FROM:
Finance
SUBJECT:
Title
Recognized Obligation Payment Schedule (ROPS) 26-27 from July 1, 2026 through June 30, 2027
End
RECOMMENDATION:
Recommendation
1. Adopt Resolution No. SAR 2025-001, approving a Recognized Obligation Payment Schedule pursuant to Health and Safety Code Section 34177(l) for July 1, 2026 through June 30, 2027, in the amount of $47,986,783 and finding the adoption exempt from CEQA.
2. Determine that this action is exempt from the California Environmental Quality Act (CEQA), and direct staff to file a Notice of Exemption.
End
COUNCIL GOALS:
• Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
DISCUSSION:
AB 1X 26 dissolved the Fontana Redevelopment Agency (“Agency”) as of February 1, 2012. The City of Fontana (“RDA Successor Agency”) is the successor to the Agency. One of the responsibilities of the RDA Successor Agency is to prepare a draft ROPS for each six (6) month fiscal period listing the nature, amount, and source(s) of payment of all outstanding “enforceable obligations” (as defined by law) of the dissolved Agency to be paid or performed by the RDA Successor Agency.
Beginning with Fiscal Year 2016-17, each ROPS is required to show obligations over a one-year period. The “enforceable obligations” listed in the ROPS may include the following: (1) bonds; (2) loans legally required to be repaid pursuant to a payment schedule with mandatory repayment terms; (3) payments required by the federal government preexisting obligations to the state or obligations imposed by state law; (4) judgments, settlements or binding arbitration decisions that bind the agency; (5) legally binding and enforceable agreements or contracts; (6) contracts or agreements necessary for the continued administration or operation of the agency, including agreements to purchase or rent office space, equipment and supplies; and (7) amounts borrowed from or payments owing to the Low and Moderate Income Housing Fund that had been deferred as of June 29, 2011.
Staff has completed the Recognized Obligation Payment Schedule for the period of July 1, 2026 through June 30, 2027. These ROPS are to be submitted by the RDA Successor Agency to the County-Wide Oversight Board (scheduled for January 12, 2026) for approval with copies to the county and state at the same time. The approved ROPS are to be submitted by February 1, 2026, to the County of San Bernardino Auditor-Controller, the State Controller’s office and the State Department of Finance and posted on the RDA Successor Agency’s website.
FISCAL IMPACT:
No RDA Successor Agency funds are involved with approval of the draft ROPS. The ROPS simply lists outstanding obligations of the dissolved Agency in the amount of $48 million that are to be performed by the RDA Successor Agency with existing or future tax increment revenues, subject to the payment priority provisions of AB 1X 26.
MOTION:
Approve staff recommendation.