City of Gonzales
FINANCE DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: January 16, 2024
FROM: Mike Howard, Finance Director
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. SA-2024-01 ROPS Payment
RECOMMENDATION
It is recommended that the Successor Agency Adopt Resolution No. SA-2024-01, A Resolution of the Successor Agency to the Former Gonzales Redevelopment Agency Approving the Recognized Obligation Payment Schedule 24-25 for the Period of July 1, 2024 through June 30, 2025.
BACKGROUND
Pursuant to Health and Safety Code § 34172 (a)(1), the Gonzales Redevelopment Agency was dissolved on February 1, 2012. Consistent with the provisions of the Health and Safety Code, the City Council previously elected to serve in the capacity of the Successor Agency to the Gonzales Redevelopment Agency, (the “Successor Agency”). In the past, Health and Safety Code § 34177 (1)(1), required the Successor Agency to prepare a Recognized Obligation Payment Schedule (“ROPS”) before each sixmonth fiscal period, which corresponds to equal halves of a fiscal year (i.e., July through December and January through June). Current law now requires the preparation and approval or a ROPS for an entire Fiscal Year.
The ROPS is the basis for the Successor Agency’s authority to make payment due for enforceable obligations. In addition to the approval by the Successor Agency, the ROPS must also be approved by the County Consolidated Oversight Board (“OS Board”) to the Successor Agency and is reviewable by the County Auditor-Controller, the County Administrative Officer, the California Department of Finance and the California State Controller’s Office.
REVIEW AND ANALYSIS
AGENDA
ITEM
17 Successor Agency staff has prepared ROPS 24-25 for the period of July 1, 2024 through June 30, 2025, which consists of several spreadsheets that are appended to the attached Exhibit “A” as Attachment ‘1’.
Pursuant to Health and Safety Code § 34177 (m), the County Consolidated Oversight Board approved ROPS for the period of July 1, 2024 through June 30, 2025 must be submitted to the County AuditorController, County Administrative Officer, the State Controller and the State Department of Finance not later than February 1, 2024.
Upon approval of the ROPS by the County Consolidated Oversight Board, and pursuant to Health and Safety Code § 34177 (l)(2), a copy of this staff report and the attached resolution will be submitted to the County Auditor-Controller, County Administrative Officer, the State Controller and the State Department of Finance within the prescribed timeframe.
The County Consolidated Oversight Board will meet on January 18th and approve the ROPS 24-25.
Approval of the attached Resolution will authorize the Successor Agency Director, or designee, to:
1. Post the ROPS for the period of July 1, 2024 through June 30, 2025 on the City’s website;
2. Transmit the ROPS for the period of July 1, 2024 through June 30, 2025 to the County AuditorController, County Administrative Officer, the State Controller, and the State Department of Finance within the timeframe prescribed by the Health and Safety Code; and
3. Make ministerial revisions to the ROPS which may include, but is not limited to, restating the information included within the ROPS in any format that may be requested by the State Department of Finance, take such other actions and execute such other documents as are necessary to effectuate the intent of the Resolution, and to implement the ROPS for the period of July 1, 2024 through June 30, 2025 on behalf of the Successor Agency, including authorizing and causing such payments.
ENVIRONMENTAL (CEQA) CLEARANCE
The approval of the ROPS by the Successor Agency Board has been reviewed with respect to applicability of the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, § 15000 et seq., hereafter the “Guidelines”), and the City’s environmental guidelines. The recommended action does not constitute 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
Pursuant to Health and Safety Code § 34177, the Successor Agency is legally required to continue to make payments due for enforceable obligations. The County Consolidated Oversight Board’s approval of ROPS 24-25 will ensure that the Successor Agency has the authority to continue to pay its enforceable obligations. The recommended action does not, in itself, cause any new financial obligations.
CONCLUSION
In consideration of the information presented in this staff report, it is recommended that the Successor Agency Board approve Resolution No. SA-2024-01, “A Resolution of the Successor Agency to the Former Gonzales Redevelopment Agency Approving the Recognized Obligation Payment Schedule 24- 25 for the Period of July 1, 2024 through June 30, 2025.” Attachments:
1. Resol SA-2024-01