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10A Action 2014 0902
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10A Action 2014 0902
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Last modified
9/15/2014 10:09:04 AM
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8/26/2014 5:28:19 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Staff Report
Document Date (6)
9/2/2014
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_CC Agenda 2014 0902 CS+RG
(Reference)
Path:
\City Clerk\City Council\Agenda Packets\2014\Packet 2014 0902
SA Reso 2014-004
(Reference)
Path:
\City Clerk\City Council\Resolutions\2014
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<br />21 <br />not constitute an indebtedness within the meaning of any constitutional or statutory debt <br />limitation or restriction. No member of the Successor Agency, the Oversight Board or the Board <br />of Supervisors of the County shall be individually or personal liable for the payment of the <br />principal of or interest or redemption premium (if any) on the 2014 Bonds; but nothing contained <br />in the Indenture relieves any such member, officer, agent or employee from the performance of <br />any official duty provided by law. <br /> <br />Recognized Obligation Payment Schedules <br /> <br />Submission of Recognized Obligation Payment Schedule. Not less than 90 days <br />prior to each January 2 and June 1, the Dissolution Act requires successor agencies to prepare, <br />and submit to the successor agency’s oversight board and the DOF for approval, a Recognized <br />Obligation Payment Schedule (the “Recognized Obligation Payment Schedule”) pursuant to <br />which enforceable obligations (as defined in the Dissolution Act) of the successor agency are <br />listed, together with the source of funds to be used to pay for each enforceable obligation. <br /> <br />Payment of Amounts Listed on the Recognized Obligation Payment Schedule. As <br />defined in the Dissolution Act, “enforceable obligation” includes bonds, including the required <br />debt service, reserve set-asides, and any other payments required under the indenture or <br />similar documents governing the issuance of the outstanding bonds of the former <br />redevelopment agency or the successor agency, as well as other obligations such as loans, <br />judgments or settlements against the former redevelopment agency or the successor agency, <br />any legally binding and enforceable agreement that is not otherwise void as violating the debt <br />limit or public policy, contracts necessary for the administration or operation of the successor <br />agency, and, under certain circumstances, amounts borrowed from the successor agency’s low <br />and moderate income housing fund. <br /> <br />A reserve may be included on the Recognized Obligation Payment Schedule and held <br />by the successor agency when required by a bond indenture or when the next property tax <br />allocation will be insufficient to pay all obligations due under the provisions of the bonds for the <br />next payment due in the following half of the calendar year. <br /> <br />Sources of Payments for Enforceable Obligations. Under the Dissolution Act, the <br />categories of sources of payments for enforceable obligations listed on a Recognized Obligation <br />Payment Schedule are the following: (i) the low and moderate income housing fund, (ii) bond <br />proceeds, (iii) reserve balances, (iv) administrative cost allowance (successor agencies are <br />entitled to receive not less than $250,000, unless that amount is reduced by the oversight <br />board), (v) the Redevelopment Property Tax Trust Fund (but only to the extent no other funding <br />source is available or when payment from property tax revenues is required by an enforceable <br />obligation or otherwise required under the Dissolution Act), or (vi) other revenue sources <br />(including rents, concessions, asset sale proceeds, interest earnings, and any other revenues <br />derived from the redevelopment agency, as approved by the oversight board). <br /> <br />The Dissolution Act provides that only those payments listed in the Recognized <br />Obligation Payment Schedule may be made by a successor agency and only from the funds <br />specified in the Recognized Obligation Payment Schedule. <br /> <br />As noted above, amounts on deposit in the Joint Project RPTTF are not available to pay <br />debt service on the 2014 Bonds, and Tax Revenues on deposit in the Redevelopment Property <br />Tax Trust Fund are not pledged to the payment of debt service on the 2008 Joint Project <br />Bonds.
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