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HomeMy WebLinkAboutR27- Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION FROM: Gary Van Osdel SUBJECT: County of San Bernardino Agreement Executive Director Property Tax Apportionment DATE: January 12,2000 O RI G h" A L ------------------------------------------------------------------------------_____--------_________------_________-___________________ Synopsis of Previous Commission/Council/Committee Action(s): On January 13,2000,the Redevelopment Committee recommended approval of an agreement with the County of San Bernardino for the apportionment of property taxes to the Redevelopment Agency. Recommended Motion(s): (Community Development Commission) MOTION: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO,CALIFORNIA,APPROVING AN AGREEMENT,AND AUTHORIZING EXECUTION THEREOF,WITH THE COUNTY OF SAN BERNARDINO FOR THE APPORTIONMENT OF PROPERTY TAXES TO THE SAN BERNARDINO REDEVELOPMENT AGENCY. ----------------------_----------------------------------------_--------------------_-----------------------------------------___-------- Contact Person(s): Gary Van Osdel/Barbam Lindseth Phone: 663-1044 Project Area(s): All Ward(s): All Supporting Data Attached:x0 Staff Report 0 Resolution(s) 0 Agreements)/Comract(s)0 Map(s)0 Ltr/Memo FUNDING REQUIREMENTS: Amount: NA Source: NA Budget Authority: NA SIGNATURE: w ARY AN OSDEL Barbara Lindseth Exec 've Director Admin Services Director --------------------------------------------------------_______°_------------------------------------------------' - Commission/Councll Notes: Agenda CDC County San Bernardino COMMISSION MEETING AGENDA MEETING DATE:01/24/20000 Agenda Item Number: nom! ECONOMIC DEVELOPMENT AGENCY STAFF REPORT County of San Bernardino Property Taxes Apportionment Background Currently, the County of San Bernardino ("County") reviews the apportionment of property taxes to the Redevelopment Agency("Agency") during March of each fiscal year. The purpose of the review is to determine if there is a trend of higher than expected value corrections, which would impact current apportionments. If the County determines that there is a possibility that current apportionments may be in excess of established rates, after including projected adjustments to property values, the County would then withhold the distribution of property taxes to the Agency. Current Issue Now,the County desires to change this process to allow all apportioned funds to be distributed during the current fiscal year by not withholding the distribution of property taxes to the Agency. Through this Agreement, the County agrees to distribute all apportioned property taxes to the Agency throughout the fiscal year. If the County's final reconciliation for the fiscal year, which is completed in July of the following year, indicates an overpayment has been made to the Agency, the Agency will refund the funds to the County within 30 days after notification by the County. If the Agency does not refund the County within 30 days of the notification, interest will be charged from the date of notification on the outstanding balance, until fully paid. Interest will be charged at the current County Treasury pool rate plus 2.5%. Further, if the County does not receive the refund within 30 days of notification,the County will offset the outstanding amount due, plus interest, against all property tax apportionments due the Agency until fully paid. Fiscal Impact The intent of this Agreement is to continue to provide to the Agency the property tax apportionments in the current fiscal year and, therefore, prevent cash flow fluctuations to the Agency. Recommendation That the Community Development Commission approve the Agreement with the County for property apporti ent to the San Bernardino Redevelopment Agency. G ry n Osdel Executive Director ------------------------------------------------------------------------------------------------------------------ Agenda CDC County San Bernardino COMMISSION MEETING AGENDA MEETING DATE:01/24/2000 Agenda Item Number: - C�Op� a I RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION 3 OF THE CITY OF SAN BERNARDINO, CALIFORNIA,APPROVING AN AGREEMENT, AND AUTHORIZING EXECUTION THEREOF,WITH 4 THE COUNTY OF SAN BERNARDINO FOR THE APPORTIONMENT OF PROPERTY TAXES TO THE SAN BERNARDINO REDEVELOPMENT 5 AGENCY. 6 WHEREAS, the Community Development Commission("Commission') 7 desires to enter into an agreement with the County of San Bernardino for the 8 9 apportionment of property taxes to the San Bernardino Redevelopment Agency. 10 NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY 11 DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, 12 AS FOLLOWS: 13 Section 1. The Commission hereby approves and authorizes the O14 Chairperson of the Commission to execute an agreement with the County of 15 San Bernardino for the apportionment of property taxes to the San Bernardino 16 17 Redevelopment Agency, as attached hereto. 18 Section 2. This Resolution shall take effect upon the date of its 19 adoption. 20 21 // 22 // 23 24 25 // 26 // © 27 28 ��17' I I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA,APPROVING AN 2 AGREEMENT,AND AUTHORIZING EXECUTION THEREOF, WITH 3 THE COUNTY OF SAN BERNARDINO FOR THE APPORTIONMENT OF PROPERTY TAXES TO THE SAN BERNARDINO REDEVELOPMENT 4 AGENCY. 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by 6 the Community Development Commission of the City of San Bernardino at a 7 meeting thereof, held on the_day of 2000, by 8 the following vote, to wit: 9 10 Commission Members Ayes Nay_ Abstain Absent 11 ESTRADA _ 12 LIEN 13 MCGINNIS _ 14 SCHNETZ _ 15 SUAREZ _ 16 17 ANDERSON _ 18 MILLER 19 Secretary 20 21 The foregoing Resolution is hereby approved this_day of 2000. 22 Judith Valles, Chairperson 23 Community Development Commission of the City of 24 San Bernardino Approve rm gal o ent: 25 26 By' © Agency Counsel 27 28 i CDC 2000-1 , AUDITOR/CONTROLLER-RECORDER COUNTY OF SAN BERNARDINO AUDITOR/CONTROLLER - 222 West Hospitality Lane, Fourth Floor —` ' LARRY WALKER San Bernardino,CA 92415-0018 • (909)387-8322 • Fax(909) 386-8830 Auditor/Controller-Recorder RECORDER • 222 West Hospitality Lane,First Floor ELIZABETH A. STARBUCK San Bernardino, CA 92415-0022 • (909) 387-8306 • Fax(909)386-8940 Assistant Auditor/Controller-Recorder December 14, 1999 SAN BERNARDINO REDEVELOPMENT AGENCY ATTN: FINANCE DIVISION 201 NORTH'E'STREET,3RD FLOOR SAN BERNARDINO, CA 92401-1507 RE: REDEVELOPMENT AGENCY (RDA) APPORTIONMENT AGREEMENT Attached is an agreement which was approved in form by the Board of Supervisor on November 23, 1999. As indicated in the documents, we are planning to change our practice off withholding apportionments to RDA's when our review indicates possible overapportionments. Instead we plan to continue to provide the RDA's their apportionments, if the enclosed agreement is approved by the RDA. We hope that this change will prevent cash flow fluctuations to the RDA's. We would appreciate it if the agreement is approved by the appropriate officials of the RDA and returned to our office. If you have any questions please call me at (909) 386- 8855 or Ron Leuschen at (909) 386-8829. Thank you for your cooperation. Sincerely, HOWARD M. OCHI Chief Deputy Controller Attachment HO:ca (pt/rda/rda agant ttr) CDC 2000-1 AGREEMENT FOR THE APPORTIONMENT OF PROPERTY TAXES TO REDEVELOPMENT AGENCIES THIS AGREEMENT is made and entered into as of the 24tb day Of January, 2000. By and between the COUNTY OF SAN BERNARDINO, hereinafter called COUNTY, and the community Development Commission (san Bernardino , hereinafter referred to as "Agency. Redevelopment Agency) WITNESSETH: WHEREAS, it has been the COUNTY's practice to review the apportionment of property taxes to the redevelopment agencies during March of each fiscal year; WHEREAS, the purpose of such review is to determine if there has been a trend of higher than expected value corrections which would impact the current apportionments; WHEREAS, if COUNTY determines that there is a possibility that current apportionments could be in excess of established rates, after including projected adjustments to property values, COUNTY would withhold the distribution of property tax funds to the Agency; WHEREAS, the withheld funds would all or partially be released to the Agency after the completion of the COUNTY's final reconciliations for the fiscal year, which is completed in July of the following fiscal year; WHEREAS, it is the Agency's desire to change this process to allow all apportioned funds to be distributed during the fiscal year. NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows: 1. COUNTY agrees to distribute all apportioned property taxes to the Agency throughout the fiscal year. 2. If the COUNTY's final reconciliations for the fiscal year, which is completed in July of the following fiscal year, indicated an overpayment has been made, the Agency will refund the funds to the COUNTY within 30 days after notification by the COUNTY. 3. If the COUNTY does not receive the refund within 30 days of the notification, interest will be charged from the date of the notification on the outstanding balance, until fully paid. Interest will be charged at the current County Treasury pool rate plus 2.5%. 4. If the COUNTY does not receive the refund within 30 days of the notification, the COUNTY will offset the outstanding amount, plus interest, against all property tax apportionments due the agency until fully paid. CDC 2000-1 5. This agreement shall be effective for the 1999/2000 fiscal year and each fiscal year thereafter unless terminated as hereinafter provided. 6. Either party may terminate this Agreement for any reason upon 30 days written notice to the other party, except that if there is an outstanding balance owed by Agency to County at the time of such termination, County shall continue to have the right to offset the outstanding amount, plus interest, until fully paid, notwithstanding the termination of the contract. IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and year first above written. Agency: Com y r D elvneo lopment Commission a eve opmen ge ncy By: �,''� iL Lh-) Printed or typed Name: Norine Millet, Vice Chairman Title: Vice Chairman Date: oi/,?7/O SAN BERNARDINO COUNTY AUDITOR/CONTROLLER-RECORDER By: Printed or typed Name: Title: Date: (wdlboard/agreementwOrda) �tµNARpr� CI ; Z BERNARDINO 300 NORTH"D"STREET, SAN BERNARDINO, CALIFORNIA 92418 �pFD 114 R A C H E L C L A R K C I T Y C L E R K January 31, 2000 Mr. Howard Ochi, Chief Deputy Controller San Bernardino County Auditor/Controller-Recorder 222 West Hospitality Lane, 4' Floor San Bernardino, CA 92415-0018 Dear Mr. Ochi: At the Mayor and Common Council meeting of January 24, 2000, the City of San Bernardino adopted Resolution CDC 2000-1 —Resolution authorizing an agreement with San Bernardino County for apportionment of property taxes to the San Bernardino Redevelopment Agency. Enclosed is one(1)original agreement. Please sign in the appropriate location and return the original agreement to the City Clerk's Office, Attn: Melanie Miller, P. O. Box 1318, San Bernardino, CA 92418 as soon as possible. Please retain a copy of the executed agreement for your files. If you have any questions, please do not hesitate to contact me at(909) 384-5002. Sincerely, Melanie Miller Senior Secretary P. O. SO % 1318 , SAN 8E R NA R DI NO , CA 92402 3 0 0 N O R T H D S T R E E T S A N 8 E R N A R D I N 0 . C A L I F 0 R N I A 9 2 4 1 8 - 0 0 0 1 ( 9 0 9 ) 3 5 4 . 5 0 0 2 (9 0 9 ) 3 0 4 . 8 1 0 2 F A 3 - ( 9 0 9 ) 3 0 4 -S 1 5 0 T D O I T T Y - ( V 0 9) 3 8 4 -S 5 4 0