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<br />Payment to Educational Revenue <br />Augmentation Fund <br />May 1, 2006 <br />Page 2 <br /> <br />2 . <br /> <br />Recommended that <br />resolution finding <br />Funds to make the <br />Augmentation Fund <br />revenue sources. <br /> <br />the Community Redevelopment Agency adopt a <br />that borrowing $3,330,894.37 in Housing Set-Aside <br />FY 2005-2006 payment to the Educational Revenue <br />is necessary due to the insufficiency of other <br /> <br />By a vote of 5: 0 (Turner and Yanez absent) at its Regular Meeting of <br />April 18, 2006. <br /> <br />DISCUSSION <br /> <br />As a result of Senate Bill 1096 (SB 1096) implementing the California <br />State Budget for FY 2004-2005, the Community Redevelopment Agency is <br />required to make a $3,330,894.37 payment to the County Educational <br />Revenue Augmentation Fund (ERAF) by May 10, 2006. The legislation allows <br />the Agency to borrow up to fifty percent of the amount required to be <br />allocated to the Low and Moderate-Income Housing Fund during FY 2005-2006 <br />to make this payment. The funds may be borrowed for up to ten years. As <br />a condition of borrowing the funds from the Low and Moderate-Income <br />Housing Fund, the Agency must adopt a resolution making a finding that <br />there are insufficient other moneys to make the required payment. <br /> <br />The legislation implementing the State's FY 2004-2005 budget authorized <br />the County Auditor/Controller to withhold property tax revenue from the <br />City's General Fund to the extent that the $3,330,894.37 payment is not <br />made by the Community Redevelopment Agency before May 10, 2006. <br /> <br />80A-2 <br />