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DATE: |
January 28, 2026 |
SR01 |
SUBJECT
Title
APPROVE THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR JULY 1, 2026 - JUNE 30, 2027, AND ADMINISTRATIVE BUDGET (DISTRICTS: ALL)
Body
OVERVIEW
On January 24, 2012 (14), the County of San Diego (County) was designated as the Successor Agency to the Redevelopment Agency of the County of San Diego (Successor Agency) to oversee the wind-down of the former redevelopment agency’s operations following the steps established by California Assembly Bill (AB) X1 26 and AB 1484, collectively known as the Dissolution Act, enacted in 2011. These steps include preserving assets, fulfilling legally binding commitments, overseeing the termination of activities, and returning resources expeditiously to the affected taxing entities.
The Recognized Obligation Payment Schedule (ROPS) is the report that authorizes the amount of former redevelopment agency property tax increment to be allocated to the Successor Agency for payment of enforceable obligations. The Successor Agency is required to submit the ROPS and the administrative budget annually to the Countywide Redevelopment Successor Agency Oversight Board.
Today’s actions request approval of the ROPS for July 1, 2026 - June 30, 2027 (ROPS 26-27) and the related administrative budget for the same period. Total enforceable obligations of $2,191,116 are eligible to be funded, including an administrative budget of $20,000. Both items were presented and approved by the Countywide Redevelopment Successor Agency Oversight Board on January 15, 2026.
This item supports the County vision of a just, sustainable, and resilient future for all, specifically those communities and populations in San Diego County that have been historically underserved. This will be accomplished by managing redevelopment projects currently underway, making payments on enforceable obligations, and allocating remaining property tax revenues that exceed the enforceable obligations to cities, counties, special districts, school, and community college districts.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Approve the Recognized Obligation Payment Schedule for July 1, 2026 - June 30, 2027 (ROPS 26-27) and authorize staff to make any non-substantive changes to the ROPS to comply with the California Department of Finance’s requirements for submittal.
2. Approve the administrative budget for July 1, 2026 - June 30, 2027.
EQUITY IMPACT STATEMENT
As part of the 2011 Budget Act, the California Legislature dissolved over 400 Redevelopment Agencies (RDA) in an effort to protect funding for core public services. This allowed local jurisdictions to have more decision-making input on the development of communities, and the resulting revenues. The dissolution went into effect on February 1, 2012. Property tax revenues were diverted to pay off existing bonds, other obligations, and pass-through payments to local governments. Any remaining property tax revenues that exceeded the enforceable obligations were allocated to cities, counties, special districts, and schools and community college districts.
The approval of the Recognized Obligation Payment Schedule for July 1, 2026 - June 30, 2027, will provide the County of San Diego with future revenue that can provide resources to preserve core public services for the community, which includes, but are not limited to, programs and services to help improve the health and public safety of residents.
SUSTAINABILITY IMPACT STATEMENT
Today’s actions support the Sustainability Goal #1 of engaging the community by transparently sharing results of outcomes on current projects. Additionally, today’s actions support the County of San Diego Sustainability Goal #2 of providing just and equitable access to resource allocations by managing redevelopment projects currently underway.
FISCAL IMPACT
The payments of $2,191,116 including an administrative budget of $20,000, as shown on the Recognized Obligation Payment Schedule for July 1, 2026 - June 30, 2027, will be included in the Fiscal Year (FY) 2026-28 Operational Plan for the Successor Agency. The funding sources include property tax increment distributed from the Redevelopment Property Tax Trust Fund. There will be no change in net General Fund cost and no additional staff years.
BUSINESS IMPACT STATEMENT
N/A
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
On January 24, 2012 (14), the County of San Diego (County) was designated as the Successor Agency to the Redevelopment Agency of the County of San Diego (Successor Agency) to oversee the wind-down of the former redevelopment agency’s operations following the steps established by ABX1 26 and AB 1484, collectively known as the Dissolution Act, enacted in 2011. These steps include preserving assets, fulfilling legally binding commitments, overseeing the termination of activities, and returning resources expeditiously to the affected taxing entities.
The Recognized Obligation Payment Schedule (ROPS) is the report that authorizes the amount of former redevelopment agency property tax increment to be allocated to the Successor Agency for payment of enforceable obligations. The Successor Agency is required to submit the ROPS and the administrative budget annually to the Countywide Redevelopment Successor Agency Oversight Board. The main source of funding is the Redevelopment Property Tax Trust Fund (RPTTF), which receives former redevelopment agency tax increment.
Following approval by the Countywide Redevelopment Successor Agency Oversight Board, the ROPS is submitted to the State Department of Finance (DOF), State Controller’s Office, and County Auditor and Controller. Successor Agencies receive semiannual distributions from the RPTTF to make payments due on enforceable obligations and to pay administrative costs. The County Auditor and Controller releases funding to Successor Agencies from the RPTTF, according to the DOF-approved ROPS, after first deducting costs of administration and pass-through payments to affected taxing entities.
The San Diego County Board of Supervisors serves as the local Successor Agency Board of Directors. Successor Agency Board of Directors’ approval is requested for the ROPS for the period of July 1, 2026 - June 30, 2027 (ROPS 26-27). For the 12-month period, total obligations of $2,191,116 including $1,404,244 in Gillespie Field 2005 Bond debt service, $550,000 payment for the Lakeside Fire Protection District, $216,872 in loan repayments to the County (including the Airport Enterprise Fund), and $20,000 for administrative costs, are listed on the ROPS. The payments are funded by the RPTTF.
The ROPS 26-27 includes a Gillespie Field 2005 Bond Turbo Redemption payment of $915,000 in accordance with the Trust Indenture, which beginning with the bond year ending on December 1, 2016, requires an amount be set aside in a Turbo Redemption Account equal to 30% of the following: Tax Revenues minus the Annual Debt Service for such Bond Year, minus the Annual Administrative Requirement. The amount set aside into a Turbo Redemption Account shall be used to redeem or purchase the 2005A bonds in the order established in the Indenture.
Successor Agencies are also required to prepare an administrative budget for each 12-month ROPS period. ROPS 26-27 includes the 12-month administrative budget of $20,000 to reimburse the County for staff work and to pay for third-party professional services for the Gillespie Field bonds, and other Successor Agency costs.
The Countywide Redevelopment Successor Agency Oversight Board approved the ROPS 26-27 and the related administrative budget on January 15, 2026. ROPS 26-27 is required to be submitted to the DOF, the County Auditor and Controller, and the State Controller’s Office by February 1, 2026, for further review and final approval. The DOF must complete its review by April 15, 2026; if DOF disputes any items on the ROPS 26-27, the Meet and Confer process is available.
Today’s actions request approval of the ROPS 26-27 (Attachment A) and the related administrative budget (Attachment B) for the same period. Total enforceable obligations of $2,191,116 are eligible to be funded, including an administrative budget of $20,000. Both items were presented and approved by the Countywide Redevelopment Successor Agency Oversight Board on January 15, 2026.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed actions to approve the Recognized Obligation Payment Schedule and administrative budget support the Sustainability (Economy and Resiliency) and Equity (Economic Opportunity) Initiatives in the County of San Diego 2026-2031 Strategic Plan by providing the County Successor Agency the ability to continue the process of winding down the activities, assets, and obligations of the former Redevelopment Agency of the County according to contractual obligations and State legislated procedures.
Respectfully submitted,
EBONY N. SHELTON
Chief Administrative Officer
ATTACHMENT(S)
Attachment A - Recognized Obligation Payment Schedule (ROPS 26-27)
Attachment B - County of San Diego Successor Agency Administrative Budget