HomeMy WebLinkAbout03 - JOINT - ERAF PaymentY ^
1~iEETING DATE:
MAY 4, 2009
~`iTLE:
PAYMENT TO EDUCATIONAL REVENUE
AUGMENTATION FUND
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~ CITY MANAGER EXECllTI!/ ®1RECTC}R
CC3 II~ENECI ~1CTIl~N
CITY COUNCIL ACTION
CLERi~C OF CDUNCiL i~SE C}NLY:
APPROt/ED
^ As Recorrsmended
^ As Amended
^ Ordinance on 'ist Reading
^ Ordinance on 2nd Reading
^ Emplementing Resolution
^ Set Public Tearing For
CONTINUEI] 70
FIL.I; NUMBER
Approve an appropriation adjustment transferring loan funds from the Low
and Moderate-rncome Housing Fund to the Merged Redevelopment Project
Area Fund to make the necessary payment to the County Educational
Revenue Augmentation Fund as required by legislation implementing the
California State Budget for FY 2008-2009.
COMMUNITY REDEVELOPMENT AGENCY ACTION
Adapt a resolution finding that borrowing $3,679,545 in Housing Set-
Aside Funds to make the FY 2008-2009 payment to the Educational Revenue
Augmentation Fund is necessary due to the insufficiency of other revenue
sources.
DISCUSSION
As a result of Assembly Bill 1389 (AB 1389) implementing the California
State Budget for FY 2008-2009, the Community Redevelopment Agency is
required to make a $3,679,545 payment to the County Educational Revenue
Augmentation Fund (ERAF) by May 10, 2009. The legislation allows the
Agency to borrow up to fifty percent of the amount required to be
allocated to the Low and Moderate-Income Housing Fund during FY 2008--
2009 to make this payment. The funds may be borrowed for up to ten
ERAF
May 4, 2009
Page 2
years. As a condition of borrowing the funds from the Low and Moderate--
Income Housing Fund, the Agency must adopt a resolution making a finding
that there are insufficient other moneys to make the required payment.
The legislation implementing the State's FY 200$--2009 budget authorized
the County Auditor/Controller to withhold property tax revenue from the
City's General Fund to the extent that the $3,679,545 payment is not
made by the Community Redevelopment Agency before May 10, 2009.
FISCAL IMPACT
City/Agency approval of the appropriation adjustment and resolution will
enable staff" to make the $3,679,545 payment to the County Auditor for
deposit into the ERAF on or before May 10, 2009.
APPROVED AS TO FUNDS AND ACCOUNTS:
rl~~~l
Nancy T. Edwards
Assistan Director
Community Development Agency
Francisco Gutierrez ~~
Executive Director
Finance and Management Services Agency
CJN/NTE/EB/mlr
418109 les
RESOLUTION NO. 2009-
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 2008-2009
PAYMENT TO THE EDUCATIONAL REVENUE
AUGMENTATION FUND
BE 1T 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 1389 (SB 1389) implementing the California
State Budget for fiscal year 2008-2009, the Community Redevelopment Agency ("Agency") is
required to make a $3,679,545 payment to the County Educational Revenue Augmentation
Fund ("ERAF") by May 10, 2009.
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 2008-2009 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 2008-2009 budget also
authorized the County AuditorlController towithhold property tax revenue from the City's
general fund to the extent that the $3,679,545 payment is not made by the Agency by May 10,
2oa9.
Section 2. The Agency hereby finds that borrowing $3,679,545 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
$3,679,545 payment to the County Auditor for deposit into the Educational Revenue
Augmentation Fund on or before May 10, 2009.
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.
418109 fes
ADOPTED this day of , 2009.
Miguel A. Pu[ido
Chair
APPROVED AS TO FORM:
Joseph W. Fletcher, Genera[ Counsel
By:
Lisa E. Storck
Assistant General Counsel
AYES: Boardmembers:
NOES: Baardmembers:
ABSTAIN: Baardmembers:
NOT PRESENT: Boardmembers:
CERTIFICATION OF ATTESTATION AND ORIG[NALITY
I, PATR[CIA E. HEALY, Secretary of the Agency, do hereby attest to and certify the attached
Resolution No. 2009- to be the original resolution adopted by the Community
Redevelopment Agency of the City of Santa Ana on
Date:
Secre#ary
City of Santa Ana