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 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)• 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?