Loading...
HomeMy WebLinkAboutRes SA-RDA 077 - ROPS Jul2019 - June2020STAFF REPORT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY/ MEETING DATE: August 22, 2019 SUBMITTED BY: Veronica Tapia, Senior Management Analyst REQUEST: ADOPT RESOLUTION NO. SA-RDA o77 ADOPTING AN AMENDMENT TO THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD FROM JANUARY 1, 2020 THROUGH JUNE 30, 2020, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 AND TAKING CERTAIN RELATED ACTIONS Recommendation That the Successor Agency Board adopt: 1) Resolution SA-RDA ��� approving an Amendment to the Recognized Obligation Payment Schedule for the period from January 1, 2020 through June 30, 2020, and taking certain related actions. Strateqic Plan There is no direct correlation to the strategic plan. Backqround and Analvsis Each year, the Successor Agency must prepare a Recognized Obligation Payment Schedule ("ROPS"). The ROPS must be approved by the Riverside County Countywide Oversight Board (the "Oversight Board"). The Oversight Board-approved ROPS must be further submitted to the State Department of Finance (the "DOF") for review no later than February 1. The ROPS lists the enforceable obligations anticipated to be paid during the upcoming fiscal year (July 1 through June 30). The Successor Agency may only make payments approved on a DOF-approved ROPS. In January 2019, the Successor Agency submitted the Oversight Board-approved ROPS for fiscal year 2019-20 ("ROPS 19-20") to the DOF for review. The submitted ROPS 19- 20 included multiple items (Line Items 59, 60, 61, 178 and 179), pertaining to the repayment of loans incurred respectively in 1986, 1995, 1996 and 1997 (each, a"City Loan") and owed to the City of Palm Desert. By a formula set forth in the Redevelopment Dissolution Act, the Successor Agency may include up to $7,085,598 for repayment of the City Loans (the "Loan Repayment AmounY') on ROPS 19-20. The ROPS 19-20, as approved by the Oversight Board, provided that the full Loan Repayment Amount of $7,085,598 would be applied to Line Item 61 (for the 1986 City Loan). August 22, 2019 - Staff Report AMENDMENT TO RECOGNIZED OBLIGATION PAYMENT SCHEDULE 2019-20 Page 2 of 2 The DOF, initially, by a letter dated April 15, 2019, disapproved Line Item 61 and all of the other ROPS 19-20 Line Items relating to the City Loans. The Successor Agency disagreed with the DOF's determination. After a meet and confer between the Successor Agency and the DOF and the DOF's review of additional information, the DOF issued a letter on May 17, 2019 (the "May 17th Letter"), revising its determination. As indicated in the May 17th Letter, the DOF continues to deny Line Item 61, but has now reversed its disapproval of all of the other City Loans line items (i.e., Line Items 59, 60, 177, 178 and 179). In light of the DOF's revised determination, the Successor Agency has prepared an amendment to ROPS 19-20 (the "ROPS 19-20 Amendment"), to re- allocate the $7,085,598 Loan Repayment Amount (originally listed for Line Item 61) to the other City Loans line items that have been approved by the DOF. The breakdown is as fOIIOWS: ROPS Line Item Loan Description Amount Re uested Line 59 1995 $8 Million Loan $1,400,000 Line 60 1997 $2.055 Million Loan $1,400,000 Line 177 1995 $8 Million Loan $1,400,000 Line 178 1999 $6.6 Million Loan $1,400,000 Line 179 1999 $6.6 Million Loan $1,485,598 TOTAL AMENDED REQUEST $7,085,598 For each annual ROPS, the Successor Agency may submit one amendment, to be effective for the second half of the fiscal year period. The Successor Agency must submit the ROPS 19-20 Amendment, after approval by the Oversight Board, to the DOF no later than October 1, 2019. The DOF is required to notify the Successor Agency of its determination regarding the ROPS 19-20 Amendment no later than December 19, 2019. Staff requests approval of ROPS 19-20 Amendment, as submitted. Fiscal Analvsis Approval of this amendment will provide the first repayment to the City for the City Loans LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW I CITY MANAGER NIA Reviewed by RWG Robert W. Hargreaves Citv Attornev ATTACHMENTS �t Moore � Director of Finance daa�t Moore ' I'Lauri Aylaian Director of Finance City Manager Resolution No. SA-RDA o77 AMENDMENT TO ROPS 2019-20 G:1rda\Veronica Tapia\Word Files\StaH Reports\Successor Agency\Palm Desert - SA staH report fa Amended ROPS 8-22-19 rev docx 4 � . , � .� � ., h ..� � � � � � V � � � �x N � U � .� , � � � A o "� '� � o RESOLUTION NO. SA-RDA o�� A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING AN AMENDMENT TO THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE FISCAL PERIOD FROM JULY 1, 2019 THROUGH JUNE 30, 2020, AND TAKING CERTAIN RELATED ACTIONS RECITALS: A. Pursuant to Health and Safety Code ("HSC") Section 34177(0), the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency"), as the successor entity to the former Palm Desert Redevelopment Agency (the "Former Agency") must prepare a Recognized Obligation Payment Schedule listing the anticipated payments for enforceable obligations to be made by the Successor Agency during the fiscal period from July 1, 2019 through June 30, 2020 ("ROPS 19-20") and submit ROPS 19-20 to the oversight board of the Successor Agency and the State Department of Finance (the "DOF") for approval. B. Pursuant to HSC Section 34179(j), commencing on and after July 1, 2018, the Riverside Countywide Oversight Board (the "Oversight Board") has jurisdiction over the Successor Agency. C. On January 17, 2019, the Oversight Board adopted Resolution No, 2019- 0004, approving ROPS 19-20, as submitted by the Successor Agency. D. As approved by the Oversight Board, ROPS 19-20 included, among others, Line Items 59, 60, 61, 177, 178 and 179, all of which pertain to loans incurred respectively in 1986, 1995, 1996 and 1997 (each, a"City Loan" and collectively, the "City Loans"), owed to the City of Palm Desert (the "City"). E. By operation of HSC Section 34191.4(b)(3)(A) and (B), the Successor Agency may include $7,085,598, in total, for repayment of the City Loans (the "Loan Repayment Amount") on ROPS 19-20. (The Loan Repayment Amount equals: (i) one- half of dollar amount distributed to the taxing entities during fiscal year 2018-19 from the Redevelopment Property Tax Trust Fund pursuant to HSC Section 34183(a)(4), less $630,750 to be deposited in to the Low and Moderate Income Housing Asset Fund as repayment of certain loans made by the Former Agency's Low and Moderate Housing Fund). F. ROPS 19-20, as approved by the Oversight Board, provided that the full Loan Repayment Amount of $7,085,598 would be applied to Line Item 61, pertaining to the 1986 City Loan. G. The DOF initially, by a letter dated April 15, 2019, disapproved Line Item 61 and all of the other ROPS 19-20 Line Items relating to the City Loans. G:\rda\Veronica "I'apia\Word Files\Staff Reports�.Successor Agency�Palm Uesert SA - SA reso for Amended ROPS 19-20.docx Resolution No. H. The Successor Agency disagreed with the DOF's determination. I. After a meet and confer between the Successor Agency and the DOF pursuant to HSC Section 34117(0)(1) and the DOF's review of additional information, the DOF issued a letter on May 17, 2019 (the "May 17th Letter"), revising its determination regarding ROPS 19-20. J. As indicated in the May 17th Letter, the DOF continues to deny Line Item 61 (for the 1986 Loan), but has now reversed its disapproval of all of the other City Loans line items (i.e., Line Items 59, 60, 177, 178 and 179). K. In light of the DOF's revised determination, the Successor Agency has prepared an amendment to ROPS 19-20 (the "ROPS 19-20 Amendment"), to re-allocate the $7,085,598 Loan Repayment Amount (originally listed for Line Item 61) to the other City Loans line items which have been approved by the DOF. L. ROPS 19-20 Amendment, in the form prescribed by the DOF, is attached to this Resolution as Exhibit A. M. Pursuant to HSC Section 34177(0)(1)(E), the Successor Agency must submit the ROPS 19-20 Amendment, after approval by the Oversight Board, to the DOF no later than October 1, 2019. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (THE "BOARD"), HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. ROPS 19-20 Amendment, substantially in the form attached hereto as Exhibit A, is hereby approved. Section 3. The Executive Director of the Successor Agency, in consultation with the Successor Agency's legal counsel, may modify ROPS 19-20 Amendment as the Executive Director or the Successor Agency's legal counsel deems necessary or advisable. Section 4. Staff is hereby authorized and directed to submit a copy of ROPS 19-20 Amendment to the Oversight Board for approval and, at the same time, transmit a copy of ROPS 19-20 Amendment to the DOF, the County Auditor-Controller and the County administrative officer as designated by the County. Section 5. Staff is hereby authorized and directed to submit a copy of Oversight Board-approved ROPS 19-20 Amendment to the DOF, the Office of the State Controller, and the County Auditor-Controller. (i:Uda\Vcronica Tapia\Word Files\Staff Reports�.Successor Agency�Palm Desert SA - SA reso for Amcnded ROPS 19-20.docx Resolution No. Section 6. Staff is hereby authorized and directed to post a copy of the Oversight Board-approved ROPS 19-20 Amendment on the Successor Agency's Internet website (being a page on the Internet website of the City). Section 7. The officers and the other Staff members of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, including but not limited to requesting additional review by the DOF and an opportunity to meet and confer on any disputed items, and making adjustments to ROPS 19-20 Amendment pursuant to the DOF's instructions, and any such actions previously taken are hereby ratified and confirmed. PASSED, APPROVED AND ADOPTED this day of , 2019. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Rachelle D. Klassen, Secretary to the Successor Agency to the Palm Desert Redevelopment Agency Susan Marie Weber, Chair G:Uda\Veronica Tapia\Word Filcs\Staff Reports\Succcssor Agency�Palm Desert SA - SA reso for Amcnded ROPS 19-20.docx Resolution No. EXHIBIT A SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE (January 1, 2020 — June 30, 2020) G:\rda\Veronica Tapia\Word I�iles\Staff Rcports\Successor AgencylPalm Desert SA - SA reso for Amended ROPS 19-20.docx 8/� /2r.� n n n n Palm Desert ROPS 2019-20 Amended S�i�mary D �il Submission Requested Funding for Obligations A Obligations Funded as Follows (e+c+o) B Bond Proceeds C Reserve ealance D Other Funds E Redevelopment Property Tax Trust Fund (RPTTF) (F+�) F RPTTF G Administrative RPTTF Authorized Requested Amounts Adjustments __ . 496,443 0 0 0 0 0 496,443 0 Amended Total 496,443 0 0 496,443 H Current Period Obligations (n+e) hitPS:....................y.,.,�....,,,,..,,...,...,... �..r..,.,.....,,...�� 12,903,343 7,085,598 19,988,941 12,903,343 7,085,598 19,988,941 0 0 0 13,399,786 7,085,598 20,485,384 1/1 , _ . - - __.— _ ._ . ,_ _ . ___ ----- --_ _ ._ _. ____..__. i pi I Cn A A A � A. A A' W W N CO � - � � Q� O t0 Oo V I O� ; A W � Oo � N c0 A; t� 3 + I ' I ............. L I i i � � ......... __. ......... "—...... .. —_ . .. . . ..... . _ _ ' '. . —.__ . _._..._.. ... ...... _. . � Iv+�,�iv��� CC ����-�nn��D����D �D tn�ln cn �m DCA- .�� � v, o o=� o �doo a-�' Dyn � Qo io��c m �m rn�a p � cn�oola� -a �m � ( � IGo �a �m yav <�'m I v I � v�p � W fD p � .� (/1 I 7� 3� `G (A n �> m � I� �p C N fp C y � � A i .� ��,,. t�il t� �� m � f� 3 � T� I y y� .��, `�G � d�� Z� � N f�/1 �� y I� y 7 � i Z C i � o� x i�n' D' � �'°','-j� � ��'?ai �m NO"c�`:oj a 9:� �`<n;�n� '3» �p 00 0 ? n l �v; i? °' �o j y ?'�d'o' �� o�"' ��: i mo � i � c >'! �n jin '. � � � m�SMIN y, �� i a ' m �n ; � ' a i ' �' i I ,_ - --�-- �-----• '-----� � r i..------- --- 1 � �o,�o;.°o� �o �o;, .°o� m ���o� ��-,�ao� �; --- � � W�;��;�� � m� ��. �?� i m o ��' �n �'��„ � , (n �a a a� n) o.' a I � �N i ��7 � ��7 � O�l �, OT OT I y I � jT, � O I OT �,.I r ' O N I oNl c c� c; c c� �� c ��� c; �� iQ O i ���a Ja; �a' �a; �a� � �a! � � Q� � i � ! n; Q nl a' a� a, �•I a� i � Q; ': � iD i Q i � : � I � ; � ' � � N � j � ; � ; ! � � N � ' O : O. � O ; O : O. ( d O i � : O ': : � ; O I � i » n I n n � � � � � » (D I : �G 00 � � � � � I D �; i i� i. i i i � i '� ; ; � 1 � i i ' 'm � I , i �p i (D , : I � ; � . . � _ . t-- , i a i ^� � �� O � wl i � v c�n;�� � d � �' I � , w o' � � � c�n c�ri d�� a' o oj w' w rn>>S'i ao! ' o oi wpp� v o��a- i W. � O O� i,,,',,. A i A �' 10 i i i i ! �_ ._ _._.. �,�__._...__.._.-____ __ .._.... .�___.___ ��____' .-. _"_ _ _-._. .._ .. , � j � ... � -� : � i.. ! i O I � ' ! ' � t � � � o � I j i � i I fl � I , i , � � ,. � IC 7 � : i � , i � � . fC Q f � ,� � �� __ � _ �y , , , � . �_ _ � _ _ _ _ _ �--- --�- - _ _ . __ �_ , _ _ ; ; i ; , , � I._.._ . I_ i t i oo � � i � j i ! Id� � � ! ( i � ��Z � � � i � � �; � � �; m A ; �------ � . � � _ . .---- I _r - - � i , —�-f------ �---�- C I � ��, i ....... . i I • ��CQ = ' i i � A; c A O' i i Wiy y � � � . � � � � � � � ' � -'-- � --._ -------... _�._ .. N ._...... .--i-.... .. ....-- - -��-�--------- - _..._..+---�------ ' ��. . �� ' i � � ; . ,,,, I N� p i wpp ' ' ; i � ; � y ; �, A; . � A � I � O �i 3 � O CD � W N I v( p I I W;� T C! � � . , � ; o .. w 2 : w'. i O o I �! ; G7 . �': ',�.-...___. . _. '-___' � ..._—_•_—_. � � ' � *'.___-__�_._ .- t �.-__.__.�... .. y . , , I I ...�.a � � � ' I I ;�3 � I �. � � I � � I ' ' T� ; � � �� �� � 4 , . _._ __ . ..... ; � _ ___ � _-�--- } w, �'iA : Ct1 ' O ', w � , , ; ` � I � i � � , . . . ' i. . ' .. i � i i ; ... .. .. . . .. .. .. ; t j i � ' '1 ' � _ � -- -- ------ I i � _._- 1 -___ i_ _ _. �. s � � V � 0 ' � � W i c i o I �I�;°° � �d � I � � I . W � OJo '� � o� � I � i � �� rn a � - ---- . � _ .._..._. , � 1-- ,� � i 'I W o i I aa i i i I i � i j i : N �, : . y .........._ � ... . y ....... ..: ........_.. . : .. . � : � i �� ! I ' N m I i I ' y� � � � �e'rZ m j �� �, � � � � � �, a A A � . � � . . ___ . _.. . _ . . � i ; ' TO mi �� � i C y �a A m i H� ol ----- -- _ � --- - ' -�— -- —�� v � ,,,,. �, O i � ` ' i � � C � N � y . .. � � � � T ; '� �' I � �: � i pD m ' j I , i . . . . I � � a � N ; i � ;�� ; �-�—_- --- , *--- - j i o�Da i i� i � i � » � cn � 01 I � � � i � � � � i a t---._. �__ .... . .. : ._.._........' .i.._... _ . .. .. - i f ? i , � � o i � � I " a � � � V ;n a . , .. _.. _. . . __--- -- -----._- .__..__._. . ._.. . _ . h (O: �. �� W.' � �,.� N.. N �� �i � �3 (C .�c��oC�C��TZj �;�`�� ��.rCI.___�o�. _ D�Z� =Z ' a � �nlm° �°�a,av, m�� °o �; aoo� o0 cND � c��= I �<p I� S vi p. cD � C i U) i�_� N»� r I, C' �?' fD � a . ,�3� c irn� �y(�I O1 �23 07 ; -' � �� pw, ,�'-�:,�p�! n� U� y-• �+�a �.'� �'�m ���v,� a' N� �.�0�°mo� � � �� n'm md I rn �i ai �� o;� i �o: m �� �I � � ,� � A � tn I ' A � :.-_.... . —. ....- —.-.-.— _ 1 _...—'-----.._.— —�-'.__—..-' _-'.__------- �-- -- ._... ... r cn voo �oo{�oo r�oo� tn; oc� o(�' �C� �n'i m�����I�3� �,�?, m N�j N�i N�. d' � Na Nn Nn'i d Na �:. 0°n' �ni °Dn . O� � �7 ��l ��7 I ��7 � O� ��7 j C C C i c: T� � C � � C I � C Q � � Rl �7 �7 � -'7 � � �7 i Rl � �•� I �•� i �� � � i a . a a a . � . - � I - � � � T, �Da 'I a o_ ' a: T i nni r: oni r l nni r» �; �� �' �: so°� ; �n°� : �n°> > � o.� o: o: o. m� m�! m� ' � ; � I � �� . cxi x x �c� j � � ' � � � � . � � ; S � � � � m I i I' I i �. j O ; � O: � o � cn � - �1 i I � � . fD (D N : .. � . .... ; ... � ........�.... .....i . .....}.. . . : . ..... . . . .. ._ ........ .. . .. ...... . ...---.. . .. ... ...... . � , i ;_ .. :.. : m� � � i W�' . V�.. N...f... � W O-1 I ; d N . p � �' � W� V I O d�.�i � N ' ' i N � � : O : tD N > > 07 . Oo � j W: � O i N O �� . tD � ' i i i i (O i i O j V1 O � +_ 1__. _ --i-. � __ - --- '--- --'- _ -.__ ..___ -------- -. . _ , _._._.._ --� -----_. - I � I , , ': I � � i i �� � � aa ,' ,; ,; , , ,� i m � I, , . . � __ �-- - _.__..---------._.__.._. _..__.. ------ ___ --- . , I i � }. W� I : i i � ; y �n ' � � � i ; ; � � � � , ' � � � � m 1 . . _ . _ _ _.: . �.. : . . . , ------ � --- ------ -�- ---------- _ _ _ __ _ _ , � I T � � : I I � , ' � � 7 S = I i i am � , � i y � i' i' i i ' i,. i �� i � i - � N ; � - -- ---------- _ _ - - . _ . f j --�— -- r ---+-- —.--- -- ---- m ._ , -- - - --- .. . i � � � i o , ' i � I � O � � z �, �. �, �, � �: � � , _., . .-- r- _ , --._._-• _ -----� ------ - ' - -- ------ ------_ __. . - —� i ---... ._..----.__. .� y � i � a : ' i ; 3 i i i i! i i �: i� i f i� i � 3 . : .. . . t ... .....i__...... . . .. ... , . � . : . ... ... ....... . ... . ._........ ... ... .. . ... ... . i so I i! . ,,, ,,,. N 0� . ' i � �; �; �1 �l � � a � � , . t .. } . i . _ . . , _ . - �--- � ---- _ _ i . , _ ---- .-- , � � � I a°+ o I I ' I ' ', � n r i � � � �,. - . i N . � � . . y � . . . . . ; . � . ....... ..a.......- .... ...... .... ..... .... . . . . _ ........ . .. . . .... . ... . . � '� � , i , W A � , � �,, i .. . � N ' i � i ' , � � m ; , � � � � � � � A � � C . , , ...._...... �. . . .. . . .......... ..... ... . . ...... ... . - .. . .... .. . ... . . .. . . , I � i ,,, ' 'n Q RI �.. I I � ,,. ' S y y 1 �i �� i i'�, i I i i� � ��, i� _j ', . .... � � -...._.._..-. .. .. .--- �-'- -`- - `- ---- -- -•---� . ' O _ __.-- �--... ._-.____�.. ------ ----- r D 0 ' I �� � �,.. . � A . A .� L ' �, � � ', , p � p � C ! � ��, ', .. j ..',,, � � �� O .. O � y � � � � � � � T m . ; , . , _,. . . . . .. z � ya y �3. � ', T 7 . __._.. .._. ...._�. . ._ _..__�.__ ..._ .._— .- _. +-- _ _.______ ._. � . _ "'_ '— � o,� o a1 � o o c o , N d � , o ; o m - � � '• � : � , � � � � � . o' o a , , : � : _ . . _... ; :. .� _ . . -- -- - -- -- ._ __ - - -+------ --- - - _ ... . , , (�� nmu�m aOD(��� r� n� nmcAd a _DC��� r , n� °1 "� n� m��y �� I n� �'�'o n� ov�2� �� ; a��7� a o rc ac�7� a o rc _. z , ; ; c�°' o� o'3.w o°� ^cxo 3; am a o c°3.m o°> ? m 3 m i ' �� ,� ' ' i . � ' , ,�O 7ta �� - O aC � .�O 7f0 �� 7 p n C N aA 3 0 z� d �p 3� Wo 7 « ti � � O Q � B: 0 � �c � � , O A C W ��,.. � � � .. d � � !� ' N � O� � d b'i � v �': � �,. � pWj I �p ; 7 7 N O i � i A : � ....: : � ; - . O i � i i i,, i''. i' �, i i O� i � i IC , .... _ _._ '_ __ . __. _ _ ._.___._______-...___- �......_._.....- _.__ -�--.__-�__- _ �_-__ -.--"�____.�_ .. ..: .. _ _ _-._ . � ( � i � ', � �' I I i I � O j j � i ; ! ' � aa , ; � i , � � � � � ' . .. _ e � _ . . - ------1 r —�_ ;_— t_ _ _.} .. 1... . ... i — _ _ � i i N : ; i I : . � ,, . , . .. W �:. , � � I � � ', � N ! I I I � � � � . . ', � i i � � n � � i ., i �� � ' i I i � , i . , 1 . . . ID m � i i � � _ _ _ . ._ _ _------- ---------- ---- �__. � _: . ._ . .-- ------ — - - -�----1- + _ _ _ - _._ . . _ _ . � �- --- - . ._... - - - , , � ; , , -. . , , � � � �i � � rni rn' cn a� w w w � V CJ7 A W N� �;. OD O � V W� (p � Oo ,. �I . � J F � i. : ; ; , � D�Z'�(n 2r(nW CC!�� <(�j<C)�C��tn�p2Di�[ r���� CC A O i fD 0) O 0 C C . 7 � fD (D I N - N I N� c. : p� C � O 61 O� . 7 � �0 I S tf] C f Q�G � a S(/1 � N 1 O7 1 41 n� i�p C O � 7� I n � a�' � a . �� I �(D i 41 N d � fD I Ol (D I N O I 41 O � m� C �p N a� d= I � Q I� O:(C � ^��� j�m ��oco� �u,<° ��v� O � plo 3�' 01� d tro i � j�d :u,� p y I y i. m� � � pr : I� �� C ., _ �,,' j ` a O 7 � � � O 7 I �� �� j^� I y N� i 7� � y� j� 7 .. i i j � N ; N: N � N � O ! � ~! C' 7 � . I � t0 I � � A i y i � N: � '______'____-___." __�- ' � -�_ �C� i O�oo ! �ooi ri �Wi cn v0o 'vOo;vW . N�,,, � I � I � 7 I V' U;� 7 I tn j fD 7: m I fD j I fD j,i <D j Oo I p � Na O� O: Na �.., d'� Na i � Na Na..... Na �o; �I 0 o-n �� �;o�' o ��t' ����t��-nl�� v' m' �'�al m; m!�'a� �a� m�a��'a �n �v�,o� e � aI Ci C' �I �ai �' ai a' �a sv � u, v � I 3; �i ; � I �' v' v ��� d 2 o d; � o' i o� o 0 0 �� i � � co' � I � i c� j m I � co' ; m" . cP � � � ' � � � ��', o � �� o� �� � �� i �I. �' � � � �� �� I i � �D m I m !, m � � , . . . ; � . � ; _ . . _. � � i � _' .--_ _ . ..._. . ._-__t- :�.7 ;P ; � � �i .. . .. . . .. . .....�... , ... .. .... � � � ; , . ........ . ........_._� . i ? � o. o: , C C c � c C C c 0 . ........._ .............. . ....._ ...._....-__... � ......... �.. . Do d?� � m �DC�� m o c�< c� -•o am ��^p��7in � � . ' . ac� y n p r� -. �. mmro a,3<om~o�': a oa. �mm�m3,' � �O 7t0 �� 7 O aC � -� � �o �� � N A I i �_ � �. .__.._'.____.. __.-__ .._.'_ _ __.'... _... .. ',,, I � i I � � I I � �,, , i : I i _ T � � ,,. i � i ',',,. i I i � . . -' _ t_" � I _+_ i _'.. __ . .... � � � I � a �3 � � � � �� , . . . . . , . � D c ' � »0 =. d 0 _ � � � � : � � � , a t • _ �... ;..._..._.. ..e... . rt .. _..— ........... .......... .. .._ .. ._.. ...._....._ ... . � i � . '',. . ! � i a a i i �, ' i i � i .,� i i : � N , � i t i ......... . ......... . __ +.._. .. ...._.. .... f... .. .. . . • �. ' . � . d I�D j�, I ' . �,, �,,,. y N A n � � � � , . ; I . _ . . . . � O � � � aA H � , � . � , ; � � T i i i i � � � � � : _:._ t _._ .. . . , . . ' i � va � , � � �. � , � . � � : � � � � � _.._.�.------- ' ----._.____--- ---- . Y___'--_. ....-ti-.._._ .._ ..,. , s a -a , Ie o N y � _ � � � � � a � � � � � � � � . . :... .. ... ...:.---._.f . ... : . .:..........---- +..... . .... .. . . .. . . � , z , o i N .� m A C m � � m v D v `c N � 3 m z 1 � a . .. , �. ..�._.....__.........�...'_-__.._ . -_..__.. ... _..—_ ".'__.�__ '.- ' � �j ti � � � N � A i W .i N � �..I � ��------- � : � � 3 � i i , ! ....... � . .. .. ... .. , .. ... ........ . . .. .. .- --- � - - -. . . ...... . . . . ...... .. .... ... . . . . . ... . . . xcrit3n<n 3�i���n r����� �ZiC�Cmi D�Zi D�Z ':v�n i��p��'�c> �vc�i.3 �r�iw c�.vlco.���m�': ���� ��� p �tn�om� o�:�o�� ��a � o ImnN! S.�s, E.�� Q o m 1 3 m � m; � v�D, � N o�i ���� �°' -o � l� o i o: `� v' o:'� � 3'° N;� � � c ��� �y; �I�mj ��., _ � II � m '°o ; c N N ,,' � n j (� i � � F ID '.; 7 I,,. fD (D � . . .. ...... : ._....__'....._._�___'�_-�— i � l _— _' __—_ « _'_ _' '_ __.._.. _.. .._. . � W : '9 W � � W �, � W � � � � � i � W �, � - � --� C) I - - -----. � �. �: ��:��: ��' �?� ��� �� �� � a'�' a'�7 ' O; Nn; N�. i Nd 1 Nd I Nd Na I Na � pNpn I ON�D(7 ,. � <: OT; OT' ��l l �T I�T �Tl l �T I �O �O � �'. �� C'�� C� c; c I c C j C � C I � c Q 3 : �a �a; �a; �ai�a �a, �a �� I v� � �: m m� m I m' m m m I c�'� c�'� o; C; n; n n: a a ai a m r' d r � �., � ,, � ,,'. � i � � � � ! � p�i � S N j - y..�,' O i O� O i O O O. ( O � �p 7 I � 7 � ai � (D (D : (D ' fD fD fD ( (D i S � S � � � n ' � ' � � � � � I I I � I I I 1 I �� �� � , i i � � � � i fD fD .l � : , � .... l ......... .. f . . .......__� . .... .. . .... ...._._._.... .. ..._.. .. ....... ... .. .. .. . .._..._.._.. ... ..._ . ._... . . � i i --._ ' o � W; �, oo: d y 1 O I N p I I V I � � a� ,,.. . ' � � ,,,, -fNJI I ? � 7 . � i I � � I � � 1 j i I U1 ; CJl � � (C � . , . .. ._.....: ... .. :_—._._..... 1.__�'—_i_-� ' . . : � � � ,, '-... ..._....__ .. ' � � � .. ' � � � � f�f O � � I i I ' ' W a � � � � � � � � . ... .: .. .. ...... .. . . .....: ... ..........t . ... .....- 1 .... ....r.. � i .... .. � �-....... ..... .. .. .__ _._....._..... ..... .. ... ......... ... . ...... . y I ! , � N d � n � , i' i i i- i, i : '., i m A i . . :. _.. .__.._ .. ... .. .. . . _._. . __ . ...___� ... _� � '_ _"_. _ ___.... .. t ' ' —"_ ' D ' ... _ ' ' I ' _ �____— . . T O . _ I � � � C I 1 � � i i N A �' , � � � �' � I I � � �',, � � � N , . . _—.. . .. ._ ----�-- — { .— . _ -� - --- — ------._ . _.- - -- - . � i ��t---- i -- Rj i � � � � � , j '�� i I I I.. � � i y DI ; '. � i � ' I i � C i � I i 2 . � � i i i i - y� i ,_ __ .._._.."--'--'^ --�-'.-------r__'_--- - ' -'j'--�-�� - -�--�� ---_'-�---�- - - ��---'_--- - ------..__ . _ _ . -fi--- i z D , i va ; � � � � , � I � I � j � � � r ; . : . � . _ _ t ._ ; ---_ _ ----. i_.— ; I . ! � � D � I � I � �K ; i o 1 � i �m i i � , a � i: i i� i i i i i I � ' . . . � } i. .. .. . � . . _ �... __ .. . .. . .......... _._..._. . i..... ._.._... ...._._. ._ ... .. .... . � I ; � ,,. ; � � �'i � O W .. i n O , . . _ I I I � a . , � � � � i � � � ...... � H �, i i � , , � , . . . � .. . i . ..... ......_�-- ...... ... . .. ... .. . ...._. . ..... .. .._ . . ...... . _.. ...... . i � W � I ' I � j I ' A 1 { i fd�! � D ' ' ' ' ' ' ' � ' l ' � � � A � , ; . . . . . : , . .. C i � � c p rtl ' ' 7 7 y . ; , '�� i ; N � I m � i i �, i� � �, i'� i� , .._...._.__. .... . �"' : , '_"_' ' __-_'_';_' __' ',•--'� :�._— .__."____"_�-+__". "_"'__.._._ _.._ .. . v I , ! � � D I � v � I N o � `c � y � I � I p �1 i , . , � : � � j � � w� o m . t . . . , } _ --- -- . -- , ' �y z : , I I i I .....' a N I � ' i ; �3 , � i i; i i i i i i T 7 i i ' i 1 ._ . . __:.. _..—___...__-,- _'_-{--.. . . __—_ __..."'_'_ , —i--- i � � � D � �... . ! i � � '. � a -�1 . . � � . V1 � p c o N p� : : ;, j : , � � p � � � � � �. � � ,; oo, o a . ._.. , . _ _ .. . + i. - —�-- -- --------- i _ _ --- - - _ . , i Do �»� nai �� nc m o Do ��v � d�� nc m o t < ti � aco �`�v, � m < ci � acu ��7in � m , � nac� a� p rc �� nac� a� p rc _.� 2 �a� o�. �'�•m o°> > m 3; � m ro a,3.o�i n°i � m d o a o �. �5 3 W A . � , ' .�O 7f0 �� ' O aC ,� � � 7tn �� -7 0 aC N f � . _ . v :T :n , _.___ _.T _.._ ._ __ _--- -- _ _. _ .. . _. . �I , C�11 � A� W N �� O: t�D , _ _ _ � ..— i �m �DN v+v, �1DNf�u, �1DN d+w ��N ��1m i DVD(7' D� � N C cD 0 O� V C N � i p C m � � N w N � � � W I y-y' N O.� d p : ap fD �� � QWj (D j�� I O fD 7 N V W� 7� V N�' N I�� O N�,, 3» a�= �++� a�='�� a�Z � a�Z N���'^ � ; �� u'� �oao 0 9oDi.W �o= � goD mo; °' ,�D , o � � � o �' �' o � � � o �' o ' j Q � 0 0 " o "�o o a-ii;o o �, ? oF om � I � � x ; � x � a � n n , n � F._. _----t _ . ... ---- -- _..-- + __ _. .--- '-_ -----...__ . ._._ :.. . C'° i C'o : �'o ; C'o , �o ' � Da j�, �� ��; j�l ��: �°' 3 a' a� a', �. 1 N a� . . � N I � N : � N i � N , p � � , � � O N I O f/i � O Vi ' O f/l C,,. �G Ci C C; C C � a � �' N I fDa �a ; a d a I �� N 0 m m i m m �' �'� � ol 0 � � � � � � ; � , � I N i � I i ! ' �. .. .._...... . .� ....... ...: .. . .. ........ � . � .... : .. . .. , � a � � � a3 � 0 �a 3 tO 9: 1° o � � Q m » 0 � �� v � � � � 0 W� 0� : V i (T � ' � 00 � N� . A I (O ' cW0 i V � ' U7 ,,.. � W 0� � � (OI A: A�� �l� O A� aW � ! ! n _. ! o �: W'. O ` O. (�O � 7 � i O V � �____.._._____ _.'___' ____"�._ __y..___-._._... �. . .__..___ _... __._`._____.__�' . .. . . ... I � I i � I �' �: � i � I � ; � H a � � ,._ _..... . -- +--- ,_. _.. __.. j mz ,' � �,,,,.. i �,,' . y N . � � � I CI � I i IC N i i . , i � i . .. . --. _ . , _ ---- _._ --- -- 1 . .. -- *_ - _ _--_ __ . . _ � � � � O i � I N N y� �! � „ �I � o w __ _- -------�+ --. _. _. . -- - --- ----- — - : . _ W� ; N ___..___.�._.__._ .__ ._ . � � N' �,I � �I N �! � � � - - + i - _ , w o' c�r,� c�n �' o; � T �--__ -�---- -�----- - --�----.....- _. _ .. � ' � G j ,, i i, i i � I �� i i � 3 � . ..__. _ .__ ...._ . ......... � ........ ......__... . ._...... . . . ' . . D W � � N C pp (A,� N � CJ7 - � A � 1 ,, A � N',,'. f0 I Cil U1 : � �� 1� d CJ7 � N�,'.. A I OD O. Cl7 N- . W� O'� CJ� i CT I �.. O W Q } � .......... .. .—_ .. ._.:....... .. ...._... . _.. .. . ........._ ..._. ..._.-......__.._._. _...... . .. ............ . ... . . j I � O W � I I � � aa . � .... .. . . .. � � i � : i i N I W � N y i d � , C�i � � , � � � � � � � _._. ' ':. ; : . TO e ,. �� am N � � � j � � � ; � i � , � . � � , _� _. . . j i �D � �3 � ' i i � � T7 _-_.._--�._ .�__.�_..._.... _. __.... . � ' --___. a I C � N � i a � I Z O � N D C � 2 O � N m 0 D 3 O c z � N .11 m A C m y � m 0 D v `c y 1 3 m z � N Resolution No. EXHIBIT B Supporting Documents G:\rda\Veronica Tapia\Word �ilcs\Staff Reports\Successor Agency\Palm Desert SA - SA reso for Amended ROPS 19-20.docx ���NT �o� �Z a "' ""'' z w II� n o �, .� DEPARTMENT OF ����aM`� F' � IV A N C..' E OFFIGE OF TME �IRECTOR May 17, 2019 GAVIN N�WSqM C30VERNQR STAT6 CAPITOL � 1200M 7 74�3 A 9ACiL4MCNT0 CA � 9',5674'4998 � WWW.00�.G.mOV Ms. Veronica Tapia, Management Analyst ll City of Pafm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Ms. Tapia: Subject: 2019-20 Annual Recognized Obligation Payment Schedule This letter supersedes the California Department of Finance's {Finance) Recognized Obligation Payment Schedule (ROPS) letter dated April 15, 2019. Pursuant to Health and Safety Code (HSC) section 34177 (o) (1), the Palm Desert Successor Agency (Agency) submitted an annual ROPS for the period July 1, 2019 through June 30, 2020 (ROPS 19-20) to Finance on January 17, 2019. The Agency requested a Meet and Confer on one or more of the determinations made by Finance. The Meet and Confer was held on April 22, 2Q19. Based on a review of additional information and documentation provided to Finance during the Meet and Confer process, Finance has completed its review of the specific determinations being disputed: • Item Nos, 59, 60, 61, 177, 178, and 179 — Various loans between the former Palm Desert Redevelopment Agency {RDA) and the City of Palm Desert (City) in the total combined outstanding amount of $28,432,025. �inance no longer denies Item Nos. 59, 60, 177, 178, and 179. However, Finance confinues to deny Item No. 61 in the total outstanding balance of $7,530,000 as follows: The Agency provided resolutions for the Ioan issued in 1986 from both the City and the former RDA documenting the amount appropriated to the Redevelopment Revolving Fund (Fund). However, the accounting records already provided did not demonstrate there was an actual transfer of money from the City to the RDA for the 1986 loan, nor did the Agency provide new supporting documentation. HSC section 34171 (d) (1) (B) defines loans as loans of moneys borrowed by the redevelopment agency for a lawful purpose, to the extent they are Iegally required to be repaid pursuant to a required repayment schedule or other mandatory loan terms. Further, a loan agreement is defined under HSC section 34191.4 {b} (2) (A} as loans of money entered into between the former redevelopment agency and the city that created the former redevelopment agency in which the city transferred money to ihe former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule. Ms. Veronica Tapia May 17, 2019 Page 2 Therefore, the 198fi loan remains ineligible for payment and the requested Redevelopment Property Tax Trust Fund (RPTTF} funding is not allowed as summarized in the table below: _ ` .. K :� `Re.u+►' ;EtC3P5 `f�ar Principaf�t?�l : . 'tter�i No; , ,�tmou'rit 'l;oara7ernas _ 61 1986 $6,000,000 Yes n�s '.. f�P�TF 1Vot f. sfer5 of `.., . .�Ifcjwetl� ��e � No $7,085,598 In addition, per Finance's letter dated April 15, 2019, we continue to make the following determinations not contested by the Agency during the Meet and Confer review: The claimed administrative costs exceed the allowance by $202. HSC section 34171 (b) (3} limifs the fiscal year Administrative Cost Allowance (ACA) to three percent of actual RPTTF distributed in the preceding fiscal year or $250,000, whichever is greater; not to exceed 50 percent of the RPTTF distributed in the preceding fiscal year. As a result, the Agency's maximum ACA is $941,654 for fiscal year 2019-20. Although $941,856 in �ther Funds is claimed for ACA, only $941,654 is available pursuant to the cap. Therefore, as noted in the table below, $202 in excess ACA requested from Other Funds is not allowed: Administratfve Cost Allowance Calculation Actuai rtt� i i r aistnputea ror nscai year zu�ts-�y Less distributed Administrative RPTTF RPTTF distributed for 2018-19 aRer adjustments ACA Cap for 2019-20 per HSC section 34171 (b) ACA requested for 2019-20 ACA in Excess of the Cap 32, 356,416 967,937 31, 388,479 941,654 941,856 On the ROPS 19-20 form, the Agency reported cash balances and activity for the period July 1, 2016 through June 30, 2017 (ROPS 16-17}. According to our review, the Agency has approximately $27,424 in Other Funds available to fund enforceable obiigations on the ROPS 19-20. HSC section 34177 {I) (1) {E� requires these balances to be used prior to requesting RPTTF. Therefore, with the Agency's concurrence, the funding source for the following item has been reclassified in the amount specified below: o Item No. 9— Indian Springs Stipulated Agreement in the amount of $139,674 is partially reclassified. This item does not require payment from property tax revenues. Therefore, Finance is approving RPTT'F in the amount of $112,254 and the use of Other Funds in the amount of $27,424, totaling $139,674. Pursuant to HSC section 34186, successor agencies are required to report differences between actual payments and past estimated obfigations. Reported differences in RPTTF are used to offset current RPTTF distributions. The amount of RPTTF approved in the table on Page 4 includes the prior periad adjustment resulting from the County Auditor-Controller's review of the prior period adjustment form submitted by the Agency. The Agency's maximum approved RPTTF distribution for the reporting period is $27,558,741 as summarized in the Approved RPTTF Distribution table on Page 4(see Attachment). RPTTF distributions occur biannually, one distribution for the July 1 through December 31 period (ROPS A period), and one distribution for the January 1 through June 30 period (ROPS B period} based on Finance approved amounts. Since this determination is for the entire ROPS 19-20 Ms. Veronica Tapia May 17, 2019 Page 3 period, the Agency is authorized to receive up to the maximum approved RPTTF through the combined ROPS A and B period distributions. This is Finance's final determination regarding the obligations listed on the ROPS 19-20. This determination only applies to items when funding was requested for the 12-month period. If a denial by Finance in a previous ROPS is currently the subject of litigation, the item will continue to be denied until the matter is resolved. The ROPS 19-20 form submitted by the Agency and this determination letter will be posted on our website: http:i/dof.ca.qov/Proqrams/RedevelopmenUROPS/ This determination is effective for the ROPS 19-20 period only and should not be conclusively relied upon for future ROPS periods. All items listed on a future ROPS are subject to review and may be denied even if not denied 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 RPTTF is the same as the amount of property tax increment available prior to the enactment of 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 RPTTF. Please direct inquiries to Joshua Mortimer, Supervisor, or Chikako Takagi-Galamba, Manager, at (916) 322-2985. Sincerely, ,, ;t ��i � ;_,�; � � �� �'' � ` i 1� '�, f. } 1 `, �� l' .�-�--, 4. " �• JENNIFER WHITAKER " Program Budget Manager cc: Ms. Janet Moore, Director of Housing, City of Palm Desert Ms. Pam Elias, Chief Accountant Property Tax Division, Riverside County Ms. Veronica Tapia May 17, 2019 Page 4 F Requested iistrative RPTTF Requested RPTTF Requested TTF Requested ustments Item No. 9 Item No. 61 Authorized Attachment Approved RP17F Distribution For the period of July 1, 2019 through June 30, 2020 ROPS A Perlod ROPS B Perlod I $ 18,369,162 $ 16,446,142 $ 0 0 15,369,162 16,446,142 18,369,162 16,446,142 (27,424} 0 14,798,939 12, 903,343 Administrative RPTTF Authorized'* 0 0 Total RPTTF Authorized for Obligations 14,798,939 12,903,343 Prior Period Adjustment (143,541) 0 Total RPTTF Approved for Distribution $ 14,655,398 S 42,903,343 "Amfnistrative costs of $941,654 in Other Funds are authorized for ROPS 19-20. 19•20 Total 34,815,304 a 34,815,304 34,815, 304 (27,424) 7,085,598 7,113,022 27,702,282 0 27,702,282 1( 43,541) 27,558,741 3 A D A 3 � � � � � i�i � m � a c d W m � � � � A W N � � 3 m N � � m � o � JJ O� O O W N W V� � f/1 m m w m o<oo N J Oo � mow � A W W � cp W W m � � � �"I � j � N a � � rt W � � � v v w � � O �- 07 �p 7 N N N- .� N - - �D 3 � o o � n � � � V N `G � � "� O v m 3 � � O (p C a � � D n O n � � o O fD � � � (Jt 'D � � J ._.{ � � O � � Z 0 � n � � � • � .. � (O 3, � A � 3 3 � N (Q y 3n�,»y �p � S d � O � M � � 3 � 3 ' x � .� C � � p � ,, c < � 3 a � � �o a 0 d � � � � � � T 0 3 � N n� c3i � Q � O m � m C y O � N 3 � � d N N = C C °1 0 " '< �. N C � O a � �; � � �� � � � C1 N � y � � 'O y N � � 7 O < N � � I � m : T x i c N C f C1 � . m : N �D � � � � 1 � ( � ' � w i D 3 O C � D C � O N � a V ,, V � T W A W D ao [ I p - � � m c m - i � i N � o � S s m � N ( n ( � - iiI ( W � m c � i N 1 1 f � A W � 'N (T � D i o i v p`p � c N o � > m � o � `< > v, � � 3 � i a w wQ�?o C t0 i N v <D C � p � N D s v 3 7 ) N L �% } o � O � � D (i � N � C � 0 o vp � 3 ,Z � p � � t0 � �y. � � S � � � O � u !/� W C W , j � N i17 Ui O A A W O) (T N A W O (T � 0 N T O n O 3 a m N y O p 00 3 A � Ol W � N A W f0 V A W w in V W V !O V � � O 7 N v�� ° c � �m� � �. > �� � � m 3 � � �G r 0 C... � 7 7 ij ,� c. c '� c d � a � � fA � � ; � _ � 7 (� � n c � O � 1 M m T O W m N � N � A d � W A O D � � m