City of Gonzales
FINANCE DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: January 12, 2026
FROM: Mike Howard, Finance Director
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. SA-2026-02 Last and Final ROPS FY 2026-2027 through FY 2035-2036
RECOMMENDATION
It is recommended that the Successor Agency:
• Receive the staff report;
• Accept and consider public comment; and
• Adopt Resolution No. SA-2026-02, A Resolution of the Successor Agency to the Former Gonzales Redevelopment Agency Approving the Last and Final Recognized Obligation Payment Schedule 2026-27 Through 2035-36.
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.
Pursuant to HSC section 34179.7(o)(1), commencing with the ROPS covering the period from July 1, 2016 to June 30, 2017 and thereafter, agencies shall submit the County Consolidated Oversight Board approved annual ROPS to Finance and the County Auditor-Controller by February 1, 2016 and each AGENDA
ITEM
8 February 1 thereafter, which corresponds to the full fiscal year. The ROPS is the basis for the Successor Agency’s authority to make payments due for enforceable obligations.
Pursuant to Section 34191.6(a) of the Health and Safety Code, beginning January 1, 2016, successor agencies have the option to submit a last and final recognized obligation payment schedule if all the following conditions are met:
(1) The remaining debt of a successor agency is limited to administrative costs and payments pursuant to enforceable obligations with defined payment schedules including, but not limited to, debt service, loan agreement, and contracts.
(2) All remaining obligations have been previously listed on a Recognized Obligation Payment Schedule and approved for payment by the Department pursuant to Sections 34177(m) or 34177(o) of the Health and safety Code.
(3) The successor agency is not a party to outstanding or unresolved litigation, except as specified in Section 34.191.6(a)(3) of the Health and Safety Code.
The Successor Agency staff has prepared the proposed Last and Final Recognized Obligation Payment Schedule (the “Last and Final ROPS”), substantially in the form shown in Attachment “A”, attached hereto and incorporated herein by this reference.
REVIEW AND ANALYSIS
Successor Agency staff has prepared the Last and Final ROPS, which consists of several spreadsheets that are appended to the attached as Attachment ‘A’.
Pursuant to Health and Safety Code § 34177 (m), the County Consolidated Oversight Board will consider approval of the Last and Final ROPS and must be submitted anytime to the County Auditor-Controller, County Administrative Officer, the State Controller and the State Department of Finance.
Upon approval of the Last and Final 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.
Approval of the attached Resolution will authorize the Successor Agency Director, or designee, to:
1. Post the Last and Final ROPS on the City’s website;
2. Transmit the Last and Final ROPS to the County Auditor-Controller, 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 Last and Final ROPS which may include, but is not limited to, restating the information included within the Last and Final 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 Last and Final ROPS on behalf of the Successor Agency, including authorizing and causing such payments.
ENVIRONMENTAL (CEQA) CLEARANCE
The actions of this item have 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 Successor Agency to the Former Gonzales Redevelopment Agency’s and the County Oversight Board’s approval of Last and Final ROPS 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
It is recommended that the City Council adopt Resolution No. SA-2026-02, A Resolution of the Successor Agency to the Former Gonzales Redevelopment Agency Approving the Last and Final Recognized Obligation Payment Schedule 2026-27 Through 2035-36.
Attachments:
1. Resolution SA-2026-02