Agenda Item: 9
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: August 26, 2025
SUBJECT: LAST AND FINAL 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 Last and Final Recognized Obligation Payment Schedule from Fiscal Year 2026-27 through Fiscal Year 2042-43 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 of California, 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, the Successor Agency has submitted 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. The Last and Final ROPS is the last submission and is the final step toward dissolution. The Successor Agency will be formally dissolved once all approved obligations have been paid.
Pursuant to California Health and Safety Code section 34191.6 (a), successor agencies may submit a Last and Final ROPS if all of the following conditions are met:
• The remaining debt is limited to administrative costs and payments pursuant to enforceable obligations with defined payment schedules including, but not limited to, debt service, loan agreements, and contracts.
• All remaining obligations have been previously listed on the ROPS and approved for payment by the Department of Finance (DOF) pursuant to HSC section 34177 (m) or (o). • The successor agency is not a party to outstanding or unresolved litigation.
Pursuant to HSC section 34191.6 (a) (1)(2)(3), the successor agency has met the conditions for the Last and Final ROPS. If approved, the DOF has 100 days from the date of submission to issue a determination letter.
Upon Successor Agency and Oversight Board approval of the Last and Final ROPS, the Last and Final ROPS will be submitted to the Department of Finance and County Auditor-Controller to allow the Successor Agency to pay for enforceable obligations totaling $48,067,927: debt service ($34,566,475); debt related expenses ($124,534) and loan repayment to the City ($13,376,918).
The Successor Agency will continue to receive Redevelopment Property Tax Trust Fund distributions every January and June to pay for the enforceable obligations between Fiscal Year 2026-27 and Fiscal Year 2042-43 as outlined in the Last and Final ROPS. Following full payment of obligations in Fiscal Year 2042-43, the Successor Agency will be formally dissolved.
ALTERNATIVE ACTION
Other action as determined by City Council.
FISCAL IMPACT
Approval of the Last and Final ROPS will allow the Successor Agency to pay for enforceable obligations totaling $48,067,927 as outlined in the Last and Final ROPS; debt service ($34,566,475); debt related expenses ($124,534) and loan repayment to the City ($13,376,918) between Fiscal Year 2026-27 and Fiscal Year 2042-43.
ATTACHMENTS
Resolution - Last and Final ROPS