HomeMy Public PortalAbout2009.003 - LRA (01-20-09)LRA RESOLUTION 2009.003
A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY
("AGENCY") OF THE CITY OF LYNWOOD APPROVING THE USE OF
UNAPPROPRIATED PROJECT AREA TAX INCREMENT FUNDS TO PAY
FOR PASS-THROUGH UNDERPAYMENTS AND TO PAY INTO THE
EDUCATIONAL REVENUE AUGMENTATION FUND (ERAF) TO COMPLY
WITH AB 1389
'~ WHEREAS, Assembly Bill (AB) 1389 of 2008, Chapter 751, Section 52
adds Section 33684 to the Health and Safety Code (H&S) and requires that
' every redevelopment agency subject to the requirements of Sections 33607.5
and 33607.7 submit a report of its passthrough obligations, by taxing entity, to
the county auditor's office and to each affected taxing entity; and
WHEREAS, on November 4, 2008, the Agency fulfilled its reporting
obligation and submitted the required documentation to the Los Angeles County
Auditor/Controller's (County A/C) Office; and
WHEREAS, on December 15, 2008, the Agency received a response
letter dated December 10, 2008 from the County A/C that indicates the Agency
has an outstanding debt of $559,095.54 for passthrough underpayments
($42,402.77 from the Alameda Project Area $408,521.75 from Project Area
A/81Annex and $107,881.02 from the Project Area A/1-A) to be paid on or prior
to February 1, 2009; and
WHEREAS, pursuant to Assembly Bill (AB) 1389, Section 53; Chapter
751, Statutes of 2008, requires California redevelopment agencies to shift $350
million in property tax revenues to K-12 schools and community colleges during
the 2008-09 fiscal year. The State Director of Finance was required to determine
an amount each redevelopment agency shall transfer to the Education Revenue
~ Augmentation Fund (ERAF) and concluded the Agency's obligation for ERAF
payment is $409,995..The payment must be received by the County Auditors
Office for deposit no later than May 10, 2009; and
WHEREAS, the Agency did not make provisions in the FY08-09 budget
for these unforeseen payments, therefore there is not sufficient funds available in
the appropriated fund balance of the FY08-09 Redevelopment Project Area Fund
or Alameda Area Fund to cover the AB 1389 compliance payments, and an
appropriation from both of the unappropriated project area tax increment fund
balances will be required.
NOW, THEREFORE, IT IS RESOLVED BY THE LYNWOOD
REDEVELOPMENT AGENCY AS FOLLOWS:
Section 1. The Agency hereby authorizes the allocation of $969,091 from
the unappropriated fund balances of the FY08-09 Redevelopment Project Area
Funds for payments to comply with AB 1389 Sections 52 & 53. The funds will be
appropriated as follows:
~, a) For the $559,095.54 Pass-through payment, the proposed method of
~ payment would utilize the Unappropriated tax Increment Funds: ($516,403
~ Project Area A and $42,693 Alameda).
b) For the $409,995 ERAF payment, the proposed method of payment would
utilize $204,997.50 of the Unappropriated Project Area Tax Increment
Funds (9452 & 9702); and $204,995 of the Project Area LMIHF (9752 &
9802). The Agency must pay back the LMIHF within 10 years.
FUND#/SOURCE ERAFPAYMENT PASS-THROUGH
PAYMENT
9452 Area A Tax Increment $163,998 $516,403
una ro riated
9702 Alameda Project Area $40,999.50 $42,693
Tax Increment
una ro riated
9752 Area "A" Project Area $102,498.75
(LMIHF) (unappropriated)
9802 Alameda Project Area $102,498.75
(LMIHF una ro riated
Total PaymentObli ation $409,995 $559,096
Section 2. The Agency authorizes the Executive Director to execute any
documents, notices, and or reports to the State/County in order to comply with
AB 1389 Section 52 & 53 and fulfills the Agency's obligation as stated herein.
Section 3. This Resolution shall go into effect immediately upon its
adoption.
PASSED, APPROVED, AND ADOPTED this 20~h day of January, 2009.
~C~.l~J ~~-~
Maria T. Santillian, Chairperson
ATTEST:
Maria Quinonez, Agency Secre Roger aley, utive Director
APPROVED AS TO FORM:
AS TO CONTENT:
Fred Galante, Agency Counsel
ALESHIRE & WYNDER, LLP
Hempe, Assistant City Manager
STATE OF CALIFORNIA )
SS.
COUNTY OF LOS ANGELES )
I, the undersigned, Secretary of the Lynwood Redevelopment Agency, do
hereby certify that the foregoing Resolution was passed and adopted by the
Agency at its regular meeting held on the 20th day of January, 2009.
f~
AYES: MEMBER CASTRO, FLORES, MORTON, RODRIGUEZ
NOES: NONE
ABSENT: MEMBER SANTILLAN
ABSTAIN: NONE
Maria Quinonez, Secretary C~~%
STATE OF CALIFORNIA )
SS.
COUNTY OF LOS ANGELES )
,~,, I, the undersigned, Secretary of the Lynwood Redevelopment Agency, do hereby
I certify that the above foregoing is a full, true and correct copy of Resolution No.
I 2009.003 on file in my office and that said Resolution was adopted on the date
and by the vote therein stated. Dated this 20th day of January, 2008
~~
Maria Quinonez, Secretary
P^