HomeMy WebLinkAboutStaff Report 4.A 01/18/2017 Item # 4
Oversight Board to the Petaluma Community
Development Commission Successor Agency
DATE: January 18, 2016
TO: Members of the Oversight Board
FROM: Ingrid Alverde, Economic Development & Redevelopment Manager
SUBJECT: Resolution Adopting a July 1, 2017 – June 30, 2018 Recognized Obligation
Payment Schedule (ROPS 17‐18) and Administrative Budget Pursuant to Health
and Safety Code Section 34177 (l)
RECOMMENDATION
It is recommended that the Oversight Board to the Petaluma Community Development
Successor Agency (Oversight Board of the PCDSA) approve the Resolution Adopting a July 1,
2017 – June 30, 2018 Recognized Obligation Payment Schedule (ROPS 17‐18) and
Administrative Budget Pursuant to Health and Safety Code Section 34177 (l).
DISCUSSION
Until now the Successor Agency has been required to adopt a list of enforceable obligations
called a Recognized Obligation Payment Schedule (ROPS), together with an administrative
budget every six months. New legislation passed last summer changes the timeframe for the
ROPS from every six months to every year. The upcoming ROPS period is July 1, 2017 – June 30,
2018 Recognized Obligation Payment Schedule (ROPS 17‐18) because it covers obligations for
fiscal year 17‐18. The proposed ROPS for July 1, 2017 – June 30, 2018 period is provided in
Exhibit A of Attachment 1.
Health and Safety Code Section 34177(j) also requires the Oversight Board to approve the
Successor Agency’s administrative budget. The State Department of Finance (DOF) noted in last
year’s ROPS approval letter that the Successor Agency’s request for the maximum
administrative budget of $250,000 appeared to be excessive. The letter suggests that the
Oversight Board scrutinize future requests for administrative funding. To date, the Successor
Agency administrative fund balance is ($388,939) indicating that the administrative allowance
does not even cover the extensive staff, finance and legal support needed to manage the
Successor Agency activities. The proposed ROPS requests $250,000 for the annual
administration budget ‐ the maximum allowed by law. It is shown on the ROPS 17‐18
(Attachment 1).
Item # 4
Page 2
The proposed ROPS requests funds to pay for ongoing debt service and administration. It also
includes a request for funds to pay for the future Rainier interchange crossing. We are able to
request these funds as a result of newly adopted legislation that allows cities to recapture
previous obligations related to State highway projects.
ATTACHMENTS
1. Resolution Adopting a Fiscal year 17‐18 Recognized Obligation Payment Schedule