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Home My WebLink About050106 Pymt to Educ Revenue Augmentation FundREQUEST FOR COUNCIL/ AGENCY ACTION MEETING DATE: MAY 1, 2006 PAYMENT TO EDUCATIONAL REVENUE AUGMENTATION FUND t "!ta % Poca[ton Is, CLERK OF COUNCIL USE ONLY: APPROVED YZ As Recommended ❑ As Amended ❑ Ordinance on 1 st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For �f CONTINUED TO FILE NUMBER CITY MANAGER �p�,FXECUTI E DIRECTOR RECOMMENDED ACTION 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 appro adjustment transferring loan funds from the Lc Housing Fund to redevelopment project area necessary payment to the County Educational Fund as required by legislation implementing Budget for FY 2004 -2005. 4 -1 e an appropriation a and Moderate- Income funds to make the Revenue Augmentation the California State Payment to Educational Revenue Augmentation Fund May 1, 2006 Page 2 2. Recommended that resolution finding Funds to make the Augmentation Fund revenue sources. By a vote of 5:0 (Tur April 18, 2006. DISCUSSION 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 zer and Yanez absent) at its Regular Meeting of 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. 4 —Z 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. 'ft ue X 6 a'd� A&atricia Whitaker Executive Director PCW /NTE /mlr H: \ACTIONS \2006 CC \JT CC -CRA - PmtEducaRevAugmentFund APPROVED AS TO FUNDS AND ACCOUNTS: %X Si k- 1"t \ Francisco Gutierrez Executive Director Finance & Management Services Agency, 5- 1- 06.doc 4 -3 THIS PAGE LEFT INTENTIONALLY BLANK 4 -4 4/24/06 les RESOLUTION NO. 2006-60-6r 005 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 2005 -2006 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 $3,330,894.37 payment to the County Educational Revenue Augmentation Fund ( "ERAF ") by May 10, 2006. 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 2005 -2006 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 also 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 Agency by May 10, 2006. Section 2. The Agency hereby finds that borrowing $3,330,894.37 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 $3,330,894.37 payment to the County Auditor for deposit into the Educational Revenue Augmentation Fund on or before May 10, 2006. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. 4 -5 4/24/06 les ADOPTED this day of 2006. Miguel A. Pulido Chair APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel By: Lisa E. Storck Assistant General Counsel AYES: Boardmembers: NOES: Boardmembers: ABSTAIN: Boardmembers: NOT PRESENT: Boardmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Secretary of the Agency, do hereby attest to and certify the attached Resolution No. 2006- 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 -6