80A - SUPPLEMENTAL EDUCATIONAL REVENUE

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REQUEST FOR COUNCIL/ AGENCY ACTION MEETING DATE: CLERK OF COUNCIL USE ONLY: MAY 3, 2010 TITLE: APPROVED ? As Recommended APPROPRIATION ADJUSTMENT AND RESOLUTION - ? As Amended PAYMENT TO SUPPLEMENTAL EDUCATIONAL ? Ordinance on 1st Reading REVENUE AUGMENTATION FUND ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO ~ / ~ ` V ~V `"7 FILE NUMBER CITY MANAGER ~ EXECUTIVE DIRECTOR RECOMMENDED ACTION CITY COUNCIL ACTION Approve an appropriation adjustment transferring funds from the Low and Moderate-Income Housing Fund, the South Main Commercial Corridor Fund and the Tax Increment Revenue Debt Service-Merged Fund to the Merged Redevelopment Project Area Fund to make the necessary payment to the County Supplemental Educational Revenue Augmentation Fund as required by legislation implementing the California State Budget for FY 2009-2010. COMMUNITY REDEVELOPMENT AGENCY ACTION Adopt a resolution finding that borrowing $3,679,545 in Housing Set-Aside Funds and $6,302,827 in South Main Commercial Corridor funds to make the FY 2009-2010 payment to the Supplemental Educational Revenue Augmentation Fund is necessary due to the insufficiency of other revenue sources. DISCUSSION As a result of Assembly Bill X4 26 implementing the California State Budget for FY 2009-2010, the Community Redevelopment Agency is required to make a $17,889,256 payment to the County Supplemental Educational Revenue Augmentation Fund (SERAF) by May 10, 2010. In order to make this payment, the Agency will need to borrow funds from two of its accounts (Low and Moderate Income Housing Fund and South Main Commercial Corridor Fund), as well as use prior year funds and eliminate certain planned projects. The legislation allows the Agency to borrow the amount required to be allocated from the Low and Moderate-Income Housing Fund during FY 2009-2010 to make this payment. The funds may be 80A-1