DATE:
April 21, 2026
SR01
TO:
Board of Directors
SUBJECT
Title
ESTABLISH APPROPRIATIONS BASED ON AN OPERATING TRANSFER FROM THE RESERVE ACCOUNT TO THE DEBT SERVICE FUND (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. These steps include preserving assets, fulfilling legally binding commitments, overseeing the termination of activities, and returning resources expeditiously to the affected taxing entities.
In 2005, under an indenture agreement, the former Redevelopment Agency pledged tax increment revenues generated within the Gillespie Field Project Area to make payments on San Diego County Redevelopment Agency Revenue Refunding Bonds, Series 2005A (Bonds). When the former Redevelopment Agency was dissolved, responsibility for paying the Bonds transferred to the Successor Agency. Under the indenture agreement with the Bank of New York Trust Company, N.A., as trustee, a required amount must be maintained in a debt service reserve account to secure payment of the Bonds. If the Successor Agency is not in default and the debt service reserve account balance exceeds the required amount, the trustee must transfer the excess to a debt service fund. Any excess reserve amount transferred to the debt service fund is restricted for use exclusively toward the Bonds' eligible obligation payments. Currently, the reserve account has an excess balance of $289,261, but only $150,000 has currently been budgeted as available for transfer by appropriation. Based on staff analysis, an additional $155,000 in appropriations is sufficient to allow the excess of $289,261 to be transferred along with any other remaining excess...
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