REPORT TO SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY
OF LAKE ELSINORE
To:Honorable Chair and Members of the Successor Agency
From:Jason Simpson, Executive Director
Prepared by:Barbara Leibold, Agency Counsel
Date:January 9, 2024
Subject:Recognized Obligation Payment Schedule (ROPS 24-25) for July 1, 2024 through June 30, 2025
Recommendation
1. Find that the project is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State CEQA Guidelines; and
2. Adopt A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 24-25) AND ADMINISTRATIVE BUDGET FOR JULY 1, 2024 THROUGH JUNE 30, 2025.
Background
As part of the dissolution of the former Redevelopment Agency, Health and Safety Code Section 34177 (added by AB 1X 26, as amended to date) requires the Successor Agency to adopt a Recognized Obligation Payment Schedule (ROPS) that lists all obligations of the former redevelopment agency that are enforceable within the meaning of subdivision (d) of Section 34167 for each twelve month period of each fiscal year. The Successor Agency has previously adopted ROPS for prior twelve month periods. The previous ROPS have been approved by the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the State Department of Finance (DOF).
Approval of ROPS 24-25
Discussion
Applicable law requires that the ROPS for July 2024 through June 2025 be submitted to DOF and the State Controller’s office, after approval by the Riverside Countywide Oversight Board, no later than February 1, 2024. The DOF has five (5) days after submittal to request a review and forty- five (45) days to review the ROPS if it decides to do so. If the ROPS is not submitted by the deadline, the City is subject to a $10,000 fine for every day the ROPS is late and the administrative cost allowance for the Successor Agency is reduced by 25% after 10 days.
The attached ROPS 24-25 for the period July 1, 2024 – June 30, 2025 follows the form prescribed by the DOF and incorporates all of the remaining obligations identified in the previous ROPS. As the Successor Agency winds down the former Redevelopment Agency, the primary remaining enforceable obligations are the outstanding bonds, Stadium operation and maintenance, Housing Fund Loan Repayment, and the Summerly Disposition and Development Agreement. No new line items have been added.
In compliance with DOF guidance, all administrative costs have been combined into one line item and Successor Agency staff has prepared the attached administrative budget for the fiscal period commencing on July 1, 2024 and continuing through June 30, 2025 (“FY 2024 - 2025 Administrative Budget”). The Successor Agency is entitled to an administrative cost allowance (the “Administrative Cost Allowance”) pursuant to Health and Safety Code Sections 34171(b) and 34183(a)(3) in the approximate amount of $445,639 for the 2024-25 fiscal year of which approximately $222,820 will be disbursed July 1, 2024 and approximately $220,819 will be disbursed January 2, 2025.
The attached ROPS 24-25 and FY 2024-2025 Administrative Budget will be considered by the Riverside Countywide Oversight Board on January 18, 2024 and subsequently submitted to the State Department of Finance.
CEQA Exemption
Pursuant to the California Environmental Quality Act (CEQA), based upon a review of the evidence and information presented on the matter, adoption of the ROPS FY 2024-25 and the Administrative Budget FY 2024-25 is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the State CEQA Guidelines because there is no possibility that the activities in question will have a significant impact on the environment and the amendment is merely the adoption of annual budget; it will not require any construction activities and will not lead to any direct or reasonably foreseeable indirect physical environmental impacts.
Attachments
Attachment 1 – Resolution
Attachment 2 – ROPS 24-25 for the period of July 1, 2024 through June 30, 2025 Attachment 3 – Administrative Budget FY 24-25