August means it’s the Recognized Obligation Payment Schedule (ROPS) season again. The ROPS is the way that Redevelopment Successor Agencies reconcile their previous revenues and expenses and estimate future ones.
Each Successor Agency is responsible for drafting a ROPS delineating the enforceable obligations of the former RDA and their source of payment every six months. The procedure, which is complicated, has a variety of special requirements. The ROPS is subject to the approval of the local Oversight Board.
RSG prepares the ROPS for a growing list of more than 25 Successor Agency clients and also helps them to:
• Coordinate with the State Department of Finance to get the ROPS approved,
• Resolve complications associated with pass through calculations,
• Confirm that the County’s distribution of property taxes matches what is expected based on the ROPS, and
• Project long term cash flows to plan ahead beyond the six months covered by the ROPS.
The ROPS serves as just one example of RSG’s commitment to help cities maximize their financial health and provide more for their constituents. Our consultants work hand in hand with communities with a new form of redevelopment that will create a brighter tomorrow.
Written by Dima Galkin, Senior Analyst at RSG.