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As part of the 2011 State Budget Act, and in order to protect funding for core public services at the local level, the California Legislature approved the dissolution of the state’s more than 400 Redevelopment Agencies (RDA). After a period of litigation, RDAs were officially dissolved as of February, 2012. In the County of Yolo, there were four recognized redevelopment agencies operated by each respective city, Davis, West Sacramento, Winters, and Woodland that were affected.
As a result of the elimination of the RDAs, property tax revenues that were previously allocated to RDAs to reduce blight are subsequently used to make payments on existing bonds, other obligations, and pass-through payments to local governments. The remaining property tax revenues that exceed the RDAs enforceable obligations are allocated to the county, cities, special districts, and school and community college districts.
To help facilitate the wind-down process at the local level, a Successor Agency (SA) was established in May, 2012 for each former RDA to manage existing redevelopment projects, make payments on enforceable obligations, and dispose of redevelopment assets and properties. In the County of Yolo, a successor agency was established for each City: Davis, West Sacramento, Winters, and Woodland.
Each Successor Agency has an Oversight Board (OB) that supervises its work. The OB is comprised of representatives of the local agencies that serve the redevelopment project area: the city, county, special districts, and educational agencies. Oversight Board members have a fiduciary responsibility to holders of enforceable obligations, as well as to the local agencies that would benefit from property tax distributions from the former redevelopment project area.
Part of the dissolution of RDAs included a provision that prior to July 1, 2018, in a County that has more than one oversight board, the Auditor-Controller (which is a role of Chief Financial Officer) of the County would staff and perform start up duties to form a consolidated oversight board unless this responsibility is delegated to an existing oversight board. Staff from the County Department of Financial Services met with staff of the OBs in November, 2017 and none expressed a strong interest in taking this responsibility of forming and staffing the County OB from the Auditor-Controller. The Health and Safety Code section 34179(j) documents the required composition of board members and method for selection of the seven members of the consolidated OB as summarized below:
# |
Appointed By |
Plan to Fill Position |
1 |
One member appointed from the county board of supervisors. |
Requested board of supervisors to select as part of this agenda item. |
2 |
One member may be appointed by the city selection committee. |
DFS is working with Clerk of the Board to put the item before the next city selection committee meeting. |
3 |
One member may be appointed by the special district selection committee. |
DFS is working with LAFCO. LAFCO has sent letters to all eligible special districts to vote for their member representative. |
4 |
One member may be appointed by the county superintendent of education. |
DFS is sending a letter to the superintendent of education to request member appointment. |
5 |
One member may be appointed by the chancellor of the California Community Colleges. |
DFS has received a letter on the Community College member. |
6 |
One member of the public may be appointed by the County board of supervisors. |
DFS is working with the Clerk of the Board to prepare an advertisement for a public member to the committee. |
7 |
One member of the recognized employee organization representing the largest number of successor agency employees in the County. |
DFS is requesting each successor agency to provide information on their employees represented by employee organizations to determine which organization will select the member. |
Should a member not be appointed prior to June 15, 2018 or the position remains vacant for more than 60 days, the Health & Safety Code allows the Governor of the State of California to appoint a member to fill the vacancy.
After formation, the consolidated County Oversight Board (COB) is expected to meet between 1-2 times per year. The COB will be responsible primarily for approval of schedules of enforceable obligations and dispose of any remaining redevelopment assets and properties. As of the filing for the 2017-2018 recognized obligations schedules with the State of California Department of Finance, the successor agencies have the following target wind-down and obligations:
Successor Agency Name |
Obligations Balance as
of July 1, 2017 |
Date of Last Obligation |
Davis |
$39,027,133 |
3/1/2037 |
West Sacramento |
$103,903,279 |
9/1/2046 |
Winters |
$24,048,559 |
8/31/2037 |
Woodland |
$18,704,334 |
12/31/2034 |
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