THE CITY OF HERCULES AS SUCCESSOR AGENCY TO THE HERCULES REDEVELOPMENT AGENCY DATE: January 11, 2022
TO: The City of Hercules as Successor Agency to the Hercules Redevelopment Agency VIA: Dante Hall, City Manager/Executive Director
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Recognized Obligation Payment Schedule for the period of July 1, 2022 through June 30, 2023 (ROPS 22-23) RECOMMENDED ACTION:
Adopt a resolution approving the Recognized Obligation Payment Schedule for the period July 1, 2022 through June 30, 2023 (ROPS 22-23).
DISCUSSION:
Health and Safety Code (HSC) Section 34177 requires that successor agencies must, amongst other things, prepare a Recognized Obligation Payment Schedules (ROPS) for each upcoming fiscal year. A ROPS is the document that sets forth the maximum payment amounts and due dates of payments required by enforceable obligations. Enforceable obligations are defined in HSC Section 34171(d) and include the payment of bonds and loans, payments required by the federal government, judgments or settlements, any legally binding agreement or contract, and contracts or agreements necessary for the administration or operation of the successor agency.
HSC Section 34177(1) requires successor agencies to submit the ROPS to a Countywide Oversight Board and California Department of Finance (DOF) for approval.
The ROPS template used for the ROPS 22-23 includes the following worksheets:
Recognized Obligation Payment Schedule Summary
Recognized Obligation Payment Schedule – ROPS Detail - This worksheet includes a section for ROPS A (July 1, 2022 through December 31, 2022) and a section for ROPS 22-23 B (January 1, 2023 through June 30, 2023).
Recognized Obligation Payment Schedule – Report of Cash Balances Recognized Obligation Payment Schedule – Notes
Highlights for ROPS 22-23
Hercules ROPS 22-23 requests $12,074,536 in obligations from Redevelopment Property Tax Trust Funds (RPTTF). Obligations consist of bond debt service and related fees ($9.4 million), payments owed to third parties pursuant to various agreements entered into prior to dissolution ($2.4 million), and an administrative cost allowance ($250,000).
ROPS Item 16 documents a $50,496,029 loan repayment owed under a Cooperation Agreement between the City and former Redevelopment Agency. The City advanced funds to the Redevelopment Agency between fiscal years 1984-85 to 2010-11 for various redevelopment projects including but not limited to library, park and wastewater improvements. The loan repayment was previously denied by DOF because it was under litigation. Hercules and DOF have since settled their litigation. Although the Successor Agency does not anticipate the loan will be eligible for repayment unless the Successor Agency receives a finding of completion, the ROPS 22-23 documents the $50 million Total Outstanding Obligation in case Hercules becomes eligible for a finding of completion after pursuing a legislative solution. The ROPS 22-23 does not request repayment of the loan in the upcoming fiscal year.
The ROPS 22-23 Report of Cash Balance worksheet shows the Redevelopment Property Tax Trust Fund (RPTTF) money received for ROPS 19-20 (July 1, 2019 through June 30, 2020) was fully expended.
The Recognized Obligation Payment Schedule (ROPS) are posted on the City of Hercules website (www.ci.hercules.ca.us).
ATTACHMENTS:
Resolution approving the Recognized Obligation Payment Schedule (ROPS) for the period July 1, 2022 through June 30, 2023 ROPS 22-23