Redevelopment 101 Resources: FCMAT www.fcmat.orgwww.fcmat.org Presentation by Public Economics, Inc. ACBO www.acbo.orgwww.acbo.org Presentation by Dolinka Group
Termination of RDAs ABX1 26 – part of 2011-12 budget actions Lawsuit delayed dates by 4 months Successor Agencies and Oversight Boards
Enforceable Obligations and ROPS Responsibility of Oversight Boards Department of Finance to approve Links to DOF web pages: http://www.dof.ca.gov/assembly_bills_26-27/ http://www.dof.ca.gov/assembly_bills_26- 27/Redevelopment_Letters/ http://www.dof.ca.gov/assembly_bills_26- 27/Redevelopment_Letters/
2011-12 Actions Residual payments to be made by county auditor-controllers to schools and colleges. $147 million estimate for community colleges in Governor’s Budget $116 million estimate at May Revision MR amount of $116 million withheld from May payments in anticipation of residual payments
Some Good News for Community Colleges Advocacy efforts centered on receiving a “hold harmless” pledge in case estimates of residual payments and proceeds of asset liquidation were overly optimistic. SUCCESS!!!
Resulting Action $105 million of the $116 million taken in May is being returned to districts now Districts receiving residual payments will report them in a new object code 8819 on their 311 All will be “trued-up” at Recal
2012-13 Continuation AB 1484 is Redevelopment trailer bill Intended to clarify and “enhance compliance” with ABX1 26 Expresses intent that full payment of pass-through amounts are to be made Also states that pass-through payments will end when all RDA debt is retired
New Developments More lawsuits have been filed: Palmdale vs. Matosantos (decided) National City vs. Matosantos (new) Hercules LLC vs. Department of Finance (involves a developer that was to receive TI)
Many Uncertainties Remain Disagreement about the treatment of pass- through payments in calculating residual payments Interpretation of “when all RDA debt is retired” Unknown unknowns???