HomeMy Public PortalAboutResolution CRA 89-3621
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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*
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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
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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
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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.
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