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HomeMy WebLinkAboutNotice County of Intent to Pay Educational Revenue Augmentation Fund ERAFCITY 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: DENNIS M. COLEMAN, REDEVELOPMENT FINANCE MANAGER DATE: FEBRUARY 24, 2005 Recommendation: That the City Council, by minute motion, 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: As part of the State of California's Fiscal Year 2004-05 Budget, the State legislated that redevelopment agencies will pay a cumulative $250 million to Educational Revenue Augmentation Fund, also known as ERAF. The Agency is required to make a payment of $3,887,113 by May 10, 2005. Health and Safety Code Section 33681.9 (d) requires the legislative body (the City) shall, by March 1, report to the County Auditor, 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 that 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: Dennis M. Coleman Redevelopment/Housing Finance Manager DMC:mh Approval: McCarthy Redevelop G:IRDA (Dennis Coleman\DATA\WPIREPORTS1022405 county notice for ERAF pa yment. wpd Department Head: David Yrigo Director gff,F edevelopment/Housing Carlos L. Ort City Manager