Recognized Obligation PaymentSchedule (ROPS) FY 2025-26City Council / Successor Agency Meeting January 21, 2025
Recognized Obligation Payment Schedule(ROPS)• The California Supreme Court ruled on the Dissolution Act (AB 1484) todissolve all Redevelopment Agencies (RDAs) in California effective February1, 2012.• AB 1484 established procedures for payment of legally enforceable obligationof the former RDAs by establishing Successor Agencies (SAs) through theannual submission of the ROPS to the State Department of Finance (DOF).• The ROPS lists all expenditures required to be paid by the Successor Agencyin the upcoming fiscal year. For Fiscal Year 2025-26, this amount is$10,768,498.• The Fiscal Year ROPS also includes a request for $8,438,398 repaymentof a loan from the City to the former RDA related to the Waterfront. The payment is required through a judgment issued by the California Supreme Court on February 17, 2023. The DOF concurred with the Court’s ruling in a letter dated May 19, 2023.
Recognized Obligation Payment Schedule (ROPS) Waterfront / Emerald CoveTOTALEmerald CoveWaterfrontSummary of ROPS$6,837,845 $22,400,000 Principal$0 $8,736,000 Interest$6,837,845$31,136,000 Total to be repaid from ROPS$37,973,845 TOTAL Recognized Obligation Payment Schedule (ROPS) Waterfront Summary of ROPS- Waterfront$22,400,000 Principal$8,736,000 Interest$31,136,000TOTAL$6,227,200 20% Set-aside requirement$24,908,800General Fund 80% Allocation Recognized Obligation Payment Schedule (ROPS) – Emerald CoveFY2023-24Allocation of Emerald Cove ROPS$6,837,845Principal Amount($2,276,594)General Fund($760,201)Housing Residual Fund($3,801,050)LMIHAFGeneral Fund Allocation$1,138,297 50% GF Budget Balancing for 23-24*$1,138,297 50% General Liability Fund for 23-24*Original Plan was 50% to 115 Trust but used to balance the budget Recognized Obligation Payment Schedule (ROPS) – WaterfrontFY 2025-26FY 2024-25FY2023-24Waterfront ROPS Payment Requests$8,428,398$9,828,541$10,000,000Requested of DOFPending$8,595,708$0DOF Approved / DeniedAllocation of Full Payment Request$1,672,718$1,719,14220% Set-Aside$6,742,718$6,876,566GF Allocation Recognized Obligation Payment Schedule (ROPS) – WaterfrontFY 2025-26Funds RequestedFY 2024-25Funds ReceivedAllocation of GF Portion of Waterfront ROPS Payment$6,742,718$6,876,566GF Payment Amount / RequestAllocation to be determined-$1,719,142Section 115 Trust Transfer-$1,605,358Equipment Fund Transfer-$1,000,000Workers' Compensation Transfer-$2,552,066General Liability Transfer Recognized Obligation Payment Schedule (ROPS) – WaterfrontBalanceDraw-down AmountTotal Draw-down$31,136,000Beginning Balance$22,540,292 $8,595,708 Drawdown 24-25 - DOF Approved$14,111,894 $8,428,398 Drawdown 25-26 - DOF Requested$11,111,894 $3,000,000 Projected 26-27$8,111,894 $3,000,000 Projected 27-28$5,111,894 $3,000,000 Projected 28-29$2,111,894 $3,000,000 Projected 29-30$0 $2,111,894 Projected 30-31 Recognized Obligation Payment Schedule (ROPS) – WaterfrontBalanceDraw-down AmountGeneral Fund Draw-down Portion$24,908,800 Beginning Balance$18,032,234 $6,876,566 Drawdown 24-25 - DOF Approved$11,289,515 $6,742,718 Drawdown 25-26 - DOF Requested$8,889,515 $2,400,000 Projected 26-27$6,489,515 $2,400,000 Projected 27-28$4,089,515 $2,400,000 Projected 28-29$1,689,515 $2,400,000 Projected 29-30$0 $1,689,515 Projected 30-31 Recognized Obligation Payment Schedule(ROPS)• Health and Safety Code Section 34179(j) requires the ROPS to be approved by both the Huntington Beach Successor Agency and the Countywide Oversight Board and submitted to the Department of Finance no later than February 1, 2025 in order to receive funding for the Fiscal Year 2025-26.• The ROPS expenditures required to be paid by the Successor Agencyin the upcoming fiscal year will be presented to the Orange Countywide Oversight Board for their consideration and approval on January 28, 2025. • The approved ROPS are required to be submitted to the California Department of Finance (DOF) by February 1, 2025. The ROPS are then subject to review and approval by the DOF. • It is recommended that the Successor Agency Adopt Resolution Nos. 2025-01 and 2025-02 approving the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the Huntington Beach Successor Agency for the period of July 1, 2025, through June 30, 2026, in accordance with Health and Safety Code Section 34177 and related actions Questions?