HomeMy WebLinkAbout08- Economic Development DEVELOPMENT DEPARTMENT OF THE
CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: SENATE BILL 844
Executive Director
Date: April 9, 1993
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Synopsis of previous Commissio /T ii Commi e A tion(s)
On April 8, 1993, the Redevelopment Committee recommended 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.
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Recommended Motion•
(Community Development Commission
i
NOTION: That the Community Development Commission approved the use of
Bond Proceeds for payment to the Educational Revenue
Augmentation Fund, pursuant to Senate Bills 617 and 844, and
that the Agency's Budget be increased by $2,320,304.
Admi�atrator �
KENNETH 1, HENDE SON, Executive Director
Development Depa [meat
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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: x,320 304 Source: Bond Proceeds
Budget Authority: N/A
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Co®ission/Council Notes:
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KJH:BJL:1816A COMMISSION MEETING
Meeting Date: 4/19/1993
Agenda Item Number: _t
DEVELOPMENT DEPARTMENT
STAFF REPORT
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Senate Bill 844
With the passage of Senate Bills 617 and 844, $205 million of
Redevelopment funds are to be paid to schools and community colleges
through a newly created Educational Revenue Augmentation Fund.
Each Redevelopment Agency throughout the State is required to pay an
amount equal to approximately sixteen (16) percent of the Agency's
1990-91 fiscal year total tax increment. The total payment for San
Bernardino will be $2,320,304, 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 1992-93 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 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, 1993 is the deadline for the Agency to
deposit the funds with the County Auditor.
Staff recommends adoption of the form motion.
KENNETH J. MWERSON, Executive Director
Development Department
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KJH:BJL:1816A COMMISSION MEETING
Meeting Date: 4/19/1993
Agenda Item Number: ___J