1.
SUBJECT:
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 reserve transfers for Fiscal Year 2025-26. Therefore, today’s
action requests appropriations, funded by an operating transfer from the CSAF GF Debt Service
Reserve Fund (Fund 23213) to the CSAF GF Debt Service Fund (Fund 23210), to maintain the
required debt service reserve account balance.
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
Establish appropriations of $155,000 in the County of San Diego Successor Agency
Gillespie Field Debt Service Reserve (Fund 23213), Operating Transfer Out, based on an
Operating Transfer In in the County Successor Agency Gillespie Field Debt Service
(Fund 23210) to transfer the reserve amount in excess of the reserve account
requirement. (4 VOTES)
EQUITY IMPACT STATEMENT