4 - RESO - ESTABLISH REPAYMENT SCHEDULE

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Resolutions SERAF & ERAF Repayment February 19, 2013 Page 2 in 10 years. The balance currently owed to the LMIHF is $5,568,314, while that owed to the South Main Corridor fund is $6 million. The Dissolution Act as ametnded by AB 1484, suspended repayments of the SERAF and ERAF loans to the LMIHF until the ROPS 4, 13-14A, period. The maximum repayment amount authorized each fiscal year to the LMIHF is based on the amount distributed to taxing entities and capped by a formula, thus any repayment schedule will inherently provide estimated amounts. The repayment of the SERAF South Main Commercial Corridor loan is still under dispute with the DOF; however, they have indicated that the Oversight Board needs to approve a repayment schedule. Resolutions incorporating the updated repayment schedules for the LMIHF and South Main Corridor fund are attached as Exhibit 3 and 4, and will be considered by the Oversight Board at its meeting on February 19, 2013. FISCAL IMPACT The Successor Agency is limited to making only payments listed on the approved ROPS for each six month period and the administrative expenditures of the Successor Agency are limited to items listed in the approved Administrative Budget for each six month period. California Health and Safety Code Section 34173(e) stipulates that "the liability of any successor agency, acting pursuant to the powers granted under the act adding this part, shall be limited to the extent of the total sum of property tax revenues it receives pursuant to this part and the value of assets transferred to it as a successor agency for a dissolved redevelopment agency." Thus, the City's obligations as Successor Agency are limited by the amount of property taxes and the value of assets it receives in its role as the Successor Agency. Despite this language, the Dissolution Act (as amended by AB 1484) also provides for the withholding and diversion of sales tax and property tax revenues otherwise due to the City in order to recover certain expenditures deemed to have been improperly made by the former Agency; however this offset is inapplicable to the present recommended actions. and there are various lawsuits, including one filed by the League of California Cities, that are challenging the constitutionality of the sales and property tax off-set penalties to cities. `lail I W-8 Nancy T. E ards Interim Exe tive Director Community Development Agency NTE/SG/kg Exhibits 1. CRA Resolution 2010-001 2. CRA Resolution 2006-005 3. Resolution - LMIHF 4. Resolution - South Main Corridor 4-2