HomeMy WebLinkAboutAgency Intent to Pay ERAF From Agency Funding SourcesCITY OF PALM DESERT
STAFF REPORT
REQUEST: TO DIRECT THE CITY MANAGER TO NOTIFY THE COUNTY
AUDITOR OF THE AGENCY'S INTENT TO PAY ERAF FROM
AGENCY FUNDING SOURCES
SUBMITTED BY: DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT
DATE: JANUARY 12, 2006
Recommendation:
By Minute Motion, that the City Council direct the City Manager, or his designee, to
notify the County Auditor of the Agency's intent to pay ERAF from Agency funding
sources.
Discussion:
Chapter 610, Statutes of 2004, requires redevelopment agencies to shift $250 million in
property tax revenues to the Educational Revenue Augmentation Fund (ERAF) for K-12
schools and community colleges during the 2004-05 and 2005-06 fiscal years. The
Agency is required to make a payment of $3,995,041 by May 10, 2006.
Health and Safety Code Section 33681.9 (d) requires the legislative body (the City) to
report to the County Auditor by March 1, 2006, as to how the Agency intends to fund the
required ERAF payment, or if the legislative body intends to make the payments in lieu
of the Agency.
Staff is recommending the City Council direct the City Manager, or his designee, to
notify the County Auditor that the Agency intends to make the required ERAF payment
from any legally available funding sources of the Agency.
Submitted by:
Dave Yrigo
Directordevelopment/Housing
A• proval:
McCarthy, AC ' - i evelopment Carlos L.
ga, Executive Director
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* DEPARTMENT OF
„-..RwP.FINANCE
OFFICE OF THE DIRECTOR
November 10, 2005
ARNOLD SCHWARZENEGGER, GOVERNOR
STATE CAPITOL • ROOM 1 145 • SACRAMENTO CA ■ 968 1 4-4998 • WWW.DOF.CA. GOV
TO ALL COUNTY AUDITORS, REDEVELOPMENT AGENCIES, AND THEIR LEGISLATIVE
BODIES:
Chapter 610, Statutes of 2004, requires redevelopment agencies to shift $250 million in property
tax revenues to K-12 schools and community colleges during the 2004-05 and 2005-06 fiscal
years. The Director of Finance is required to determine an amount each redevelopment agency
shall transfer to the Education Revenue Augmentation Fund (ERAF). It further requires the
Director of Finance to notify each redevelopment agency and legislative body of the amount
determined.
In accordance with the above requirements, the attached document provides the amount
determined for your redevelopment agency.
Each agency must allocate the specified amount to the county auditor for deposit into the ERAF
on or before May 10, 2006. By March 1, the legislative body shall report to the county auditor
how the agency intends to remit the amount required, or that the legislative body intends to
remit the amount in lieu of the agency pursuant to Section 33681.14 of the Health and Safety
Code.
If the legislative body, pursuant to Section 33681.12 of the Health and Safety Code, reported to
the county auditor that it intended to remit the amount in lieu of the agency and the legislative
body fails to transmit the full amount as authorized by May 10 of the applicable fiscal year, the
county auditor, no later than May 15 of the applicable fiscal year, shall transfer an amount
necessary to meet the obligation from the legislative body's allocations pursuant to Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code. If
the amount of the legislative body's allocations are not sufficient to meet this obligation, the
county auditor shall transfer an additional amount necessary to meet this obligation from the
property tax increment revenue apportioned to the agency pursuant to Section 33670, provided
that no moneys allocated to the agency's Low and Moderate Income Housing Fund shall be
used for this purpose.
If you have any questions regarding this matter, please contact Pat Landingham, Assistant
Program Budget Manager, at (916) 322-2263.
TOM CAMPBELL
Director
By:
MICHAEL C. GENEST
Chief Deputy Director
Attachment
RECEIVED
NOV 1 4 2005
CITY OF PALM DESERT
CITY MANAGER
Redevelopment Agency Name
City of Palm Desert Redevelopment Agency
2005-06 RDA TRANSFER TO ERAF - HEALTH AND SAFETY CODE 33681.12 ,
$125000000
million on Net
Tax Increment
2003-04 Gross , (0.0501162695
Tax Increment' 649722%)
55,994,780 1,706,819.72
2003-04 Tax
Increment Net
of Pass-
Throughs
34,057,1981
I:\SS\Local Govemment\Redevelopment\2005-08 RDA ERAI, allocation $250m.xls
$125000000
million on
Gross Tax
Increment
(0.0408591283
_654399%)
2,287,897.90I
Total Adjustment fort
Payment to 1 Vallejo Shift
ERAF I for 2004-05
3,994,717.621 323.391
Net 2005-06
ERAF
Payment
Required
3,995,041.01