Responsibilities & Function

Responsibilities & Function
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. ABX1 26 gives the Oversight Board authority over the former RDA’s financial affairs. In addition to approving the Successor Agency’s administrative budget, the Oversight Board adopts the Recognized Obligation Payment Schedule (ROPS) — which is the central document that identifies the financial obligations of the former RDA that the Successor Agency may pay over the next six months and subsequent 6-month periods.

In June of 2011, responding to a declared state fiscal emergency, the state legislature enacted 2 bills. ABX1 26 barred redevelopment agencies from engaging in new business and provided for their wind down and dissolution. ABX1 27 offered an alternative: redevelopment agencies could continue to operate if the cities and counties that created them agreed to make payments into funds benefiting the state‘s schools and special districts.

The California Redevelopment Association, the League of California Cities, and other affected parties promptly filed a lawsuit, arguing that each measure was unconstitutional.

On December 29, 2011, the lawsuit California Redevelopment Association et al. v. Ana Matosantos was settled by the California Supreme Court. It upheld ABX1 26, which eliminated redevelopment agencies, but struck down ABX1 27, which would have allowed cities to agree to community remittance payments to keep their agencies in place. As a result, under the schedule set by the California Supreme Court, the Poway Redevelopment Agency was dissolved as of February 1, 2012. ABX1 26 provides that the city may become the successor to the Redevelopment Agency, and continue to implement "enforceable obligations" which were in place prior to the suspension. These include existing contracts, bonds, leases, etc. The Poway City Council elected to be Successor Agency on January 17, 2012.