50A - PAYMENT-EDUCATIONAL REV. - Laserfiche WebLink

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Payment to ERAF and an Ordinance Amending the Six Redevelopment Plans to Extend Certain Time Limits May 3, 2004 Page 2 COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION 1. Recommended that the City Council: a) Adopt an ordinance extending time limits on the effectiveness of the redevelopment plans and extending the time limit on the use of tax increment to repay indebtedness by one year. b) Approve an appropriation adjustment transferring funds from the Low and Moderate-Income Housing Fund to redevelopment project area funds to make the necessary payment to the County Educational Revenue Augmentation Fund as required by legislation implementing the California State Budget for FY 2003-2004. 2. Recommended that the Community Redevelopment Agency: Adopt a resolution finding that borrowing $1,830,569 in Housing Set- Aside Funds to make the FY 2003-2004 payment to the Educational Revenue Augmentation Fund is necessary due to the insufficiency of other revenue sources. By a vote of 5: 0 April 20, 2004. (Rodriguez, Turner absent) at its Regular Meeting of DISCUSSION As a result of Senate Bill 1045 (SB 1045) implementing the California State Budget for FY 2003-2004, the Community Redevelopment Agency is required to make a $1,830,569 payment to the County Educational Revenue Augmentation Fund (ERAF) by May 10, 2004. The legislation allows the Agency to borrow up to 50 percent of the amount required to be allocated to the Low and Moderate-Income Housing Fund during FY 2003-2004 to make this payment. The funds may be borrowed for up to ten years. As a condition of borrowing the funds from the Low and Moderate-Income Housing Fund, the Agency must adopt a resolution making a finding that there are insufficient other moneys to make the required payment. 50A-2