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HomeMy WebLinkAboutReports - 2 (2) L ,,r; _; .•, `-' ,,,„."-, ,,,;, ',t . , , : -...F • .. ,,.•.,. .' _ ,A'''7,- :1 : i ;it 0 7,.., ‘ „ L„ i ,„„ , ,i L , &, , ,, , . 1 :, : 4 ../. '' ;-.,., . 4--" ,-.0‘.%., -. ',,,',•.'Ir,,*-.7.‘,::- ',', 7, ,(, 1 :., ':',44 k.44,71?' % - . 7..!'' p, i); - , ,,, ,,,,,,;,. ,, .,:,(-,„ -.TH,- ,,. i 1 1: 76() 341 -obt 1 .....„.1.,,,,tety zna.00.-- May 9. 2013 (j") t-v • BY OVERSIGHT BOARD ON Riverside County Auditor-Controller's Office Ms. Pam Elias, Chief Accountant, Property Tax Division VERIFIED BY cii-----A7-crt7,5S-Vc--Th Mail Stop 1050 Original on file with City Clerk's Office 4080 Lemon Street. 4th Floor Riverside, CA 92504 Re: Successor Agency to the Palm Desert Redevelopment Agency ("Successor Agency") - Remittance pursuant to the determination by the State Department of Finance (the "DOF") regarding Other Funds and Accounts("OFA")Due Diligence Review Dear Ms. Elias. The Successor Agency is remitting the amount of $28,203,544 pursuant to the letter, dated May 5. 2013 ('DOF's May 51's Lette(), from the DOE regarding the DOF's determination with respect to the Successor Agency's OFA balances available for distribution to the taxing entities. Pursuant to the meet and confer process and a follow-up letter, dated May 7, 2013 (see attached), the Successor Agency requested the DOF to reduce the OFA balances available for distribution to the taxing entities to ensure that sufficient funds are reserved to pay debt service on the former Agency's outstanding 2006 and 2007 bonds after the tax increment cap in the applicable redevelopment plan is reached because the Successor Agency anticipates the cap will be reached before the final maturity of the bonds. The DOF has denied this request, stating that it is DOE's expectation that AB X1 26 and AB 1484 allow enforceable obligations to be listed on the ROPS and paid out of available RPTTF until such obligations have been satisfied (see DOF's May 5," Letter and attached May 9, 2013 e-mail correspondence from Mary Halterman of the DOE). The Successor Agency is hereby remitting the amount of $28,203,544 in reliance on the DOF's statements contained in DOE's May 5th Letter and May 91 e-mail, and with the understanding that the DOF will approve the payment of debt service on the 2006 and 2007 bonds on successive ROPS until paid in full, without regard to the plan's tax increment cap. The Successor Agency is making this remittance without conceding the correctness of the DOF's determination on the OFA balances available for distribution to the taxing entities, including the DOF's method used to determine the amount, and without waiving any legal rights and remedies the Successor Agency has or may have to challenge the payment, the amount of the payment, or the legality of the payment. ,, „y, i' , , ' . ,• , ' ' - , . , ... RE:Palm Desert SARDA Remittance Pursuant to DOF Determination Regarding Other Funds and Accounts DDR Ms. Pam Eiias May 9.2013 Page 2 of 2 The remitted sum does not include any interest component as the Successor Agency finds no statutory requirements for the payment of interest. If the DOF continues to demand the payment of interest, the Successor Agency demands that the State provide statutory authority and the method for calculating the amount of such interest. If you are in need of any additional information, please do not hesitate to contact me. Si erely, r ..- . — ' John M. Wohlmuth i xecutive Director ..",/cc: Mr. Steve Szalay, Local Government Consultant, Department of Finance Ms. Evelyn Suess, Supervisor, Department of Finance Ms. Mary Halterman,Analyst, Department of Finance Mr. Paul S. Gibson, Director of Finance Ms.Janet Moore, Director of Housing Ms. Veronica Tapia, Accountant California State Controller's Office SUCCESSOR AGENCY TO ME P 'I ill li E5 i- R 1 P.f I f VEHIPM[NI AN NH „, , ,