Title
Adopt a resolution to:
a. Adopt the Housing and Community Development Department (HCD) Recommended Budget for the Successor Agency to the Redevelopment Agency of the County of Monterey (Successor Agency) for Fund 3915 Section HCD003, Appropriation HCD109, Unit 310010 in the amount of $4,471,787 and estimated revenues in the amount of $2,885,521; and
b. Authorize and direct the Auditor-Controller and County Administrative Office to incorporate in the FY 2026-27 the Successor Agency Adopted Budget, Fund 3915 Section HCD003, Appropriation HCD109, Unit 310010.
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RECOMMENDATION:
It is recommended that the Board of Directors:
Approve and adopt the HCD Successor Agency Fiscal Year 2026-27 Recommended Budget.
SUMMARY:
The Housing and Community Development Department has prepared the Fiscal Year (FY) 2026-27 budget for the Successor Agency to the Redevelopment Agency (Successor Agency). The Successor Agency is required to prepare a Recognized Obligation Payment Schedule (ROPS) annually for review and approval by the Consolidated Oversight Board (OB) pursuant to state law. The ROPS must then be submitted to the California Department of Finance (DOF) for review and approval by February 1st each year. The ROPS represents the Successor Agency’s anticipated expenditures and revenue for the fiscal year. The Successor Agency ROPS for FY 2026-27 was reviewed and approved by the OB on January 15, 2026 (Exhibit A). On April 10, 2026, the DOF approved the Successor Agency's ROPS (Exhibit B).
A total of $4,471,787 is needed for the Agency’s ROPS for FY 2026-27 period anticipated expenditures. The majority of the annual Agency expenditures, $3,912,439 relates to the East Garrison development Item No. 8 (East Garrison Public Facilities) associated with the East Garrison Library with Sheriff Field Office Project. Of the remaining needs, $558,088 is related to the Item No. 10 (East Garrison DDA) for the Agency’s administration of the East Garrison Disposition and Development Agreement (EGDDA), and $1,260 is related to the Item No. 11 (in Lieu Assessment Fees) for assessments levied on the Agency-owned properties remaining at East Garrison.
Should there be any changes to the anticipated ROPS, an Amended ROPS 26-27 will be brought before the OB for consideration of a budget modification in September 2026 and submitted to the DOF by the October 1st due date.
OTHER AGENCY INVOLVEMENT:
The Budget Office and County Counsel have reviewed and approved the report and supports the recommendations.
FINANCING:
The estimated FY2026-27 beginning Fund Balance is $8,261,068. This action will reduce the estimated Fund Balance to $4,071,819. These funds are specifically dedicated to the items listed on the ROPS and may not be appropriated for any other purpose. The requested FY2026-27 Budget includes Tax Increment revenues that were anticipated to be available to the Successor Agency at the time budgets were submitted. The DOF approved the Successor Agency’s ROPS 26-27 on April 10, 2026, however, no Tax Increment was authorized to be distributed to the Successor Agency due to the prior period adjustment related to FY 2023-24. In FY 2023-24, due to project delays, the Successor Agency did not spend its anticipated ROPS funding for which it received Tax Increment distributions in that fiscal year. These prior distributions remain in Fund Balance and will be spent to fund ROPS project in FY 2026-27.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The request supports the Board of Supervisors’ Administration Initiatives by facilitating the clear and efficient use of staff time and allocation of staff salary budget.
X Economic Development
X Administration
__ Health & Human Services
__ Infrastructure
__ Public Safety
Prepared by: Lori Woodle, Finance Manager I, HCD
Reviewed by: Melanie Beretti, AICP Chief of Planning, HCD
Approved by: Craig W. Spencer, Director, HCD
Attachment:
Exhibit A - FY2026-27 Consolidated Oversight Board Report and Annual Recognized Obligation Payment Schedule
Exhibit B - Department of Finance FY2026-27 ROPS approval letter