THE CITY OF HERCULES AS SUCCESSOR AGENCY TO THE HERCULES REDEVELOPMENT AGENCY DATE: Regular Meeting of January 14, 2025
TO: The City of Hercules as Successor Agency to the Hercules Redevelopment Agency SUBMITTED BY: Dante Hall, City Manager/Executive Director Edwin Gato, Director of Finance
SUBJECT: Recognized Obligation Payment Schedule for the period of July 1, 2025, through June 30, 2026 (ROPS 25-26) RECOMMENDED ACTION:
Adopt a resolution approving the Recognized Obligation Payment Schedule for July 1, 2025, through June 30, 2026 (ROPS 25-26).
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 document 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 the California Department of Finance (DOF) for approval.
The ROPS template used for the ROPS 25-26 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, 2025 through December 31, 2025) and a section for ROPS 25-26 B (January 1, 2026 through June 30, 2026).
Recognized Obligation Payment Schedule – Report of Cash Balances Recognized Obligation Payment Schedule – Notes
Summary of Obligations
Hercules ROPS 25-26 requests $10.0 million in obligations from Redevelopment Property Tax Trust Funds (RPTTF). Obligations consist of bond debt service and related fees ($7.9 million), payments owed to third parties pursuant to two agreements entered before dissolution ($1.8 million), and the annual administrative cost allowance ($250,000).
Prior Period Adjustment and Cash Balance
The ROPS 25-26 Report of Cash Balance worksheet shows that $7 million in RPTTF money received for ROPS 22-23 (July 1, 2022, through June 30, 2023) has been fully expended. It also reports $1.7 million in Reserve Balances that were expended or continue to be held for future ROPS.
The Recognized Obligation Payment Schedules (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, 2025, through June 30, 2026 ROPS 25-26