HomeMy WebLinkAbout80A - JOINT ERAF
MEETING DATE:
~
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CLERK OF COUNCIL USE ONLY:
REQUEST FOR COUNCILI
AGENCY ACTION
MAY 1, 2006
TITLE:
APPROVED
D As Recommended
D As Amended
D Ordinance on 1st Reading
D Ordinance on 2nd Reading
D Implemen1ing Resolution
D Set Public Hearing For
PAYMENT TO EDUCATIONAL REVENUE
AUGMENTATION FUND
Q~~~~~
RECOMMENDED ACTION
CONTINUED TO
FILE NUMBER
CITY COUNCIL ACTION
Approve an appropriation adjustment transferring loan funds from the Low
and Moderate-Income Housing Fund to redevelopment project area funds to
make the necessary payment to the County Educational Revenue Augmentation
Fund as required by legislation implementing the California State Budget
for FY 2004-2005.
COMMUNITY REDEVELOPMENT AGENCY ACTION
Adopt a resolution finding that borrowing $3,330,894.37 in Housing Set-
Aside Funds to make the FY 2005-2006 payment to the Educational Revenue
Augmentation Fund is necessary due to the insufficiency of other revenue
sources.
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION
1. Recommended that the City Council approve an appropriation
adjustment transferring loan funds from the Low and Moderate-Income
Housing Fund to redevelopment project area funds to make the
necessary payment to the County Educational Revenue Augmentation
Fund as required by legislation implementing the California State
Budget for FY 2004-2005.
80A-1
Payment to Educational Revenue
Augmentation Fund
May 1, 2006
Page 2
2 .
Recommended that
resolution finding
Funds to make the
Augmentation Fund
revenue sources.
the Community Redevelopment Agency adopt a
that borrowing $3,330,894.37 in Housing Set-Aside
FY 2005-2006 payment to the Educational Revenue
is necessary due to the insufficiency of other
By a vote of 5: 0 (Turner and Yanez absent) at its Regular Meeting of
April 18, 2006.
DISCUSSION
As a result of Senate Bill 1096 (SB 1096) implementing the California
State Budget for FY 2004-2005, the Community Redevelopment Agency is
required to make a $3,330,894.37 payment to the County Educational
Revenue Augmentation Fund (ERAF) by May 10, 2006. The legislation allows
the Agency to borrow up to fifty percent of the amount required to be
allocated to the Low and Moderate-Income Housing Fund during FY 2005-2006
to make this payment. The funds may be borrowed for up to ten years. As
a condition of borrowing the funds from the Low and Moderate-Income
Housing Fund, the Agency must adopt a resolution making a finding that
there are insufficient other moneys to make the required payment.
The legislation implementing the State's FY 2004-2005 budget authorized
the County Auditor/Controller to withhold property tax revenue from the
City's General Fund to the extent that the $3,330,894.37 payment is not
made by the Community Redevelopment Agency before May 10, 2006.
80A-2
Payment to Educational Revenue
Augmentation Fund
May 1, 2006
Page 3
FISCAL IMPACT
City/Agency approval of the appropriation adjustment and resolution will
enable staff to make the $3,330,894.37 payment to the County Auditor for
deposit into the ERAF on or before May 10, 2006.
APPROVED AS TO FUNDS AND ACCOUNTS:
:h1Wl~ tdw~
~atricia . Whltaker
~ Executive Director
Francisco
Executive
Finance &
PCW/NTE/mlr
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