AgdaPkt 2002-11-18 - Laserfiche WebLink

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· January 1, 2004 for the area added to redevelopment in 1982. · June 20, 2005 to the area added in 1985. · January 18, 2010 to the area added in 1990. The Redevelopment Law was again amended in 2001, going into effect on January 1, 2002. This amendment permitted redevelopment agencies to eliminate the time limits on the establishment of loans, advances and indebtedness. The law specifically authorizes the Council to take this action. The Agency's annual revenue stream is approximately $7,000,000. Approximately half of this is from the area added to redevelopment in 1982. If the City does not adopt this Ordinance, in 2004 the Agency will cease to be able to use the growth in this revenue stream to establish loans, advances and indebtedness. Passage of this Ordinance preserves the Agency's ability to establish loans, advances and indebtedness on the full tax increment stream until 2022. After August 2022 the Agency can continue to make payments on previously issued bonds but it will lose the ability to issue new debt based upon the revenue from the odginal redevelopment area. If the Agency removes the debt limit, it would be required to make mandatory tax sharing payments to those taxing entities from the odginal 1982 project area which do not have existing agreements that involved payments. The Agency entered into only one agreement in 1982 that involved funding and that was with the County of San Mateo. Thus, removal of the debt limit would result in small tax increment pass-throughs to the following taxing entities: · Sequoia high School District · Redwood City School District · San Mateo County College District · County Office of Education · County Harbor District · Mid-Peninsula Open Space District · Mosquito Abatemen' .~strict · Sequoia Hospital · Bay Area Pollution Control District The payments are made on the basis of a formula in the Community Redevelopment Law and no negotiation is required with the taxing entities on the amount of the payments. If removal of the debt limit is approved in November 2002, payments will be based on the growth of tax increment above the amounts that are received in 2003-04 -- the first full year of the change. The Agency's fiscal consultant estimates that such payments in 2004-05 will be approximately $11,000. This represents less than ¼ of 1% of the projected tax increment in 2004-05~. The law was specifically amended in 2002 to permit cities and agencies to allow this change. The funding plan for Downtown will be presented to Council in either late 2002 or 1 The new base year for calculation of payments to these taxing entities is 2003-04. The actual payments will be based on growth of increment above this base. and so 2004-05 is the first year that payment would be made.