TO: Board of Supervisors
FROM: Minh C. Tran, County Executive Officer
REPORT BY: Becky Craig, Assistant County Executive Officer
SUBJECT: Napa Successor Agency Backfill Payments
RECOMMENDATION
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County Executive Officer requests the following actions regarding the dissolution of the Napa Successor Agency subject to State Revenue and Taxation Code requirements:
1. Approval of and authorization for the Chair to sign an agreement with City of Napa to jointly provide Backfill Payments to Napa Valley Unified School District and Napa County Office of Education to allow early dissolution; and
2. Adoption of a resolution authorizing the Auditor-Controller to disseminate the property taxes in accordance with the Agreement.
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EXECUTIVE SUMMARY
The Napa Redevelopment Successor Agency Oversight Board ("Oversight Board") approved the final Recognized Obligations Payment Schedule ("ROPS") in January 2021 and directed the Napa Successor Agency to conduct the final steps required to effectuate dissolution of the Napa Successor Agency. By dissolving the Napa Successor Agency early, local taxing agencies would ensure that they will retain the current Five Million Dollar ($5,000,000) of growth shift to the Napa Successor Agency. If the Napa Successor Agency is not dissolved early, the $5,000,000 of RDA distributions would be excluded from the excess Educational Revenue Augmentation Fund ("ERAF") calculation and be used instead to pay the State's VLF (vehicle license fee) Swap Obligation. Early dissolution of the Napa Successor Agency would benefit all local taxing jurisdictions. Two school agencies, NVUSD and NCOE would be harmed because they would lose the facilities portion of pass-through payments totaling $1 million.
FISCAL & STRATEGIC PLAN IMPACT
Is there a Fiscal Impact?
Yes
Is it currently budgeted?
Yes
Where is it budgeted?
General Fund Property Taxes
Is it Mandatory or Discretionary?
Discretionary
Discretionary Justification:
Advantageous to retain future ...
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