Oversight Board for the Successor Agency for the City of Eureka

ABOUT THE REDEVELOPMENT SUCCESSOR AGENCY

As part of the State's budget deficit, the Governor proposed the elimination of redevelopment agencies in the FY 2011/2012 State Budget. In June 2011, the State Legislature approved and the Governor signed two pieces of legislation: ABx1 26, which dissolved redevelopment agencies and ABx1 27, which allowed redevelopment agencies to opt in to a voluntary alternative program to avoid the dissolution by making payments. The California Redevelopment Association and the League of California Cities challenged both pieces of legislation on constitutional grounds. In late December 2011, the State Supreme Court ruled that ABx1 26 was constitutional and ABx1 27 was not. As a result, all redevelopment agencies, including the Redevelopment Agency of the City of Eureka, were legally dissolved on February 1, 2012.

The City has elected to be the Successor Agency, overseeing the wind down of the Redevelopment Agency. An Oversight Board consisting of seven representatives supervises the Successor Agency. The Board is made up of members from the City of Eureka, the County of Humboldt, and local education and special districts of the Redevelopment Project Area.

The Successor Agency plays a key day-to-day role in assuring that the existing debt service and other obligations of the former Redevelopment Agency are properly paid from an Enforceable Obligation Payment Schedule, and that the former Redevelopment Agency's properties and other assets are disposed of in an appropriate manner.

ABOUT THE ENFORCEABLE OBLIGATION PAYMENT SCHEDULE

On August 23, 2011, the former Redevelopment Agency of the City of Eureka adopted a resolution approving the Enforceable Obligation Payment Schedule (EOPS). The EOPS identifies debt service and other payments that RDAs must make through December 2011.

The Redevelopment Successor Agency, at a public meeting of the Successor Agency Board on April 24, 2012, approved and adopted an amendment to the EOPS in the form of an Amended Enforceable Obligation Payment Schedule (Amended EOPS). The amendments contained in the Amended EOPS include extending the payment schedule for Enforceable Obligations to additionally cover the months of January through June 2012.

ABOUT THE OVERSIGHT BOARD

The Oversight Board has a fiduciary responsibility to holders of Enforceable Obligations and the taxing entities that benefit from distributions of property tax and other revenues. Commencing July 1, 2016, all Oversight Boards for the various former redevelopment agencies in the County of Humboldt will be consolidated in to a single county-wide Oversight Board.

The actions of the Oversight Board will be overseen by the State Department of Finance and may be subject to disapproval or modification.