Document elcerrito_gov_doc_56630a4052

AGENDA BILL Agenda Item No. 7 Date: February 18, 2014 To: City Council of the City of El Cerrito El Cerrito Redevelopment Successor Agency From: Lori Treviño, Senior Financial Analyst Lisa Malek-Zadeh, Finance Director/City Treasurer Subject: Review an Authorization to Submit the Draft Recognized Obligations Payment Schedule 14-15A (July-December 2014), the Successor Agency’s FY 2014-15 Administrative Budget, and a Repayment Schedule for Housing Loans ACTION REQUESTED Adopt a Successor Agency resolution reviewing and authorizing submittal of the draft Recognized Obligations Payment Schedule 14-15A covering the period July to December 2014, the Successor Agency’s FY 2014-15 administrative budget, and a repayment schedule of obligations to the City’s Low Income Housing Asset Fund. BACKGROUND Recognized Obligation Payment Schedules ABx1 26 (“Dissolution Act”) dissolved the El Cerrito Redevelopment Agency (“RDA”) and established the El Cerrito Redevelopment Successor Agency (“Successor Agency”) on February 1, 2012. Under the Dissolution Act, the portion of property tax revenues collected in the City of El Cerrito Redevelopment Project Area (“Project Area”) that was considered Tax Increment prior to the RDA’s dissolution are called Redevelopment Property Tax and are deposited by the County Auditor-Controller (“Auditor-Controller”) into the Redevelopment Property Tax Trust Fund The Auditor-Controller distributes the funds in the with the following priority: 1. Auditor-Controller’s administrative costs; 2. Pass-through payments to the taxing entities affected by the Redevelopment Plan for the Project Area, calculated the same as prior to RDA dissolution; 3. Distribution to the Successor Agency to retire the former RDA’s obligations; 4. Repayment of loans from the Housing Fund (starting in FY 2014-15); and 5. Distribution of residual funds to taxing entities. The Successor Agency must review and authorize submittal of a Recognized Obligation Schedule (“ROPS”) for each six-month period. Each ROPS must then be approved by the Oversight Board to the Successor Agency (“Oversight Board”) and the California Department of Finance (“DOF”) before the Auditor-Controller disburses funding for payments on the approved ROPS. ---PAGE BREAK--- Agenda Item No. 7 Page 2 The schedule being reviewed this evening is the draft ROPS 14-15A covering payments due during the period of July to December 2014. The Successor Agency must submit ROPS 14-15A approved by the Oversight Board to DOF no later than March 3, 2014. The Oversight Board is scheduled to consider ROPS 14-15A at its upcoming special meeting. After submittal, the DOF then has 45 days to review the ROPS and approve or disapprove of any items. The Successor Agency can request additional review by DOF and an opportunity to meet and confer on disputed items, and must make that request within five business days of receiving a DOF determination. The DOF is required to notify the Successor Agency and Auditor-Controller of its final determination of the approved payments at least 15 days prior to the date of distributions from the For ROPS 14-15A, the notification date is May 16, 2014 for the June 2, 2014 disbursement. Successor Agency Administrative Budget Pursuant to the Dissolution Act, the Successor Agency must prepare a budget for administrative expenses each fiscal year to be approved by the Oversight Board and DOF. The Successor Agency is entitled to an administrative allowance of $250,000 annually, regardless of its actual expenses. The budget being considered this evening is for FY 2014-15. Repayment of Loans from Housing Funds The State of California shifted tax increment revenues from redevelopment agencies statewide into the Educational Revenue Augmentation Fund (“ERAF”) in 2005 and 2006, and into the Supplemental ERAF (“SERAF”) in 2009 and 2010. Redevelopment agencies that did not have sufficient tax increment to make their ERAF and SERAF payments were permitted to borrow from their housing funds in order to do so. The RDA had borrowed funds from its Low and Moderate Income Housing Fund (“LMIHF”) and was in the process of repaying the loans when the agency was dissolved. The obligation was assumed by the Successor Agency and is payable to the City’s Low Income Housing Asset Fund. The Dissolution Act allows repayment of SERAF and ERAF loans beginning in FY 2014-15. The maximum repayment amount authorized each fiscal year is limited to one half of the increase between the amount distributed to the taxing entities in the fiscal year and the amount distributed to taxing entities in the 2012-13 base year. The DOF has advised successor agencies that SERAF and ERAF loans are enforceable obligations provided that the Oversight Board approves a repayment schedule. ROPS 14-15A The proposed ROPS 14-15A is Exhibit A to the attached Successor Agency resolution, reviewing and authorizing its submittal. It includes: 1) A summary of the funding request; 2) An itemized listing of obligations; 3) A report of cash balances; 4) A reconciliation of prior payments and resulting adjustments; and 5) Notes of explanation. Obligations with remaining outstanding balances are included on ROPS 14-15A, whether previously approved by DOF or in dispute. They are as follows: ---PAGE BREAK--- Agenda Item No. 7 Page 3 • Tax Allocation Bond Debt Service. Payments are due to the trustee Union Bank by December 27, 2014. • Valente Note. No payment is due during the ROPS 14-15A period. • Due Diligence Review. Funding was approved on prior ROPS, but remaining funds were needed so the obligation is retired. • Cash Flow Loan. The Successor Agency’s litigation expenses are an enforceable obligation. To the extent necessary, the City is advancing the cost of litigation anticipating reimbursement through the cash flow loan approved on ROPS 13-14B. • Eden Housing Loan Agreement Post-DDA. While the Oversight Board has repeatedly approved obligations to Eden Housing, DOF has continued to deny that portion of the loan agreement that was contingent on negotiation of a Disposition and Development Agreement (DDA) with Eden, in the amount of $250,000, stating that the Successor Agency did not have the authority to negotiate a DDA. However, the City as Housing Successor does have the authority to negotiate a DDA with Eden Housing on a property that was listed on the DOF-approved Housing Asset Transfer List and the Successor Agency retained the obligation to fund the loan agreement. DOF stated that the Successor Agency can terminate the agreement due to dissolution, but the Successor Agency is not required to terminate under the Dissolution Act and the DOF cannot require the Successor Agency to do so. Eden Housing and the City as Housing Successor are in the process of negotiating a DDA and therefore this obligation is included on ROPS 14-15A for funding. • Cooperation Agreement with the El Cerrito Municipal Services Corporation. While the DOF has repeatedly disapproved this item, the Successor Agency intends to continue pursuing funding. The City, Successor Agency and Municipal Services Corporation have filed litigation against the DOF regarding the enforceability of the agreement. The total outstanding obligation has been revised from prior ROPS based on estimated funding requirements under the terms of the agreement. • San Pablo Avenue Streetscape and Streetlights. In the process of closing out multi-year capital improvement projects, it was determined that commitments of tax increment by the RDA to the City were not transferred to the Capital Improvement Fund, but were relied upon for letting construction contracts. While the commitment of tax increment not transferred by the RDA totaled $956,511, the City was able to reduce project costs and only $431,599 of the commitment remains outstanding. • ERAF and SERAF Loans. The payment amount listed is an estimate based on calculations in Health & Safety Code Section 34176 and an estimate of any residual funds in the after other obligations are paid. ---PAGE BREAK--- Agenda Item No. 7 • FY 2014-15 Administrative Allowance. One half of the Successor Agency's administrative allowance is included on the ROPS. The total amount of funding required for ROPS 14-15A is estimated to be $2,385,215. Based on the amount received during the prior ROPS period, the estimated amount to be distributed from the is about $2.1 million. There may be insufficient for all obligations due during the ROPS 14-15A period. SUCCESSOR AGENCY FY2013-14 ADMINISTRATIVE BUDGET A proposed FY 2014-15 Administrative Budget is Exhibit B to the attached Successor Agency Resolution. Note that this budget does not include litigation costs, as provided in the Dissolution Act. This budget will be included within the City's overall FY 2014-15 Budget and the City will be reimbursed once the Successor Agency receives its allowance. Regardless of the Successor Agency's actual administrative expenses, it receives the administrative allowance $250,000 annually. SERAF/ERAF REPAYMENT SCHEDULE An estimated repayment schedule for SERAF and ERAF Loans is Exhibit C to the attached Successor Agency Resolution. Repayment is contingent on the availability of funds and based on a formula in the Dissolution Act. Language in the resolution specifies that the repayment amount for each fiscal year will be equal to the maximum amount allowed pursuant to HSC section 34176 LEGAL CONSIDERATIONS All actions being requested are consistent with the Dissolution Act, as amended. Reviewed by: ScottHanin City Manager Attachments: - 1. Successor Agency Resolution 2014-XX, reviewing and authorizing submittal of the draft Recognized Obligation Payment Schedule 13-14A, approving its FY 2014-15 Administrative Budget, and authorizing submittal of a proposed repayment schedule for SERAF /ERAF Loans Page 4 ---PAGE BREAK--- Agenda Item No. 7 Attachment 1 SUCCESSOR AGENCY RESOLUTION 2014-XX RESOLUTION OF THE EL CERRITO REDEVELOPMENT AGENCY SUCCESSOR AGENCY AUTHORIZING SUBMITTAL OF THE DRAFT RECOGNIZED OBLIGATION PAYMENT SCHEDULE 14-15A, AS REQUIRED UNDER THE DISSOLUTION ACT; APPROVING ITS FY 2014-15 ADMINISTRATIVE BUDGET; AND AUTHORIZING SUBMITTAL OF A REPAYMENT SCHEDULE FOR LOW AND MODERATE INCOME HOUSING FUNDS PURSUANT TO HEALTH AND SAFETY CODE SECTION 34171 WHEREAS, pursuant to the California Community Redevelopment Law (the “Redevelopment Law”), the City Council (the “City Council”) of the City of El Cerrito (the “City”) adopted the Redevelopment Plan for the City of El Cerrito Redevelopment Project Area by Ordinance No. 77-17, as amended by Ordinances No. 80-13; No. 89-5; No. 94-4; No. 2004-3; No. 2005-01; and No. 2006-10 (collectively, the “Redevelopment Plan”); and WHEREAS, the El Cerrito Redevelopment Agency (the “RDA”) was responsible for implementation of the Redevelopment Plan; and WHEREAS, as part of the 2011-12 State budget bill, ABx1 26 (the “Dissolution Act”) was enacted significantly modifying the Redevelopment Law to require the dissolution of redevelopment agencies throughout California and the establishment of successor agencies to wind down the former redevelopment agencies’ affairs; and WHEREAS, on August 15, 2011, pursuant to the Dissolution Act, the City elected to serve as the El Cerrito Redevelopment Agency Successor Agency (the “Successor Agency”), should the RDA be dissolved; and WHEREAS, California redevelopment agencies were dissolved on February 1, 2012; and WHEREAS, pursuant to the Dissolution Act, upon dissolution, the RDA transferred as a matter of law all remaining liabilities, debts and obligations to the Successor Agency; and transferred all unencumbered funds and assets to the Successor Agency’s Redevelopment Obligation Retirement Fund (the “RORF”), for disposition and/or use by the Successor Agency to retire RDA debt and pay for RDA obligations; and WHEREAS, pursuant to the Dissolution Act, the Contra Costa County Auditor Controller (the “Auditor-Controller”) established the Redevelopment Property Tax Trust Fund (the to hold Redevelopment Property Tax collected from the City of El Cerrito Redevelopment Project Area to be disbursed to the Successor Agency for payment of its enforceable obligations and to taxing entities affected by the Redevelopment Plan; and WHEREAS, AB 1484 (the “Trailer Bill”) was enacted on July 1, 2012 modifying the Dissolution Act to require the Successor Agency to submit an oversight board-approved Recognized Obligations Payment Schedule 14-15A (“ROPS 14-15A”) covering the period July through December, 2014 to the Department of Finance (the “DOF”) by March 3, 2014; and ---PAGE BREAK--- Agenda Item No. 7 Attachment 1 WHEREAS, the Trailer Bill made clear that the Successor Agency is a separate public entity from the City; and WHEREAS, the Oversight Board to the Successor Agency to the El Cerrito Redevelopment Agency (the “Oversight Board”) was formed on April 4, 2012; and WHEREAS, the Successor Agency has reviewed the draft ROPS 14-15A that was prepared pursuant to the Dissolution Act and the Trailer Bill, which is attached and incorporated as Exhibit A to this Resolution, for submittal to the Oversight Board, the Auditor-Controller, and DOF; and WHEREAS, the Successor Agency wishes to authorize Successor Agency staff to amend the ROPS 14-15A administratively to account for any additional changes made by the DOF to the ROPS form that occur after the Successor Agency’s consideration; and WHEREAS, the Successor Agency is not a component unit of the City, but the City is providing administrative services for the Successor Agency; and WHEREAS, pursuant to the Dissolution Act, the Successor Agency is entitled to an administrative allowance of $250,000 annually to be paid from the property tax revenues collected in the Project Area, regardless of its actual administrative expenses; and WHEREAS, the Successor Agency must prepare a budget for those administrative expenses each fiscal year to be approved by the Oversight Board, as required in the Dissolution Act; and WHEREAS, an Administrative Budget prepared for FY 2014-15 is Exhibit B to this Resolution; and WHEREAS, beginning in FY 2014-15 pursuant to Health and Safety Code Section 34176(e)(6)(B), the Dissolution Act provides for the repayment of money borrowed from the Low and Moderate Income Housing Fund (the “LIMHF”) by the former RDA, provided that the maximum repayment amount authorized each fiscal year shall be equal to one half of the increase between “the amount distributed” to the taxing entities in that fiscal year and the amount distributed to taxing entities in the 2012-13 base year; and WHEREAS, pursuant to Health and Safety Code Section 34171(d)(1)(G), amounts borrowed from, or payments owing to the LMIHF are enforceable obligations, provided the Oversight Board approves a repayment schedule; and WHEREAS, the Successor Agency has reviewed the repayment schedule for funds borrowed from the LIMHF that was prepared pursuant to the Dissolution Act and the Trailer Bill, which is attached and incorporated as Exhibit C to this Resolution, for submittal to the Oversight Board, the Auditor-Controller, and DOF. ---PAGE BREAK--- Agenda Item No. 7 Attachment 1 NOW THEREFORE, BE IT RESOLVED that the El Cerrito Redevelopment Agency Successor Agency hereby finds the above recitals to be true and accurate. BE IT FURTHER RESOLVED that the El Cerrito Redevelopment Agency Successor Agency authorizes the submittal of the draft Recognized Obligation Payment Schedule 13-14B as required under the Dissolution Act, subject to such changes as may be necessary to accommodate changes in the DOF approved form, any such changes to be approved by the City Manager. BE IT FURTHER RESOLVED that the El Cerrito Redevelopment Successor Agency approves its Administrative Budget for FY 2014-15. BE IT FURTHER RESOLVED that the El Cerrito Redevelopment Agency Successor Agency authorizes the submittal of the repayment schedule for funds borrowed from the LMIHF for consideration by the Oversight Board, as provided under the Dissolution Act and subject to such changes of form as may be necessary to accommodate DOF approval, any such changes to be approved by the City Manager. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon its passage and adoption. I CERTIFY that at the regular meeting on February 19, 2014, the City Council of the City of El Cerrito acting as the El Cerrito Redevelopment Agency Successor Agency passed this resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: IN WITNESS of this action, I sign this document on February 2014. Cheryl Morse, City Clerk APPROVED: Janet Abelson, Mayor ---PAGE BREAK--- Name of Successor Agency: El Cerrito Name of County: Contra Costa Current Period Requested Funding for Outstanding Debt or Obligation A - $ B - C - D - E 2,385,215 $ F 2,260,215 G 125,000 H Current Period Enforceable Obligations 2,385,215 $ Successor Agency Self-Reported Prior Period Adjustment to Current Period Requested Funding I Enforceable Obligations funded with 2,385,215 J - K 2,385,215 $ County Auditor Controller Reported Prior Period Adjustment to Current Period Requested Funding L Enforceable Obligations funded with 2,385,215 M - N 2,385,215 Name Title Signature Date Recognized Obligation Payment Schedule (ROPS 14-15A) - Summary Filed for the July 1, 2014 through December 31, 2014 Period Enforceable Obligations Funded with Non-Redevelopment Property Tax Trust Fund Funding Sources Non-Administrative Costs (ROPS Detail) Enforceable Obligations Funded with Funding Bond Proceeds Funding (ROPS Detail) Reserve Balance Funding (ROPS Detail) Other Funding (ROPS Detail) Six-Month Total Administrative Costs (ROPS Detail) Less Prior Period Adjustment (Report of Prior Period Adjustments Column S) Adjusted Current Period Requested Funding (I-J) Less Prior Period Adjustment (Report of Prior Period Adjustments Column AA) Adjusted Current Period Requested Funding (L-M) Certification of Oversight Board Chairman: Pursuant to Section 34177(m) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named agency. Agenda Item No. 7 Resolution 2014-XX Exhibit A ---PAGE BREAK--- A B C D E F G H I J K L M N O P Bond Proceeds Reserve Balance Other Funds Non-Admin Admin 26,563,029 $ - $ - $ - $ 2,260,215 $ 125,000 $ 2,385,215 $ 1 Tax Allocation Bonds 1997 A Bonds Issued On or 12/17/1997 7/1/2019 Union Bank Refunding of prior TAB for Redev City of El Cerrito 2,586,500 N 281,125 $ 281,125 2 Tax Allocation Bonds 1998 B Bonds Issued On or Before 12/31/10 12/17/1997 7/1/2015 Union Bank Refunding of prior TAB for L&M Hsg Projs City of El Cerrito 226,288 N 113,144 $ 113,144 3 Tax Allocation Bonds 2004 A Bonds Issued On or Before 12/31/10 10/21/2004 7/1/2023 Union Bank Tax-exempt TAB for Infrastructure Projs City of El Cerrito 11,434,933 N 535,249 $ 535,249 5 Tax Allocation Bonds 2004 B Hsg Bonds Issued On or Before 12/31/10 10/21/2004 7/1/2023 Union Bank Taxable TAB for L&M Hsg Projs City of El Cerrito 4,711,485 N 134,098 $ 134,098 6 2009-10 SERAF Loan SERAF/ERAF 2/16/2010 11/24/2024 City L&M Housing Fund Funds advanced for SERAF payment City of El Cerrito N 7 2005-06 ERAF Loan SERAF/ERAF 4/17/2006 11/24/2024 City L&M Housing Fund Funds advanced for ERAF payment City of El Cerrito N 9 Valente Promissory Note Third-Party Loans 3/5/2009 3/5/2024 George Valente Loan for land acquistion City of El Cerrito 2,047,907 N $ - 11 Eden Housing Loan Agreement OPA/DDA/Constructi on 5/17/2011 11/24/2024 Eden Housing Undisbursed loan commitment City of El Cerrito N 12 Cooperation Agreement Project Management Costs 3/7/2011 11/24/2024 El Cerrito MSC Implementation of City of El Cerrito Redevelopment Plan City of El Cerrito N 14 Due Diligence Review Dissolution Audits 9/20/2012 6/30/2014 MGO CPAs Accountant for AB1484 Due Diligence Review City of El Cerrito Y $ - 18 Eden Housing Loan Agreement Post- DDA OPA/DDA/Constructi on 5/17/2011 11/24/2024 Eden Housing Undisbursed loan commitment contingent on DDA City of El Cerrito N 19 Cooperation Agreement Project Management Costs 3/7/2011 11/24/2024 El Cerrito MSC Implementation of Redevelopment Plan City of El Cerrito N 21 Litigation Cost/Cash Flow Loan Agreement City/County Loans After 6/27/11 10/1/2013 6/30/2014 City of El Cerrito Successor Agency litigation costs funded by ROPS 13-14B RPT and/or by City of El Cerrito Cash Flow Loan pursuant to H&S Code Section 34173(h). City of El Cerrito 90,000 N 90,000 $ 90,000 22 Eden Housing Loan Agreement Post- DDA OPA/DDA/Constructi on 5/17/2011 11/24/2024 Eden Housing Undisbursed loan commitment contingent on DDA City of El Cerrito 250,000 N - - - 250,000 $ 250,000 23 Cooperation Agreement Project Management Costs 3/7/2011 11/24/2024 El Cerrito MSC Implementation of Redevelopment Plan City of El Cerrito 3,287,000 N - - - 300,000 $ 300,000 24 San Pablo Avenue Streetscape OPA/DDA/Constructi on 7/1/2004 City of El Cerrito Undisbursed commitment for public improvements constructed in 2004- 2011 City of El Cerrito 431,599 N 431,599 $ 431,599 25 FY 14-15 Administrative Allowance` Admin Costs City of El Cerrito Annual allowance City of El Cerrito 250,000 N 125,000 $ 125,000 26 2009-10 SERAF Loan SERAF/ERAF 2/16/2010 11/24/2024 City L&M Housing Fund Funds advanced for SERAF payment City of El Cerrito 995,741 N - - - 100,000 - $ 100,000 27 2005-06 ERAF Loan SERAF/ERAF 4/17/2006 11/24/2024 City L&M Housing Fund Funds advanced for ERAF payment City of El Cerrito 251,577 N - - - 25,000 - $ 25,000 Recognized Obligation Payment Schedule (ROPS) 14-15A - ROPS Detail July 1, 2014 through December 31, 2014 (Report Amounts in Whole Dollars) Item # Payee Description/Project Scope Project Area Total Outstanding Debt or Obligation Retired Funding Source Six-Month Total Project Name / Debt Obligation Obligation Type Contract/Agreement Execution Date Non-Redevelopment Property Tax Trust Fund Contract/Agreement Termination Date ---PAGE BREAK--- A B C D E F G H I Other Bonds Issued on or before 12/31/10 Bonds Issued on or after 01/01/11 Prior ROPS period balances and DDR balances retained Prior ROPS distributed as reserve for next bond payment Rent, Grants, Interest, Etc. Non-Admin and Admin ROPS 13-14A Actuals (07/01/13 - 12/31/13) 1 Beginning Available Cash Balance (Actual 07/01/13) Note that for the 1 + 2 should tie to columns J and O in the Report of Prior Period Adjustments (PPAs) - - 294,358 1,621,139 - - 2 Revenue/Income (Actual 12/31/13) Note that the amounts should tie to the ROPS 13-14A distribution from the County Auditor-Controller during June 2013 - - - - 948 1,427,787 3 Expenditures for ROPS 13-14A Enforceable Obligations (Actual 12/31/13) Note that for the 3 + 4 should tie to columns L and Q in the Report of PPAs - - 288,215 1,621,139 - 1,038,544 4 Retention of Available Cash Balance (Actual 12/31/13) Note that the amount should only include the retention of reserves for debt service approved in ROPS 13-14A 389,243 5 ROPS 13-14A Prior Period Adjustment Note that the amount should tie to column S in the Report of PPAs. No entry required - 6 Ending Actual Available Cash Balance C to G = (1 + 2 - 3 - H = (1 + 2 - 3 - 4 - 5) - $ - $ 6,143 $ - $ 948 $ - $ ROPS 13-14B Estimate (01/01/14 - 06/30/14) 7 Beginning Available Cash Balance (Actual 01/01/14) D, E, G = 4 + 6, F = H4 + F4 + F6, and H = 5 + 6) - $ - $ 6,143 $ 389,243 $ 948 $ - $ 8 Revenue/Income (Estimate 06/30/14) Note that the amounts should tie to the ROPS 13-14B distribution from the County Auditor-Controller during January 2014 1 2,072,483 9 Expenditures for 13-14B Enforceable Obligations (Estimate 06/30/14) 6,143 389,243 949 377,780 10 Retention of Available Cash Balance (Estimate 06/30/14) Note that the amounts may include the retention of reserves for debt service approved in ROPS 13-14B 1,694,703 11 Ending Estimated Available Cash Balance (7 + 8 - 9 -10) - $ - $ - $ - $ - $ - $ Recognized Obligation Payment Schedule (ROPS) 14-15A - Report of Cash Balances (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177(l), Redevelopment Property Tax Trust Fund may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. Fund Sources Comments Bond Proceeds Reserve Balance Cash Balance Information by ROPS Period ---PAGE BREAK--- A B C D E F G H I J K L M N O P Q R S Net SA Non-Admin and Admin PPA (Amount Used to Offset ROPS 14-15A Requested Authorized Actual Authorized Actual Authorized Actual Authorized Available (ROPS 13-14A distributed + all other available as of 07/1/13) Net Lesser of Authorized / Available Actual Difference (If K is less than L, the difference is zero) Authorized Available (ROPS 13-14A distributed + all other available as of 07/1/13) Net Lesser of Authorized / Available Actual Difference (If total actual exceeds total authorized, the total difference is zero) Net Difference (M+R) - $ - $ - $ - $ - $ - $ 1,177,787 $ 1,177,787 $ 1,177,787 $ 1,177,787 $ - $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ - $ - $ 1 Tax Allocation - - - 66,875 66,875 $ 66,875 66,875 $ - $ - 2 Tax Allocation - - - 10,894 10,894 $ 10,894 10,894 $ - $ - 3 Tax Allocation Bonds 2004 A - - - 213,114 213,114 $ 213,114 213,114 $ - $ - 4 Tax Allocation Bonds 2004 B Non- Hsg - - - - - $ - - $ - $ - 5 Tax Allocation Bonds 2004 B Hsg - - - 98,360 98,360 $ 98,360 98,360 $ - $ - 6 2009-10 SERAF Loan - - - - - $ - - $ - $ - 7 2005-06 ERAF Loan - - - - - $ - - $ - $ - 8 Accrued Vacation Liability - - - 19,392 19,392 $ 19,392 19,392 $ - $ - 9 Valente Promissory Note - - - - - $ - - $ - $ - 10 Ohlone Gardens Loan Agreement - - - 471,152 471,152 $ 471,152 471,152 $ - $ - 11 Eden Housing Loan Agreement - - - - - $ - $ - $ - 12 Cooperation Agreement - - - - - $ - $ - $ - 13 FY 2012-13 Administrative Allowance - - - - - $ - $ - $ - 14 Due Diligence Review - - - - - $ - $ - $ - 15 FY 2011-12 Administrative Allowance - - - - - $ - $ - $ - 16 Cash Flow Loan Agreement - - - 238,000 238,000 $ 238,000 238,000 $ - $ - 17 Eden Housing Loan Agreement Pre-DDA - - - 60,000 60,000 $ 60,000 60,000 $ - $ - Expenditures Recognized Obligation Payment Schedule (ROPS) 14-15A - Report of Prior Period Adjustments Reported for the ROPS 13-14A (July 1, 2013 through December 31, 2013) Period Pursuant to Health and Safety Code (HSC) section 34186 (Report Amounts in Whole Dollars) ROPS 13-14A Successor Agency (SA) Self-reported Prior Period Adjustments (PPA): Pursuant to HSC Section 34186 SAs are required to report the differences between their actual available funding and their actual expenditures for the ROPS 13-14A (July through December 2013) period. The amount of Redevelopment Property Tax Trust Fund approved for the ROPS 14-15A (July through December 2014) period will be offset by the SA’s self-reported ROPS 13-14A prior period adjustment. HSC Section 34186 also specifies that the prior period adjustments self-reported by SAs are subject to aud by the county auditor-controller (CAC) and the State Controller. Item # Project Name / Debt Obligation Expenditures Non-Admin Admin Bond Proceeds Reserve Balance Other Funds ---PAGE BREAK--- Item # Notes/Comments 1 Portion of this item is to fund a debt service reserve for ROPS 14-15B. Should there be insufficient funds for other ROPS 14-15A items, less than the full amount requested may be reserved for the debt service reserve portion of this item. 2 Portion of this item is to fund a debt service reserve for ROPS 14-15B. Should there be insufficient funds for other ROPS 14-15A items, less than the full amount requested may be reserved for the debt service reserve portion of this item. 3 Portion of this item is to fund a debt service reserve for ROPS 14-15B. Should there be insufficient funds for other ROPS 14-15A items, less than the full amount requested may be reserved for the debt service reserve portion of this item. 5 Portion of this item is to fund a debt service reserve for ROPS 14-15B. Should there be insufficient funds for other ROPS 14-15A items, less than the full amount requested may be reserved for the debt service reserve portion of this item. 6 See Item 26. 7 See Item 27. 14 Item approved on ROPS III, but fund are not needed. Remaining balance will be applied towards approved items on ROPS 13-14B. 18 See Item 22. 19 See Item 23. 22 While previously disapproved, the Successor Agency has disputed the determination. A DDA between the City and developer is expected to be complete prior to funding of ROPS 14-15A and therefore the Successor Agency is retaining the item on the ROPS. 23 While previously disapproved by DOF, the Successor Agency and Payee have filed litigation regarding the enforceability of this obligation and therefore the Successor Agency is retaining the item on the ROPS. 24 This is a new item. The City of El Cerrito initiated a multi-year capital improvement project in 2003, completed in 2012. The primary funding source for the project was the Redevelopment Agency, through both tax increment and bond proceeds. The total cost of the project, which include streetscape improvements, paving, signage, landscaping, streetlights and creek restoration was $8.29 million, of which $5.54 million was committed by the Redevelopment Agency. The City relied on the Redevelopment Agency's commitments when entering into construction contracts. However, when closing out the projects in 2012, it was determined that portions of the Agency's project commitment had not been transferred to the City's Capital Improvement Program Fund, totalling $956,511. The City was able to reduce project costs, but $431,599 of the tax increment commitment remains outstanding. 26 This item is included on the ROPS contingent on the approval by the Oversight Board of the SERAF/ERAF Loan repayment schedule. The amount payable during the current ROPS period is an estimate based on the formula contained in the Dissolution Act. 27 This item is included on the ROPS contingent on the approval by the Oversight Board of the SERAF/ERAF Loan repayment schedule. The amount payable during the current ROPS period is an estimate based on the formula contained in the Dissolution Act. Recognized Obligation Payment Schedule 14-15A - Notes July 1, 2014 through December 31, 2014 ---PAGE BREAK--- Exhibit B Successor Agency Administrative Budget Fiscal Year 2014‐15 Entity/Activity Successor Agency Oversight Board Staffing Functions (Total Compensation plus Overhead for Indirect Costs) Administration $55,000 $35,000 Finance $60,000 $30,000 Community Development $20,000 $10,000 City Clerk $15,000 $10,000 Legal Services $50,000 Financial & Audit Services $10,000 Bond‐related Costs $10,000 Supplies $1,000 $500 Postage $100 $100 Copies $100 $100 Website $1,000 $1,000 Advertising/Legal Notices $500 $500 Property Management $1,000 Total $223,700 $87,200 Combined Total $310,900 Funding Source Redevelopment Property Tax Trust Fund $250,000 Unfunded $60,900 Agenda Item No. 7 Resolution No. 2014-XX Exhibit B ---PAGE BREAK--- Agenda Item No. 7 Resolution No. 2014-XX Exhibit C Exhibit C SERAF/ERAF Loan Repayment Schedule Payments to the City of El Cerrito Low and Moderate Income Housing Asset Fund By the El Cerrito Redevelopment Successor Agency Pursuant to HSC section 34171(d)(1)(G), payments on loans from the former El Cerrito Redevelopment Agency’s Low and Moderate Income Housing Fund are enforceable obligations, provided the Oversight Board approves a repayment schedule. Pursuant to HSC section 34176(e)(6)(B), repayment of obligations related to Education Revenue Augmentation Fund (“ERAF”) and Supplemental ERAF by redevelopment successor agencies are subject to calculation of a maximum repayment amount authorized each fiscal year, equal to one half of the increase between “the amount distributed” to the taxing entities in that fiscal year and the amount distributed to taxing entities in the 2012-13 base year. The estimated amount of residual Redevelopment Property Tax available for calculation of the maximum payment is summarized in the following table. It is based on projected three percent growth in assessed values in the City of El Cerrito Redevelopment Project Area and assumes that all proposed ROPS are approved by the Oversight Board and the Department of Finance as presented to the Department. Higher growth rates or lower amounts of approved ROPS payments would result in a greater residual available for repayment of the Successor Agency’s SERAF/ERAF obligations. The Successor Agency intends that the actual repayment amount each ROPS period would be no greater than the maximum amount allowed pursuant to the formula contained in HSC 34176(e)(6)(B). As such that amount would vary depending upon the amounts approved for distribution to the Successor Agency for the payment of enforceable obligations and the administrative allowance, as well as the amount deposited in the for each ROPS period. The schedule below is a sample repayment schedule but is not intended to limit the amount or timing of the repayments, which could vary depending on actual residual in a ROPS period within a fiscal year. ROPS Period Projected Available County Admin County Deducted Pass-Thrus ROPS Residual FY Difference from Base FY Maximum Payment Sample Payment Schedule Loan Balance 12-13 0 1,247,318 14-15A 2,688,604 (32,167) (497,392) (2,260,215) (101,170) 125,000 1,122,318 14-15B 2,769,262 (32,167) (512,313) (1,776,831) 447,951 346,781 173,391 15-16A 2,769,262 (33,132) (512,313) (1,509,561) 714,256 250,000 872,318 15-16B 2,852,340 (33,132) (527,683) (1,797,776) 493,749 1,208,005 604,003 16-17A 2,852,340 (34,126) (527,683) (1,573,109) 717,422 250,000 622,318 16-17B 2,937,910 (34,126) (543,513) (1,861,324) 498,947 1,216,369 608,185 17-18A 2,937,910 (35,150) (543,513) (1,397,242) 962,005 250,000 372,318 17-18B 3,026,047 (35,150) (559,819) (1,685,457) 745,621 1,707,626 853,813 18-19A 3,026,047 (36,205) (559,819) (1,466,192) 963,831 250,000 122,318 18-19B 3,116,828 (36,205) (576,613) (1,541,407) 962,603 1,926,434 963,217 19-20A 3,116,828 (37,291) (576,613) (985,586) 1,517,338 122,318 0 19-20B 3,210,333 (37,291) (593,912) (1,273,801) 1,305,329 2,822,667 1,411,334 Estimated Residual Redevelopment Property Tax for SERAF/ERAF Obligation Repayment by the El Cerrito Redevelopment Agency Successor Agency