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MAYOR <br />Miguel A. Pulido <br />MAYOR PRO TEM <br />Claudia C. Alvarez <br />COUNCILMEMBERS <br />P. David Benavides <br />Carlos Bustamante <br />Michele Martinez <br />Vincent F. Sarmiento <br />Sal Tinajero <br />August 2, 2012 <br />Jan E. Grimes <br />Chief Deputy Auditor-Controller <br />Orange County Auditor-Controller <br />12 Civic Center Plaza, Room 200 <br />Santa Ana, CA 92702-0567 <br />RE: AB 1484 DEMAND FOR PAYMENT <br />Dear Ms. Grimes: <br />CITY MANAGER <br />Paul M. Walters <br />CITY ATTORNEY <br />Sonia R. Carvalho <br />CLERIC OF THE COUNCIL <br />Maria D. Huizar <br />Via Hand-Delivery <br />The City of Santa Ana acting as Successor Agency to the former Community Redevelopment Agency <br />("Successor Agency") is in receipt of correspondence dated July 27, 2012 demanding payment in the <br />amount of One Million One Hundred Sixty Thousand and Ninety-Seven Dollars ($1,160,097.00) by <br />August 3, 2012. The Successor Agency has enclosed a check in the requested amount, but hereby asserts <br />its disagreement with the calculation and submits this check under protest. <br />The Department of Finance (DOF) considers the property tax increment revenues received by the former <br />redevelopment agencies from July 2011 through January 2012 as part of the Redevelopment Property Tax <br />Trust Fund (RPTTF) that can be distributed to various taxing entities. However, the RPTTF did not exist <br />until February 1, 2012; the effective date of AB lx 26. In addition, DOF's calculation does not factor in <br />the possibility that former redevelopment agencies may have needed to utilize the tax increment revenues <br />received during July 2011 through January 2012 to make enforceable obligation payments due during the <br />same period. <br />In addition, the Successor Agency is involved in current and pending litigation regarding various <br />agreements included on the Recognized Obligation Payment Schedules (ROPS) that DOF has disallowed <br />as enforceable obligations. The Successor Agency is still disputing DOF's decision, but has been <br />unsuccessful in engaging DOF in further dialogue to remedy the problem. Therefore, the amounts <br />approved by DOF on both the January - June 2012 and July - December 2012 ROPS are not reflective of <br />the true obligation amounts for each respective period. If the correct ROPS amounts are used in the AB <br />1484 "True Up" process calculation, the County would have no need to demand the return of any prior tax <br />increment revenues from the Successor Agency. <br />CITY OF SANTA ANA <br />20 CIVIC CENTER PLAZA • P.O. BOX 1988 <br />SANTA ANA, CALIFORNIA 92702 <br />EXHIBIT 1 <br />2-3