RPVCCA_CC_SR_2011_08_02_04_RDA_Dissolution_&_Exception_LawsCITY OF
MEMORANDUM
RAtiCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUN~I~
DENNIS McLEAN,DIRECTOR OF FINANCE &INFORMATIO
TECHNOLOGY;AND
CAROL LYNCH,CITY ATTORNEY
AUGUST 2,2011
REDEVELOPMENT AGENCY DISSOLUTION AND EXCEPTION LAWS
CAROLYN LEHR,CITY MANAGER ~_
Staff Coordinator:Kathryn Downs,Deputy Director of Finance &Information
Technology It!)
RECOMMENDATION
1.Determine that the City and Redevelopment Agency ("Agency")participate in the
"Alternative Voluntary Redevelopment Program";
2.Instruct Staff to make the required payments to the State of California and continue
redevelopment activities under AS X1 27;
3.Agree to comply with Part 1.9 of Division 24 of the California Health and Safety
Code,and INTRODUCE ORDINANCE NO.,AN ORDINANCE OF THE CITY
OF RANCHO PALOS VERDES,TO COMPLY WITH PART 1.9 OF DIVISION 24
OF THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING CERTAIN
ACTIONS IN CONNECTION THEREWITH;and
4.Direct Staff to propose necessary budget adjustments and prepare a transfer
agreement betw,een the Agency and City for consideration at a future meeting.
5.Delegate to the City Manager and the City Attorney the authority to file an appeal,if
warranted,of the Department of Finance's determination ofthe amount ofthe City's
required AS X1 27 payment for FY11-12.
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REDEVELOPMENT AGENCY DISSOLUTION AND EXCEPTION LAWS
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EXECUTIVE SUMMARY
New redevelopment law was signed by the Governor on June 29,2011 providing for the
dissolution of California redevelopment agencies as of October 1,2011.The law also
provides for a "voluntary"program,whereby a city can continue to operate a
redevelopment agency by agreeing to make specified annual payments to the County
Auditor-Controller.
The City's estimated FY11-12 payment to participate in this voluntary program is $91 ,748.
Future annual payments beginning in FY12-13 are estimated to begin at $22,991,and
grow at the same rate as tax increment growth.There is a risk that the Legislature could
make changes to the program or could require additional payments in future years.As
discussed in more detail below,the Agency may be able to transfer tax increment to the
City,which could be used for an eligible redevelopment expenditure and offset the City's
payment to participate in the voluntary program.
The City Council must determine whether the benefits of keeping the Agency in operation
outweigh the costs and risks of participating in the "voluntary"program.The benefits to
participation include:
1.Protection of the Agency's ability to repay a portion or all of its debt to the City
(estimated to be $18.6 million at June 30,2011)with future net tax increment,which
could be about $397,000 in FY13-14,growing to more than $3.2 million in FY34-35;
2.Protection of the Agency's assets,including $0.9 million of cash,more than 124
acres of land,and a note receivable of $6.3 million;and
3.Retention of an annual $240,000 funding source to meet the City's affordable
housing requirement.
Staff recommends that the City Council consider the facts and analysis outlined in this staff
report,and determine that the City and Agency will participate in the Alternative Voluntary
Redevelopment Program established by AS X1 27.
BACKGROUND
The Redevelopment Agency was created by the City to address blightthat has been and is
being caused by the active landslides that are located within the Redevelopment Project
Area.The City and Agency have carried out an active and successful redevelopment
program since the activation of the Agency in 1984.However,the continuing ability of the
Agency to repay the Agency's debt to the County and construct landslide mitigation
projects has been threatened by the Legislature's adoption of the recent budget package
which,in part,solves State budget problems by taking revenue from redevelopment
agencies.AS X1 26,which was signed by the Governor of California on June,29,2011,
immediately suspends most redevelopment agency activities and,among other things,
prohibits redevelopment agencies from incurring indebtedness or entering into or modifying
contracts.Then,on October 1,2011,AS X1 26 dissolves all existing redevelopment
agencies,designates successor agencies as successor entities to the former
redevelopment agencies,imposes numerous requirements on the successor agencies,and
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REDEVELOPMENT AGENCY DISSOLUTION AND EXCEPTION LAWS
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subjects successor agency actions to the review of oversight boards established under the
new law.
AS X1 27 was signed by the Governor concurrently with AS X1 26.This companion law
establishes an Alternative Voluntary Redevelopment Program whereby a redevelopment
agency will,notwithstanding AS X1 26,be authorized to continue to exist and carry out the
provisions of the Redevelopment Law.To "opt into"this "VOluntary"alternative program,
the City must adopt an ordinance signifying the City's compliance with the onerous
exactions imposed by the Legislature.To restore the ability to continue redevelopment
activities,the City must make specified annual payments to the County Auditor-Controller
on a schedule,and the Auditor-Controller will then allocate the payments to special districts
and educational entities.If a payment is missed,the Agency becomes subject to AS X1 26
and the City assigns its rights to the State for any payments owed from the Agency,
including payments from loan agreements.The estimated voluntary payment in the
amount of $91 ,748 that would be paid in FY11-12 is the Agency's proportionate share of
$1.7 billion,as determined by the Department of Finance pursuant to a formula specifIed in
AS X1 27.
After receiving it's notification from the state Department of Finance,the City may appeal
the determination of the amount of the FY11-12 payment on the basis that the State
Controller's report was in error,or that the percentage of tax increment necessary to pay
for tax allocation bonds and interest payments has increased by 10 percent or more over
the percentage calculated pursuant to the Controller's 2008-09 report.Staff does not
expect that the City of Rancho Palos Verdes has a basis for appeal other than on the basis
that the City contends that the provisions of AS X1 26 and AS X1 27 are unconstitutional,
and that the Director of Finance accordingly lacks the authority to determine payment
amounts pursuant to AS X1 27.Any appeal must be filed by August 15th
.
The payment obligation is an ongoing obligation of the City in subsequent years.For FY12-
13 and thereafter,the City is required to calculate its own payment amount,subject to audit
by the Department of Finance,with the payments based on the Agency's proportionate
share of $400 million (with adjustments based on growth/decline of tax increment
revenues,and with additional payments triggered if the Agency incurs new debt).As
discussed below,the FY12-13 payment is estimated to be $22,991.
AS X1 27 provides that a participating city and the redevelopment agency in that
participating city may enter into an agreement whereby the agency will transfer a portion of
its tax increment to the participating city in an amount not to exceed the annual remittance
required that year.Any tax increment funds transferred from the agency to the city are
required to be spent only "for the purpose of financing activities within the redevelopment
area that are related to accomplishing the redevelopment agency project goals."
If the City Council determines that it will not opt into the AS X1 27 Alternative Voluntary
Redevelopment Program,the activities of the Agency will continue to be severely curtailed.
Ultimately,the Agency will be dissolved as of October 1,2011,and a number of "wind-up"
activities must be undertaken by a successor entity.No further redevelopment activities
could be undertaken,and the assets of the Agency would be disposed of.The State
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REDEVELOPMENT AGENCY DISSOLUTION AND EXCEPTION LAWS
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Controller would have the authority to review,and potentially unwind,asset transfer
transactions between the City and the Agency which occurred after January 1,2011.In
addition,AB X1 26 provides that,except in very limited circumstances,the Agency could
not repay amounts currently owed to the City.The "wind-up"activities of the Agency would
be subject to the supervision of a new "Oversight Board"with the authority to give direction
to City and Agency staff,and to usurp the existing authority of the City Council and Agency .
Board.'
A more detailed description of AB X1 26 and AB X1 27 prepared by the City Attorney's
Office is attached to this report.
DISCUSSION
The City Council must determine whether to take the steps necessary to continue the
activities of the Agency or allow the Agency to be dissolved.
This determination requires answers to the following questions:
1.Do the benefits of keeping the Agency in operation outweigh the costs and risks to
the City of opting into the "voluntary"program?
a.The benefits of keeping the Agency in operation include:
i.Protection of the Agency's ability to repay a portion or all of its debt to
the City (estimated to be $18,557,057 atJune 30,2011,see attached
FY10-11 Tax Increment Projections &Debt Service Schedule
prepared by Staff),which could be paid from future net tax increment
of about $397,000 in FY13-14,growing to more than $3.2 million in
FY34-35 (discussed in further detail below);
ii.Protection of the Agency's assets,including the loan receivable from
AMCAL for the Mirandela senior housing project ($6,344,139 at June
30,2010),real property owned by the Agency (about 124 acres of
Abalone Cove Shoreline Park and 6 vacant parcels on Cherry Hill in
the landslide area),and cash held by the Agency ($590,411 in the
Housing Set-Aside Fund and $315,343 in the capital projects funds at
June 30,2011);
iii.Protection of the Agency's ability to transfer back to the City's
Affordable Housing Fund a portion of the $1,774,203 that was
previously transferred to the Agency's Housing Set-Aside fund for the
City's contribution to funding ofthe AMCAL loan (maximum amount of
$6,790,000,of which only about $6.3 million was needed);and
iv.Retention of a funding source of about $240,000 per year for the
Agency to continue to meet the City's affordable housing requirement.
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REDEVELOPMENT AGENCY DISSOLUTION AND EXCEPTION LAWS
August 2,2011
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b.The cost to the City of making the payments are estimated to be:
i.For FY11-12:$91,748;and
ii.For FY12-13 (with annual payments continuing thereafter,increasing
by the rate of tax increment growth):$22,991 ($21,588 base,
increased by estimated 6.5%growth of tax increment).
iii.In addition to these annual payments,the County Auditor-Controller
may charge the City a fee that does not exceed the reasonable costs
of the Auditor-Controller to implement the provisions of Part 1.9.At
this time,the amount of this fee is unknown.To provide context,the
Auditor-Controller currently charges the Agency about $17,000
annually to administer property tax increment.This new fee may be
substantially less,but would be in addition to the $17,000 currently
charged.
c.There are some risks to the City if it chooses to "opt into"the "voluntary"
program.Those risks include:
i.The risk that if there are further changes to the law,the City may not
have sufficient available funds in subsequent years to continue
making the required payments;or that at some future time,the net
benefits may not exceed the actual cost of making those payments.
However,as discussed above,the assets to be protected currently far
outweigh the cost of the payments.If the City stops making the
payments in future years,the provisions of Part 1.8 (prohibitions on
Agency activities)and 1.85 (dissolution of the Agency)will be
applicable to the Agency.In addition,Part 1.9 provides that the State
will be entitled to an assignment of any rights of the City to any
payment from the Agency to which the City is entitled for purposes of
mitigating the fiscal impact to the State related to the failure of the City
to make the annual payments.
ii.The risk that the Legislature makes changes to the program,or
requires additional payments,in future years.For example,ifthe total
amount paid by agencies in FY11-12 does not equal the $1.7 billion
anticipated by the State budget,this could trigger the need for
additional exactions.
iii.The risk that the City will be unable to recover its payments to the
State if AB X1 26 and AB X1 27 are ultimately invalidated by the
courts.
2.Before it "opts into,"the "voluntary"program,the City Council should consider
whether the City will have the resources to make the annual payments required
under AB X1 27.
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REDEVELOPMENT AGENCY DISSOLUTION AND EXCEPTION LAWS
August 2,2011
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a.What source will the City use to make the payment in the current fiscal year?
AS X1 27 allows for the Agency to transfer to the City the tax increment
revenue that would normally be deposited in the Housing Set-Aside Fund
during FY11-12.To make such a transfer,the Agency must make a finding
that there are insufficient other moneys to meet its debt and other
obligations,current priorty program needs,or its obligations pursuant to an
agreement between the Agency and the City whereby the Agency agrees to
transfer tax increment to the City in the amount of the City's required
payments.Once the transfer is made to the City,the tax increment must be
used "for the purpose of financing activities within the redevelopment area
that are related to accomplishing the redevelopment agency project goals."
The transferred tax increment revenue could be used to backfill a project that
would otherwise be funded with General Fund money,thus keeping the
General Fund whole for FY11-12.If the City Council adopts the
recommendation,Staff will develop a plan and propose a budget adjustment
on a future agenda.
This same allowance to transfer tax increment that would otherwise be
deposited to the Housing Set-Aside Fund is not made for future years'
payments.It should be noted that there have been suggestions that state
legislation may be proposed requiring cities to repay their Housing Set-Aside
funds.However,no such legislation has been proposed to date.
b.Will the Agency have sufficient funds to make transfers to the City in
amounts not to exceed the City's payment amounts under a transfer
agreement between the City and Agency?
As noted above,the annual payments for FY12-13 and thereafter are
expected to start at about $22,991,which must be paid by the City.
However,similar to the allowance noted above for tax increment revenue
that would be deposited into the Housing Set-Aside Fund,Agency excess tax
increment (net of transfers to the Fire District and the 20%Housing Set-
Aside)can be transferred to the City "for the purpose of financing activities
within the redevelopment area that are related to accomplishing the
redevelopment agency project goals."Therefore,if the City were to fund any
projects fitting this purpose,the Agency could backfill the amount the City
must pay to participate in the "voluntary"program with tax increment
revenue.These types of projects (not maintenance)could include
construction of new dewatering wells,storm drain projects,and sewer
rehabilitation projects in the landslide area.
The County currently impounds all tax increment (except for the 20%
required to be deposited into the Housing Set-Aside Fund)for purposes of
repaying the Agency's debt to the County.Staff expects that once the
Deferred Interest Debt to the County is completely repaid in November 2013,
the Agency will begin to receive excess tax increment (see attached FY 10-11
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REDEVELOPMENT AGENCY DISSOLUTION AND EXCEPTION LAWS
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Tax Increment Projections &Debt Service Schedule prepared by Staff).As
illustrated in column K of that schedule,the net tax increment available to
repay the City could be about $397,000 in FY13-14,growing to over $3.2
million annually in FY34-35.
The answers to the foregoing questions will help the City Council determine whether the
City should "opt into"the "voluntary"program established by AB X1 27.If the City Council
determines that the City will "opt into"the program,the first step in the process is to
introduce the attached Ordinance.The ordinance must be adopted by August 28th to avoid
a requirement to begin compliance with the provisions of AB X1 26.If the City Council
adopts Staff's recommendation,then the attached Ordinance will be presented for
adoption on August 16th
•In addition,the City Council must direct staff to propose the City
budget adjustments necessary to facilitate the required payment for FY11-12 and prepare
a transfer agreement between the Agency and City;which can be presented to the City
Council and the Agency Board at a later date.
If the City Council determines not to participate in AB X1 27's voluntary program,th~City
Council should direct staff to start the actions necessary to comply with AB X1 26,and to
bring those actions before the Agency Board and City Council as necessary.
OPTIONS
1.Determine that the City and Agency will participate in the Alternative Voluntary
Redevelopment Program,which is the recommendation of Staff;or
2.Determine that the City and Agency will not participate in the Alternative Voluntary
Redevelopment Program;or
3.Delay making the determination,and direct staff to prepare additional information
and analysis.In such case,direct staff,in the meantime,to start the actions
necessary to comply with AB X1 26 and to bring those actions before the Agency
Board and City Council as necessary.
FISCAL IMPACT
If the City "opts in"to the "voluntary"program,Staff will return with a budget resolution to
transfer $91,748 from the Agency's Housing Set-Aside Fund (from FY11-12 budgeted tax
increment revenue of $234,500)to the City's General Fund for an eligible redevelopment
expenditure,and an adjustment to General Fund expenditures to make the payment.
When preparing the FY12-13 budget,Staff will include an allocation to make a payment of
approximately $22,991 from the City's General Fund.
If the City does not "opt in",Staff will return with further analysis of the fiscal impact.
ATTACHMENTS
Summary of AB X1 26 and AB X1 27,prepared by Richards,Watson &Gershon.
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REDEVELOPMENT AGENCY DISSOLUTION AND EXCEPTION LAWS
August 2,2011
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ORDINANCE NO.,AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES,
TO COMPLY WITH PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND
SAFETY CODE AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH.
FY10-11 Tax Increment Projection &Debt Service Schedule,prepared by Staff and
previously presented with the staff report to the City Council dated June 7,2011,titled
"Additions to the Consolidated Loan Between the City and Redevelopment Agency for
Expenses incurred during FY09-10".
4-8
n~L.i RICHARDS IWATSON I GERSHON
~lC['ATTORNEYS AT LAW -A PROFESSIONAL CORPORATION
Summary of AB Xl 26 and AB Xl 27
Los Angeles
Orange County
San Francisco
June 22,2011
For more information contact:
RobP1 D.Harris at 213.626.8484 or rharris@rwglaw.com or
Trisha Ortiz at 415.421.8484 or tortiz@rwglaw.com
www.rwglaw.com
4-9
Summary of AB Xl 26 and AB Xl 27
Summary of AB X1 26 and AB X1 27
Introduction
On june 15,2011,both houses of the California State Legislature passed AB Xl 26 and AB Xl
27.AB Xl 26 is substantially similar (with some important differences)to AB 101 and SB 77,
the two budget trailer bills that were introduced on january 10,2011 in a shell format and
amended on March 15,2011 to provide for the elimination of redevelopment agencies.Like
AB 101 and SB 77,AB Xl 26 adds Parts 1.8 and 1.85 to the Community Redevelopment Law.
Part 1.8 provides for the immediate curtailing of redevelopment agency activities while Part
1.85 provides for redevelopment agencies to be dissolved as of October 1,2011 and for
successor agencies to wind up the affairs of the agencies.
AB Xl 27 adds Part 1.9 to the Redevelopment Law.Part 1.9 provides that a city may
participate in a program to make specified annual monetary contributions to exempt its
redevelopment agency from Parts 1.8 and 1.85 and permit the agency to continue to exist
and to carry out the provisions of the Redevelopment Law.Participation will require the city
to adopt an ordinance by November 1,2011.The city's failure to continue to make the
annual payments will mean that the Department of Finance can determine that the agency
becomes subject to Parts 1.8 and 1.85.
Part 1.9 provides that a city and agency can enter,into an agreement whereby the agency will
transfer a portion of its tax increment to the city,in an amount not to exceed the annual
remittance required that year pursuant to Part 1.9,"for the purpose of financing activities
within the redevelopment area that are related to accomplishing the redevelopment agency
project goals."The quoted language is unclear,but may mean that a city could only use the
transferred tax increment revenues to pay for financing projects that qualify for tax
increment financing under the Redevelopment Law.
Part 1.9 is also unclear regarding the duration of the city's obligation to make annual
remittances.Part 1.9 provides that the State will be entitled to an assignment of the city's
rights to any payment's from the agency to which the city is entitled in the event the city fails
to make a remittance required by Part 1.9.
A more in depth discussion of Part 1.9 begins on page 18.
Although the Legislature passed AB Xl 26 and AB Xl 27 on june 15,2011,the bills are not
effective until signed by the Governor.As of this date,however,the Legislature has not
presented the bills to the Governor for his signature because AB Xl 26 and AB Xl 27 are bills
related to the State Budget and on june 16,2011,the Governor vetoed the State budget
bills.AB Xl 26 and AB Xl 27 are linked,meaning that if the bills are presented to the
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Governor for his signature,the bills will not become effective unless the Governor signs
both bills.
AS Xl 26 and AS Xl 27 raise significant legal issues,and many provisions of the bills are
ambiguous or contradictory.This summary does not attempt to address all these issues
and ambiguities.
ABX126
Part 1.8:Restrictions on Redevelopment Agencies
Qperations
Part 1.8 provides that effective immediately upon the enactment of AS Xl 26,the authorized
activities of agencies are severely curtailed.For example,agencies will be precluded from
incurring new debt or entering into or modifying contractual obligations.In addition,Part
1.8 imposes various responsibilities on agencies prior to their dissolution.
Chapter 1.Suspension of Agency Activities and Prohibition on Creation
of New Debts
Upon passage of AS Xl 26,agencies 1 will immediately be prohibited from undertaking a
number of actions,including the following:
•Incurring new monetary or legal obligations or expanding existing obligations
except as provided for in Part 1.8.
•Incurring debt,including issuing bonds.
•Except in very limited circumstances,refunding or restructuring debt or
obligations that existed as of January 1,2011 (including refunding bonds,
exercising the right of optional redemption,or purchasing their own bonds).
•Modifying or amending the terms and conditions,payment schedules,
amortization,or maturity dates of any of the agency's bonds or other
obligations that are outstanding or exist as of January 1,2011.
•Accepting loans or advances from any source for any purpose,including
advances pursuant to an administrative overhead reimbursement agreement.
1 An agency includes a community development commission,but Part 1.8 does not affect the authority of a
commission to act in its capacity as a housing authority or for any other community development purpose ofthe
jurisdiction in which it operates.
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•Executing trust deeds or mortgages on any real or personal property owned or
acquired by the agency.
•Pledging or encumbering (i.e.,granting a lien on and a security interest in)
any of the agency's revenues or assets for any purpose,including,but not
limited to,tax revenues,project revenues,deeds of trust and mortgages held
by the agency,rents,fees,charges,moneys,accounts receivable,contracts
rights,and other rights to payment or other real or personal property.
•Making loans,advances or grants,or entering into agreements to provide
financial assistance for any purpose.
•Loaning money or anything of value or making commitments to provide
financing to nonprofit organizations to finance the acquisition,construction,
rehabilitation,refinancing,or development of multifamily rental housing or
the acquisition of commercial property for lease pursuant to Health and
Safety Code Section 33741,et gg.
•Entering into contracts with or making commitments for any purpose (e.g.,
leases,DDA's,and service contracts).
•Purchasing mortgage or construction loans from mortgage lenders or other
entities.
•Forgiving all or part of the balance owed to the agency on existing loans or
extending or changing the terms and conditions of existing loans.
•Increasing deposits to the Low and Moderate Income Housing Fund beyond
the minimum level applicable to the agency as of January 1,2011.
•Amending or modifying existing agreements,obligations or commitments for
any purpose.Exceptions include extending lease space for the agency's own
use for six months,with no more than a five percent rate increase,and
transferring funds from the Low and Moderate Income Housing Fund to meet
the "minimum housing-related obligations"that existed as of January 1,2011
to make SERAF payments,or in connection with a borrowing pursuant to
34168.5.2
•Disposing of assets by any means for any purpose.Assets include,but are
not limited to,real property and improvements,cash,deeds,mortgages,
accounts receivable,contract rights,and rights to receive rents.
2AB Xl 26 does not contain a section 34168.5,and there is no section 34168.5 under existing law.
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•Acquiring real property,improvements on real property,or any interest in real
property by any means for any purpose,provided,however,that such
prohibition is not intended to prohibit the acceptance or transfer of title for
real property acquired by the agency prior to the Governor signing AB Xl 26.
•Transferring,assigning,vesting,or delegating any of the agency's assets,
funds,rights,powers,ownership interests,or obligations for any purpose to
any entity,individual,or group.
•Accepting financial or other assistance from any source if it involves incurring
debt by the agency.
•Engaging in redevelopment activities,including preparing,approving,
adopting,amending or merging redevelopment plans;approving any
program,project or expenditure where such approval is not required by law;
preparing or modifying implementation plans,relocation plans (unless
required by law)or housing plans;developing,rehabilitating or constructing
housing units unless required to do so by an enforceable obligation;and
providing relocation assistance (unless required by law)or financial
assistance.
•Entering into new partnerships,becoming a member of a joint powers
authority,creating a new entity,becoming a member of a new entity,or taking
on or agreeing to take on any new duties or obligations of an entity.
•Increasing the pay,benefits,or contributions of any sort for any officer,
employee,consultant,contractor,or any other goods or service provider that
had not previously been contracted.
•Providing optional or discretionary bonuses to any officers,employees,
consultants,contractors,or any other service or goods providers.
•Increasing the number of staff employed by the agency beyond the number
employed as of January 1,2011.
•Bringing a validation action to determine the validity of revenue bonds.
•Commencing any condemnation proceeding.
•Preparing or having prepared a draft environmental impact report.
MOU with Employee Organization
The existing terms of any memorandum of understanding with an employee organization
representing employees of the agency adopted pursuant to the Meyers-Milias-Brown Act
that is in force on the date AB Xl 26 is signed by the Governor will continue in force until
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Summary of AB Xl 26 and AB Xl 27
September 30,2011,unless a new agreement is reached with a recognized employee
organization prior to that date.
Unwinding Asset Transfers
The State Controller will review the activities of agencies to determine whether an asset
transfer has occurred after January 1,2011 between each agency and the city or another
public entity.To the extent not prohibited by state or federal law,the State Controller will
order the return of the available assets transferred after January 1,2011,to the
redevelopment agency or,on or after October 1,2011,to the successor agency if one has
been established.The only exception will be if the government agency that received the
asset is contractually committed to a third party for the expenditure or encumbrance of the
asset.
Chapter 2.Redevelopment Agency Responsibilities
Commencing immediately upon the enactment of AB X1 26 and continuing until October 1,
2011,agencies will be required to undertake a number of actions,including the following:
•Make all scheduled payments with respect to enforceable obligations.
An "enforceable obligation"includes (A)bonds issued by an agency
(including debt service,reserve set-asides,and any other payments required
by the bond documents);(B)loans incurred for a lawful purpose,including
moneys borrowed from the Low and Moderate Income Housing Fund,to the
extent they are legally required to be repaid pursuant to a required repayment
schedule or other mandatory loan terms;(C)payments required by the
Federal Government,pre-existing obligations to the State,or obligations
imposed by State law,or legally enforceable payments required in connection
with the agency's employees,including pension payments and
unemployment payments;(D)judgments or settlements entered by a court or
binding arbitration decisions;(E)any legally binding and enforceable contract
that is not otherwise void as violating the debt limit or public policy;and
(F)contracts necessary for the administration or operation of the agency to
the extent permitted by AB X1 26 (but note that Chapter 1 of Part 1.8 provides
that an agency is prohibited from accepting loans or advances from any
source for any purpose,including advances pursuant to an administrative
overhead reimbursement agreement).
An agency must adopt an Enforceable Obligation Payment Schedule within 60
days of the date the Governor signs AB X1 26.Each schedule must list all of
the agency's enforceable obligations and include certain information about
each obligation,including the amount of payments obligated to be made,by
month,through December 2011.Each schedule must be adopted at a public
meeting and must be posted on the agency's internet web site or,if the
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Summary of AB Xl 26 and AB Xl 27
agency does not have a site,on the city's site.The schedule must be
transmitted (by mail or electronically)to the county auditor-controller,the
State Controller and the Oepartment of Finance (OOF).
Upon the earlier of adoption of the Enforceable Obligation Schedule or 60
)days after the Governor signs AS Xl 26,an agency will not be able to make a
payment unless it is listed in the adopted schedule.An exception is provided
for payments required to meet obligations with respect to bonds.The OOF
and the State Controller can require an agency to provide them with
documents that are associated with the agency's enforceable obligations.
Any taxing entity,the OOF and the State Controller all will have standing to file
a judicial action to prevent a violation under Part 1.8 and to obtain injunctive
or other appropriate relief.
•Perform obligations required pursuant to enforceable obligations,including
observing covenants related to continuing disclosure and preserving the tax-
exempt status of outstanding bonds.
•Set aside or maintain reserves in the amount required by bond documents.
•Preserve all of the agency's assets and records,and minimize all liabilities.
•Cooperate with the successor agency,if established,and provide all records
and information necessary or desirable for audits,making of payments
required by enforceable obligations,and performance of enforceable
opligations by the successor agency.
•Take all reasonable measures to avoid triggering an event of default under
enforceable obligations.
•Prepare and submit to the successor agency,if one is established,a
preliminary draft of the initial Recognized Obligation Payment Schedule (the
document that will govern payments by successor agencies)by September
3 0 ,2011.
The OOF may review Enforceable Obligation Payment Schedules and initial Recognized
Obligation Payment Schedules.Agency actions will not be effective for three business days
pending a request for review by the OOF.Each agency must designate an official to whom
the OOF may make requests.In the event that the OOF requests a review of a given agency
action,the OOF will have 10 days from the date of its request to approve the agency action
or return it to the agency for reconsideration and the action will not be effective until
approved by the OOF.
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Chapter 3.Application of Part 1.8 to Former Participants of the Alternative
Voluntary Redevelopment Program
As discussed beginning on page 18,an agency will be exempt from the provisions of Parts
1.8 and 1.85 if the city participates in the Alternative Voluntary Redevelopment Program
established by Part 1.9 and complies with all the requirements and obligations set forth in
Part 1.9.An agency that operates pursuant to the Alternative Voluntary Redevelopment
Program under Part 1.9 can become subject to the provisions of Part 1.8 if the city fails to
make a required annual payment.In such case,the dates and deadlines specified in Part
1.8 are appropriately modified to reflect the date that that the agency becomes subject to
Part 1.8.References to "January 1,2011"will be construed to mean January 1 of the year
preceding the year that the agency became subject to Part 1.8 (but not earlier than January
1,2011).Any reference to a date "60 days from the effective date of this part"will be
construed to mean 60 days from the date that the agency becomes subject to Part 1.8.
Except as specified in the two preceding sentences,any reference to a date certain will be
construed to be the date measured from the date the agency became subject to Part 1.8 that
is equivalent to the duration of time between the effective date of Part 1.8 and the date
certain identified in AS Xl 26.
Part 1.85:Dissolution of Redevelopment Agencies and
Designation of Successor Agencies
Part 1.85 provides that unless otherwise specified,its provisions will take effect on October
1,2011.Part 1.85 defines a number of terms used in AS Xl 26 (Chapter 1);provides for the
creation of funds to be held by agencies or successor agencies (Chapter 1);describes the
effect of the dissolution of agencies (Chapter 2);provides for the designation of successor
agencies and their responsibilities (Chapter 3);provides for the creation of oversight boards
and their responsibilities (Chapter 4);specifies the duties of the county auditor-controller
(Chapter 5);describes the effect of Part 1.85 on the Redevelopment Law (Chapter 6);
provides for the stabilization of labor and employment relations (Chapter 7);and provides
for the application of Part 1.85 to agencies if the DOF determines that this part applies
because the city has ceased making payments under Part 1.9's Alternative Voluntary
Redevelopment Program (Chapter 8)..
Chapter 1.Creation of Funds
AS Xl 26 provides for the establishment of the following funds:
• A Redevelopment Obligation Retirement Fund is created in the treasury of
each successor agency.
• A Redevelopment Property Tax Trust Fund is created for the property tax
revenues related to each former agency in each county,tobe administered by
the county auditor-controller.
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Chapter 2.Effect of Redevelopment Agency Dissolution
All redevelopment agencies (and redevelopment agency components of community
development commissions)are dissolved as of October 1,2011,and their authority to
.transact business or exercise powers under the Redevelopment Law is withdrawn.3 The city
may not create a new redevelopment agency if its agency has been dissolved unless and
until the successor entity has paid off all of the former agency's enforceable obligations and
the city adopts an ordinance to participate in the Alternative Voluntary Redevelopment
Program.
Except for those provisions of the Redevelopment Law that are repealed,restricted,or
revised by AS Xl 26,all authority,power,and obligations previously vested with agencies
under the Redevelopment Law are vested in successor agencies as of October 1,2011.
In the case of a city redevelopment agency,the successor agency will be the city unless the
city elects not to become the successor agency.If the city so elects,it must file a copy of a
duly authorized resolution of the city council with the county auditor-controller·by
September 1,2011.The county or a special district in the county can elect to become the
successor agency if the city declines.If neither the county nor a special district so elects,a
"designated local authority"will be created and the Governor will appoint three residents of
the county to serve as its governing board.The designated local authority will serve unless
the city,county,or a special district elect to become the successor agency.
The liability of any successor agency,acting pursuant to the powers granted under AS Xl 26,
will be limited to the extent of the total sum of property tax revenues it receives pursuant to
AS Xl 26 and the value of assets transferred to it as a successor agency.
All assets,properties,contracts,leases,books and records,buildings,and equipment of
the agency,including cash and amounts owed to the agency as of October 1,2011,are
transferred on October 1,2011 to the control of the successor agency for administration
pursuant to AS Xl 26.
The city may elect to retain the housing assets and functions previously performed by the
agency (presumably the city may make this election even if it elects not to become the
successor agency).If the city elects to retain the responsibility for performing housing
functions,all rights,powers,duties,and obligations (excluding any amounts on deposit in
the Low and Moderate Income Housing Fund)will be transferred to the city.
If the city does not elE\!ct to retain the responsibility for performing housing functions,the
rights,powers,assets,liabilities,duties,and obligations associated with the housing
activities of the agency (excluding amounts on deposit in the Low and Moderate Income
Housing Fund),will be transferred as follows:
3 For non-redevelopment purposes,a community development commission derives its authority solely from federal
or local laws,or from state laws other than the Redevelopment Law.
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•If there is no local housing authority in the territorial jurisdiction of the
agency,to the Department of Housing and Community Development.
•If there is only one local housing authority in the territorial jurisdiction of the
agency,to that housing authority.
•If there is more than one local housing authority in the territorial jurisdiction
of the agency,to the housing authority selected by the city.
The entity assuming the housing functions of the agency may enforce affordability
covenants and perform related activities pursuant to the applicable provisions of the
Redevelopment Law.
Chapter 3.Successor Agencies
Each successor agency will be required to do a number of things,including the following:
•Continue to make payments due for enforceable obligations and prepare
Recognized Obligation Payment Schedules.
On or after October 1,2011,and until a Recognized Obligation Payment
Schedule becomes operative,only payments required pursuant to an
Enforceable Obligation Payment Schedule may be made.The initial
Enforceable Obligation Payment Schedule will be the last such schedule
adopted by the redevelopment agency.However,with certain exceptions,an
enforceable obligation will not include any agreements,contracts,or
arrangements between the city and agency.The exceptions are as follows:
Written agreements entered into at the time of issuance of
indebtedness obligations4 (but not later than December 31,2010)solely for
the purpose of securing or repaying those indebtedness obligations may be
deemed enforceable obligations by the successor agency.
Loan agreements entered into between a city and agency within
two years of the date of creation of agency may also be deemed to be
enforceable obligations.
A joint exercise of powers agreement in which the agency is a
member,provided the successor agency's rights,duties and performance
obligations under the agreement will be limited by the constraints imposed
upon successor agencies by Part 1.85.
4 "Indebtedness obligations"means bonds,notes,certificates of participation or other evidence of indebtedness
issued or delivered by the agency or by a joint exercise of powers authority created by the agency to third party
investors or bondholders to finance or refinance redevelopment projects.
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The obligations excluded from the definition of enforceable obligations will
be excluded from the Enforceable Obligation Payment Schedule and removed
from the last schedule adopted by the agency prior to the successor agency
adopting it as its Enforceable Obligation Payment Schedule.
The Enforceable Obligation Payment Schedule may be amended by the
successor agency at a public meeting,will be subject to the approval of the
oversight board,and must be posted on the agency's Internet web site or,if
no such web site exists,on the Internet web site of the city.Any taxing
entity5,the DOF,and the State Controller will each have standing to file a
judicial action to prevent a violation under Part 1.85 and to obtain injunctive
or other appropriate relief.
Successor agencies are required to prepare Recognized Obligation Payment
Schedules before each six-month fiscal period.A draft schedule must be
prepared by November 1,2011.Schedules must be approved by the oversight
board,submitted to the county auditor-controller,the State Controller and the
DOF,and posted on the successor agency's Internet web site.The first
Recognized Obligation Payment Schedule must be submitted by December
15,2011,and will be for the period of january 1,2012,to june 30,2012.
Former agency enforceable obligation payments due,and reasonable or
necessary administrative costs due or incurred,prior to january 1,2012,will
be made from property tax revenues received in the spring of 2011 property
tax distribution,and from other revenues and balances transferred to the
successor agency.
Commencing on the operative date of Part 1.85,agreements,contracts,or
arrangements between the city and agency are invalid and will not be binding
on the successor agency;provided,however,that a successor agency wishing
to enter or reenter into agreements with the city may do so upon obtaining
approval of the oversight board.Notwithstanding the foregoing,the three
types of city/agency contracts described above on page 9 are not invalid and
may bind the successor agency.
Commencing on january 1,2012,only those payments listed in a Recognized
Obligation Payment Schedule may be made by a successor agency.The
successor agency must use the funds specified in the Schedule unless the
oversight board approves the use of other funds.There are a number of
details associated with preparing and adhering to the Schedules.From
October 1,2011 to july 1,2012,a successor agency is prohibited from
accelerating payment or making any lump sum payments that are intended to
5 ABXI 26 defines "taxing entities"to mean cities,counties,special districts,school districts,community college
districts,and county offices of education that receive pass through payments and distributions of property taxes
pursuant to Part 1.85.
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prepay loans unless such accelerated repayments were required prior to
October 1,2011.
For each obligation listed on a Recognized Obligation Payment Schedule,the
Schedule must identify one or more of the following sources of payment:(A)
The Low and Moderate Income Housing Fund;(B)bond proceeds;(C)reserve
balances;(D)the administrative cost allowance6 ;(E)moneys in the
Redevelopment Property Tax Trust Fund,but only to the extent no other
funding source is available or payment from current property tax revenues is
required by an enforceable obligation or AB X1 26;or (f)other sources
approved by the oversight board.
Each Schedule must be approved by the oversight board and the initial
Schedule must be reviewed and certified by an external auditor.
•Maintain reserves in the amounts required by indentures or similar bond
documents.
•Perform obligations required pursuant to enforceable obligations.
•Remit unencumbered balances of agency funds to the county auditor-
controller for distribution to taxing entities,including but not limited to the
unencumbered balance of the Low and Moderate Income Housing Fund.
•Dispose of agency assets and properties as directed by the oversight board.
Proceeds from asset sales and related funds that are no longer needed to
wind up the affairs of the agency,as determined by the oversight board,must
be transferred to the county auditor-controller for distribution to taxing
entities.The oversight board may direct the successor agency to transfer
ownership of assets that were constructed and used for a governmental
purpose to the appropriate public jurisdiction pursuant to any existing
agreements relating to the construction or use of such an asset.Any
compensation to be provided to the successor agency for the transfer of the
asset will be governed by the agreements relating to the construction or use
of that asset.
•Enforce all agency rights for the benefit of taxing entities,including the
continued collection of loans,rents,and other revenues that were due to the
agency.
6 The administrative cost allowance is an amount that,subject to the approval of the oversight board,is payable
from property tax revenues of up to 5%of the property tax allocated to the successor agency for the 2011-12 fiscal
year and up to 3%of the property tax allocated to the Redevelopment Obligation Retirement Fund money that is
allocated to the successor agency for each fiscal year thereafter.However,the amount shall not be less than
$250,000 for any fiscal year or such lesser amount as agreed to by the successor agency.The allowance amount will
exclude any administrative costs that can be paid from bond proceeds or from sources other than property tax.
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•Effectuate transfer of housing functions and assets to the appropriate entity.
•Expeditiously wind down the affairs of the agency in accordance with the
direction of the oversight board.
•Continue to oversee development of properties until the contracted work has
been completed or the contractual obligations of the agency can be
transferred to other parties.In connection with the completion of contracted
work,bond proceeds must be used for the purposes for which the bonds were
sold if the purposes can still be achieved,and if not,the bond proceeds may
be used to defease the bonds.
•Prepare a proposed administrative budget for approval by the oversight
board,which includes estimated amounts for successor agency
administrative costs for the upcoming six month fiscal period,proposed
sources of payments for such costs,and proposals for arrangements.for
administrative and operations services provided by the city.
•Provide administrative cost estimates,from its approved administrative
budget that are to be paid from property tax revenues deposited in the
Redevelopment Property Tax Trust Fund,to the county auditor-controller for
each six month fiscal period.
Chapter 4.Overs.ight Boards
Each successor agency will have an oversight board composed of seven members.Two
members are to be selected by the mayor;one of these two members does not need to meet
any particular qualifications while the other member will represent the employees of the
agency from the recognized employee organization representing the largest number of
former agency employees employed by the successor agency at that time.One member is
to be selected by the largest non-enterprise special district,by property tax share,with
territory in the city (if none,then the county may appoint an additional member to represent
the public).One member is to be appointed by the superintendent of education to
represent schools.One member is to be appointed by the Chancellor of the California
Community Colleges to represent community college districts.The board of supervisors is
to appoint two members,with one member to represent the public.Any positions that have
not been filled by January 15,2012,or which remain vacant for more than 60 days,are to be
filled by the Governor.
The oversight board may direct the staff of the successor agency in furtherance of their
duties and responsibilities under AS Xl 26.The successor agency must pay for all costs of
meetings of the oversight board and may include such costs in its administrative budget.
Members of the oversight board are to serve without compensation or reimbursement for
expenses.
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AB Xl 26 provides for the DOF to review the actions of oversight boards and actions of the
oversight board will not be effective for three business days pending a request for review by
the DOF.If the DOF returns an action to the oversight board for reconsideration,the
oversight board must get approval of its modified action.
Commencing on July 1,2016,the individual oversight boards for each dissolved
redevelopment agency will be replaced with a single oversight board for each county.The
appointment of members will be the same as for the individual boards,except the city and
special district members will be appointed by the respective selection committees
established pursuant to the Government Code 7 and the recognized employee organization
memberwill be appointed by the organization instead of the mayor.
The oversight board must approve a number of actions of the successor agency including
the following:
•Establishment of new repayment terms for outstanding loans where such
terms have not been specified prior to the date of Part 1.85.
•Issuance of refunding bonds.
•The set aside of reserves as required by bond documents.
•Acceptance of federal or state grants or other forms of financial assistance
from public or private sources if the assistance is conditioned upon the
provision of matching funds by the successor agency in an amount greater
than five percent.
•Establishment of the Recognized Obligation Payment Schedule.
• A request by a successor agency or taxing entity to pledge,or to enter into an
agreement for the pledge of,property tax reven ues.
The oversight board must direct the successor agency to do certain things,including the
following:
•Dispose of all assets and properties of the agency that were funded by tax
increment revenues of the agency,except that the oversight board may
instead direct the successor agency to transfer ownership of those assets that
were constructed and used for a governmental purpose to the appropriate
public jllrisdiction pursuant to any existing agreements relating to the
construction or use of the asset.
•Cease performance in connection with and terminate all existing agreements
that do not qualify as enforceable obligations.
7 A city selection committee consists of the mayors of each incorporated city in the county.
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•Transfer housing responsibilities and all rights,powers,duties and
obligations,along with any amounts on deposit in the Low and Moderate
Income Housing Fund,to the appropriate entity (note,however,that other
provisions of AS Xl 26 provide for the unencumbered balance of the Low and
Moderate Income Housing Fund to be disbursed to taxing entities).
•Terminate any agreement between the dissolved redevelopment agency and
any public entity located in the same county that obligates the agency to
provide funding for any debt service obligations of the public entity or for the
construction or operation of facilities owned or operated by such public entity
in any instance where the oversight board has found that early termination
would be in the best interests of the taxing entities.
•Determine whether any contracts or other arrangements between the
dissolved redevelopment agency and any private parties should be
terminated or renegotiated to reduce liabilities and increase the revenues to
the taxing entities,and present proposed termination or amendment
agreements to the oversight board for its approval.The oversight board may
approve any amendments to or early termination of such agreements where it
finds that this would be in the best interests of the taxing entities.
Chapter 5.Duties of County Auditor-Controllers
The county auditor-controller must conduct (or cause to be conducted)a financial audit of
each agency subject to Part 1.85 by March 1,2012.The purpose of the audits is to establish
each agency's assets,liabilities,and pass through payment obligations,and the amounts
and terms of any indebtedness.
The county auditor-controller must determine the amount of property taxes that would have
been allocated to each agency in the absence of dissolution,using current assessed values
on the roll last equalized on August 20t h and pursuant to statutory formulas or contractual
agreements with other taxing agencies,and deposit that amount in the respective
Redevelopment Property Tax Trust Fund.Each county auditor-controller is to administer the
Redevelopment Property Tax Trust Fund for the benefit of the holders of former agency
enforceable obligations and the taxing entities that receive pass through payments and
distributions of property taxes pursuant to Part 1.85.
The county auditor-controller must disburse proceeds of asset sales or reserve balances
received from successQr agencies to the taxing entities.
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From October 1,20118 to july 1,2012,and for each fiscal year thereafter,each county
auditor-controller will,after deducting allowable administrative costs,allocate moneys in
the Redevelopment Property Tax Trust Fund as follows:
First,by no later than january 16,20129 ,and june 1,2012 and each january 16 and june 1
thereafter,to each local agency and school entity an amount of property tax revenues in an
amount equal to that which would have been received pursuant to Health and Safety Code
Sections 33401,33492.140,33607,33607.5,33607.7 or 33676 as those sections read on
january 1,2011,or pursuant to any pass through agreement with a taxing jurisdiction
entered into prior to january 1,1994 that would be in force during that fiscal year if the
agency existed at that time.The portion of tax increment that is attributable to an override
tax rate levied to repay bonds for the acquisition or improvement of real property will be
paid to the taxing entity that levied the override tax.10
Second,on january 16,2012,and june 1,2012,and each january 16 and june 1 thereafter,to
each successor agency for payments listed in its Recognized Obligation Payment Schedule
for the six month fiscal period beginning january 1,2012,or july 1,2012,and each january
16 and june 1 thereafter in the following order of priority:
debt service payments scheduled to be made for tax allocation bonds;
payments scheduled to be made on revenue bonds,but only to the ext-ent the
revenues pledged for them are insufficient to make the payments and only where the
agency's tax increment were also pledged for the repayment of the bonds;and
payments scheduled for other debts and obligations listed in the Recognized
Obligation Payment Schedule that are required to be paid from former tax increment
revenue.
Third,on january 16,2012,and june 1,2012,and each january 16 and june 1 thereafter,to
each successor agency for the administrative cost allowance for administrative costs set
forth in an approved administrative budget for those payments required to be paid from
former tax increment revenues.
Fourth,on january 16,2012,and june 1,2012,and each january 16 and june 1 thereafter,
any moneys remaining in the Redevelopment Property Tax Trust Fund after the payments
8 Note that this date falls before the March 1,2012 deadline for the completion of the financial audit of each agency
conducted,or caused to be conducted,by the county auditor-controller.
9 Again,this date falls prior to the deadline for completing financial audits of redevelopment agencies.
10 In some instances,tax increment revenues derived from an override tax have been pledged to the repayment of
bonds.ABXl 26 contains a provision stating that it is the intent of Part 1.85 that pledges of revenues associated
with enforceable obligations of former redevelopment agencies are to be honored and that the cessation of any
agency will not affect either the pledge,the legal existence of that pledge,or the stream of revenues available to
meet the requirements of that pledge.
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and transfers authorized above have been made,shall be distributed to local agencies and
school entities.
If the successor agency reports,no later than December 1,2011 and May 1,2012 and each
December 1 and May 1 thereafter,to the county auditor-controller that the total amount
available to the successor agency from (j)the Redevelopment Property Tax Trust Fund
allocation to that successor agency's Redevelopment Obligation Retirement Fund,(ij)other
funds transferred from each redevelopment agency,and (ij)funds that have or will become
available through asset sales and all redevelopment operations are insufficient to fund the
payments required by the First through Third paragraphs on page 15 in the next six month
fiscal period,the county auditor-controller will notify the State Controller and the DOF no
later than 10 days from the date of that notification.The county auditor-controller will verify
whether the successor agency will have sufficient funds.If the State Controller concurs that
there are insufficient funds,the amount of the deficiency will be deducted from the amount
remaining to be distributed to the taxing entities pursuant to the Fourth paragraph.If that
amount is exhausted,the amount of deficiency will be deducted from amounts available for
administrative costs pursuant to the Third paragraph.If the agency's pass through
payments Were subordinated to debt service payments,funds for debt service may be
deducted from the amounts for pass through payments pursuant to the First paragraph to
the extent that the amounts remaining to be distributed to taxing entities and the amounts
for administrative costs have aU been exhausted.
The county treasurer may loan any funds from the county treasury that are necessary to
ensure prompt payments of redevelopment agency debts.
Commencing on january 16,2012,and on each january 16 and june 1 thereafter,the county
auditor-controller will transfer,from the Redevelopment Obligation Retirement Fund of that
agency,an amount of property tax revenues equal to that specified in the Recognized
Obligation Payment Schedule for that successor agency as payable from the
Redevelopment Property Tax Trust Fund,subject to the limitations set forth in AS Xl 26.
Differences between actual payments and past estimated obligations on Recognized
Obligation Payment Schedules must be reported in subsequent Recognized Obligation
Payment Schedules and the amount to be transferred to the Redevelopment Obligation
Retirement Fund will be adjusted.
Commencing january 1,2012,whenever an obligation on a Recognized Obligation Payment
Schedule is paid off or retired,either through early payment or payment at maturity,the
county auditor-controller must distribute to the taxing entities all property tax revenues that
the agency would have been entitled to receive before enactment of AS Xl 26.This
provision is unclear,but may mean that once an obligation is paid off,the amount of
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property tax revenues that were used to pay debt service on the defeased obligation will
subsequently be distributed to taxing entities.l1
Chapter 6.Effect of Part 1.85 on the Redevelopment Law
Chapter 6 provides that commencing on the effective date of Part 1.85,provisions of the
Redevelopment Law that depend on the allocation of tax increment to redevelopment
agencies will be inoperative,except with respect to agencies operating pursuant to Part 1.9
(i.e.,the Alternative Voluntary Redevelopment Program).
Chapterz.Stabilization of Labor and Employment Relations
Chapter 7 provides that nothing in AS Xl 26 is intended to relieve any redevelopment
agency of its obligations under Section 3500 et seq.of the Government Code (which relate
to local public employee organizations).Subject to the limitations described above on page
4 with respect to salaries,benefits,bonuses and numbers of staff,prior to its dissolution,
an agency will retain the authority to meet and confer and to bargain over matters within the
scope of representation.Chapter 7 imposes various obligations on successor agencies with
respect to collective bargaining agreements and successor agencies will be deemed to have
assumed the obligations under any memorandum of understanding in effect between the
agency and a recognized employee organization as of the date of the agency's dissolution.
Chapter 8.Application of Part 1.85 to Former Participants of the Alternative
Voluntary Redevelopment Program
As discussed below,AS Xl 27 adds Part 1.9 to the Redevelopment Law,which provides that
the provisions of Part 1.8 and 1.85 will not apply to a redevelopment agency if the city
participates in the Alternative Voluntary Redevelopment Program.Chapter 8 provides that if
a redevelopment agency subsequently becomes subject to the provisions of Part 1.85,the
dates and deadlines set forth in Part 1.8 will be appropriately modified to reflect the date
that the agency becomes subject to the provisions of Part 1.85.
Miscellaneous Provisions
Clean Up Bill.A clean up bill must be produced by the California Law Revision
Commission for consideration by the Legislature no later than January 1,2013.
Statute of Limitations.The time period to challenge the adoption or amendment of a
redevelopment plan or the validity of findings or determinations by an agency or city council
adopted or made after January 1,2011 is extended to two years.An action that is
commenced after January 1,2011 to challenge the validity of bonds can be brought within
two years after the date of the triggering event.
II In such case,this would create a problem with respect to subordinate obligations that are payable from excess tax
increment revenues that remain after paying debt service on senior obligations.See footnote no.10 regarding the
intent of AB Xl 26 that pledges associated with enforceable obligations be honored.
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Poison Pill.If a legal challenge to invalidate any provision ofAB Xl 26 is successful,
redevelopment agencies shall be prohibited from issuing new bonds,notes,interim
certificates,debentures or other obligations,whether funded or refunded,assumed or
otherwise.
Part 1.9:
Program.
ABX 127
Alternative Voluntary Redevelopment
AB Xl 27 provides for the continued existence of a redevelopment agency upon the
adoption of an ordinance by the city to comply with AB Xl 27.
Chapter 1.Application of Part 1.9
An agency will be exempt from the provisions of Parts 1.8 and 1.85 if the city participates in
the Alternative Voluntary Redevelopment Program established by Part 1.9 and complies with
all the requirements and obligations set forth in Part 1.9.
Chapter 2.Continued Agency Existence
Participation in the Alternative Voluntary Redevelopment Program will require a city to adopt
an ordinance on or before November 1,2011.If the city intends to adopt the ordinance after
October 1,2011,it must adopt a nonbinding resolution of intent prior to October 1,2011 and
notify the DOF,the State Controller,and the county auditor-controller before October 1,2011
concerning the resolution.This action will delay the dissolution of an agency until
November 1,2011.
On or before November 1,2011,a city that has adopted an ordinance must notify the county
auditor-controller,the State Controller and the DOF that the city agrees to comply with the
provisions of Part 1.9.
Participation in the Alternative Voluntary Redevelopment Program constitutes an agreement
by the city that it assigns its rights to any payments owed from the agency,including but not
limited to,payments from loan agreements,to the State in the event the city fails to make a
remittance required pursuant to Part 1.9.
If the city has adopted an ordinance pursuant to the Alternative Voluntary Redevelopment
Program,the actions of the agency taken after the date of adoption of the ordinance will not
be subject to the new two year statute of limitations provided for by AB Xl 26.
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Chapter 3:Community Remittances
For each fiscal year,commencing with fiscal year 2011-12,the city must remit to the county
auditor-controller the amounts required pursuant to Part 1.9.
For fiscal year 2011-12,the DOF will determine the amount of the remittance.The
calculation is similar to the SERAF calculation for 2009-10 (using information from the State
Controller's 2008-09 report and determining each agency's proportionate share of $1.7
billion).The DOF will notify each city of its remittance amount on or before August 1,2011.
After receiving this notification,a city may appeal the amount of its remittance to the DOF
on or before August 15,2011,on the basis that the information in the State Controller's
report was in error or that the percentage of tax increment necessary to pay for tax
allocation bonds and interest payments has increased by 10 percent or more over the
percentage calculated pursuant to the Controller's 2008-09 report.The DOF may reject or
approve the appeal at the DOF's discretion.The DOF must notify the city of its decision by
September 15,2011.The DOF can extend the date to October 15,2011,in which case the city
will have until December 1,2011,to adopt an ordinance.The DOF must recalculate the
remittance amount if it determines that the percentage of tax increment necessary to pay for
tax allocation bonds or interest payments has increased by 10 percent or more.
For the 2012-13 fiscal year and subsequent fiscal years,a participating city must remit an
amount equal to the sum of the amounts specified in paragraphs 1 and 2 below.
1.A base payment equal to the base payment in the prior fiscal year,increased by
the percentage growth or decreased by the percentage reduction,as appropriate,
from the prior fiscal year in the total "adjusted amount of property tax increment
revenue"allocated to the agency with respect to project areas that were in
existence,and from which the agency received allocations of tax increment
revenue during the 2011-12 fiscal year.
For fiscal year 2012-13,the base payment in the prior fiscal year will be the
remittance amount for the fiscal year 2011-12 multiplied by the ratio of $400
million to $1.7 billion.
The "adjusted amount of property tax increment revenue"means an amount of
property tax increment in any fiscal year for a project area that is calculated by
subtracting the amount of any debt service or other payments for new debt
issuances or obligations from the total amount of property tax increment revenue
allocated in that year to the agency with respect to that project area.
2.An amount equivalent to 80%,or any lesser amount as may be authorized by law
for qualifying projects 1
\of the total "net school share",of debt service or other
12 AB Xl 27 provides that it is the intent of the Legislature to enact legislation in the 2011-12 session to prescribe a
schedule of reductions in the community remittance that will authorize payments of less than 80%of the school
Page 19
81000-0 163\1367407v4.doc 4-28
Summary of AB Xl 26 and AB Xl 27
payments made in that fiscal year for new debt or obligations issued or incurred
on or after November 1,2011,as shown on the agency's statement of
indebtedness (501),excluding any debts issued or incurred on behalf of the Low
and Moderate Income Housing Fund."New debt"means debt that is displayed
on a 501 filed after a 501 filed on October 1,2011,that was not displayed on the
501 filed on October 1,2011.
The "net school share"will be the school share of the property tax increment
revenues,less any pass through payments to school entities,that would have
been received in the absence of redevelopment by school entities.
On or before November 1 of each year,the city must notify the DOF,the State Controller and
the county auditor-controller of the remittance amount,and they will each be authorized to
audit and verify the remittance amount that is determined by the city.If it determined that
the city has miscalculated its remittance payment amount,the auditor-controller will adjust
the amount of the next remittance payment to be paid by the city to reflect the correct
amount payment previously owed by the city.
The city must pay one-half of the total remittance amount on or before January 15 of each
year and pay the remaining one-half on or before May 15 of each year.If the city fails to
make its remittance payment,the auditor-controller will notify the DOF within 30 days.
Upon receipt of the notification,the DOF may then determine that the agency will be subject
to the requirements of Parts 1.8 and 1.85.
To make the remittances,a city may use any available funds not otherwise obligated for
other uses.A city may enter into an agreement with the agency whereby the agency will
transfer a portion of its tax increment to the city in an amount not to exceed the annual
remittance required that year for the purpose of financing activities within the project area
that are related to accomplishing the agency project goals.
For fiscal year 2011-12 only,the agency in a participating city will be exempt from making
the full allocation required to be made to the Low and Moderate Income Housing Fund if the
agency makes a finding that there are insufficient other moneys to meet its debt and other
obligations,current priority program needs,or its obligations under the agreement with the
city to transfer tax increment to the city for the remittances.
Chapter 3.5.Post Dissolution Voluntary Redevelopment Program Participation
No city may establish a new redevelopment agency if its former agency has been dissolved
pursuant to Part 1.85 until the successor entity has retired all existing enforceable
obligations and debts of the former agency and then only after the city adopts the ordinance
share of property taxes to the ERAF.The reductions will apply for bonds issued for the purpose of funding projects
that advance the achievement of statewide goals with respect to transportation,housing,economic development and
job creation,environmental protections and remediation and climate change.
Page 20
8 1000-0 163\1367407v4.doc 4-29
Summary of AB Xl 26 and AB Xl 27
providing for the payment of remittances pursuant to the Alternative Voluntary
Redevelopment Program.
Chapter 4.Enforcement and Sanctions
In the event a city fails to make a remittance and the DOF determines that the agency is to
be subject to the requirements of Parts 1.8 and 1.85,then:
The city will no longer be authorized to engage in voluntary redevelopment and the agency
will become immediately subject to the provisions of Parts 1.8 and 1.85.
The state will be entitled to an assignment of any rights of a city to any payments from the
agency to which the city is entitled for the purpose of mitigating the fiscal impact to the
State related to the failure of the city to make the required remittance payment.
Chapter 5.Auditor-Controller Fee
The auditor-controller may charge a city a fee that does not exceed the reasonable costs of
the auditor-controller to implement the provisions of Part 1.9.
Poison Pill.
If any legal challenge to invalidate a provision of Section 2 of AS Xl 27 (Le.,the provisions
of the Alternative Voluntary Redevelopment Program)is successful,redevelopment
agencies will be prohibited from issuing new obligations,including bonds and notes.AS Xl
27 provides that the provisions of Section 2 are distinct and severable from the provisions
of Parts 1.8 and 1.85 and the provisions of Parts 1.8 and 1.85 will continue in effect if any
provision of AS Xl 27 is held invalid.
***
We will continue to closely monitor the budget process related to the Governor's
redevelopment proposal.If you have any questions about this summary,please do not
hesitate to contact Robin D.Harris at 213.626.8484 or rharris@rwglaw.com,or Trisha Ortiz
at 415.421.8484 or tortiz@rwglaw.com.
Page 21
81000-0163\1367407v4.doc 4-30
ORDINANCE NO._
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES TO COMPLY WITH PART 1.9 OF DIVISION 24 OF
THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING
CERTAIN ACTIONS IN CONNECTION THEREWITH
RECITALS
,A.The Rancho Palos Verdes Redevelopment Agency (the "Agency")is a
redevelopment agency in the City of Rancho Palos Verdes (the "City"),created pursuant
to the Community Redevelopment Law (Part 1 (commencing with Section 33000)of
Division 24 of the California Health and Safety Code)(the "Redevelopment Law").
S.The City Council of the City (the "City Council")adopted Ordinance
No.190,adopting a redevelopment planas the official redevelopment plan for Project
Area No.1,and from time to time,the City Council has amended such redevelopment
plan.The Agency is undertaking a program to redevelop the Project Area.
C.AS X126 waS signed by the Governor of California on June,29,2011,
making certain changes to the Redevelopment Law,including adding Part 1.8
(commencing with Section 34161 land Part 1.85 (commencing with Section 34170)to
Division 24 of the California Health and Safety Code.Commencing upon the
effectiveness of AS X1 2.6,AS X1 26 suspends most redevelopment agency activities
and,among other things,prohibits redevelopment agencies from incurring indebtedness
or entering into or modifying contracts.Effective October 1,2011,AS X1 26 dissolves
all existing redevelopment agencies and redevelopment agency components of
community development agencies,designates successor agencies to the former
redevelopment agencies,and impoSes numerous requirements on the successor
agencies and subjects.successor agency actions to the review of oversight boards
established pursuant to the provisions of Part 1.85.
D.AS X1 27 was signed by the Governor of California on June 29,2011,
adding Part 1.9 (commencing with Section 34192)to Division 24 of the California Health
and Safety Code.Part 1.9 establishes an Alternative Voluntary Redevelopment
Program whereby,notwithstanding the provisions of Part 1.8 and Part 1.85,a
redevelopment agency will be authorized to continue to exist and carry out the
provisions of the Redevelopment Law upon the enactment,prior to the applicable
deadline established in Part 1.9,by the city council of the city which includes that
redevelopment agency (the "participating city")of an ordinance to comply with Part 1.9.
E.Part 1.9 requires a participating city to make specified annual remittances
to the applicable county auditor-controller,who shall allocate the remittances for deposit
into a Special District Allocation Fund,for allocation to specified special districts,and
into the county Educational Revenue Augmentation Fund,for allocation to educational
entities.
-1-4-31
F.To participate in the Alternative Voluntary Redevelopment Program,in
addition to adopting the ordinance described in Recital D,above,the participating city
must,by November 1,2011,notify the applicable county auditor-controller,the State
Controller,and the State of California Department of Finance (the "Department of
Finance")that the participating city agrees to comply with the provisions of Part 1.9.
The participating city's agreement to make the remittances provided for under Part 1.9
is a precondition to continue redevelopment pursuant to Part 1.9.
G.Part 1.9 provides that for fiscal year 2011-12,a participating city shall
remit to the applicable county auditor-controller an amount equal to the amount
determined by the State of California Director of Finance (the "Director of Finance")for
the redevelopment agency pursuant to a formula set forth in Part 1.9,which formula
utilizes information contained in the State Controller's redevelopment agency 2008-09
annual report.The amount represents the redevelopment agency's proportionate share
of the sum of $1 ,700,000,000.The initial amount determined by the Director of Finance
is subject to recalculation and reduction in the event the participating city timely files an
appeal in accordance with Health and Safety Code Section 34194(b)(2)(L).
H.For fiscal year 2012-13 and each fiscal year thereafter,a participating
city's remittance amount shall equal the amount determined pursuant to calculations
performed by the participating city in accordance with the requirements of Part 1.9,
subject to adjustment based on audit and verification by the Director of Finance,the
State Controller and the applicable county auditor-controller.On or before November
1st of each year,commencing November 1,2012,a participating city shall notify the
Department of Finance,the State Controller,and the applicable county auditor-
controller of the remittance amount calculated by the participating city.
I.Pursuant to the provisions of Part 1.9,a participating city shall pay one-
half of the total remittance amount for a fiscal year on or before January 15 of that year
and shall pay the remaining one-half of the remittance amount on or before May 15 of
that year.
J.A participating city making remittances pursuant to Part 1.9 may use any
available funds not otherwise obligated for other uses.
K.A participating city and the redevelopment agency in that participating city
may enter into an agreement pursuant to Part 1.9 whereby the agency will transfer a
portion of its tax increment to the participating city in an amount not to exceed the
annual remittance required that year pursuant to Part 1.9.
L.Pursuant to the provisions of Part 1.9,if a participating city fails to make a
remittance payment,as calculated in accordance with the applicable provisions of Part
1.9 and according to the schedule set forth in Rectiall,above,the applicable county
auditor-controller shall notify the Director of Finance of the failure to make the payment
within 30 days.Upon receipt of the notification,the Director of Finance may determine
that the redevelopment agency in the participating city shall be subject to the
requirements of Part 1.8 and Part 1.85.
-2-4-32
M.The City has estimated that its 2011-12 remittance amount under Part 1.9
is $91,748.
N.The City desires to participate in the Alternative Voluntary Redevelopment
Program so that the Agency may continue to exist and carry out the provisions of the
Redevelopment Law.
O.The City has,or will have,available funds not otherwise obligated for other
uses with which to make the fiscal year 2011-12 remittance in an amount not to exceed
$91,748,or such lesser amount recalculated by the Director of Finance,payable one-
half by January 15,2012,with the remaining one-half payable by May 15,2012.
NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES,CALIFORNIA DOES ORDAIN AS FOLLOWS:
Section 1.The c:lbove recitals are true and correct and are a substantive part of
this Ordinance.
Section 2.This Ordinance is adopted as required by Health and Safety Code
Section 34193.
Section 3.So that the Agency may continue to exist and carry out the provisions
of the Redevelopment Law notwithstanding the provisions of Part 1.8 and Part 1.85,the
City Council hereby determines and declares that it shall comply with the requirements
and obligations contained in Part 1.9,as Part 1.9 exists on the date of adoption of this
Ordinance.In adopting this Ordinance or agreeing to comply with the provisions of Part
1.9,the City does not intend to incur an indebtedness or liability within the meaning of any
constitutional or statutory debt limitation or restriction.
Section 4.Performance of actions under or pursuant to this Ordinance,including
the making of payments by the City to the Los Angeles County Auditor-Controller (the
"Auditor-Controller"),is made under protest.Neither the adoption of this Ordinance nor .'"
the performance of actions under or pursuant to this Ordinance is intended by the City or
Agency to waive any right either may have to challenge the legality of all or any portion of
AS X1 26 or AS X1 27 through administrative or judicial proceedings,or to appeal the
City's fiscal year 2011-12 remittance amount pursuant to Health and Safety Code Section
34194(b )(2)(L),or to otherwise contest the remittance amount for any year.Any payments
hereunder are intended to be made without prejudice to the City's right to seek to recover
reimbursement of such payments,plus interest,should the requirement of making such
payments be stayed,enjoined,repealed,or held unconstitutional or unenforceable by any
court of competent jurisdiction.This Ordinance shall be null and void and of no further
force and effect in the event that AS X1 26 or AS X1 27 is repealed,or held
unconstitutional or unenforceable by any court of competent jurisdiction.
Section 5.The City Manager,or the City Manager's designee,is hereby
authorized and directed to notify the Auditor-Controller,the State Controller,and the
Department of Finance,on or before November 1,2011,that the City agrees to comply
-3-4-33
with the provisions of Part 1.9,as Part 1.9 exists on the date of adoption of this Ordinance,
with such notification to be accompanied by a certified copy of this Ordinance.
Section 6.This Ordinance has been reviewed with respect to applicability of the
California Environmental Quality Act ("CEQA"),the State CEQA Guidelines (California
Code of Regulations,Title 14,Sections 15000 et seq.,hereafter the "Guidelines"),and the
City's environmental guidelines.The City has determined that this Ordinance is not a
"project"for purposes of CEQA,as that term is defined by Guidelines Section 15378.
Specifically,this Ordinance constitutes the creation of government funding mechanisms or
other government fiscal activities which do not involve any commitment to any specific
project which may result in a potentially significant physical impact on the environment.
(Guidelines Section 15378(b)(4».In addition,this Ordinance is an organizational or
administrative activity that will not result in a direct or indirect physical change in the
environment.(Guidelines Section 15378(b)(5».Therefore,because it is not a "project,"
this Ordinance is not subject to CEQA's requirements.Further,even if this Ordinance
were deemed a "project"and therefore subject to CEQA,the Ordinance would be covered
by the general rule that CEQA applies only to projects that have the potential to cause a
significant effect on the environment.(Guidelines Section 15061 (b )(3».As an
organizational or administrative activity or the creation of government funding mechanisms
or other government fiscal activities which do not involve any commitment to any specific
project which may result in a potentially significant physical impact on the environment,
this Ordinance does not have the potential to cause a significant effect on the environment
and is therefore exempt under this general rule.Further,it can be seen with certainty that
there is no possibility that the activity in question may have a significant effect on the
environment,and thus this Ordinance is not subject to CEQA.(Guidelines Section
15061 (b)(3».
Section 7.The City Clerk shall certify to the passage of this Ordinance and is
hereby directed to publish or post this Ordinance,or a summary of this Ordinance,in
accordance with law.
Section 8.The City Clerk is hereby directed to send a certified copy of this
Ordinance to the Agency.
Section 9.The City Clerk is hereby directed to file a Notice of Exemption with
the County Clerk pursuant to Section 15062 of the Guidelines within five days of the
adoption of this Ordinance.
Section 10.The officers and staff of the City are herby authorized and directed,
jointly and severally,tq do any and all things which they may deem necessary or
advisable to effectuate this Ordinance and any such actions previously taken by such
officers are hereby ratified and confirmed.
Section 11.If any part of this Ordinance is held to be invalid or unconstitutional
by the decision of any court of competent jurisdiction,for any reason,such decision
shall not affect the validity of the remaining portions of this Ordinance and this City
-4-4-34
Council hereby declares that it would have passed the remainder of this Ordinance if
such invalid or unconstitutional portion thereof had been deleted.
Section 12.This Ordinance shall take effect 30 days from adoption.
PASSED AND ADOPTED this 2nd day of August,2011.
Mayor
ATTEST:
City Clerk
-5-4-35
CITY OF RANCHO PALOS VERDES REDEVELOPMENT AGENCY EXHIBIT A
FY10-11 TAX INCREMENT PROJECTIONS &DEBT SERVICE SCHEDULE
Tax 1997 RDABonds Dllferred City City
Increment Gross Housing Fire Net Debt Service Interest Excess Loans Loans City
Actuall Plan Fiscal Growth Tax set·Aside District Tax Prlllcipal DebUo Tax Principal Interest Loans
Pro].Year Year Assumption Increment 20%17%Increment &lnterest County Inc:rement (AI (B)Total
A B C D E F G E-F-G=H I J H4,J"K L N'intrate"M L+M"N
Actual 1 1981Hl6 N/A 34,228 6,846 5,636 21,746
Actual 2 1986-87 N/A 67,514 13,503 11,477 42,534
Actual 3 1987-88 N/A 51,341 10,268 8,728 32,345
Actual 4 1988-89 N/A 122,895 24,579 20,892 77,424
Actual 5 1989-90 N/A 188,410 37,682 32,030 1J8,698 1.279,152 1,279,152
Actual 6 1996-91 N/A 245,084 49,017 41,684 154,403 318,400 148.229 1,745,781
Actual 7 1991-92 N/A 253,462 50.692 41,766 161,004 16.5,000 180,901 2,091,682
Actual 8 1992-93 N/A 345,490 69.098 57,830 218,682 133,000 215,264 2,439,946
Actual 9 1993-94 N/A 310,438 62,088 52,138 196,212 133,000 181,315 2,754,261
Actual 10 1994-95 N/A 278,238 55,648 46,653 175,937 457,000 252,805 3,464,066
Actual 11 1995-96 N/A 352,457 70,491 59,120 222,846 435.000 319,086 4,218,152
Actual 12 199&-97 N/A 399,428 79,886 67,079 252,463 250,000 366,703 4,834,855
Actual 13 1997-98 N/A 472,432 94,486 79,135 298.811 136.375 1./)2,436 1,745,000 501,191 7,081,046
Actual 14 1998-99 N/A 463,104 92,621 77,768 292,715 272,750 19,424 541 7QO,OOO 600,818 8,381,864
Actual 15 1999-00 N/A 507,473 101,495 85,249 320,729 272,750 17,514 30,465 250,000 731,788 9,363,652
Actual 16 2000-61 N/A 550,417 110,083 92,494 347,839 272,750 47.979 27,110 855,268 10,218,920
Actual 17 2001-62 N/A 625,243 125.049 103,740 396,454 272,750 85,775 37,929 657,077 10,875,997
Actual 18 2002-63 N/A 699,867 139,973 117,835 442,058 272,750 130,209 39,099 12,000 563,485 11,451,482
Actual 19 2003-04 N/A 727,541 145,508 122,718 459,315 272,750 162,743 23,822 40,355 532,287 12,024,124
Actual 20 2004-05 N/A 741,086 148,217 125,114 467,755 277,625 178,850 11,280 60,907 632,400 12,717,431
Actual 21 2005-06 N/A 843,039 168,608 142,449 531,982 287,125 184,695 60,11>2 93,540 877,509 13,688,480
Actual 22 200&-07 N/A 916,845 183,369 155,023 ,578,454 296,125 222,882 59,447 80,498 1,118,488 14,887,466
Actual 23 2007-68 N/A 989,765 197,953 167,503 1>24,309 309,500 275.793 39,016 22,207 1,100,371 16,010,044
Actual 24 2008-09 N/A 1,092,420 218,484 184,923 689,013 323,125 294,627 71,261 44,485 832,441 16,886,970
Actual 25 2009-10 N/A 1,078,261 215,652 183,625 1>78,984 330,125 354,606 (5,747)86,831 620,a73 17,594,674
Budget 26 2010-11 6.61%1,149,500 229,900 195,415 724,185 345,375 337,701 41,109 346,483 615,900 18,557,057
Estimated 27 2011-12 6.50%1,224,218 244,844 208,117 771,257 355,750 350,000 65,507 88,967 649,497 19,295,521
Estimated 28 2012-13 6.50%1,303,792 260,758 221,645 821,389 370.250 350,000 101,139 21,400 723,582 20,040,503
Estimated 29 2013-14 6.50%1,388,538 277,708 236,051 874.779 378,875 98,602 397,302 22,000 801,620 20,864,123
Estimated 30 2014-15 6.50%1,478,793 295,759 251,395 931,640 391,625 -540,015 22,700 886,725 21,773,548
Estimated 31 2015-16 6.50%1,574,915 314,983 21>7,735 992,196 408,250 583,946 23.500 979,810 22,776,858
Estimated 32 201&-17 6.50%1,677,284 335,457 2!!5,138 1,056,689 418,750 1>37,939 25,028 1,024,959 23,826,844
Estimated 33 2017·18 6.50%1,786,308 357,262 303,672 1,125,374 438,000 -687.374 26,654 1.072.208 24,925,706
Estimated 34 2018-19 6.50%1,902,418 380,484 323,411 1,198,523 450,875 -747,548 28,387 1,121,657 26.075,750
Estimated 35 2019-20 6.50%2,026,075 405,215 344,433 1,276,427 462,500 -813.927 30,232 1,173,409 27,279,391
Estimated 36 2026-21 6.50%2,157,770 431,554 366,821 1,359,395 477,750 881,545 32,197 1,227.573 28,539,160
Estimated 37 2021-22 6.50%2,298,025 459,605 390,664 1,447,755 496,375 951,380 34,290 1,284,262 29,857,712
Estimated 38 2022-23 6.50%2,447,396 489,479 416,057 1,541,860 513,250 1,028,610 36,519 1,343,597 31,237,828
Estimated 39 2023-24 6.50%2,606,477 521,295 443,101 1,642,080 528,375 1,113,705 38,892 1,405,702 32,682,423
Estimated 40-2024-25 6.50%2,775,898 555,180 471,903 1,748,816 541,750 1,207,066 41,420 1,470,709 34,194,552
Estimated 41 2025-26 6.50%2,956,331 591,266 502,576 1,862,489 563,125 -1,299,364 44,113 1,538,755 35,777,420
Estimated 42 202&-27 6.50%3,148,493 629,699 535,244 1,983,550 577,375 1,406,175 46,980 1,609,984 37,434,384
Estimated 43 2027-28 6.50%3,353,145 670,629 570,035 2,112,481 594,500 -1,517,981 50,034 1,684,547 39,168,965
Estimated 44 2028-29 6.50%3,571,099 714,220 607,087 2,249,793 2,249,793 53,286 1,762,603 40,984,854
Estimated 45 2029-30 6.50%3,803,221 760,644 641>,548 2,391>,029 2,396,029 56,750 1,844,318 42,885,922
Estimated 46 2030-31 6.50%4,050,430 810,086 688,573 2,551,771 -2,551,771 60,438 1,929,867 44,876,227
Estimated 47 2031-32 6.50%4,313,708 862,742 733,330 2,717,636 2,717,636 64,367 2,019,430 46,960,024
Estimated 48 2032-33 6.50%4,594,099 918,820 780,997 2,894,282 2,894,282 68,551 2,113,201 49,141,776
Estimated 49 2033-34 6.50%4,892,715 978,543 831,762 3,082,411 -3,082,411 73,006 2,211,360 51,426,162
Estimated 50-·2034-35 6.50%5,210,742 1,042,148 865,826 3,282,767 3,262,767 77,752 2,314,177 53,618,091
TOTALS 80,047,864 16,009,573 13,590,125 50,448,167 11,909,250 3,111,400 33,753,342 7,720,320 46,097,771
Notes:
•The Agency's ability to issue debt expired on November 27,2004 (based on AB 1290).
••The Redevelopment Plan expires in 2024 .
•••The Agency's ability to collect tax increment expires in 2034.
(AI Includes the total loans made to both the Portuguese Bend fund and the Abalone Cove fund,which also includes annual costs associated with ERAF shifts,County property tax administratior
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