MEETING DATE:
January 13, 2026
SUBJECT:
Title
RESOLUTION NO. SA 2026-037 - APPROVING THE 26-27 RECOGNIZED OBLIGATION PAYMENTS SCHEDULE (ROPS) AND ADMINISTRATION BUDGET AS REQUIRED BY HEALTH & SAFETY CODE SECTION 34177
Body
Recommendation
Recommendation
ADOPT a Successor Agency resolution approving the Recognized Obligation Payment Schedule (ROPS) and Administration Budget for the required filing period of July 1, 2026 through June 30, 2027.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Planning for the Future
Relevant Department Goal
Not Applicable
Executive Summary
The required filing period for the Recognized Obligation Payment Schedule (ROPS) 26-27 is July 1, 2026 through June 30, 2027, as required by AB X1 26, AB 1484, and SB 107. The Successor Agency is responsible for operation of the former Redevelopment Agency’s programs, within the limits of the statute, and dissolution of its assets. The City of San Marcos (City) assumed such Successor Agency obligations following the dissolution of redevelopment by the State. The ROPS recognizes existing obligations of the former Redevelopment Agency as expenditures to be made for the fiscal year relative to the respective ROPS period.
Under the timelines established by AB 1484 and SB 107, as the Successor Agency the City must annually submit an approved ROPS by February 1 to the Department of Finance (DOF), State Auditor Controller and the County Auditor Controller. Failure to submit the ROPS by the designated deadline can subject the City to $10,000 per day penalty for each day the ROPS is delinquent, per Health & Safety Code section 34177(m)(1)(B).
Discussion
The required filing period for the ROPS 26-27 is July 1, 2026 through June 30, 2027, as required by AB X1 26, AB 1484, and SB 107. The City, acting as the Successor Agency, is responsible for operation of the former Redevelopment Agency’s programs, within the limits of the statute, and dissolution of its assets. The ROPS recognizes existing obligations of the former Redevelopment Agency as expenditures to be made for the fiscal year relative to the respective ROPS period.
The ROPS is required to be prepared each year, covering a twelve month period from July to June. The ROPS sets forth the payment amounts, source of funds and due dates of payments required by enforceable obligations for each ROPS cycle. The current ROPS reflects the most accurate costs associated with the enforceable obligations as approved by the DOF at this time. Enforceable obligations include:
• Bonds;
• Loans borrowed by an Agency;
• Payments required by federal or state government or for employee pension obligations;
• Judgments or settlements;
• “Any legally binding and enforcement agreement or contract that is not otherwise void as violating the debt limit or public policy”; and
• Contract for administration or operation of the Agency.
The ROPS also recognizes existing obligations of the former Redevelopment Agency as expenditures to be made for the fiscal year relative to the respective ROPS period. These include:
• Recognition of existing enforceable obligations (contracts, OPAs, DDAs, etc);
• Administrative costs and support for former Redevelopment Agency operations in accordance with the budget;
• Allowance for debt service payments that will be made and repaid in accordance with Trust Indentures; and
• Reservations for expenditures of bond proceeds for capital projects.
Under the timelines established by AB 1484 and SB 107, the City must annually submit an approved ROPS by February 1 to the DOF, State Auditor Controller, and the County Auditor Controller. Failure to submit the ROPS by the designated deadline can subject the City to $10,000 per day penalty for each day the ROPS is delinquent per Health & Safety Code section 34177(m)(1)(B).
Staff recommends that the City Council adopt the proposed resolution, which approves the ROPS documents and authorizes staff to make adjustments to the information on the forms in the event additional guidance, direction, or information is requested by the Oversight Board and/or DOF prior to the submission to ensure prompt submission of a complete and accurate ROPS.
Environmental Review
Not Applicable
Fiscal Impact
Adoption of the ROPS allows for appropriation of funding for the enforceable obligations from the ROPS to be made. Failure to timely adopt and submit the ROPS to DOF could result in substantial daily penalties or loss of reimbursement of the Successor Agency’s administrative expenses, as provided in AB 1484 and SB 107.
Attachment(s)
Attachment 1: Resolution
Attachment 2: San Marcos Recognized Obligation Payment Schedules
Prepared/Submitted by: Jeffrey Jorgenson, Accounting and Treasury Manager
Reviewed by: Donna Apar, Finance Director
Approved by: Michelle Bender, City Manager