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HomeMy Public PortalAboutResolution CRA 89-3621 1 RESOLUTION NO. CRA 362 A RESOLUTION OF THE TEMPLE CITY COMMUNITY REDEVELOPMENT AGENCY APPROVING A REPORT TO THE CITY COUNCIL OF THE CITY OF TEMPLE CITY FOR THE ROSEMEAD BOULEVARD REDEVELOPMENT PROJECT IT IS HEREBY RESOLVED, by the Temple City Community Redevel- opment Agency ( "Agency "), as follows: SECTION 1. The attached Report for the 1989 -90 fiscal year relating to indebtedness of the Agency and its tax revenues allocated to pay incurred indebtedness within the Rosemead Boule- vard Redevelopment Project is hereby approved and ordered filed with the City Council of the City of Temple City, California. SECTION 2. The Secretary of the Agency shall file this Report with the City Council and shall make such copy available for public inspection. PASSED, APPROVED, and ADOPTED this 2nd day of May, 1989. Secretary I hereby certify that the foregoing Resolution was duly passed and adopted by the Temple City Community Redevelopment Agency at its regular meeting held on the 2nd day of May, 1989, by the following vote of the members: AYES: Members- Atkins,Breazeal ,Gillanders,Swain,Froehle NOES: Members -None ABSENT: Members -None REPORT OF THE TEMPLE CITY COMMUNITY REDEVELOPMENT AGENCY ON THE ASSESSMENT DISTRICT WITHIN THE ROSEMEAD BOULEVARD REDEVELOPMENT PROJECT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33837 FOR THE FISCAL YEAR 1989 -1990 A. INTRODUCTION Pursuant to the authorization of Health and Safety Code Section 33823, et seq. (also known as SB -55 enacted at the 1979 legislative session), the City of Temple City formed a special assessment area for the area known as the Temple City Shopping Center (Shopping Center) located within the boundaries of the Rosemead Boulevard Redevelopment Project (Redevelopment Project). The Assessment Area is shown and legally described in City Council Resolution No. 79 -1827 adopted June 19, 1979. Pursuant to that Resolution, the assessments shown on Exhibit C to said Resolution were approved and confirmed as the assessments necessary to pay the indebtedness of the Temple City Community Redevelopment Agency (Agency) which was incurred to carry out the development of the Shopping Center and for which the Agency would not have other available funds. This report is prepared by the Agency pursuant to Health and Safety Code Section 33837 for consideration by the City Council as the annual report required for the levy to be continued during the fiscal year 1989 -1990 in the total amount of $170,062.00 allocated among the property owners as shown on Attachment No. 1 to this report. B. ESTIMATE OF TOTAL AMOUNT OF FUNDS, INCLUDING TAX INCREMENT PROCEEDS RECEIVED BY THE AGENCY PURSUANT TO HEALTH AND SAFETY CODE SECTION 33670 1. Tax Increment Revenues The report of the Agency to the City Council submitted prior to the creation of the Assessment Area for the Shopping Center estimated that $123,344.00 in tax increment proceeds would be received from levies made in the 1978 -1979 fiscal year and in subsequent fiscal years through May 6, 1997. The Agency actually received tax increment proceeds for the fiscal years listed as follows: 1978 -79 $124,876.94 1979 -80 150,843.89 1980 -81 141,778.59* 1981 -82 157,567.00* 1982 -83 168,625.01* 1983 -84 179,218.79* CRA 362 - 1 - TCRA- SB55/4 -25 -89 1 1 1 1 1 1 1984 -85 182,914.06* 1985 -86 226,842.20* 1986 -87 211,444.47* 1987 -88 191,197.95* 1988 -89 (Projected) 240,199.80* * Increment noted excludes business inventory subventions received from the State. It is estimated that the total tax increment to be received for 1989 -1990 for the Project Area will be $219,267.00 as shown on Attachment No. 2. 2. Rental Income Other funds available to the Agency during the 1988- 1989 fiscal year include rental obligations of $310,955.00 as the City's lease payment under the Parking Facilities Lease. The same amount will be available in the 1989 -90 fiscal year. The Agency's obligation to repay the City under its Reimbursement Agreement is $286,469.00 for each fiscal year, 1988 -1989 and 1989 -1990. In addition, the Agency has scheduled an obligation for annual repayment of City advances of $97,006.00 for the 1988- 1989 and $97,006.00 for 1989 -1990 fiscal year. The City's loan to the Agency was originally payable from any legally available funds on demand. 3. Assessment Payments Other funds available to the Agency to pay indebtedness in the coming fiscal year include the levy made pursuant to the special assessment district. To date, $128,661.90 as been received from the special assessments for the 1988 -1989 fiscal year. A balance of $41,400.00 is owing and unpaid as of this date. It is expected that this amount will be received before the end of the fiscal year. 4. Business Inventory The tax levy on inventory within the Rosemead Boulevard Redevelopment Project has been repealed effective as of the 1980 -1981 fiscal year. Legislation has authorized a State reimbursement to local agencies, which includes redevelopment agencies, for the loss of tax increment on inventory. See Government Code Section 16114. The Agency received or expects to receive reimbursement for fiscal years as follows: 1981 -82 $44,176.85 1982 -83 $44,176.85 1983 -84 $43,552.21 1984 -85 $44,176.85 TCRA- SB55/4 -25 -89 CRA 362 - 2 - 1985 -86 1986 -87 1987 -88 1988 -89 $38,363.97 $30,847.27 $29,451.24 $43,238.71 (Estimated) 5. Estimated Receipts and Expenditures A summary of actual and estimated receipts for 1988- 1989 and expenditures for obligations of the Agency incurred prior to July 1, 1978, is shown on Attachment No. 2. Also shown on Attachment No. 2 are estimated receipts and estimated expenditures for the 1989 -1990 fiscal year. Obligations which are shown will be payable for indebtedness incurred prior to July 1, 1978. C. ESTIMATE OF AMOUNT OF PAYMENTS SPECIFIED IN THE ORIGINAL AGENCY REPORT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33832 WHICH THE AGENCY WILL BE UNABLE TO MAKE BECAUSE OF INSUFFICIENT FUNDS As noted in the original report of the Agency to the City Council pursuant to Health and Safety Code Section 33832, including the Agency's supplement and amendment thereof, the Agency estimated that $4,454,889.00 of total payments could not be made because of the reduction in tax increment proceeds available to the Agency due to the passage of Proposition 13. This deficit is unchanged except for the additional amount available to the Agency pursuant to the annual levy which in no event can exceed $170,062.00 for each fiscal year and the increases in assessed value since 1979 -1980. The annual deficit between what the Agency is able to pay and the amount that the Agency is obligated to pay under its bonds and contractual indebtedness was estimated in the Agency's original report as supplemented at $208,028.00 for the 1988 -1989 fiscal year before the assessment. For the fiscal year 1988- 1989, the estimated deficit before the assessment is now estimated at $141,215.04 since the tax increment proceeds projected to be received during 1988 -1989 are estimated at $240,199.80 rather than $123,344.00 as set forth in the original report. This deficit for 1988 -1989 will be further reduced by the $43,238.71 received from the State for the business inventory subvention. The deficit is now estimated for the 1989 -1990 fiscal year at $162,808.00 rather than $207,628.00 estimated in the original report, as supplemented, before the assessment due to the projected increase in tax increment. Although the Agency's increase in tax increment since 1978- 1979 has reduced the amount of the deficit between Agency obligations and revenues for that year, the maximum authorized CRA 362 - 3 - TCRA- SB55/4 -25 -89 1 1 1 1 1 1 levy of $170,062.00 is still required to satisfy the Agency's outstanding obligations to the City of Temple City, to pay administrative expenses, and will raise an amount slightly in excess of the amount needed to meet the Agency's obligations in view of the increase in the repayment to the City. In addition, it is not expected that tax increment will increase in 1989 -1990 due to the continued decline in the tax rate applicable in the Project Area and the expected removal of some properties from the tax roll in Area A of the Project when acquired by the Agency during fiscal year 1989 -1990. D. DIAGRAM AND PROPOSED ASSESSMENT TO BE LEVIED UPON EACH PARCEL OF PROPERTY IN THE ASSESSMENT AREA FOR THE 1989 -1990 FISCAL YEAR The assessment proposed for the 1989 -1990 fiscal year and the area subject to the assessment are proposed to remain the same as established by City Council Resolution No. 79 -1827. Such Assessment Area is shown on Exhibit C to said Resolution. The Agency recommends that the levy of $170,062.00 be made pursuant to Exhibit C for the fiscal year 1989 -1990, a copy of which is attached hereto as Attachment No. 1. TCRA- SB55/4 -25 -89 CRA 362 - 4 -