Title
Staff Report for City and Successor Agency Resolutions Approving a Loan by the City of San Leandro to the Successor Agency to the Redevelopment Agency of the City of San Leandro to Advance Funds for the Payment of Enforceable Obligations from the General Fund Unrestricted Economic Uncertainty Reserve
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council and Successor Agency Board of Directors adopt resolutions approving a loan from the City to the Successor Agency to advance funds for the payment of enforceable obligations. This action will remedy a negative fund balance of the Successor Agency and provide a mechanism for putting the shortfall on the Successor Agency's Recognized Obligation Payment Schedule, thereby creating a process for recovering the funds.
BACKGROUND
The City of San Leandro, serving in its capacity as Successor Agency to the Redevelopment Agency of the City of San Leandro ("Successor Agency") is responsible for preparing a Recognized Obligation Payment Schedule ("ROPS") every six months. The ROPS lists all payments due on Enforceable Obligations of the former Redevelopment Agency for the upcoming six month period.
Enforceable Obligations are defined as:
* Bonds including debt service reserve set asides;
* Loans borrowed by the Agency;
* Payments required by the federal or state governments;
* Pension and unemployment payments for Agency employees;
* Judgments, settlements or binding arbitration decisions; and
* Any legally binding and enforceable contract.
After each ROPS is adopted, it is submitted to the State Department of Finance ("DOF") for review and approval. Once the ROPS receives approval from the DOF, the funds needed to pay the Enforceable Obligations are remitted to the Successor Agency by the Alameda County Auditor-Controller. The funding comes from the Redevelopment Property Tax Trust Fund ("RPTTF"), which is the property tax increment that used to be allocated as r...
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