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AA & RESOLUTION - SERAF <br /> May 3, 2010 <br /> Page 2 <br /> borrowed for up to five years. The Agency may also borrow other available tax increment funds to <br /> meet the obligation. In both cases, the Agency must adopt a resolution making a finding that there <br /> are insufficient other monies to make the required payment. <br /> In the fall of 2009, the California Redevelopment Association filed a lawsuit challenging the <br /> constitutionality of AB X4 26 and the requirement for Redevelopment Agencies to make the <br /> SERAF payments to the County Auditor/Controller. A ruling on the merits of the case is anticipated <br /> to be released by May 4, 2010. The proposed fund transfers are in anticipation of the payment <br /> being due. <br /> Until this matter is judicially resolved, the legislation implementing the State's FY 2009-2010 <br /> budget still authorizes the County Auditor/Controller to withhold property tax revenue from the <br /> City's General Fund to the extent that the $17,889,256 payment is found to be constitutional and <br /> payment is not made by the Community Redevelopment Agency on or before May 10, 2010. <br /> FISCAL IMPACT <br /> City/Agency approval of the appropriation adjustment and resolution will make funds available in <br /> the Merged Project Area Fund account (no. 57018843-69166) and will enable staff to make the <br /> $17,889,256 payment to the County Auditor for deposit into the SERAF on or before May 10, 2010. <br /> APPROVED AS TO FUNDS AND ACCOUNTS: <br /> ~,D <br /> Nancy T. E ards Francisco Gutierrez <br /> <br /> Assistant D ector Executive Director <br /> Community Development Agency Finance and Management Services Agency <br /> CJN/NTE/EB/kg <br /> 80A-2 <br /> <br />