HomeMy WebLinkAboutRes OB-163 (2)OVERSIGHT BOARD OF THE SUCCESSOR AGENCY OF THE
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. OB — 163 RATIFYING AND APPROVING
THE APPLICATION OF ALTERNATE FUNDING SOURCES TOWARDS
ROPS 2017-2018 DEBT SERVICE PAYMENTS AND TAKING RELATED
ACTIONS
SUBMITTED BY:
DATE:
CONTENTS:
Veronica Tapia, Senior Management Analyst
July 10, 2017
Resolution OB — 163
Recommendation
By Minute Motion that the Oversight Board adopt Resolution OB-163 ratifying and approving
the application of alternate funding sources towards ROPS 2017/2018 debt service payments
and taking related actions.
Backaround
On May 17, 2017 the State Department of Finance approved the Oversight Board approved
Recognized Obligation Payment Schedule ("ROPS") for the 2017/2018 fiscal year. Following
their notification of approval, Successor Agency staff was contacted by US Bank, the trustee for
the current outstanding debt and apprised that there was some residual remaining cash
balances in the accounts from the previously refunded debt that needed to be closed out.
Since these funds are directly related to the prior issued debt that was refunded in January, staff
would like to deposit the remaining funds into the new refunded accounts and apply the
amounts toward the upcoming debt service payments. Had there been no refunding in January,
these amounts would have been used for the upcoming payments on the old debt.
Therefore, staff recommends that the Oversight Board adopt Resolution OB-163 ratifying and
approving the application of alternate funding sources toward ROPS 2017/18 debt service
payments and taking certain related actions.
Fiscal Impact
The use of these funds toward the 2017/18 debt service payments will create an RPTTF
balance for the 2017/18 fiscal year, that once reconciled, will result in a reduction to the
subsequent associated ROPS request.
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RESOLUTION NO. OB- 163
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
RATIFYING AND APPROVING THE APPLICATION OF ALTERNATE
FUNDING SOURCES TOWARDS ROPS 17-18 DEBT SERVICE
PAYMENTS AND TAKING RELATED ACTIONS
RECITALS:
A. Pursuant to Section 34177 of the Health and Safety Code ("HSC"), the
Successor Agency to the Palm Desert Redevelopment Agency (the "Successor
Agency") must prepare a Recognized Obligation Payment Schedule ("ROPS") for
prescribed periods, listing the expected payment for enforceable obligations and the
sources of funds for such payments during such fiscal period.
B. Each ROPS must be submitted to the Oversight Board of the Successor
Agency (the "Oversight Board") and the State Department of Finance (the "DOF") for
approval.
C. The Oversight Board adopted Resolution No. OB-158, approving the
Successor Agency's ROPS ("ROPS 17-18") for the period from July 1, 2017 through
June 30, 2018 (the "Fiscal Year 2017-18").
D. Listed on the ROPS 17-18 are certain line items (the "Bond Line Items")
debt service payments for certain outstanding bonds (the "Bonds"), to be paid from
property tax revenues deposited in and disbursed from the Redevelopment Property
Tax Trust Fund during Fiscal Year 2017-18.
E. The DOF, by a letter dated May 17, 2017, approved the Successor
Agency's ROPS 17-18, with certain modifications which do not affect the Bond Line
Items.
F. After the DOF's approval of the ROPS 17-18, the Successor Agency
received certain moneys from interest earnings on bond debt service funds and other
sources (the "Other Fund Sources") that may be applied toward the Fiscal Year 2017-18
debt service payments on the Bonds.
G. Pursuant to HSC Section 34177(a)(4), the Oversight Board is authorized
to approve the use of funding sources other than those listed on an approved ROPS for
enforceable obligations
NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY
RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The above recitals, and each of them, are true and correct.
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RESOLUTION NO. OB- 163
Section 2. The use of the Other Fund Sources toward a portion of the debt
service payments on the Bonds during Fiscal Year 2017-18 is hereby approved and
ratified.
Section 3. The members of this Oversight Board and the officers and staff of
the Successor Agency are hereby authorized, jointly and severally, to do all things
which they may deem necessary or proper to effectuate the purposes of this
Resolution.
PASSED, APPROVED and ADOPTED this day of , 2017.
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT A. SPIEGEL, CHAIR
ATTEST:
RACHELLE D. KLASSEN, SECRETARY
OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
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