8G Consent 2011 0718 - Laserfiche WebLink

Home

Enforceable Obligation Payment Schedule 2 July 18, 2011 • Bonds, including debt service, reserve set -asides and any other required payments; • Loans borrowed by the agency; • Payments required by the federal or state government; • Pension and unemployment payments for agency employees; • Judgments, settlements or binding arbitration decisions; • Contracts necessary for operation and administration of the agency, e.g., rent, insurance, equipment, supplies and professional services; and • Any legally binding and enforceable contract that does not violate the debt limit or public policy. The Enforceable Obligation Payment Schedule must include the following information about each obligation: (A) The project name associated with the obligation. (B) The payee. (C) A short description of the nature of the work, product, service, facility, or other thing of value for which payment is to be made. (D) The amount of payments obligated to be made, by month, through December 2011. During the suspension period, the Agency is only permitted to pay for Enforceable Obligations, as defined above, and "contracts or agreements necessary for the continued administration or operation of the redevelopment agency." Following dissolution of the Agency, expenditures of a successor entity would be limited to Enforceable Obligations and revenue would be constrained to fund only those obligations. The Enforceable Obligation Payment Schedule that is required prior to August 30 only needs to show payments owed through December 2011. If the Agency were to be dissolved on October 1, an amended Enforceable Obligation Payment Schedule would be needed to outline payments beginning in 2012. The legislation, as written, does not provide complete clarity in terms of defining Enforceable Obligations. Staff has created the attached Enforceable Obligation Payment Schedule with the intent of being as inclusive as possible while still conforming to the requirements of Section 34169. The largest obligations on the Schedule are Agency debt service payments resulting from bond issuances that were used to fund capital improvement projects. The Schedule also includes "Other Debt" such as sales tax rebates to auto dealers required through Owner Participation Agreements and payments to the San Leandro Unified School District for the Agency's contribution to the cost of the Korematsu Ninth Grade Campus. The final two categories on the Schedule are "Contractual Obligations" and "Capital Improvement Projects." These include ongoing Agency activities or construction projects that are funded through contractual agreements with third parties. Obligations have only been incuded on the Schedule if a fully executed contract for FY2011 -12 was in place G:10BD\Files RDA1Administration & Budget\Enforceable Obligation Schedule\Staff Report EOPS 7 -18 -1 l.doc