55C-MERGER S.A. REDEV PROJ AREA - Laserfiche WebLink

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. 1, ADeneY Bond Debt Service The Agency will continue to make principal and Interesl payments on the 1989 Tax AJlocalion Refunding Bonds (Central City, Inter City and South Harbor Project Areas) and the 2003 Tax Allocation Bonds (South Main Project Area). While the Agency may elect to Incur additional bonded Indebtedness In the future, for purposes of this financial feasibility analysis no additional future bond Issues are assumed In the feasibility proJection, ' 2, Transfers In (Credit) The Santa Ana Financing Authority Issued 1998 Refunding Revenue Bonds, Series A, B, C and D for the purpose of using the net proceeds 10 purchase the Agency's 1989 Tax AJlocalion Refunding Bonds, Series A, B, C and E referenced above. This enabled the Agency to realize significant savings In annual debt service payments by ullllzjng the leverage of pooling funds permitted by Marks Roos bonds. The rebate of the net savings Is annually reflected In the Transfers In line Item of the cash flow projection. 3. §3ðE . Chapter 260, Stetutes of 2003, (SB 1045) requires redevelopment agencies 10 shift $135 million In property lax revenues 10 K-12 schools and community colleges during the 2003-04 fiscal year. The shift of tax incremenl revenues will be placed Inlo the Educational Revenue Augmentetlon Fund (ERAF). SB 1045 provides that one-haif of the ERAF obligation of the Agency Is calculated based on, the gross tex Incremenl apportioned 10 the Agency end the other one-half of the ERAF obligation Is calculated based on net tax Increment revenues retained by the Agency (net of any pass-through payments to other laxing entitles), ss such tex Increment revenues are reported in the Community Redevelopment Agencies Annual Report of Ihe California State Controller for FY 2001-02. The Agency will be required to allocate an ERAF payment to the County Audilor- Controller totaling over $1,831,000 on or before May 10, 2004. If the Agency determines that il will not be able to allocate the full amounl required, It must enter Into an agreement with Its legislative body to fund the difference between the full ERAF payment required and the amount available for sllocalion. It is uncertain al the present time as to whether or not future ERAF payments will be required by the State. It is also not known whether the ERAF amounts will Increase In future yeats. Therefore, for purposes of the feasibility projectIon, it Is assumed that commencing In FY 2004-05, ERAF payments will continue to be required by the respective Project Areas In subsequent flscal years and reflect the currenl year requirement. ' . Preliminary Report for the Merger of the San", Ana Redevelopment Projects JIiJUS.U5.L:I: " Keyser Marston AssocIalea, Inc. Page 17 .-..-.. ""","""""""",,, 55C-35