Agenda Item: 8
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: January 14, 2025
SUBJECT: FISCAL YEAR 2025-26 RECOGNIZED OBLIGATION PAYMENT
SCHEDULE FOR SUBMITTAL TO THE DEPARTMENT OF
FINANCE
DEPARTMENT: Administrative Services
PRESENTER: Brittany Houston
RECOMMENDED ACTION
City Council acting as the Successor Agency to the former Redevelopment Agency adopt a resolution approving the Fiscal Year 2025-26 Recognized Obligation Payments Schedule for submittal to the Department of Finance.
BACKGROUND
The Redevelopment Agency (RDA) of the City of Santa Clarita (City) was activated by the City Council on November 28, 1989, pursuant to the Community Redevelopment Law. At the time of its establishment, the City Council declared itself to be the governing board of the RDA. As a result of AB X1 26 and the decision of the State Supreme Court, as of February 1, 2012, all redevelopment agencies in the state, including the City’s RDA, were dissolved, and successor agencies were designated as successor entities to the former redevelopment agencies to expeditiously wind down the affairs of the former redevelopment agencies. On January 24, 2012, pursuant to Resolution 12-3 and Section 34173 of the Dissolution Act, the City Council elected to serve as the successor agency to the RDA. Section 34173(g) of the Dissolution Act, added by AB 1484, expressly affirms that the Successor Agency is a separate public entity from the City, that the two entities will not merge, and that the liabilities of the RDA will not be transferred to the City nor will the assets of the RDA become assets of the City.
The Dissolution Act requires successor agencies to prepare a Recognized Obligation Payment Schedule (ROPS) detailing the enforceable obligations of the successor agency and the source of funds to be used to pay for each enforceable obligation. Pursuant to Health and Safety Code (HSC) Section 34177 (o)(1), commencing with the ROPS covering the period July 1, 2016, to June 30, 2017, and thereafter, successor agencies shall submit an Oversight Board approved
annual ROPS to the Department of Finance and the County Auditor-Controller by February 1, 2016, and each February 1 thereafter.
During the January 2021 Los Angeles County Fifth Supervisory District Consolidated Oversight Board Meeting, the Oversight Board requested the City Council acting as the Successor Agency to the former Redevelopment Agency (Successor Agency Board) approve the annual ROPS in addition to the Oversight Board. Upon Successor Agency and Oversight Board approval of the Fiscal Year 2025-26 ROPS, the ROPS will be submitted to the Department of Finance and County Auditor-Controller to allow the Successor Agency to pay for enforceable obligations totaling $4,971,191 as outlined in the ROPS; debt service ($3,787,316); debt related expenses ($5,556) and loan repayment to the City ($1,178,320). With the estimated loan repayment to the City of $1,178,320, the Successor Agency’s outstanding loan balance as of June 30, 2026, is anticipated to be $12,914,480.
ALTERNATIVE ACTION
No alternative action recommended, as an approved ROPS is a requirement of the Department of Finance.
FISCAL IMPACT
Approval will allow the Successor Agency to pay for enforceable obligations totaling $4,971,191 as outlined in the ROPS: debt service ($3,787,316), debt related expenses ($5,556), and loan repayment to the City ($1,178,320).
ATTACHMENTS
Resolution