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G.7 Dissolution of the Successor AgencyDissolution of Successor Agency Presenter Terry Shea Tonight’s Presentation Dissolution of Successor Agency The Staff report will cover the following: •Property Tax Revenues •Amendment No. 1 to the Loan Agreement •Amendment to Repayment Schedule for SERAF Loan •Amending the Long-Range Property Management Plan •Declaring Property at 22747 Barton Road Exempt Surplus •Purchase and Sale Agreement •Approving Second Amendment to the Last & Final ROPS •Dissolution of the Successor Agency Property Tax Revenues Actuals Projected Description FY 2018-19 FY 2019-20 FY 202021 SA Dissolved Secured Taxes , Current Year $ 379,673 $ 386,892 $ 420,590 $ 2,410,239 Unsecured Taxes Current Year 13,909 13,773 13,000 13,000 Secured & Unsecured Prior year 7,982 7,109 7,500 7,500 Real Property Transfer Tax 39,373 67,087 65,000 65,000 Homeowners Property Tax Relief 3,018 2,848 3,000 3,000 Supplemental Property Tax 7,281 5,059 5,000 5,000 Penalties Delinquent Taxes 2,125 2,237 2,000 2,000 Property Tax VLF Swap 1,234,919 1,332,401 1,388,578 1,485,423 Property Tax Statutory Pt 197,501 234,608 239,930 - 1,885,781 2,052,014 2,144,598 3,991,162 Residual receipts -RPTTF 1,361,891 1,911,319 1,095,599 - Total Property Taxes $ 3,247,672 $ 3,963,333 $ 3,240,197 $ 3,991,162 Increase in Property Taxes $ 750,965 Property Tax Revenues Actuals Projected Description FY 2018-19 FY 2019-20 FY 202021 SA Dissolved Secured Taxes , Current Year $ 379,673 $ 386,892 $ 420,590 $ 2,410,239 Unsecured Taxes Current Year 13,909 13,773 13,000 13,000 Secured & Unsecured Prior year 7,982 7,109 7,500 7,500 Real Property Transfer Tax 39,373 67,087 65,000 65,000 Homeowners Property Tax Relief 3,018 2,848 3,000 3,000 Supplemental Property Tax 7,281 5,059 5,000 5,000 Penalties Delinquent Taxes 2,125 2,237 2,000 2,000 Property Tax VLF Swap 1,234,919 1,332,401 1,388,578 1,485,423 Property Tax Statutory Pt 197,501 234,608 239,930 - 1,885,781 2,052,014 2,144,598 3,991,162 Residual receipts -RPTTF 1,361,891 1,911,319 1,095,599 - Total Property Taxes $ 3,247,672 $ 3,963,333 $ 3,240,197 $ 3,991,162 Increase in Property Taxes $ 750,965 Property Tax Revenues Actuals Projected Description FY 2018-19 FY 2019-20 FY 202021 SA Dissolved Secured Taxes , Current Year $ 379,673 $ 386,892 $ 420,590 $ 2,410,239 Unsecured Taxes Current Year 13,909 13,773 13,000 13,000 Secured & Unsecured Prior year 7,982 7,109 7,500 7,500 Real Property Transfer Tax 39,373 67,087 65,000 65,000 Homeowners Property Tax Relief 3,018 2,848 3,000 3,000 Supplemental Property Tax 7,281 5,059 5,000 5,000 Penalties Delinquent Taxes 2,125 2,237 2,000 2,000 Property Tax VLF Swap 1,234,919 1,332,401 1,388,578 1,485,423 Property Tax Statutory Pt 197,501 234,608 239,930 - 1,885,781 2,052,014 2,144,598 3,991,162 Residual receipts -RPTTF 1,361,891 1,911,319 1,095,599 - Total Property Taxes $ 3,247,672 $ 3,963,333 $ 3,240,197 $ 3,991,162 Increase in Property Taxes $ 750,965 Questions Next Steps Amendment No. 1 to the Loan Agreement The City and the former Grand Terrace Community Redevelopment entered into a Loan Agreement date April 12, 2011 to repay a loan owed by the City to the Former Agency in the amount of $3,389,091. The Loan Agreement did not have a prepayment clause. The current balance of the Loan is $885,797. In order to repay the Loan in full the City Council and Successor Agency Board need to approve by Resolution Amendment No. 1 to the Loan Agreement. Questions Amendment to Repayment Schedule for the SERAF Loan The Grand Terrace Housing Authority became the Housing Successor to the RDA and assumed all housing assets and obligations of the RDA. The RDA borrowed $448,636 from its Low-and Moderate Income-Housing Fund to pay the Supplemental Education Revenue Augmentation Fund (SERAF). The current balance of the Loan is $248,636. The current Repayment Schedule does not have an early payment provision. In order to repay the SERAF Loan in full the Successor Agency Board needs to approve by Resolution an Amendment to the Repayment Schedule that allows for an early repayment. Questions Amending the Long-Range Property Management Plan The Successor Agency prepared and filed with DOF and the Oversight Board its Long - Range Property Management Plan (LRPMP) The LRPMP governs the disposition of all real property held by the former RDA. The last remaining parcel is 22747 Barton Road and is designated as “future development” property. In order for the City of Grand Terrace to purchase the property the LRPMP must be amended and designated as “governmental use”. The Successor Agency Board needs to approve by Resolution the Amended to the LRPMP. Questions Declaring Real Property at 22747 Barton Road Exempt Surplus Government Code Section 54221(f)(1)(D) of the Act designates certain surplus property as “exempt” from the provisions of the Act, which includes property being transferred to another public agency for its own use. The Successor Agency currently owns real property located at 22747 Barton Road in the City of Grand Terrace (APN 0276-202-54) (Property). The Property is listed on the Successor Agency’s Long Range Property Management Plan (“LRPMP”) as “future development” and is, therefore, surplus land as defined by the Act. The City of Grand Terrace desires to acquire the Property for General Facility use, such as a library or community center. Concurrent with this exemption finding, the Successor Agency has approved an amendment to the LRPMP re-designating the Property as “government use” (i.e., public use) in order for the City to acquire the Property for the City’s potential use as a library or community center. Questions Purchase and Sale Agreement The City of Grand Terrace and the Successor Agency will enter into a Purchase and Sale Agreement PSA) for the last remaining parcel on the LRPMP. The Property is located at 22747 Barton Road in the City of Grand Terrace (APN 0276-202-54). The City received an Appraisal dated April 29, 2021 which valued the Property at $144,000. The PSA includes and escrow period of no later than 30 days. The proceeds of the sale will go to the Successor Agency Funds and the intent is to seek approval to utilize the funds to pay off Successor debts with the excess being distributed to the ATE’s. Property can be purchased with General Fund or General Facilities Fund Property Appraisal Questions Approving Second Amendment to the Last & Final ROPS The San Bernardino Countywide Oversight Board (“CWOB”) approved the Successor Agency’s Last and Final Recognized Obligation Payment Schedule (“Last & Final ROPS”) and, pursuant to HSC 34191.6, the Last & Final ROPS that was approved by Department of Finance (“DOF”) by letter dated August 6, 2018. The CWOB approved a first amendment to the Last & Final ROPS, which was approved by the DOF by letter dated October 3, 2019 (revised). In order to complete the above-aforementioned payments and transactions, the Successor Agency’s Last & Final ROPS must be amended a second time. The Last and Final ROPS also includes a budget of $250,000 for administrative costs associated with dissolution of the Successor Agency. The approval of the Last and Final ROPS and the carrying out of the payments and transactions will allow the Successor Agency to be eligible for dissolution pursuant to HSC 34187. Questions Dissolution of the Successor Agency Upon the Countywide Oversight Board’s approval and the Department of Finance's Approval of the aforementioned items and the completion of these activities the Successor Agency will be eligible for dissolution per Health and Safety Code Section 34187 as follows. A.All enforceable obligations have been retired or paid off, as applicable. B.All real property has been disposed of pursuant to HSC 34181 or 34191.4. C.All outstanding litigation has been resolved. (There is no outstanding litigation). City of Grand Terrace Successor Agency Housing Successor Agency Sale of Property $ 144,000 $ 144,000 Rayment of CityLoan $ 885,797 $ 885,797 Bond Proceeds Interest $ 482,958 SERAF Repayment $ (248,636)$ 248,636 Total $ 1,029,747 Distribution to Taxing Entities $ 1,264,119 Taxing Entity Percentage Amount Colton Unified 26.530957%334,056.69 Grand Terrace General Fund 19.971245%251,462.02 Education Revenue Audgmentation Fund 19.255831%242,454.10 County General Fund 12.716524%160,116.35 County Fire Protection Dstrict - Valley Service 10.335832%130,140.57 San Bernardino Valley College 4.469285%56,273.68 San Bernardino Vally Muni Water 2.299885%28,958.32 Flood Control Zone 2 2.257482%28,424.42 County Free Library 1.231400%15,504.81 Superintendent of Schools - Countywide 0.436344%5,494.10 Superintendent of Schools -Phiscally Handicapped 0.171639%2,161.14 Flood Control Admin 1 & 2 0.158739%1,998.72 Riverside Corona RCD 0.119845%1,508.99 Superintendant of Schools - Development Center 0.044992%566.50 100.000000%1,259,120.40$ Distribution to ATE’s Upon Dissolution With the Successor Agency Funds on hand and the City purchasing the Land, Repaying the Loan and less the SERAF Loan payment there will be approximately $1,259,120 to disburse. Questions