Memorandum — San Jose City Council, June 7, 2022

TO: SUCCESSOR AGENCY TO THE FROM: Julia H. Cooper

SAN JOSE REDEVELOPMENT

AGENCY BOARD

SUBJECT: SEE BELOW DATE: May 23, 2022

Approved Date
5/26/2022

SUBJECT: SUCCESSOR AGENCY TO THE SAN JOSE REDEVELOPMENT AGENCY JULY 1, 2022 - JUNE 30, 2023 ADMINISTRATIVE BUDGET AND ANNUAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE 2022-23

RECOMMENDATION

Successor Agency Board to the San José Redevelopment Agency (Successor Agency Board) adopt resolutions approving:

(a) The Administrative Budget for July 1, 2022 through June 30, 2023; and

(b) The Recognized Obligation Payment Schedule 2022-23 (ROPS 22-23) and authorizing payment of expenditures for items on ROPS 22-23, which details the obligations of the Successor Agency for the period of July 1, 2022 through June 30, 2023.

OUTCOME

Approval of these resolutions provides budget authority for the Successor Agency to pay for expenditures as available funding permits in accordance with the priority of obligations.

EXECUTIVE SUMMARY

Under the legislation dissolving redevelopment agencies, a Successor Agency is required to submit a ROPS and Administrative Budget to the Countywide Oversight Board (County Board) and California Department of Finance (DOF) for their approval every fiscal year.

COUNCIL/SARA BOARD AGENDA: 06/07/2022
FILE: 22-852
ITEM: 9.1

SUCCESSOR AGENCY BOARD
May 23, 2022
Subject: Successor Agency to the San José Redevelopment Agency Board July 1, 2022 - June 30, 2023 Administrative Budget and Annual Recognized Obligation Payment Schedule 2022-23

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The following documents related to the ROPS 22-23 are attached:

• Attachment #1: Successor Agency Administrative Budget Summary ROPS 22-23 • Attachment #2: Successor Agency Personnel Costs Detail ROPS 22-23 • Attachment A: ROPS 22-23 (as submitted to the County of Santa Clara) • Exhibit A: County of Santa Clara Notice of No Objection Letter to ROPS 22-23 • Exhibit B: DOF Final Determination Letter ROPS 22-23

The ROPS 22-23 was approved by the County Board on January 21, 2022 and submitted to the DOF on January 31, 2022 prior to the February 1 submission deadline. DOF completed its review and released its final determination of enforceable obligations listed on the ROPS 22-23 and approval of Redevelopment Property Tax Trust Fund (RPTTF) funding on April 15, 2022 (Exhibit B).

The ROPS 22-23 includes obligations due during the reporting period of July 1, 2022 through June 30, 2023. Currently, approval of these items by the Successor Agency Board provides budget authority for expenditures as available funding permits in accordance with the priority of obligations.

BACKGROUND

Pursuant to Health and Safety Code (HSC) section 34177, each Successor Agency was required to submit a ROPS to the DOF every six months. Effective September 22, 2015, the preparation and approval of the ROPS was changed from a semi-annual process to an annual process for the fiscal period beginning July 1, 2016. On December 1, 2016, DOF provided the new template for the ROPS 17-18 which requires payment amounts to be reported in the “A” and/or “B” periods.

Included in the ROPS 22-23 is: a Summary of the ROPS 22-23; ROPS 22-23 Detail; ROPS 19- 20 Report of Cash Balances (3 years in arrears from current ROPS); and ROPS 22-23 Notes section.

Starting in 2018, on October 1 each year, pursuant to HSC section 34186 (c), agencies are required to submit their Prior Period Adjustment (PPA) form to the County Auditor-Controller (CAC) for review. After review, the CAC submits the PPA to the DOF by February 1. To allow for the transition to an annual ROPS, DOF removed the PPA form to allow reporting of actual expenditures for a 12-month period. Pursuant to HSC section 34177 (o) (1) (E), not more than once, prior to October 1 during the reporting period, a successor agency may submit an amendment to the current ROPS approved by DOF.

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ANALYSIS

A. Administrative Budget for July 1, 2022 – June 30, 2023 (Attachments #1-2)

Redevelopment Dissolution Law requires that the Successor Agency prepare an Administrative Budget for County Board approval. The Administrative Budget includes operating costs (unemployment costs and professional contractual services) and City support services. Each budget line item references the payee name, description of work, source of payment, and an annual total.

Attachment #1: Summarizes the total Administrative Budget for the fiscal period July 1, 2022 through June 30, 2023 totaling $280,601 which includes City staffing costs, bank fees, and external audit services.

The FY 2022-23 Administrative Budget for the Successor Agency administrative costs reflects an increase of $9,800 or 3.6 percent from the Approved Administrative Budget for FY 2021-22.

Attachment #2: Provides the total salary and benefits costs, and full-time equivalent staff (FTE), for the City Support Services to the Successor Agency in the ROPS 22-23. City Support Services include staff from the City Attorney’s Office (0.10 FTE) and Finance Department (0.79 FTE).

These costs are reflected in total on Attachment #1 to this memorandum, which summarizes administrative costs included in the ROPS 22-23. There is an increase of 3.9 percent or $7,944 in personnel costs from FY 2022-23.

The source of funding for the 22-23 Successor Agency Administrative Budget is RPTTF, formerly tax increment dollars. The administrative activities performed by City staff on behalf of the Successor Agency will be reimbursed from RPTTF funds.

B. Review of ROPS by County Auditor-Controller (Exhibit A)

The CAC is authorized, but not required, to review the ROPS and transmit objections to any items not demonstrated to be enforceable obligations to the Successor Agency, County Board, DOF. On January 10, 2022, the CAC sent via email a Notice of No Objection on the ROPS 22-23.

C. Review of ROPS by DOF (Exhibit B)

DOF completed its review of ROPS 22-23 on April 15, 2022. Based on a sample of line items reviewed and application of the law, DOF approved all of the items listed on the ROPS 22-23 (DOF approval is final):

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distribution. The amount of RPTTF authorized includes the PPA resulting from the County Auditor-Controller’s review of the PPA form submitted by the Successor Agency.

The Successor Agency’s maximum approved RPTTF distribution for the reporting period is $139,732,531 ($141,858,792 – $2,126,261 from PPA), as summarized in the approved RPTTF distribution table in Exhibit B.

RPTTF distributions occur semi-annually, one distribution for the July 1, 2022 through December 31, 2022 period (ROPS A period), and one distribution for the January 1, 2023 through June 30, 2023 period (ROPS B period), based on DOF's approved amounts. Since this determination is for the entire ROPS 22-23 period, the Agency is authorized to receive up to the maximum approved RPTTF through the combined ROPS A and ROPS B period distributions.

See Attachment A for complete listing of all of the Successor Agency obligations for the fiscal period July 1, 2022 through June 30, 2023.

CONCLUSION

Approval of the 22-23 Administrative Budget and ROPS 22-23 for July 1, 2022 through June 30, 2023 will provide budget authority for the Successor Agency to pay for expenditures for items on ROPS 22-23 as available funding permits in accordance with the priority of obligations.

EVALUATION AND FOLLOW-UP

Health and Safety Code section 34177 (o) (1) (E) allows the Successor Agency to amend its ROPS once prior to October 1 during the reporting period.

CLIMATE SMART SAN JOSE

The recommendation in this memorandum has no effect on Climate Smart San José energy, water, or mobility goals.

PUBLIC OUTREACH

The memorandum will be posted on the City’s website for consideration at the City Council/Successor Agency Board meeting on June 7, 2022.

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COORDINATION

This memorandum has been prepared by the City Finance Department in coordination with the City Attorney’s Office and the City Manager’s Budget Office.

COST SUMMARY/IMPLICATIONS

The ROPS 22-23 reflects obligations due during the reporting period of July 1, 2022 through June 30, 2023. The Successor Agency has sufficient funds to pay for all enforceable obligations, including administrative costs previously funded by the City.

CEQA

Not a Project, File No. PP17 004, Government Funding Mechanism or Fiscal Activity with no commitment to a specific project which may result in a potentially significant physical impact on the environment.

/s/
JULIA H. COOPER
Chief Financial Officer

For more information, contact Julia H. Cooper, Chief Financial Officer for the Successor Agency, at 408-535-7011 or via email at [email protected]

Attachments:
• Attachment #1: Successor Agency Administrative Budget Summary ROPS 22-23 • Attachment #2: Successor Agency Personnel Costs Detail ROPS 22-23 • Attachment A: ROPS 22-23 (approved by County of Santa Clara) • Exhibit A: County of Santa Clara Notice of No Objection Letter to ROPS 22-23 • Exhibit B: DOF Final Determination Letter ROPS 22-23

Attachment #1
City of San Jose
Personnel costs for operations (refer to
Attachment #2) 205,938 106,941 106,941 213,882 7,944
Macias, Gini & O'Connell LLP Financial Audit Services - Annual Audit 61,863 63,719 0 63,719 1,856 Wells Fargo Bank General banking service fees 3,000 1,500 1,500 3,000 0 270,801 172,160 108,441 280,601 9,800
Increase % from ROPS 21-22

3.6%

APPROVED
BUD
GET FY21-
22 TOTAL
BUDGET
22-23A
BUDGET
22-23B
BUDGET
22-23
Successor Agency Administrative Budget Summary
ROPS 22-23
July 2022-June 2023

INCREASEPAYEE DESCRIPTION OF WORK

SUCCESSOR AGENCY BOARD
Date: May 16, 2022
Subject: Successor Agency to The San José Redevelopment Agency Board Approval of the July 1, 2022 - June 30, 2023 Administrative Budget and Annual Recognized Obligation Payment Schedule 2022-23 Attachment #2
PCN Personnel by Position 21-22
FTE 21-22 ROPS 22-23
FTE
ROPS
22-23
ROPS
22-23A
ROPS
22-23B
ROPS
22-23
TOTAL
Attorney's Office
P_00009174 Chief Deputy City Attorney 0.10 46,732 23,366 23,366 46,732

0.10 43,513 0.10 46,732 23,366 23,366 46,732 Finance Department
P_00017828 Analyst 0.05 9,652 4,826 4,826 9,652 P_00016679 Debt Administrator 0.05 10,006 5,003 5,003 10,006 P_00018148 Deputy Director, Accounting 0.02 6,587 3,294 3,294 6,587 P_00021585 Deputy Director, Debt and Treasury 0.02 4,787 2,393 2,393 4,787 P_00000146 Director/SARA Chief Financial Officer 0.05 24,332 12,166 12,166 24,332 P_00008147 Financial Analyst 0.25 52,236 26,118 26,118 52,236 P_00017349 Senior Accountant 0.35 59,550 29,775 29,775 59,550

0.79 162,425 0.79 167,149 83,575 83,575 167,150 Total Wages 0.89 205,938 0.89 213,881 106,941 106,941 213,882 7,944
Decrease % in FTE from 21-22 0.0%
Increase % in salaries from 21-22 3.9%
Increase from 21-22 $ 7,944
Successor Agency to the Redevelopment Agency
Personnel Costs Detail - Administrative Budget
ROPS 22-23
July 1, 2022 - June 30, 2023

SUCCESSOR AGENCY BOARD
Date: May 16, 2022
Subject: Successor Agency to The San José Redevelopment Agency Board Approval of the July 1, 2022 - June 30, 2023 Administrative Budget and Annual Recognized Obligation Payment Schedule 2022-23 Recognized Obligation Payment Schedule (ROPS 22-23) - Summary Filed for the July 1, 2022 through June 30, 2023 Period Successor Agency: San Jose
County: Santa Clara
Current Period Requested Funding for Enforceable
Obligations (ROPS
Detail)
22-23A Total
(July -
December)
22-23B Total
(January -
June)
ROPS 22-23
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ 52,227,123 $ - $ 52,227,123 B Bond Proceeds - - -
C Reserve Balance 49,440,000 - 49,440,000
D Other Funds 2,787,123 - 2,787,123
E Redevelopment Property Tax Trust Fund (RPTTF)
(F+G)
$ 69,587,452 $ 72,271,340 $ 141,858,792
F RPTTF 69,415,292 72,162,899 141,578,191
G Administrative RPTTF 172,160 108,441 280,601
H Current Period Enforceable Obligations (A+E) $ 121,814,575 $ 72,271,340 $ 194,085,915 Certification of Oversight Board Chairman:

Merged - N $- - - - - - $- - - - - - $-
149 Jones Hall-
Successor
Agency SARA
Activities (refer to
"Notes" section)
Legal 10/01/
2010
06/30/2023 Jones Hall
Legal services
on an as-
needed basis to
support bond
and
administrative
issues.

Merged 25,000 N $25,000 - - - 25,000 - $25,000 - - - - - $- 162 Property
Disposition Costs
(refer to "Notes"
section)
Property
Maintenance
07/01/
2014
06/30/2023 Miscellaneous
Vendors
Potential
solicitation
expenses
associated with
the disposition
of Agency-
owned
properties as
approved in the
Successor
Agency's Long
Range Property
Merged - N $- - - - - - $- - - - - - $-

A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS 22-23
Total
ROPS 22-23A (Jul - Dec)
22-23A Total
ROPS 22-23B (Jan - Jun)
22-23B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Management
Plan.
259 Arbitrage Rebate Bonds Issued
On or Before
12/31/10
07/01/
2017
06/30/2023 Internal
Revenue
Service
Positive
arbitrage
payment
Merged - N $- - - - - - $- - - - - - $-
260 2017 Successor
Agency Senior
Refunding Bonds
Series A
Refunding
Bonds Issued
After 6/27/12
12/21/
2017
08/01/2035 Wilmington
Trust
This authorizes
the issuance of
$1,413,150,000
($1,333,325,000
and
$79,825.000)
aggregate
principal
amount (Tax
Allocation
Taxable and
Tax-Exempt
Refunding
Bonds)
Merged 132,406,125 N $3,991,250 - -
- 1,995,625 - $1,995,625 - - - 1,995,625 - $1,995,625
261 2017 Successor
Agency Senior
Refunding Bonds
Series A-T
Refunding
Bonds Issued
After 6/27/12
12/21/
2017
08/01/2034 Wilmington
Trust
This authorizes
the issuance of
$264,390,000
aggregate
principal
amount (Tax
Allocation
Refunding
Bonds)
Merged 1,242,205,055 N $107,115,189 - 49,440,000 2,787,123 39,579,417 - $91,806,540 - - - 15,308,649 - $15,308,649 262 2017 Successor
Agency
Subordinate
Refunding Bonds
Series B
Refunding
Bonds Issued
After 6/27/12
12/21/
2017
08/01/2029 Wilmington
Trust
This authorizes
the issuance of
$264,390,000
aggregate
principal
amount (Tax
Allocation
Refunding
Bonds)
Merged 207,649,250 N $31,615,625 - - - 27,787,500 - $27,787,500 - - - 3,828,125 - $3,828,125 263 Series 2017
Refunding Bonds
("Merged Area")
Fees 12/21/
2017
08/01/2035 Wilmington
Trust
Fiscal Agent
Fees for bond
administrative
services
Merged 42,000 N $3,000 - - - 3,000 - $3,000 - - - - - $- 265 Allowable Bond
Reserve-
Pursuant to
Health and Safety
Code
□34171(d)(1)(A).□
Refunding
Bonds Issued
After 6/27/12
12/21/
2017
08/01/2035 Wilmington
Trust
Per indenture,
the Agency is
required to
reserve 50% of
principal paid in
Aug debt
service period in
the January
RPTTF
distribution
Merged 594,375,000 N $51,017,500 - - - - - $- - - - 51,017,500 - $51,017,500 268 Series 2017A,
Series 2017A-T,
Fees 12/21/
2017
08/01/2035 Standard &
Poor's, Fitch
Annual
analytical
Merged - N $- - - - - - $- - - - - - $-

A B C D E F G H
ROPS 19-20 Cash Balances
(07/01/19 - 06/30/20)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.

Non-Admin
and Admin

1 Beginning Available Cash Balance (Actual 07/01/19)
RPTTF amount should exclude "A" period distribution
amount.
45,427,858 11,600,854 Amount in reserve balance column is the sum of $45,380,000 (approved by DOF from 19-20
ROPS line 265 plus $47,858 (amount
approved by DOF as remaining reserve funds
on 18-19 ROPS Report of Cash Balances.

Other Funds beginning balance is the sum of
all cash accounts in general ledger minus
Reserve beginning balance amount minus the
RPTTF amount distributed in June 2019.

SUCCESSOR AGENCY BOARD
Date: May 16, 2022
Subject: Successor Agency to The San José Redevelopment Agency Board Approval of the July 1, 2022 - June 30, 2023 Administrative Budget and Annual Recognized Obligation Payment Schedule 2022-23 Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.

Non-Admin
and Admin

January 2020 ($75,410,935) to SARA.
3 Expenditures for ROPS 19-20 Enforceable Obligations
(Actual 06/30/20)
45,380,000 165,180 145,171,840 All amounts in this row sum to the total amount that was expensed on ROPS
2019-20 (and Prior Period Adjustments sent
to County). Count caught one expense in the
amount of $77.15 that should not have been
reported on line 269 (Admin expense). This
adjustment will decrease the RPTTF
expenses and increase the RPTTF available
cash balance.
4 Retention of Available Cash Balance (Actual 06/30/20) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
47,858 11,647,630 46,625,000 Amounts in Reserve Balance and Other Funds columns are excess funds from
previous Cash Balance Reports restricted to
pay for expenses in 20-21 ROPS. and 21-22
ROPS. The amount in RPTTF column is from
the January 2020 RPTTF distribution that is
reserved for debt service in August 2020.
5 ROPS 19-20 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 19-20 PPA
form submitted to the CAC
No entry required -
6 Ending Actual Available Cash Balance (06/30/20)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$- $- $- $1,975,069 $812,054 Other Funds ending cash balance added with RPTTF ending cash balance (shown

SUCCESSOR AGENCY BOARD
Date: May 16, 2022
Subject: Successor Agency to The San José Redevelopment Agency Board Approval of the July 1, 2022 - June 30, 2023 Administrative Budget and Annual Recognized Obligation Payment Schedule 2022-23 Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.

Non-Admin
and Admin

on 19-20 RPTTF PPA) is shown in Other
Funds column on line 261 to pay debt
service on 22-23 ROPS.

SUCCESSOR AGENCY BOARD
Date: May 16, 2022
Subject: Successor Agency to The San José Redevelopment Agency Board Approval of the July 1, 2022 - June 30, 2023 Administrative Budget and Annual Recognized Obligation Payment Schedule 2022-23 County of Santa Clara
Finance Agency
County Government Center
70 West Hedding Street, East Wing 2 nd floor
San Jose, California 95110-1705
(408) 299-5206 FAX 287-7629

NOTICE OF NO OBJECTION TO ROPS
January 10, 2022
City of San José Successor Agency
200 E. Santa Clara St. 14th Floor
San Jose, CA 95113
Redevelopment Dissolution Countywide Oversight Board of Santa Clara County 70 West Hedding Street
San Jose, CA 95110
Department of Finance
915 L Street
Sacramento, CA 95814
ROPS Period: ROPS 22-23 (July 1, 2022 – June 30, 2023)
Successor Agency: City of San José
To the Successor Agency, Countywide Oversight Board, and Department of Finance:

Pursuant to Health and Safety Code section 34182.5, our office has reviewed the Recognized Obligation Payment Schedule (ROPS) submitted by the above-noted successor agency for the above- noted period. After reviewing all items and funding sources, the Santa Clara County Auditor- Controller does not object to any items or funding sources on the submitted ROPS.

Please note items and/or funding sources are subject to change by the Department of Finance Cash Balance Review and that items and/or funding sources not questioned during this review are subject to subsequent review if they are included on a future ROPS. We also reserve the right to object to an item and/or funding source (including, but not limited to, the use of fund balance) on a future ROPS, even if no objection was made on a preceding ROPS.

Sincerely yours,
Margaret Olaiya
Finance Agency Director
County of Santa Clara
Attachment: ROPS 22-23 as submitted to the County Auditor-Controller by Successor Agency Board of Supervisors: Mike Wasserman, Cindy Chavez, Otto Lee, Susan Ellenberg, S. Joseph Simitian County Executive: Jeffrey V. Smith
DocuSign Envelope ID: CEC926FE-D255-4DEF-A5D4-D565826C8D36 for
Exhibit A
Recognized Obligation Payment Schedule (ROPS 22-23) - Summary Filed for the July 1, 2022 through June 30, 2023 Period Successor Agency: San Jose
County: Santa Clara
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
22-23A Total
(July -
December)
22-23B Total
(January -
June)
ROPS 22-23
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ 52,227,123 $ - $ 52,227,123 B Bond Proceeds - - -
C Reserve Balance 49,440,000 - 49,440,000
D Other Funds 2,787,123 - 2,787,123
E Redevelopment Property Tax Trust Fund (RPTTF)
(F+G)
$ 69,587,452 $ 72,271,340 $ 141,858,792
F RPTTF 69,415,292 72,162,899 141,578,191
G Administrative RPTTF 172,160 108,441 280,601
H Current Period Enforceable Obligations (A+E) $ 121,814,575 $ 72,271,340 $ 194,085,915 Certification of Oversight Board Chairman:

Name Title
Pursuant to Section 34177 (o) of the Health and Safety
code, I hereby certify that the above is a true and
accurate Recognized Obligation Payment Schedule for
the above named successor agency. /s/
Signature Date
DocuSign Envelope ID: CEC926FE-D255-4DEF-A5D4-D565826C8D36 San Jose
Recognized Obligation Payment Schedule
(ROPS 22-23) - ROPS Detail
July 1, 2022 through June 30, 2023

Non-Admin
and Admin

Other Funds beginning balance is the sum of
all cash accounts in general ledger minus
Reserve beginning balance amount minus the
RPTTF amount distributed in June 2019.

Those two amounts plus the RPTTF
distribution amount of $75,410,935 received
in June 2019 equal the total of beginning
balances on the G/L in July 2019.
2 Revenue/Income (Actual 06/30/20)
RPTTF amount should tie to the ROPS 19-20 total
distribution from the County Auditor-Controller
2,187,025 192,608,894 Amount in Other Funds column is all revenue collected and interest earned for 2019-20 in
all cash accounts in G/L. Amount in RPTTF
column is the sum of the two RPTTF
distributions in June 2019 ($117,197,959) and
DocuSign Envelope ID: CEC926FE-D255-4DEF-A5D4-D565826C8D36 Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.

Non-Admin
and Admin

on 19-20 RPTTF PPA) is shown in Other
Funds column on line 261 to pay debt
service on 22-23 ROPS.

DocuSign Envelope ID: CEC926FE-D255-4DEF-A5D4-D565826C8D36 San Jose
Recognized Obligation Payment Schedule (ROPS 22-23) - Notes July 1, 2022 through June 30, 2023
Item # Notes/Comments
69 Arbitrage 5 year calculations for 2017 Bonds
85 Annual insurance costs for Billy D Frank building
138
143 Services for fiscal report and continuing disclosure data 144
149
162
259
260
261
262
263
265
268
269
273
DocuSign Envelope ID: CEC926FE-D255-4DEF-A5D4-D565826C8D36 Transmitted via e-mail
April 15, 2022
Julia H. Cooper, Chief Financial Officer
City of San Jose
200 East Santa Clara Street, 13th Floor
San Jose, CA 95113
2022-23 Annual Recognized Obligation Payment Schedule
Pursuant to Health and Safety Code (HSC) section 34177 (o) (1), the City of San Jose Successor Agency (Agency) submitted an annual Recognized Obligation Payment Schedule for the period July 1, 2022 through June 30, 2023 (ROPS 22-23) to the California Department of Finance (Finance) on February 1, 2022. Finance has completed its review of the ROPS 22-23.

Based on a sample of line items reviewed and application of the law, Finance approves all of the items listed on the ROPS 22-23 at this time.

Pursuant to HSC section 34186, successor agencies are required to report differences between actual payments and past estimated obligations (prior period adjustments) for the July 1, 2019 through June 30, 2020 (ROPS 19-20) period. The ROPS 19-20 prior period adjustment (PPA) will offset the ROPS 22-23 Redevelopment Property Tax Trust Fund (RPTTF) distribution. The amount of RPTTF authorized includes the PPA resulting from the County Auditor-Controller’s review of the PPA form submitted by the Agency.

The Agency’s maximum approved RPTTF distribution for the reporting period is $139,732,531, as summarized in the Approved RPTTF Distribution table (see Attachment).

RPTTF distributions occur biannually, one distribution for the July 1, 2022 through December 31, 2022 period (ROPS A period), and one distribution for the January 1, 2023 through June 30, 2023 period (ROPS B period), based on Finance's approved amounts.

Since this determination is for the entire ROPS 22-23 period, the Agency is authorized to receive up to the maximum approved RPTTF through the combined ROPS A and B period distributions.

This is our final determination regarding the obligations listed on the ROPS 22-23. This determination only applies to items when funding was requested for the 12-month period. If a determination by Finance in a previous ROPS is currently the subject of litigation, the item will continue to reflect the determination until the matter is resolved.

Exhibit B
http://dof.ca.gov/Programs/Redevelopment/ROPS/
This determination is effective for the ROPS 22-23 period only and should not be conclusively relied upon for future ROPS periods. All items listed on a future ROPS are subject to Finance's review and may be adjusted even if not adjusted on this ROPS or a preceding ROPS. The only exception is for items that have received a Final and Conclusive determination from Finance pursuant to HSC section 34177.5 (i). Finance’s review of Final and Conclusive items is limited to confirming the scheduled payments as required by the obligation.

The amount available from the RPTTF is the same as the amount of property tax increment available prior to the enactment of the redevelopment dissolution law.

Therefore, as a practical matter, the ability to fund the items on the ROPS with property tax increment is limited to the amount of funding available to the Agency in the RPTTF.

Please direct inquiries to Joshua Mortimer, Supervisor, or Daniel Cervantes, Staff, at (916)
322-2985.

Sincerely,

JENNIFER WHITAKER
Program Budget Manager
cc: Kevin Freimarck, Financial Analyst, City of San Jose Margaret Oliaya, Finance Agency Director, Santa Clara County Julia H. Cooper
April 15, 2022

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The ROPS 22-23 form submitted by the Agency and this determination letter will be posted on our website:

Attachment
Approved RPTTF Distribution
July 2022 through June 2023
ROPS A ROPS B Total
RPTTF Requested $ 69,415,292 $ 72,162,899 $ 141,578,191 Administrative RPTTF Requested 172,160 108,441 280,601
Total RPTTF Requested 69,587,452 72,271,340 141,858,792 RPTTF Authorized 69,415,292 72,162,899 141,578,191
Administrative RPTTF Authorized 172,160 108,441 280,601 ROPS 19-20 prior period adjustment (PPA) (2,126,261) 0 (2,126,261) Total RPTTF Approved for Distribution $ 67,461,191 $ 72,271,340 $ 139,732,531 Julia H. Cooper
April 15, 2022

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San Jose City CouncilJune 7, 2022

San Jose City Council
June 7, 2022