Financial obligations came from dissolution of Redevelopment Agencies in 2012

ATASCADERO — The Atascadero City Council wrapped up a light regular meeting on Tuesday, Sept. 9, by approving a Last and Final Recognized Obligation Payment Schedule (ROPS), taking care of debts and obligations brought about by the dissolution of the city’s Redevelopment Agencies in 2012.

The council originally had on the meeting’s agenda an item introducing amendments to the city’s Short Term Rental Ordinance; however, the item was taken off the agenda on Friday, Sept. 5, and will be heard at a future meeting.

On the ROPS item, Administrative Services Director Jeri Rangel explained the financial obligations are a product of the decision in 2012 to dissolve the city’s Redevelopment Agency and create a Successor Agency to manage the remaining payments. Tuesday’s meeting was also considered one for the Successor Agency.

Rangel said an annual approval was required at the city, county, and state levels, but starting in 2016, successor agencies, if it met the criteria could apply for a Last and Final ROPS (LFROPS), which would include all future periods of obligations through 2041. Those obligations include 2024 bonds debt service payments, annual trustee and continuing disclosure fees, and administrative allowances.

The total outstanding amount of the obligations listed on the LFROPS is $21,445.075.

“Now is the ideal time to file for an LFROPS, because all the criteria has been met,” she said.

Rangel added that there was no downside to filing the LFROPS, and the benefits to the city would be a reduction of staff time on the obligations, assurance to bondholders of timely payments, and the bond insurer had already given consent for the action.

Rangel said, if approved, the LFROPS would be submitted to the Citizens Sales Tax Oversight Committee for its Wednesday, Sept. 24, meeting, and then submitted to the state, which would have 100 days to approve or deny the schedule.

Mayor Charles Bourbeau asked that, without the need for annual approval of county and state, would the city still need to meet annually with the Oversight committee? Rangel answered that they would need to meet at least annually as long as payments were being made.

Councilmember Susan Funk noted that the city had previously been able to refinance the bonds that are part of the LFROPS and asked if they would be able to do that under the schedule. Rangel said they would have two opportunities to refinance, but her and City Manager Jim Lewis said that doing so would require state approval, for which significant reasons and benefits would have to be spelled out.

“We did it before, but it’s a really thorough process,” Lewis said. “The odds of us refinancing if we pass this are not as high.”

Bourbeau agreed: “With just 16 years left, [refinancing] becomes less feasible.”

After the discussion, Funk moved to approve the LFROPS, with Councilmember Heather Newsom seconding, and the item passed 5-0.

In other matters, during Community Forum, Atascadero Lake became a topic as a few residents first off thanked the Atascadero Fire Department for their efforts, which included air support taking water from the lake to help extinguish the blaze.

However, resident Mark Frazier noticed on one run, a tanker dropped what seemed like more mud than water, and told council to ensure the lake remained in good shape.

“We need a healthy lake here in Atascadero,” he said. “It’s a great place for activities and events, and it’s a valuable resource for firefighters. Make sure to maintain it for them.”

Another resident, Gene Stroll, who referred to himself as a “peripheral member” of the Friends of the Lake noted there was a pipe that needed to be fixed.

“This is a manmade lake, dependent on vagaries of nature; it takes city to keep it habitable,” he said. “The city should take care of fixing the plug.”

When asked about it by Bourbeau, Public Works Director Nick DeBar said the pipe, which located in creek bed, is plugged and the city is going through environmental permitting and they were planning on fixing it soon.

The next Atascadero City Council meeting is scheduled for Tuesday, Sept. 23, at 6 p.m.