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AA & RESOLUTION - SERAF <br />May 3, 2010 <br />Page 2 <br />borrowed for up to five years. The Agency may also borrow other available tax increment funds to <br />meet the obligation. In both cases, the Agency must adopt a resolution making a finding that there <br />are insufficient other monies to make the required payment. <br />In the fall of 2009, the California Redevelopment Association filed a lawsuit challenging the <br />constitutionality of AB X4 26 and the requirement for Redevelopment Agencies to make the <br />SERAF payments to the County Auditor /Controller. A ruling on the merits of the case is anticipated <br />to be released by May 4, 2010. The proposed fund transfers are in anticipation of the payment <br />being due. <br />Until this matter is judicially resolved, the legislation implementing the State's FY 2009 -2010 <br />budget still authorizes the County Auditor /Controller to withhold property tax revenue from the <br />City's General Fund to the extent that the $17,889,256 payment is found to be constitutional and <br />payment is not made by the Community Redevelopment Agency on or before May 10, 2010. <br />FISCAL IMPACT <br />City /Agency approval of the appropriation adjustment and resolution will make funds available in <br />the Merged Project Area Fund account (no. 57018843 - 69166) and will enable staff to make the <br />$17,889,256 payment to the County Auditor for deposit into the SERAF on or before May 10, 2010. <br />Nancy T. E ards <br />Assistant D ector <br />Community Development Agency <br />CJN /NTE /EB /kg <br />�:1111 <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Francisco Gutierrez <br />Executive Director <br />Finance and Management Services Agency <br />