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Z , <br />In FY 2018/19 the Agency will begin making annual payments of $1.6 million to the <br />County of San Mateo'. At that time, the Agency and the City will have at least two <br />options: <br />Reduce the Agency's adminivrative expenditures (projected to be $3 million in FY <br />2018/19), which should not be difficult as the Agency's original area in FY 2018/!9 <br />only has three years left before it terminates legally. The Agency's ability to <br />implement the redevelopment plan in the Downtown Project Area will expire in FY <br />2021/22, while the expiration date for the First Amendment area is in FY 2024/25 <br />(collectively these two areas account for almost half of the Agency's revenue), or <br />Use utility users' tax revenues to support the Agency's capital activities, as such <br />activities, by their nature, are directed to improving the infrastructure and economic <br />vitality of the area constituting the Agency's authority. Using utility users' tax <br />revenues for this purpose is consistent with the Council's policy on the use of utility <br />users' tax revenues for capital expenditures and will not disrupt the general <br />governmental operations (i.e. general fund) of the City. <br />Ateemathie <br />The Council may reject staff's recommendation to sell tax increment bonds for this <br />project and /or direct staff to revise the Agency's financing plan in order to reduce the <br />financial obligations of the Agency. Doing so, however, will require a reduction in the <br />number of projects and /or a reduction in the dollar value of the projects to be financed <br />and may delay the sale of bonds until the first or second quarter of 2004. <br />i <br />Brian J. Ponty <br />Treasurer. Redevelopment <br />Agency <br />usa�r Ed verett l <br />Redevelopment Manager City Manager <br />Attachments: <br />I Description of Projects <br />II Sources and Uses of Funds <br />III Summary of Principal Legal Documents <br />IV Preliminary Official Statement <br />The Agency presently has an agreement with the County of San Mateo that provides for the Agency to <br />allocate tax increment revenues to the County after the Agency receives $25 million of the County's tax <br />increment for the Second Amendment Area. Projections indicate that around FY 2018/19 the Agency will <br />need to begin making annual payments of about $1.6 million to the County to satisfy the Agency's <br />obligations under this agreement. <br />9 <br />5 <br />