HomeMy WebLinkAboutSR - Res No. 512 - Excess Tax IncrementPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: REPORT REGARDING EXCESS TAX INCREMENT REVENUES
AND FINDINGS THAT SUCH TAX INCREMENT REVENUES ARE
NOT NECESSARY TO MEET CERTAIN HOUSING
REQUIREMENTS
SUBMITTED BY: JANET MOORE, HOUSING AUTHORITY ADMINISTRATOR
DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT AND
HOUSING
DATE: NOVEMBER 10, 2005
CONTENTS: RESOLUTION NO.
REPORT REGARDING EXCESS TAX INCREMENT REVENUES
Recommendation:
That the Redevelopment Agency adopt Resolution No. 512 approving a Report Regarding
Excess Tax Increment Revenues and making findings that the excess tax increment described
in the Report is not necessary to meet certain housing requirements.
Executive Summary:
Prior to the issuance of bonds the Agency must show that certain tax increment revenues are
not necessary to meet its housing requirements. The attached report shows that the Agency has
sufficient revenue to meet its housing requirement and has excess tax increment revenues
available to pay debt service on additional bonds. Adoption of the resolution will approve the
report and make the necessary findings. This will allow the issuance of tax allocation revenue
bonds this fiscal year.
Backaround:
Agency staff will soon bring recommendations to the Agency Board regarding the issuance of
bonds to fund various public improvements, including undergrounding utilities in participating
residential neighborhoods in the City, land acquisition for open space, park and recreational
facilities, parking facilities and other public improvements. The Agency entered into a
Stipulation for Entry of Judgment in Case No. Indio 51143, as amended in 1997 and again in
2002, which requires the Agency to meet certain requirements related to affordable housing.
Among other things, the Stipulation provides that the Agency may incur indebtedness payable
from surplus tax increment on a basis which will be prior to its obligations related to housing (but
not prior to the 20 percent set -aside) so long as the Agency makes a finding, based on facts and
projections, that the surplus (referred to as "excess tax increments") is not needed to meet the
housing requirements. Attached to Resolution No. 512 is a report entitled "Report Regarding
Excess Tax Increment Revenues." The purpose of the Report is to set forth the facts and
projections upon which the Agency may base a finding that the excess tax increments, as
identified in the Report, are not and will not be necessary to meet the housing requirements set
forth in the Stipulation and that those tax increment revenues may be pledged on an annual
basis to pay annual debt service requirements on bonds, notes or other obligations or
P6402-000I\837348v1.doc
STAFF REPORT
EXCESS TAX INCREMENT REVENUES
NOVEMBER 10, 2005
PAGE 2
indebtedness of the Agency to finance its redevelopment activities other than housing. The
report shows the August 20, 2005 equalized roll of taxable property in each of the Project Areas
of the Agency, the projected assessed value of such taxable property, the projected amounts to
be set aside into the Agency's low and moderate income housing fund, and the projected
housing requirements set forth the Stipulation, as amended. The report also sets forth the
estimated amounts necessary to meet those requirements. The report includes information
regarding actual development now taking place, as well as development which has been
entitled and which is expected in the near future. The report indicates that the amounts to be
set aside into the low and moderate income housing fund will be sufficient to meet the Agency's
housing requirements.
Staff is therefore recommending that the Agency adopt Resolution No. 512 approving a
Report Regarding Excess Tax Increment Revenues and making the required findings.
Submitted By:
.� /
J net oore, Housing Authority Adm nistrator
Approval:
d"Gstin Mc rthy, ACM for development
96 ��
Paul Gibson, Director of r� inance
Carlos L. Ortegk cutive Director
David Yrigo a or of Redevelopment
P6402-0001\837348v1.doc