AgdaPkt 2003-08-11 - Laserfiche WebLink

Browse Search

9.4 -23 BUDGET BILLS from page 8 ........................................... combined total sales tax revenue loss of the county and each city in the county for the year 2. On Sept. 1, the DOF notifies the county auditor of the portion of the "countywide adjust- ment amount" to be allocated for each city and county. SB 1045 provides multiple ways in which a local agency can fulfill the ERAF shift obligation ',o the state, including: 1. An option to loan up to 50% of the total RDA ERAF shift from the Low and Moderate Income housing funds. 3. In January and May (date not specific) – the county auditor allocates one -half of the amount identified on September 1 to cities and counties. 4. At the end of the fiscal year (no date specified) for which an adjustment amount was determined, DOF recalculates adjustment amounts based on actuals and notifies the county auditor of the recalculated amount. 5. In the fiscal year following the year in which a recalculation was made (no date speci- fied) the county auditor shall allocate the excess amount, or for overpaid amounts, transfer it back to ERAF. There was also language included in AB 1766 to account for specific situations that gave rise to questions. First, language was included to ensure that the transfer of property tax is not construed to increase ad valorem property tax revenue allocation to a community redevelop- ment agency (see Section 1 subdivision (f)(2) for details). Second, there is specific language that is intended to "hold harmless" the existing tax sharing agreements (refer to Sec. 2 of the bill). AB 1755 and SB 1045 — Redevelopment Cuts AB 1755, passed by the Senate, included a $250 million, one -time shift from redevelopment agencies (RDA's) to the Education Revenue Augmentation Fund (ERAF). The Assembly instead passed SB 1045, which lowers the shift to $135 million. SB 1045 will now go to the Senate for concurrence, to be taken up after the legislature reconvenes on Aug. 18. 2. An option for the city sponsoring the RDA to choose to fund the entire ERAF shift out of other legally available funds. 3. OR, if there aren't successful proactive attempts to make the state whole (using the options above), a requirement that the city general funds make up for any amount of the shift that the RDA's cannot fulfill due to contrac- tual obligations. To calculate your potential RDA shift, go to: www.cacites.org /budget to find a document entitled: 2002 -03 RDA ERAF Shift Estimates – XLS. Find the combined total for your city. To estimate the impact of a $135 million shift, multiply the number by 1.8 (or 3.33 to get the $250 million estimate). The actual estimates from the Department of Finance should be expected sometime this fall. Transportation AB 1750: Proposition 42 Partial Suspen- sion. Defers transferring $856 million of the $1.145 billion expected in Proposition 42 rev- enues in 2003 -04 from the General Fund to the Transportation Investment Fund. AB 1751: Appropriates the remaining $289 million of the $1.145 billion for transportation projects: $189 million is dedicated to Traffic Congestion Relief Projects (TCRP) and $100 million is dedicated to the State Highway Ac- count for State Transportation Improvement Program (STIP) projects. This measure would also require repayment of the $856 million balance by June 30, 2009 with interest for allocation in the same manner the Proposition 42 revenues would have been allocated. How- ever, repayment is not guaranteed due to the Continued on Page 10 Visit the League's Official Web Site -- www.cacities.org PRIORITY FOCUS /PAGE 9