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HomeMy WebLinkAbout03 - Reso - SERAF AGENCY BOARD MEETING DATE: AGENCY SECRETARY USE ONLY: MAY 2, 2011 TITLE RESOLUTION -PAYMENT TO SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND FILE NUMBER INTERI EXECUTIVE DIRECTOR APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1St Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO ENDED ACTION Adopt a resolution authorizing the payment of $3,683,082 for the FY 2010-2011 payment to the County for deposit into the Supplemental Educational Revenue Augmentation Fund. DISCUSSION Assembly Bill X4 26 implementing the California State Budget for FY 2009-10 required redevelopment agencies to remit a total of $1.7 billion in FY 2009-10 and $350 million in FY 2010- 11 to County Supplemental Educational Revenue Augmentation Funds (SERAF) for allocation to school entities. Santa Ana's share of the SERAF for FY 2009-10 was paid on May 10, 2010 in the amount of $17,889,256. For FY 2010-11, Santa Ana's share is $3,683,082 and is due to the County by May 10, 2011. In the fall of 2009, the California Redevelopment Association filed a lawsuit challenging the constitutionality of AB X4 26 and the requirement for redevelopment agencies to make the SERAF payments to the County Auditor/Controller. The lawsuit is still under litigation in the Third District Court of Appeal at this time. Therefore, until this matter is judicially resolved, the legislation implementing the State's FY 2009-10 budget still authorizes the County Auditor/Controller to withhold property tax revenue from the City's General Fund to the extent that the $3,683,082 payment is found to be constitutional and if payment is not made by the Community Redevelopment Agency on or before May 10, 2011. 3-1 Resolution - SERAF May 2, 2011 Page 2 FISCAL IMPACT Funds are available in the Merged Project Area Admin Fund (no. 57018843-69166). APPROVED AS TO FUNDS AND ACCOUNTS: Sus n Gorospe Francisco Gutierrez Senior Management Analyst Executive Director Community Development Agency Finance & Management Services Agency NTE/SG/mlr Exhibit: 1. Resolution 3-2 4/20/11 les RESOLUTION NO. 2011- A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE PAYMENT OF $3,683,082 TO THE SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND FOR FISCAL YEAR 2010-2011 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. Assembly Bill 26 (4th Executive Session)("ABx4-26") implemented the California State Budget for fiscal year 2009-2010, and required redevelopment agencies to remit a total of $1.7 billion in that fiscal year and $350 million in fiscal year 2010-2011 to the County Supplemental Educational Revenue Augmentation Fund ("SERAF") for allocation to school entities. B. The Community Redevelopment Agency ("Agency") share of the SERAF for fiscal year 2009-2010 was paid on May 10, 2010 in the amount of $17,889,256. For fiscal year 2010-2011, the Agency is required to make a $3,683,082 payment to the County by May 10, 2011. C. In the fall of 2009, the California Redevelopment Association filed a lawsuit challenging the validity and constitutionality of ABx4-26 and the requirement for redevelopment agencies to make the SERAF payments to the County Auditor/Controller ("lawsuit"). The lawsuit is still under litigation in the Third District Court of Appeals at this time. D. Until the lawsuit is judicially resolved, the legislation implementing the State's fiscal year 2009-2010 budget continues to authorize the County Auditor/Controller to withhold property tax revenue from the City's General Fund to the extent that the payment is found to be constitutional and payment is not made by the Agency on or before May 10, 2011. Section 2. The Executive Director of the Agency, or her designee, is hereby authorized to take all necessary actions and to sign all documents and instruments necessary to make the $3,683,082 payment to the County Auditor for deposit into the Supplemental Educational Revenue Augmentation Fund on or before May 10, 2011. Section 3. This Resolution shall take effect immediately upon its adoption by the Agency Board, and the Recording Secretary shall attest to and certify the vote adopting this Resolution. 3 - 3 ExHieiT 7 4/20/11 les ADOPTED this day of , 2011. Miguel A. Pulido Chair APPROVED AS TO FORM: Joseph Straka, Interim General Counsel By: Lisa E. Storck Assistant General Counsel AYES: Boardmembers: NOES: Boardmembers: ABSTAIN: Boardmembers: NOT PRESENT: Boardmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Secretary of the Agency, do hereby attest to and certify the attached Resolution No. 2011- to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on May _, 2011. Date: Secretary, Community Redevelopment Agency City of Santa Ana 3-4