AgdaPkt 2011-02-07 - Laserfiche WebLink

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6.1B REPORT I=dyC To the Redevelopment Agency Board From the Executive Director February 7, 2011 SUBJECT Funding Source for the Supplemental Educational Revenue Augmentation Fund Payment RECOMMENDATION Authorize, by motion, the Executive Director to inform the San Mateo County Auditor that the Redwood City Redevelopment Agency's ( "Agency ") Supplemental Educational Revenue Augmentation Fund ( "SERAF ") payment of $732,764 for FY 2010/11 will be paid from the Agency's general fund. BACKGROUND By March 1, 2011, the legislative body of each redevelopment agency must report to the County Auditor - Controller how the redevelopment agency intends to fund its Supplemental Educational Revenue Augmentation Fund ( "SERAF ") payment for FY 2010/11. Staff recommends taking $732,764 that is currently encumbered (account 807 - 66415) from the Agency's general fund. The payment is due to the county - auditor controller for deposit into the SERAF by May 10, 2011. In July 2009, the State passed AB 26 4x that calls for taking $2.05 billion from redevelopment agencies statewide over two fiscal years — FY 2009/10 and FY 2010/11. The Agency's take is $3,562,576 in FY 2009/10 and $732,764 for FY 2010/11 for a total of $4.3 million. These funds, which will not be paid back to the Agency, are deposited into the SERAF to meet the State's Proposition 98 obligations to schools. To make the required FY 2009/10 SERAF payment without resulting in a default of existing debt obligations, negatively affecting existing projects, or cutting positions, the Agency, on April 26, 2010 approved a loan of $2.8 million from the Agency's low and moderate income housing fund ( "LMIHF "). The remaining $749,738 came from the Agency's general fund. The borrowing of LMIHF will be repaid annually in the amount of $562,567.60 to the Agency's housing fund by June 30, 2015. The California Redevelopment Association continues to be actively engaged in litigation in the Third District Court of Appeal in order to invalidate AB 26 4x and reverse the transfer of $2.05 billion in local redevelopment funds by the State. ALTERNATIVES There are no appropriate alternatives to the action of informing the County Auditor. This action is a requirement of AB 26 4x. FISCAL IMPACT There is no direct fiscal impact as a result of this recommendation, which is only to define the source of the SERAF payment.