AgdaPkt 2009-10-19 - Laserfiche WebLink

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7C capital balance is $2.16 million, an increase of $885,000 which was estimated Page 2 when the FY 2009/10 housing budget was approved in July 2009. The difference is based on higher than projected tax increment, administrative cost savings and housing rehabilitation expenditures under budget for the fiscal year. 2) According to AB 26 4x, in order to make the SERAF payment, the Agency may borrow the amount required to be allocated in the housing set-aside tax increment in the housing fund. This provision applies to housing set-aside allocated in FY 2009/10 and FY 2010/11. As a condition of borrowing, the Agency shall make a finding that there are insufficient other moneys to meet the SERAF payment. The amounts borrowed from the current year allocation to the housing fund must be repaid in full within five years from the year in which the funds were borrowed, otherwise, the Agency's mandatory 20 percent property tax increment to finance low and moderate income housing increases to 25 percent as long as the Agency receives tax increment. The Agency may not use any accumulated funds from past years in its housing fund to make payments. If the Agency borrows the maximum allowed housing set-aside tax increment in the housing fund for FY 2009/10 and FY 2010/11, the Agency can only borrow the projected $2.53 million to be received in FY 2009/10 and $732,764 in FY 2010/11. Borrowing the maximum allowed provides flexibility in the event of any other adverse financial shocks. Should circumstances permit, the Agency general fund could repay the amounts borrowed from the housing fund sooner than the five year deadline as further explained below. SERAF Impact Scenarios Several scenarios for both the Agency's general and housing funds budgets have been developed to determine if the SERAF payments can be made without resulting in default of existing indebtedness and obligations or negatively impacting programs and services provided by the Agency. A summary of the ending working capital balances (June 30 of each fiscal year from 2009/10 through 2013/14) by scenario are in Attachment 1. Details of the Agency's general and housing budget revenues and expenditures for each scenario are described in Attachment 2. Key assumptions for the scenarios are as follows: . FY 2009/10 beginning working capital is based on actual balances as of June 30, 2009 . A minimum 20 percent of annual tax increment must be set aside into a low and moderate income housing fund per State law . SERAF payment estimates are based on the redevelopment agencies' tax increment data during FY 2006/07 as provided by the State Controller's Office . No change to Administrative, Program, and Project Costs in 2009/10 and 2010/11 . Borrowing maximum allowed from housing set-aside tax increments for FY 2009/10 and FY 2010/11 Scenario 1: No SERAF Take from Aaencv General Fund (Status Quo). Based on the adopted FY 2009/10 budget and the financial results in FY 08/09, the Agency will have $2.86 million of unappropriated working capital that could be appropriated via a budget amendment in December 2009, if necessary.