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HomeMy WebLinkAbout08.D- Successor Agency 8.D RESOLUTION (ID # 3710) DOC ID: 3710 CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Budget From: Lisa Connor M/CC Meeting Date: 02/17/2015 Prepared by: Lisa Connor, (909) 663- 1044 Dept: Successor Agency Ward(s): All Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Acting as the Successor Agency to the Redevelopment Agency of the City of San Bernardino Approving Recognized Obligation Payment Schedule 14-15B for the Period of January through June 2015 and Approving Certain Related Actions. (#3710) Current Business Registration Certificate: Not Applicable Financial Impact: On December 26, 2014, the County Auditor-Controller issued the Successor Agency a check in the amount of$15,617,533, which was all of the RPTTF then available to the Successor Agency for ROPS 14-15B. In addition to available RPTTF, the Successor Agency is also able to apply $4,973,836 of additional funding, which consists of: i) $3,472,094 of prior period adjustment-based RPTTF; ii) $1,352,627 of other funds (i.e., rental income); and iii) $149,115 of third-party funds (i.e., debt service contributions from third parties). Therefore, the sum of RPTTF and other funds available for use during ROPS 14-15B equals $20,591,369, which is sufficient to fund the Successor Agency's enforceable obligations during the period of January through June 2015. Consistent with the immediately foregoing recital, staff has prepared the Successor Agency's plan use of ROPS 14-15B resources, as depicted in Exhibit "C" to the attached Resolution. Motion: Adopt the Resolution. Synopsis of Previous Council Action: None. Background Pursuant to Health and Safety Code ("HSC") § 34172 (a)(1), the Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 2012. Consistent with the provisions of the HSC, on January 9, 2012 the Mayor and Common Council of the City of San Bernardino elected to serve in the capacity of the Successor Agency to the Redevelopment Agency of the City of San Bernardino ("Successor Agency"). The Oversight Board for the Successor Agency ("Oversight Board") has been established pursuant to HSC § 34179 to assist in the wind-down of the dissolved redevelopment agency. Per HSC § 34177 (1)(1), the Successor Agency is required to prepare a Recognized Updated: 2/10/2015 by Linda Sutherland I Packet Pg. 608 8.D 3710 Obligation Payment Schedule ("ROPS") before each six-month fiscal period, which corresponds to equal halves of a fiscal year (i.e., January through June and July through December). A ROPS is the basis for the Successor Agency's authority to make payments due for enforceable obligations ("EOs"). Each ROPS must also be approved by the Oversight Board and is reviewable by the County Auditor-Controller, the County Administrative Officer, the California Department of Finance ("DOF") and the California State Controller's Office. On September 22, 2014, the Oversight Board adopted Resolution SBOB/2014-07, approving ROPS 14-15B. The ROPS 14-15B, which is appended to the attached Resolution as Exhibit "A"; included $21,971,482-worth of EOs (i.e., $20,469,740-worth to be funded with RPTTF [i.e., Redevelopment Property Tax Trust Fund, formerly tax increment], $1,352,627-worth to be funded from other funds [i.e., rental income], and $149,115-worth to be provided from third-party funds [i.e., debt service contributions from third parties]). Over an ten (10) week period following the filing of ROPS 14-15B, Successor Agency representatives responded to DOF staff inquiries, provided them with supporting information, participated in several conference call meetings and participated in a meet and confer meeting with DOF staff. On December 17, 2014, the DOF issued their final determination letter, which is appended to the attached Resolution as Exhibit "B". The DOF's December 17, 2014 letter: i) denied a portion of three (3) EOs worth $1,294,705 (i.e., EO Nos. 95, 113 and 114 - certain school district prior period pass through payments); ii) reassigned two (2) EOs worth $45,211 to other funding; iii) denied $40,197 of the requested administrative allowance; iv) applied $1,519,467 of prior period adjustments; and v) authorized the distribution of $17,570,160 of RPTTF to the Successor Agency, of which $566,009 represents the administrative allowance. The attached Resolution has been reviewed with respect to applicability of the California Environmental Quality Act (the "CEQA"), the State CEQA Guidelines (California Code of Regulations, Title 14, §§ 15000 et seq., hereafter the "Guidelines"), and the City's environmental guidelines. Therefore, the Resolution is not a "project" for purposes of CEQA, as that term is defined by Guidelines § 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per § 15378(b)(5) of the Guidelines. Fiscal Impact: On December 26, 2014, the County Auditor-Controller issued the Successor Agency a check in the amount of $15,617,533, which was all of the RPTTF then available to the Successor Agency for ROPS 14-15B. In addition to available RPTTF, the Successor Agency is also able to apply $4,973,836 of additional funding, which consists of: i) $3,472,094 of prior period adjustment-based RPTTF; ii) $1,352,627 of other funds (i.e., rental income); and iii) $149,115 of third-party funds (i.e., debt service contributions from third parties). Therefore, the sum of RPTTF and other funds available for use during ROPS 14-15B equals $20,591,369, which is sufficient to fund the Successor Agency's enforceable obligations during the period of January through June 2015. Updated: 2/10/2015 by Linda Sutherland I Packet Pg. 609 8.D 3710 Consistent with the immediately foregoing recital, staff has prepared the Successor Agency's plan use of ROPS 14-15B resources, as depicted in Exhibit "C" to the attached Resolution. City Attorney Review: Supporting Documents: Reso - ROPS 14-15B Payment Schedule (DOC) EXH A - ROPS 14-15B San Bernardino City v1 9 OS Board Approved Version (2) (PDF) EXH B-ROPS 14-15B DOF Determination Ltr 12-17-14 (2) (PDF) EXH C- ROPS 14-15B Proposed Funding Use Plan V1 1 (2) (PDF) Updated: 2/10/2015 by Linda Sutherland Packet Pg. 610 On3 I RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO m 4 APPROVING RECOGNIZED OBLIGATION PAYMENT SCHEDULE 14-15B v FOR THE PERIOD OF JANUARY THROUGH JUNE 2015 AND 5 APPROVING CERTAIN RELATED ACTIONS. o W 6 WHEREAS, pursuant to Health and Safety Code (the "HSC") § 34172 (a)(1),the 0 7 Redevelopment Agency of the City of San Bernardino was dissolved February 1,2012; and 8 WHEREAS, consistent with the provisions of the HSC, on January 9, 2012 the Mayor and = d 9 Common Council of the City of San Bernardino elected to serve in the capacity of the Successor IL 10 Agency to the Redevelopment Agency of the City of San Bernardino (the "Successor Agency"); and c .2 11 WHEREAS, the Oversight Board for the Successor Agency (the "Oversight Board") has 2 Z O 12 been established pursuant to HSC § 34179 to assist in the wind-down of the dissolved a N 13 redevelopment agency; and o 14 WHEREAS, per HSC § 34177 (1)(1), the Successor Agency is required to prepare a W 15 Recognized Obligation Payment Schedule (the "ROPS")before each six-month fiscal period, which M 16 corresponds to equal halves of a fiscal year(i.e., January through June and July through December); d 17 V and = 18 N WHEREAS, a ROPS is the basis for the Successor Agency's authority to make payments = a� 19 due for enforceable obligations (the"EOs"); and a 20 WHEREAS, each ROPS must also be approved by the Oversight Board and is reviewable m LO T 21 by the County Auditor-Controller, the County Administrative Officer, the California Department of 22 Finance("DOF") and the California State Controller's Office; and 0 23 WHEREAS, on September 22, 2014, the Oversight Board adopted Resolution d 24 S BOB/2014-07, approving ROPS 14-15B; and c d 25 WHEREAS, the ROPS 14-15B, which is appended to this Resolution as Exhibit "A"; E 26 included $21,971,482-worth of EOs (i.e., $20,469,740-worth to be funded with RPTTF [i.e., Q 27 Redevelopment Property Tax Trust Fund, formerly tax increment], $1,352,627-worth to be funded 28 1 Packet Pg:.611 ', 1 from other funds [i.e., rental income], and $149,115-worth to be provided from third-party funds 2 [i.e., debt service contributions from third parties]); and 3 WHEREAS, over a ten (10) week period following the filing of ROPS 14-15B, Successor m LO T 4 Agency representatives responded to DOF staff inquiries, provided them with supporting v 5 information, participated in several conference call meetings and participated in a meet and confer o 6 meeting with DOF staff, and d 7 WHEREAS, on December 17, 2014, the DOF issued their final determination letter, which d Cn 8 is appended to this Resolution as Exhibit`B"; and = as 9 WHEREAS, the DOF's December 17, 2014 letter: i) denied a portion of three (3) EOs a 10 worth $1,294,705 (i.e., EO Nos. 95, 113 and 114 — certain school district prior period pass through c .2 11 payments); ii) reassigned two (2) EOS worth $45,211 to other funding; iii) denied $40,197 of the P 12 requested administrative allowance; iv) applied $1,519,467 of prior period adjustments; and v) d N 13 authorized the distribution of$17,570,160 of RPTTF to the Successor Agency, of which $566,009 0 14 represents the administrative allowance; and 15 WHEREAS, on December 26, 2014, the County Auditor-Controller issued the Successor ° M_ 16 Agency a check in the amount of $15,617,533, which was all of the RPTTF then available to the 17 Successor Agency for ROPS 14-1513; and Cn 18 WHEREAS, in addition to available RPTTF, the Successor Agency is also able to apply c m 19 $4,973,836 of additional funding, which consists of: i) $3,472,094 of prior period adjustment-based a 20 RPTTF; ii) $1,352,627 of other funds (i.e., rental income); and iii) $149,115 of third-party funds m LO T 21 (i.e., debt service contributions from third parties); and v r Cn 22 WHEREAS, therefore, the sum of RPTTF and other funds available for use during ROPS 0 23 14-15B equals $20,591,369, which is sufficient to fund the Successor Agency's enforceable N IX d 24 obligations during the period of January through June 2015; and c d 25 WHEREAS, consistent with the immediately foregoing recital, staff has prepared the s 26 Successor Agency's plan use of ROPS 14-15B resources, as depicted in Exhibit "C" to this 27 Resolution; and 28 2 Packet Pg:612,' , �8Dax } 1 WHEREAS, this Resolution has been reviewed with respect to applicability of the 2 California Environmental Quality Act (the "CEQA"), the State CEQA Guidelines (California Code 3 of Regulations, Title 14, §§ 15000 et seq., hereafter the "Guidelines"), and the City's environmental m 4 guidelines; and 4 5 WHEREAS, this Resolution is not a "project" for purposes of CEQA, as that term is 0. 6 defined by Guidelines § 15378, because this Resolution is an organizational or administrative 7 activity that will not result in a direct or indirect physical change in the environment, per § 8 15378(b)(5) of the Guidelines; and N c d 9 WHEREAS, all of the prerequisites with respect to the approval of this Resolution have CL 10 been met. c r 11 NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the P M 12 Redevelopment Agency of the City of San Bernardino, as follows: m N 13 Section 1. The foregoing recitals are true and correct and are a substantive part of this r, 0 14 Resolution. 15 Section 2. The Successor Agency's ROPS 14-15B for the period of January through ° ti M 16 June 2014, which is attached hereto as Exhibit "A", is approved, inclusive of each enforceable 17 obligation. 18 Section 3. The Successor Agency's plan for the use of ROPS 14-15B resources, which is o d 19 attached hereto as Exhibit"C", is approved. , R a. 20 Section 4. The City Manager, as Executive Director of the Successor Agency, or m LO 21 designee, is hereby authorized and directed to: i) implement ROPS 14-15B on behalf of the U) 22 Successor Agency; ii) implement the Successor Agency's plan for the use ROPS 14-15B resources; 0 23 and iii) take such necessary actions and execute such documents as are necessary to effectuate the o d 24 intent of this Resolution, inclusive of authorizing ministerial revisions to the Successor Agency's 25 plan for use of ROPS 14-15B resources. 26 Section 5. This Resolution is not a "project" for purposes of CEQA, as that term is Q 27 defined by Guidelines § 15378, because this Resolution is an organizational or administrative 28 3 = Packet Pg.-613 8Da 1 activity that will not result in a direct or indirect physical change in the environment, per § 2 15378(b)(5) of the Guidelines. 3 Section 6. This Resolution shall take effect upon its adoption and execution in the m LO r 4 manner as required by the City Charter. v 5 a. 6 3 7 d s U CO 8 d 9 �, a 10 0 w 11 /// M 12 /// a 0 N 13 a� 0 U 14 15 ti M 16 17 U 18 /// N _ (D 19 /// ;, �o a. 20 /// m 21 22 p 23 d 24 r c 25 /// E U 26 27 28 4 Packet P..g 614` 8Da I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE 2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 3 APPROVING RECOGNIZED OBLIGATION PAYMENT SCHEDULE 14-15B _ FOR THE PERIOD OF JANUARY THROUGH JUNE 2015 AND m 4 APPROVING CERTAIN RELATED ACTIONS (#3710) co 5 a I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Successor Agency 6 w to the Redevelopment Agency of the City of San Bernardino, at a meeting thereof, held on the 171h 7 day of February, 2015,by the following vote,to wit: in 8 = d E 9 Council Members Ayes Nays Abstain Absent a 10 MARQUEZ `o r 11 BARRIOS a2 12 VALDIVIA 0 d 13 SHORETT "- 14 NICKEL d 15 JOHNSON o MULVIHILL 16 17 as 18 Georgeann Hanna, City Clerk N a► 19 The foregoing Resolution is hereby approved this 171h day of February 2015. a 20 m tn T- 21 W 22 R. Carey Davis, Chairman D- 0 Successor Agency to the 23 Redevelopment Agency of the N City of San Bernardino 0:24 Approved as to Form: 25 Gary D. Saenz , City Attorney s 26 w By: Q 27 28 5 Packet.Pg 615 8.D.a 1 EXHIBIT "A" 2 3 SUCCESSOR AGENCY TO THE _ REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO m U) 4 RECOGNIZED OBLIGATION PAYMENT SCHEDULE 14-15B 4 (January through June 2014) 5 a. (See Attachment) 6 7 a d t U 8 _ 9 ;, a 10 0 11 M 12 0 CD N 13 0 14 15 ° ti M 16 17 a s U 18 U) _ d 19 a 20 m LO T 21 22 N0 Id. 23 0 N 24 a� 25 E 26 w w a 27 28 6 Packet Pg. 616 8.D.a 1 EXHIBIT "B" 2 3 DECEMBER 17, 2014 LETTER _ FROM THE m Lo 4 CALIFORNIA DEPARTMENT OF FINANCE 4 5 (See Attachment) Co 6 7 Q U 8 r _ QD 9 ;, CL 10 0 11 � s 12 0 Q N 13 0 U 14 15 ° M 16 17 U 18 N _ 19 >% M a. 20 m Ln 21 22 0 23 0 N d 24 w a� 25 E U 26 r Q 27 28 7 Packet Pg. 617 8.D.a 1 EXHIBIT "C" 2 3 THE SUCCESSOR AGENCY'S PLAN _ FOR USE OF ROPS 14-15B RESOURCES m 4 (JANUARY THROUGH JUNE 2014) 5 (See Attachment) 0 6 7 d U 8 V) C 9 ;, t4 a. 10 a 11 03 z 12 m N 13 0 14 15 ° ti M 16 17 a� 18 `� a� 19 ;, o: 20 m LO T 21 II^ V! 22 p 23 0 N d 24 _ a� 25 E 26 w Q 27 28 8 Packet Pg. 618 8.D.b m v d N w 7 CO 1- V '7 ... f r- h IQ N C n � A n n N a ~ M <D 0 10 N O) Of O O L o O f0 I� 0 h 10 0 t0 C ip 'O O of N Q7 V N C, V V N N N v r N N N R H H A S U N c E R a c C m m E 0, - c a 7 c cm 'O U) m o d LL C_ C N_ D = c 0 LL c LL O m d lL N N D u) 9 y 7 O y NN C d 0 IL i 0' a n O M w w LL d IL E ° c K c L a N O O O c Z U E E a d t Y Z= C 2 `0 > > o a o m to o o a y y ' 0 a o c N 0 c d d d a d _ t0 7 E � _rn d v E U E p' m rn U Q a � o p C O < m c v OI — O t0 O d 'O Q c d Q c C m > C C 'O '0 E '0 'O d N m O d M d 7 d O C O c d 'a LL E 3 o m v o d LL W d LL d LL U O c _QI O T 01 5 H + W LL 9 .0 W a .p T U d m d U E o a = < v LL Q LL d ° (If m O °c p Z m c a o a m T z o LL a CO N C @ 7 M a L O C a L 0m 00 d a O O U. d LL d t0 > '6 U O o -p a` v m d c"0 U c c rn m o m p d a a -0 a E x m c d m m 7T d 1 LL r LL j0 O LL LL d W D O R' LL m Y �2 y o Cl) E 9 C c _ y y O 0 'G U .0 C d p r N 0 IO N E , d O Um C m) d 0 d v a U w c d W m y 0 + adi m p .� v a o m o a o s c a r Q d U U m c m o d O O d rnv m U O P a +m d d N '� T d a U 0 d a V 'y M y U7 y d R Z U O y 9 O N>O(O C N a U O O d O C O 7 L T c T d U O O U y Q p 0 p c 0 c 7 C y 'D j C c O U a a W U) W o W W O O y o O Q= 0 >' U N T X d d C E E Q m U O W LL (� S — Y 0 .� Z O N °i W �0 N > > O d O d C Z Z U fQ U UaLO d E 0 U t0 Q Packet Pg.619 -N ° 8.D.b °a 1°-E:NUNmi v . ro a a « _ cli cli o^' x Iq a NS� a VRV NmV mp o $ 8 m Z a� W E m L w F cw € a zmm" - U V d C Y v O Z A m� r�� a c 0 a - - z z z z z z z z z z z z z z z z z z z z >> > z �`z z z" O k rn e °' o° m y m ? o Oo N h - 4 '- N _ C m - cav�m6 v v m _ Y ° O Im m o Ili 0 y Z Z Z U Z m M Z U U Z a^ o u Nm v>iyv>U U-m a u U Oa, m0° a UU U�U�U� a�cUi_v v o c U U U ¢ > 7 a a Y4 O ' y UU UKU KU mU O 1- UoH a U U K U U J U J L L. 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BROWN JR. - SOVERNOR C4LfFUR��P F•r N A N C E 91 5 L STREET ■ SACRAMENTO CA ■ 95B 1 4-370r. 10 WWW.0OF.CA.G0V m to T 4 r EL O December 17, 2014 a� a� U Mr. Jim Morris, City Manager's Assistant San Bernardino City a 300 North D Street, 6th Floor ;, San Bernardino, CA 94218 a C 0 Dear Mr. Morris: LM Subject: Recognized Obligation Payment Schedule o This letter supersedes the California Department of Finance's (Finance) Recognized Obligation N Payment Schedule (BOPS) letter dated November 14, 2014. Pursuant to Health and Safety ai Code (HSC) section 341.77 (m), the San Bernardino City Successor Agency(Agency) submitted a Recognized Obligation Payment Schedule (RODS 14-15B) to Finance on October 1, 2014, for the period of January through June 2015. Finance issued a RODS determination letter on o November 14, 2014. Subsequently, the Agency requested a Meet and Confer session on one M or more of the items denied by Finance. The Meet and Confer session was held on -� December 1, 2014. T Based on a review of additional information and documentation provided to Finance during the Meet and Confer process, Finance has completed its review of the specific items being N T disputed. L • Item No. 38- Long Term Property Maintenance costs in the amount of$6,750,000. o Finance no longer denies this item. It was our initial understanding the properties cu associated with the requested costs were in the possession of the San Bernardino E Economic Development Corporation (SBEDC). Therefore, Finance initially denied this C' item because the maintenance costs for these properties were the obligations of the o SBEDC, not the Agency. During the Meet and Confer process, the Agency provided the o quitclaim deeds for the properties showing that they have been transferred from the o SBEDC to the Agency. Therefore, these costs are eligible for Other Funds. m LO T • Item Nos. 95, 113, and 114-Unfunded Prior-Year Pass-Through Obligations totaling r $2,897,529 are not allowed. Finance no longer denies $1,192,547, $52,172, and a. $358,105 of Item Nos. 95, 113, and 114, respectively; however, Finance continues to O deny the remainder of these items. Finance initially denied these items as it was our m understanding the Agency is not named as a party to the Los Angeles Unified School x District(LAUSD) court decision. As a result, the Agency does not have binding w obligations to these payments. d E During the Meet and Confer process, the Agency contended that a portion of these items is not related to the LAUSD court decision, but miscalculations of the AS 1290 w Q Packet Pg. 629 Mr. Jim Morris December 17, 2014 Page 2 pass-through amounts owed and not paid. The Agency provided a summary of amounts owed, the amounts paid, and the remaining balances to be paid to the San m LO Bernardino City Unified School District, the San Bernardino County Superintendent of Schools, and the San Bernardino Community College District, Therefore, Item Nos. 95, 113, and 114 in the amounts of$1,192,547, $52,172, and $358,105, n. respectively, are enforceable obligations eligible for Redevelopment Property Tax Trust 0 Fund (RPTTF)funding. However, as previously stated, the remaining amounts are based on a LAUSD court s decision and the Agency was not a named party. Therefore, the remainders of these cn items are not enforceable obligations and are not eligible for RPTTF funding. CD • Item No. 116— Real Property Security Services in the amount of$622,252. Finance no longer denies this item. It was our initial understanding the properties associated with n. the security service costs were in the possession of the SBEDC. Therefore, Finance o initially denied this item because the security services performed on these properties were the obligations of the SBEDC, not the Agency. During the Meet and Confer process, the Agency provided the quitclaim deeds for the properties showing that they o have been transferred from the SBEDC to the Agency. Therefore, these costs are N eligible for Other Funds. 0 In addition, per Finance's letter dated November 14, 2014, we continue to make the following determinations not contested by the Agency during the Meet and Confer: 0 T • Item Nos. 121 and 122—Under-Funded Obligations for Glen Aire Mobile Home,Park Corporation Litigation and the Watson Owner Participation Agreement totaling $45,211 N are not allowed. Although the Agency incurred more expenditures than Finance authorized, it is our understanding these obligations were paid using Other Funds r during RODS 13-14B period, and currently, there is no outstanding amount due. Additionally, HSC section 34177 (1) (1)(E) requires agencies to use RPTTF only to the extent no other funding source is available. Therefore, these items are not eligible for RPTTF funding. .2 • Claimed administrative costs exceed the allowance by $88,282. HSC section 34171 (b) limits the fiscal year 2014-15 administrative expenses to three percent of property tax d allocated to the Agency or$250,000, whichever is greater. As a result, the Agency is eligible for$985,385. The San Bernardino County Auditor-Controller's Office distributed ° $477,461 in administrative costs for the July through December 2014 period, thus o leaving a balance of$507,924 available for the January through June 2015 period. m Although $596,206 is claimed for administrative cost, only$507,924 is available Ln pursuant to the cap. Therefore, $88,282 of excess administrative cost is not allowed. T Pursuant to HSC section 34186 (a), successor agencies were required to report on the o ROPS 14-15B form the estimated obligations and actual payments (prior period adjustments) W associated with the January through June 2014 period. HSC section 34186 (a) also specifies 0° prior period adjustments self-reported by successor agencies are subject to review by the w county auditor-controller(CAC) and the State Controiler, Proposed CAC adjustments were not received in time for inclusion in this fetter; therefore, the amount of RPTTF approved in the table below only reflects the prior period adjustment self-reported by the Agency, as adjusted by E Finance. w Q Packet Pg. 630 Mr. Jim Morris December 17, 2014 Page 3 The Agency self-reported a prior period adjustment in the amount of$556,964. During our review, Finance determined the Agency neglected to include $962,503(the prior period m LO adjustment from ROPS III as listed on the ROPS 13-148 determination) in the Non-Admin v RPTTF Available Amount. As a result, Finance adjusted the Non-Admin Available Amount, by $962,503, which increased the prior period adjustment to $1,519,467 ($556,964 + $962,503). m a Therefore, to the extent the Agency disagrees with our review, the Agency should work provide 0 suitable documentation to modify the prior period adjustment proposed by Finance. In addition, Finance noted the following during our review: • On the ROPS 13-14B Prior Period Adjustment worksheet, the Agency's expenditures exceeded Finance's authorization for the following items: o Other Funds totaling $211,359— Item No. 9, $177; Item No. 10, $110,292; a item No. 12, $1,936; Item No. 13, $42,766; Item No. 31, $10,977; Item No. 36 0 (listed as Item No. 121 on ROPS 14-15B), $23,275; Item No. 38, $278,131, and Item No. 40 (listed as Item No. 122 on ROPS 14-15B), $21,936. 0 Per HSC section 34177(a) (3), only those payments listed on ROPS may be made by N the Agency from the funds specified on the BOPS. However, these items were determined to be enforceable obligations for the ROPS 14-15B period. Therefore, o Finance is increasing the Agency's authorization for the ROPS 14-15B period to ensure that authorization is consistent with expenditures for the approved enforceable obligations. As these Other Funds were previously expended, the increase in ° authorization should not result in increased expenditures for the current ROPS period, but should merely allow the Agency to reconcile actual expenditures to the authorization. T- HSC sections 34177 (a) (4) and 34173 (h) provide mechanisms when Agency payments must exceed the amounts authorized by Finance. Please ensure the proper r expenditure authority is received from your Oversight Board and Finance prior to making payments on enforceable obligations. C Except for items denied in whole or in part, Finance is not objecting to the remaining items listed c on your ROPS 14-15B. The Agency's maximum approved RPTTF distribution for the reporting E CD period is $15,919,251 as summarized in the Approved RPTTF Distribution Table below: 0 U- 0 0 m LO 'T^ N^ Lei.. 00�/ LL m S X W t+ E U r. r Q Packet Pg. 631 Mr. Jim Morris December 17, 2014 Page 4 Approved RPTTF Distribution For the period of January through June 2015 m LO Total P requested or non-administrative obligations 19,873,534 4 Total RPTTF requested for administrative obligations 596,206 Total RPTTF requested for obligations on ROPS $ 20,469,740 a O Total RPTTF requested for non-administrative obligations 19,873,534 Denied Items m Item No. 95 (1,030,851) -a Item No. 113 (29,528) Item No. 114 (234,326) v� Item No. 121 (23,275) Item No. 122 (21,936) E (1,339,916) a Total RPTTF authorized for non-administrative obligations $ 18,533,618 c 0 Total RPTTF requested for administrative obligations 596,206 cYo Administrative costs in excess of the cap (see Admin Cost Cap table below) (40,197) aM M Total RPTTF authorized for administrative obligations $ 556,009 O Total RPTTF authorized for obligations $ 19,089,627 N Self-reported ROPS 13-14B prior period adjustment(PPA) (556,964) o Finance adjustment to ROPS 13-14B PPA (962,503) m Total ROPS 13-14B PPA (1,519,467) Total RPTTF approved for distribution $ 17,570,160 ° M Administrative Cost Cap Calculation N Total RPTTF for 14-15A(July through December 2014) 15,915,373 d Total RPTTF for 14-15B(January through June 2015) 18,533,618 Total RPTTF for fiscal year 2014-2015 34,448,991 N r Allowable administrative cost for fiscal year 2014-15(Greater of 3% or$250,000) 1,033,470 Administrative allowance for 14-15A(July through December 2014) 477,461 0 Allowable RPTTF distribution for administrative cost for ROPS 14-15B 556,009 Total RPTTF administrative obligations after Finance adjustments 596,206 S Administrative costs in excess of the cap $ (40,197) E CD W Pursuant to HSC section 34177 (1) (1)(E), agencies are required to use all available funding ° sources prior to RPTTF for payment of enforceable obligations. During the ROPS 14-15B o review, Finance requested financial records to support the cash balances reported by the m Agency; however, the Agency was unable to support the amounts reported. As a result, LO Finance will continue to work with the Agency after the ROPS 14-15B review period, to properly identify the Agency's cash balances. If it is determined the Agency possesses cash balances U) that are available to pay approved obligations, the Agency should request the use of these cash p balances prior to requesting RPTTF in ROPS 15-16A. W m Please refer to the ROPS 14-15B schedule that was used to calculate the approved RPTTF w amount: c a� http:l/www.dof.ca.gov/redevelopment/ROPS E �o Packet Pg. 632 Mr. Jim Morris December 17, 2014 Page 5 This is Finance's final determination related to the enforceable obligations reported on your BOPS for January 1 through June 30, 2015. This determination only applies to items where m funding was requested for the six-month period. Finance's determination is effective for this r time period only and should not be conclusively relied upon for future periods. All items listed on a future ROPS are subject to a subsequent review and may be denied even if it was or was a not denied on this ROPS or a preceding ROPS. The only exception is for those items that have o received a Final and Conclusive determination from Finance pursuant to HSC section 34177.5 (i). Finance's review of items that have received a Final and Conclusive determination is limited to confirming the scheduled payments as required by the obligation. (D The amount available from the RPTTF is the same as the amount of property tax increment that N c was available prior to the enactment of ABx1 26 and AB 1484. This amount is not and never was an unlimited funding source. Therefore, as a practical matter, the ability to fund the items on the RODS with property tax is limited to the amount of funding available to the agency in the a RPTTF. o Pursuant to HSC section 34177 (a)(3), only those payments listed on an approved ROPS may P be made by the successor agency from the funds specified in the ROPS. However, if for 0 whatever reason the Agency needs to make payments for approved obligations from another funding source, HSC section 34177 (a) (4) requires the Agency to first obtain oversight board •E approval. o To the extent proceeds from bonds issued after December 31, 2010 exist and are not encumbered by an enforceable obligation pursuant to HSC section 34171 (d), HSC section 34191.4(c) (2) (B) requires these proceeds be used to defease the bonds or to M purchase those same outstanding bonds on the open market for cancellation. Please direct inquiries to Evelyn Suess, Dispute Resolution Supervisor, or Mary Halterman, Analyst, at(916) 445-1546. r Sincerely, j o / JUSTYN HOWARD c Acting Program Budget Manager E a� cc: Ms. Lisa Connor, Project Manager, City of San Bernardino 0 Ms. Linda Santillano, Property Tax Manager, San Bernardino County 0 California State Controller's Office 0 m LO r T Cn a 0 o: m x X W c m E U c� Q Packet Pg. 633 -�r�}wll�lwlellllllwl�F�iswa� -- --- (8S6 46(SdOM)ainpagaS;uawRed uOiie6ilg0 paz!u600aa:O6L£) (Z)6 M Mid ash 6uipun=l posodOAd 85611 SdO8-O HX3:Iuaw4Oelyy O m � a d Y U m a O " ry a m m d� m g c It � � � m v ry.+ m ry ry ry � � ,+� •+ ry 0 � m a o O v IN K- , , , 1� m O O d °n N m rry m m g a o r°8 m 28 ° m u m d n ry N n m N °m,It li 0 6 LLO O O O IR c m rvo�Orv°i°om g� nv^irv.°io 85258 , m nee m n �m m w8.m+ O O . . . . . . . . . . . . . . . . . . . . . . . . . . . a a c gO - E o 10 m.v.^ N E O ^ S8 °$W 80 o m8e� g88° [ m W$M m ry m ry ry N N a «$ ry -; a o ^ - .. »0N N --- ¢ O z O O O i C c m c " d 6 e L j E 0 0 E E° ° H>> 12 ' 9 u d.E a_ pJOd c _ ama a amxx�zz°z°O,°. a om _a t o.9 to aoY°aIS. 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