HomeMy WebLinkAbout04- Development Department DEVELOPMENT DEPARTMENT OF THE
CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: SENATE BILL 1135
Executive Director
Date: March 24, 1994
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Synopsis of Previous Commission/Council/Committee Action(s):
On April 19, 1993, the Community Development Commission approved the use
of Bond Proceeds for tranfer into the Educational Revenue Augmentation
Fund, and to increase the Agency's Budget in the amount of $2,320,304.
On March 24, 1994, the Redevelopment Committee recommended the use of
Bond Proceeds for transfer into the Educational Revenue Augmentation
Fund for Fiscal Years 1993-94 and 1994-94, and to increase the Agency's
Budget in the amount of $817,610.95 for Fiscal Year 1993-94.
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Recommended Motion:
(Community Development Commission)
MOTION: That the Community Development Commission approve the use of
Bond Proceeds for payment to the Educational Revenue
Augmentation Fund, pursuant to Senate Bill 1135, for Fiscal
Years 1993-94 and 1994-95 and that the Agency's Budget for
Fiscal Year 1993-94 be increased by $817,610.95
Admi istrator KENNETH J. HENDERSON, Executive Director
Development Department
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Contact Person: Ken Henderson/Barbara Lindseth Phone: 5065; 5081
Project Area: All Ward(s): 1 through 7
Supporting Data Attached: Staff Report
FUNDING REQUIREMENTS: Amount: $817,610.95 Source: Bond Proceeds
Budget Authority: N/A
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Commission/Council Notes:
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KJH:BJL:1816A COMMISSION MEETING
Meeting Date: 4/4/1994
Agenda Item Number: . V
DEVELOPMENT DEPARTMENT
STAFF REPORT
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Senate Bill 1135
With the passage of Senate Bill 1135, $65 million of Redevelopment
funds are to be paid annually to schools and community colleges through
the Educational Revenue Augmentation Fund for fiscal years 1993-94 and
1994-95.
Each Redevelopment Agency throughout the State is required to pay an
amount equal to approximately six (6) percent of the Agency's 1990-91
fiscal year net tax increment. The total payment for San Bernardino
will be $817,610.95, which is in addition to any existing pass-through
agreements.
Any Agency funds, including Bond Proceeds, may be used for the payment
to the Augmentation Fund. The Low/Moderate Housing Fund may also be
used, however, only fifty (50) percent of the 1993-94 fiscal year
contribution to the twenty (20) percent set-aside may be borrowed, with
repayment to occur within ten (10) years. The use of the Low/Moderate
Housing Fund may only occur if these funds are unobligated and are not
currently in place in the Fund. Tax increment, due to obligations of
the Agency, is insufficient to meet this payment to the Augmentation
Fund.
If the Agency cannot meet this payment, the Agency must make up the
shortfall through a loan from the City or the County. Or, the County
will be required to withhold the amount due from property taxes by May
15, 1994 in the event that the Agency fails to make the payment.
Because of the reasons listed above, Bond Proceeds was determined to
be the best source of Agency funds to use for payment to the
Augmentation Fund, and May 10, 1994 is the deadline for the Agency to
deposit the funds with the County Auditor for the fiscal year 1993-94.
Staff recommends adoption of the form motion.
KENNE H J. NDERSON, Executive Director
Development Department
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KJH:BJL:1816A COMMISSION MEETING
Meeting Date: 4/4/1994
Agenda Item Number:
STATE OF CALIFORNIA PETE WILSON,Governor
DEPARTMENT OF FINANCE
E OF THE DIRECTOR
E CAPITOL, ROOM 1145
SACRAMENTO,CA 95814-4998 j ?
r t
f
October 1 , 1993
TO ALL REDEVELOPMENT AGENCIES AND
THEIR LEGISLATIVE BODIES:
The 1993 Budget Act and related legislation require virtually. every sector of
California government to share in necessary state funding reductions. Chapter 68,
Statutes of 1993, (SB 1135) requires redevelopment agencies to shift a total of
$65 million in property tax revenues to K-12 schools and community colleges. It
requires the Director of Finance to determine an amount for each redevelopment
agency to be allocated to the county Educational Revenue Augmentation Fund (ERAF) .
It further requires the Director of Finance to notify each redevelopment agency and
its legislative body of the amount determined.
In accordance with this requirement, the attached document provides the amount
determined for your redevelopment agency. If more than one project area exists for
your agency, a detail of the amount is provided on a project area basis.
Each agency must allocate the amount determined to the county auditor for deposit
in the ERAF on or before May 10, 1994. If an agency determines that it will be
unable to allocate the full amount required, it must enter into an agreement with
its legislative body to fund the payment of the difference between the full amount
required and the amount available for allocation by the agency.
If an agency fails to transmit the full amount required, is precluded by court
order from transmitting that amount, or is otherwise unable to meet its full
obligation, Section 33682.5(e) of the Health and Safety Code requires the county
auditor, by no "later than May 15, 1994, to transfer any amount necessary to meet
the obligation determined for that agency from the legislative body's property tax
allocation.
If you have any questions regarding this matter, please contact Pedro R. Reyes at
(916) 445-6423.
Sincerely,
RUSSELL S. GOULD
Director
Attachment
TRANSFERS PURSUANT TO SEC. 33681.5 OF THE HEALTH AND SAFETY CODE FOR 1993-94
City of San Bernardino
Central City $156,342.96
Central City North $96,308.18
Central City West $975.71
Mt. Vernon $0.00
Northwest $23,531.80
Southeast $234,858.80
South Valle $25,884.98
State College $203,004.79
Tri-City $62,355.07
Uptown $14,348.66