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Home My WebLink About050205 PH Pymt Edu Revenue Augmen-Ord Amending Merged Redvlp PlanREQUEST FOR COUNCIUAGENCY ACTION MEETING DATE: MAY 2, 2005 TITLE: PUBLIC HEARING — PAYMENT TO EDUCATIONAL REVENUE AUGMENTATION FUND AND AN ORDINANCE AMENDING THE MERGED REDEVELOPMENT PLAN TO EXTEND CERTAIN TIME LIMITS location 1st CLERK OF COUNCIL USE ONLY: 4 _a t4 CITY MANAGER EXECIOJIVE DIRECTOR RECOMMENDED ACTION CITY COUNCIL ACTION APPROVED 19 As Recommended ❑ As Amended ❑ Ordinance on 1 st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Adopt an ordinance extending time limits on the effectiveness of the redevelopment plans and extending the time limit on the use of tax increment to repay indebtedness by one year for eligible project areas and making certain required findings. 2. 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 $3,401,346.78 in Housing Set - Aside Funds to make the FY 2004 -2005 payment to the Educational Revenue Augmentation Fund is necessary due to the insufficiency of other revenue sources. 4 -1 P.H. - Payment to ERAF An Ordinance Amending Redevelopoment Plan to Time Limits May 2, 2005 Page 2 and the Merged Extend Certain COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION: 1. Recommended that the City Council: a) Adopt an ordinance extending time limits on the effectiveness of the redevelopment plans and extending the time limit on the use of tax increment to repay indebtedness by one year for eligible project areas and making certain required findings. b) 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. 2. Recommended that the Community Redevelopment Agency adopt a resolution finding that borrowing $3,401,346.78 in Housing Set - Aside Funds to make the FY 2004 -2005 payment to the Educational Revenue Augmentation Fund is necessary due to the insufficiency of other revenue sources. By a vote of 5:0 (Betancourt and Robles absent) at its Regular Meeting of April 19, 2005. 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 $3,401,346.78 payment to the County Educational Revenue Augmentation Fund (ERAF) by May 10, 2005. The legislation allows the Agency to borrow up to 50 percent of the amount required to be allocated to the Low and Moderate - Income Housing Fund during FY 2004- 2005 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 $3,401,346.78 payment is not F P.H. - Payment to ERAF and An Ordinance Amending the Merged Redevelopoment Plan to Extend Certain Time Limits May 2, 2005 Page 3 made by the Community Redevelopment Agency before May 10, 2005. SB 1096 also included a provision that allows the legislative body to adopt an ordinance to amend the redevelopment plan extending the time limit on the use of tax increment to repay indebtedness and extend the plan effectiveness by one year for a redevelopment agency making an ERAF payment. For Redevelopment Plans with 10 to 20 years remaining, the legislation requires that the legislative body finds that the Agency is in compliance with the major housing requirements. These include the requirement to deposit 20 percent of the gross tax increment into the housing set -aside fund, the adoption of a housing implementation plan, compliance with housing replacement and inclusionary obligations, and certification that no excess surplus exists. Redevelopment plans with 20 years or more remaining cannot be extended. The City of Santa Ana has a merged redevelopment project area consisting of Central City, Inter -City, North Harbor, South Harbor, South Main and Bristol Corridor. The following time limits are proposed for amendment: *Not eligible for one year extension under SB1096. 4 -3 TIME LIMIT ON TIME LIMIT ON TIME LIMIT ON TIME LIMIT ON PLAN PLAN PLAN RECEIPT OF RECEIPT OF EFFECTIVENESS EFFECTIVENESS TAX INCREMENT TAX INCREMENT (CURRENT (PROPOSED (CURRENT (PROPOSED DATE) DATE) DATE) DATE) Central City July 2, 2014 July 2, 2015 July 2, 2024 July 2, 2025 Inter -City July 6, 2023 July 6, 2024 July 6, 2033 July 6, 2034 North Harbor July 6, 2023 July 6, 2024 July 6, 2033 July 6, 2034 South Harbor July 6, 2023 July 6, 2024 July 6, 2033 July 6, 2034 South Main July 6, 2023 July 6, 2024 July 6, 2033 July 6, 2034 *Bristol December 4, December 4, December 4, December 4, 2030 2030 2040 2040 *Not eligible for one year extension under SB1096. 4 -3 P.H. - Payment to ERAF and An Ordinance Amending the Merged Redevelopoment Plan to Extend Certain Time Limits May 2, 2005 Page 4 Notice of this public hearing was mailed to the governing body of each affected taxing entities on April 15, 2005, 30 days prior to the proposed ordinance adoption on May 16, 2005, and published in the Orange County Register on April 22, 2005, 10 days prior to the hearing. FISCAL IMPACT City /Agency approval of the appropriation adjustment and resolution will enable staff to make the $3,401,346.78 payment to the County Auditor for deposit into the ERAF on or before May 10, 2005. The amendment of these plans will enable the Community Redevelopment Agency to collect tax increment for one additional year in the eligible project areas. The actual amount received will depend on the valuation of property within the project area in any given fiscal year. -' atricia C. Whitaker Executive rector PCW /NTE /mlr APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez F� Executive Director Finance & Management Services Agency H: \ACTIONS\2005 CCUT CC -CRA PymtERAF& OrdAmendMergedRedevPI =ExtCertTimeLimts 5- 2- 05.doc EM REQUEST FOR APPROPRIATION ADJUSTMENT ipriation Adjustment No: 0-5-- /b i ..,e: April 19, 2005 Department: Community Development Agency TYPE OF ADJUSTMENT = Transfer of Funds (No Council Action Required) X Transfer of Funds (Council Action Required) From: VARIOUS 502 - 508 - 6782 -1 $ 194,225 503- 508- 6782 -1 198,210 504 - 508 - 6782 -1 326,275 505 - 508 - 6782 -1 947,105 506 - 508 - 6782 -1 165,185 504- 936 -6631 540 -01- 5990 -502 540 -01- 5990 -503 540 -01- 5990 -504 5^^ -01- 5990 -505 01- 5990 -506 1,570,350 $ 3,401,350 $ 194,225 198,210 1,896,625 947,105 165,185 $ 3,401,350 Page oft Council Action 19 Approved: ❑ Yes El No Clerk of the Council WIN 161110 Fund - Activity - Account 502 - 935 - 6800 -540 503 - 935 - 6800 -540 504 - 935- 6800 -540 505 - 935 - 6800 -540 506 - 935 - 6800 -540 540 - 935 -6935 $ 194,225 198,210 1,896,625 947,105 165,185 $ 3,401,350 $ 3,401,350 JUSTIFICATION FOR REQUEST: Transferoffundsfrom various Low and Moderate-income Housing Funds into the South Harbor Redevelopment Project Area (Fund 540) to pay the County of Orange for the Educational Revenue Augmentation Fund (ERAF) ay required by legislation implementing the CA State Budget for FY 2004 -2005. The state legislation requiring the ERAF allow for the Agency to borrow from the Low and Moderate Flousing Fund, for up to 10 years. lfk VLGGI R 6 Department Head APPROVED AS TO FUNDS AND ACCOUNTS: APPROVED: Director of Finance f Date City Manager Date I ORATION: t original and two copies to Director of Finance, who will assign control number and forward the three cu,.<s to the City Manager. City Manager will distribute copies showing designateAaction: IRIGI NAL - Finance; DUPLICATE - department file; TRIPLICATE -City Manager. Prepare rmo or the Clerk of the Council's file on requests that need Council action. CS -886 04/26/04 RESOLUTION NO. 2005 -002 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA MAKING THE FINDING THAT THE AGENCY MUST BORROW HOUSING SET ASIDE FUNDS IN ORDER TO MAKE THE 2004 -2005 PAYMENT TO THE EDUCATIONAL REVENUE AUGMENTATION FUND BE IT RESOLVED BY THE MEMBERS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The Community Redevelopment Agency of the City of Santa Ana hereby finds, determines and declares as follows: A. As a result of Senate Bill 1096 (SB 1096) implementing the California State Budget for fiscal year 2004 -2005, the Community Redevelopment Agency ( "Agency ") is required to make a $3,401,346.78 payment to the County Educational Revenue Augmentation Fund ( "ERAF ") by May 10, 2005. B. 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 fiscal year 2004 -2005 in order to make this payment. The funds may be borrowed for up to ten years. C. As a condition of borrowing from the Low and Moderate Income Housing Fund pursuant to Health & Safety Code § 33681.12, the Agency must make a finding that there are insufficient other moneys to remit the required ERAF payment. D. The legislation implementing the State's fiscal year 2004 -2005 budget authorized the County Auditor /Controller to withhold property tax revenue from the City's general fund to the extent that the $3,401,346.78 payment is not made by the Agency by May 10, 2005. E. SB 1096 also includes a provision that allows the legislative body to adopt an ordinance to amend the redevelopment plan extending the time limit on the use of tax increment to repay indebtedness and extend the time limit on the use of tax increment to repay indebtedness and extend the plan effectiveness by one year for a redevelopment agency making an ERAF payment. Section 2. The Agency hereby finds that borrowing $3,401,346.78 from the Low and Moderate Income Housing funds is necessary due to the insufficiency of other revenue sources. Section 3. The Executive Director of the Agency is hereby authorized to take all necessary actions and to sign all documents and instruments necessary to make the $3,401,346.78 payment to the County Auditor for deposit into the Educational Revenue Augmentation Fund on or before May 10, 2005. 4-6 04/26/04 ADOPTED this day of APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel By: Lisa E. Storck Assistant General Counsel AYES: NOES: Boardmembers: Boardmembers: ABSTAIN: Boardmembers: NOT PRESENT: Boardmembers: 2005, Miguel A. Pulido Chair CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Secretary of the Agency, do hereby attest to and certify the attached Resolution No. 2005- to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on Date: Secretary City of Santa Ana 4 -7