HomeMy WebLinkAboutRA 2010-003RESOLUTION NO RA 2010-003
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY
OF ATASCADERO BORROWING FUNDS FROM THE AGENCY'S LOW
AND MODERATE INCOME HOUSING FUND TO DEFRAY THE COST
OF THE FISCAL YEAR 2009-2010 PAYMENT REQUIRED BY SECTION
33690 OF THE CALIFORNIA HEALTH AND SAFETY CODE
WHEREAS, on July 13, 1999, the City Council of the City of Atascadero adopted the
redevelopment plan for the Community Redevelopment Agency Project Area, and,
WHEREAS, pursuant to Section 33334.2(a) of the California Community
Redevelopment Law (Health and Safety Code Section 33000 et seq ) not less than 20% of all
taxes which are allocated to the Community Redevelopment Agency of the City of Atascadero
("Agency") shall be set aside by the Agency in a Low and Moderate Income Housing Fund
("LMIHF") and used by the Agency for the purpose of increasing, improving and preserving the
community's supply of low and moderate income housing available at affordable housing costs
to people and families of low and moderate income, and,
WHEREAS, on July 28 2009, the Governor of the State of California signed and filed
with the Secretary of State Assembly Bill 26, which bill has as one of its purposes the diversion
of Agency funds for the purpose of funding schools that benefit and serve redevelopment project
areas, and,
WHEREAS, as part of Assembly Bill 26, the State enacted Health and Safety Code
section 33690, which requires that the State Director of Finance determine the net tax increment
apportioned to the Agency that is due to the County of San Luis Obispo's supplemental
educational revenue augmentation fund ("SERAF") for the 2009-2010 fiscal year and the 2010-
2011 fiscal year; and,
WHEREAS, the Director of Finance determined that the Agency owed One Million
Three Hundred Thirty -Five Thousand Three Hundred Twenty -Two Dollars ($1,335,322) to the
SERAF for fiscal year 2009-2010; and,
WHEREAS, on May 7, 2010 the Agency made its payment of One Million Three
Hundred Thirty -Five Thousand Three Hundred Twenty -Two Dollars ($1,335,322) to the
SERAF, and,
WHEREAS, this amount is now an indebtedness of the Redevelopment Agency Project
Area as per Health and Safety Code section 33690 subsection (e) and the Agency may expect
some repayment of the indebtedness via tax increment; and,
WHEREAS, Health and Safety Code section 33690 subsection (c) authorizes the Agency
to borrow the amount required to be allocated from the LMIHF in order to make the Agency's
Community Redevelopment Agency of Atascadero
Resolution No RA 2010-003
Page 2 of 3
am WHEREAS, Health and Safety Code section 33690 subsection (c) authorizes the Agency
to borrow the amount required to be allocated from the LMIHF in order to make the Agency's
full allocation to the SERAF but, as a condition of the borrowing, the Agency must find that
insufficient other funds are available to make the full SERAF allocation and the Agency must
repay the amount borrowed on or before June 30, 2015
NOW, THEREFORE, BE IT RESOLVED, by the Community Redevelopment Agency of
Atascadero
I That the Agency's payment of $1,335,322 to the SERAF on May 7, 2010 left the Agency
with insufficient funds to complete projects and programs that are necessary to the
Agency's primary purpose of redeveloping the Community Redevelopment Agency
Project Area.
2 That the lack of funds for redevelopment due to the SERAF payment means that
insufficient funds were available to make the full SERAF allocation and the Agency may
borrow from the LMIHF as allowed by Health and Safety Code section 33690, subsection
(c) in order to make the payment and continue its primary work of redevelopment.
3 That the Agency's Executive Director is directed to execute a "loan," transferring the
amount of $1,335,322 from the LMIHF, which is also known as Agency fund number
221 to the Agency's general operating fund, also known as fund number 220
4 That the Executive Director shall report back to the Agency Board on an annual basis
regarding the Agency's repayment of the loan from fund 220 to fund 221 and that the
loan shall be fully repaid on or before June 30, 2015
Community Redevelopment Agency of Atascadero
Resolution No RA 2010-003
Page 3 of 3
On motion by Board Member Clay and seconded by Board Member Beraud, the
em foregoing Resolution is hereby adopted in its entirety on the following roll call vote
AYES Board Members Beraud, Clay, Fonzi, O'Malley and Board Chairperson Kelley
NOES None
ABSENT None
ADOPTED• September 14, 2010
COMMUNITY REDEVELOPMENT
AGENCY OF ATASCADERO
By• - &!6 A4�
Bob Kelley, Chairferson
ATTEST
Marcia McClure Torgerson, C M C
Board Secretary
APPROVED A TO FORM
Brian A Pierik, Agency Counsel