, 2024 (ROPS 23-24), in the form attached to this Resolution as Exhibit A and incorporated herein by this reference; and, WHEREAS, pursuant to Section 34177(l)(2)(B) of the Dissolution Act, staff of the City, acting on behalf of the Successor Agency, is required to provide notice of the Oversight Board’s consideration of the ROPS 23-24, along with the ROPS and the staff report submitted to the Oversight Board, to the County Administrative Officer, the Orange County Auditor-Controller, and the State Department of Finance, concurrently with the posting of the Agenda for the Oversight Board’s consideration of the ROPS 23-24; and, WHEREAS, the Successor Agency now desires to approve the ROPS 23-24, ratify all actions taken by City staff to prepare the ROPS 23-24, and transmit the ROPS 23-24 to the Oversight Board for its consideration. NOW, THEREFORE, BE IT RESOLVED BY THE SUCCESSOR AGENCY OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY: Section 1. The foregoing Recitals are incorporated into this Resolution by this reference, and constitute a material part of this Resolution. Section 2. The Successor Agency hereby approves the ROPS 23-24 in the form attached to this Resolution as Exhibit A, which is incorporated herein by this reference. Section 3. The Successor Agency hereby authorizes the Executive Director and/or the Finance Officer, acting on behalf of the Successor Agency, or their authorized designees, to make such augmentations, modifications, additions or revisions as they may deem appropriate. Section 4. The Executive Director or his authorized designees are directed to transmit the approved ROPS to the Oversight Board, the County Administrative Officer, the County Auditor-Controller, the State Controller’s Office, and the State Department of Finance, and to cause the approved ROPS to be posted on the City’s website, all in accordance with Section 34177(l)(2)(B) and (C) of the Dissolution Act, and take other actions necessary to obtain approval of the ROPS from the Oversight Board and the State Department of Finance. Section 5. This Resolution shall take effect immediately upon adoption. Section 6. The Secretary shall certify to the adoption of this Resolution. 3 1/17/2023 PASSED, APPROVED and ADOPTED this 17TH day of January 2023. SERGIO FARIAS, CHAIR ATTEST: __________________________________ MARIA MORRIS, AGENCY SECRETARY STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, MARIA MORRIS, appointed Agency Secretary of the Board of Directors of the Successor Agency to the San Juan Capistrano Community Redevelopment Agency, do hereby certify that the foregoing Resolution No. SACRA 23-01-17-01 was duly adopted by the City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the 17th day of January 17, 2023, by the following vote: AYES: BOARD MEMBERS: Campbell, Taylor, Hart, and Chair Farias NOES: BOARD MEMBERS: None ABSENT: BOARD MEMBERS: Vice-Chair Bourne __________________________________ MARIA MORRIS, AGENCY SECRETARY Recognized Obligation Payment Schedule (ROPS 23-24) - Summary Filed for the July 1, 2023 through June 30, 2024 Period Successor Agency: San Juan Capistrano County: Orange Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 23-24A Total (July - December) 23-24B Total (January - June) ROPS 23-24 Total A Enforceable Obligations Funded as Follows (B+C+D) $ -$ 947,205 $ 947,205 B Bond Proceeds -947,205 947,205 C Reserve Balance -- - D Other Funds -- - E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 284,929 $ 1,634,740 $ 1,919,669 F RPTTF 200,000 1,549,812 1,749,812 G Administrative RPTTF 84,929 84,928 169,857 H Current Period Enforceable Obligations (A+E) $ 284,929 $ 2,581,945 $ 2,866,874 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 EXHIBIT A - Page 1 of 4 San Juan Capistrano Recognized Obligation Payment Schedule (ROPS 23-24) - ROPS Detail July 1, 2023 through June 30, 2024 A B C D E F G H I J K L M N O P Q R S T U V W Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date Payee Description Project Area Total Outstanding Obligation Retired ROPS 23-24 Total ROPS 23-24A (Jul - Dec) 23-24A Total ROPS 23-24B (Jan - Jun) 23-24B Total Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF $28,014,345 $2,866,874 $- $- $- $200,000 $84,929 $284,929 $947,205 $- $- $1,549,812 $84,928 $2,581,945 3 2008 Tax Allocation Bonds, Series A Bonds Issued On or Before 12/31/10 06/03/ 2008 08/01/2033 U.S. Bank, N.A. Finance Agency Projects in the Central Project Area consistent with the Redevelopment Plan Central 6,945,010 N $645,298 - - - - - $- - - - 645,298 - $645,298 4 2008 Tax Allocation Bonds, Series B (Taxable) Bonds Issued On or Before 12/31/10 06/03/ 2008 08/01/2033 U.S. Bank, N.A. Finance Agency Affordable Housing Projects Central 10,146,896 N $947,205 - - - - - $- 947,205 - - - - $947,205 9 Agreement- TCAG Ford OPA/DDA/ Construction 10/19/ 2010 03/01/2036 Tuttle Click Automotive Group (TCAG, Inc.) Elimination of Blight/Business Retention Central 375,647 N $300,000 - - - 200,000 - $200,000 - - - 100,000 - $100,000 28 Administrative Cost Allowance Admin Costs 07/01/ 2014 07/12/2036 City of San Juan Capistrano 3% allowance for administrative costs incurred. Central 2,377,998 N $169,857 - - - - 84,929 $84,929 - - - - 84,928 $84,928 52 Costs associated with selling properties (appraisals, surveys, etc.) Property Dispositions 09/27/ 2016 09/27/2017 DMG, Inc. Appraisal of properties that are to be sold and the proceeds distributed to the taxing entities Central - N $- - - - - - $- - - - - - $- 53 2018 Tax Allocation Refunding Bonds Refunding Bonds Issued After 6/27/12 08/23/ 2018 02/01/2033 U.S. Bank, N.A. Principal payment on refunding bonds to refinance Kinoshita notes 8,168,794 N $804,514 - - - - - $- - - - 804,514 - $804,514 EXHIBIT A - Page 2 of 4 San Juan Capistrano Recognized Obligation Payment Schedule (ROPS 23-24) - Report of Cash Balances July 1, 2020 through June 30, 2021 (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 ROPS 20-21 Cash Balances (07/01/20 - 06/30/21) Fund Sources Comments Bond Proceeds Reserve Balance Other Funds RPTTF Bonds issued on or before 12/31/10 Bonds issued on or after 01/01/11 Prior ROPS RPTTF and Reserve Balances retained for future period(s) Rent, grants, interest, etc. Non-Admin and Admin 1 Beginning Available Cash Balance (Actual 07/01/20) RPTTF amount should exclude "A" period distribution amount. 10,631,112 40,119 721,831 G: $40,119 of Other Funds designated for 21-22. H: $233,725 for 17-18 PPA, $223,362 for 18-19 PPA, and $264,744 for 19-20 PPA 2 Revenue/Income (Actual 06/30/21) RPTTF amount should tie to the ROPS 20-21 total distribution from the County Auditor-Controller 3,988,856 G: No Other Revenue detected in analysis H: RPTTF Revenue (20-21A and 20-21B RPTTF Distribution) 3 Expenditures for ROPS 20-21 Enforceable Obligations (Actual 06/30/21) 8,476,499 4,027,740 Total actual expenditures (RPTTF and Admin RPTTF) minus bond proceeds (cell C3) 4 Retention of Available Cash Balance (Actual 06/30/21) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 2,154,613 40,119 488,106 G: $40,119 of Other Funds retained for use in 21-22. H: $223,362 for 18-19 PPA and $264,744 for 19-20 PPA 5 ROPS 20-21 RPTTF Prior Period Adjustment RPTTF amount should tie to the Agency's ROPS 20-21 PPA form submitted to the CAC No entry required 194,841 H: 20-21 PPA 6 Ending Actual Available Cash Balance (06/30/21) C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5) $- $- $- $- $- EXHIBIT A - Page 3 of 4 San Juan Capistrano Recognized Obligation Payment Schedule (ROPS 23-24) - Notes July 1, 2023 through June 30, 2024 Item # Notes/Comments 3 The total obligation outstanding includes all principal and interest expected to be outstanding at June 30, 2023. 4 The total obligation outstanding includes all principal and interest expected to be outstanding at June 30, 2023. 9 The total obligation outstanding includes all principal and interest expected to be outstanding at June 30, 2023. 28 Staff time and other administrative costs (estimated to be incurred for this ROPS period) provided pursuant to the Agreement for the Reimbursement of Costs approved by the Oversight Board on May 2, 2012, (Resolution 12-05-02-01). The agreement continues until services are no longer needed. Therefore, the actual termination date is unknown. For the purpose of this ROPS, the Total Outstanding Obligation has been estimated as follows: ROPS 23-24 requested amount ($169,857) multiplied by the remaining number of years until the time limit on the Agency's ability to repay indebtedness in 2036. The actual administrative costs during this time will vary. 52 Costs associated with selling property formerly owned by the CRA that are paid outside of escrow. The proceeds of sale were distributed to the taxing entities. 53 The total obligation outstanding includes all principal and interest expected to be outstanding at June 30, 2023. EXHIBIT A - Page 4 of 4