HomeMy WebLinkAboutAgenda Bill 4A 02/22/2010L
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CITY OF PETALUMA, CALIFORNIA .~
~~~~~~ ~~~ February 22, 2011
Agenda Title: A Resolution Of The City Council Of The City Of Petaluma. Meeting Date: February 22;
Authorizing Report To County Auditor Regarding State-Mandated Payment 2010
To The Supplemental Educational Revenue Augmentation Fund (SERAF)
Meetin Time: 7:00 PM
Category: ^ Presentation ^ Appointments ^ Consent ^'Public Hearing ^ Unfinished Business ®New Business
Department: Director:- Contact- Person: Phone Number:
City Manager John C. Brown John Brown, S. Sato 778-4345
Total Cost of Proposal or Proiect: $6,123,805 .Name of Fund: PCDC Tax Increment Fund
Amount Budgeted: 0 (This expenditure is not a budgeted Account Number: 5400
item; to be included in mid-year budget adjustment in the
amount of $5,079,099; balance to be budgeted for 2010-11) Current Fund Balance: $17,448,000
Recommendation: It is recommended that the City Council take the following action: Adopt a Resolution
Of The City Of Petaluma Authorizing.Report To County Auditor Regarding State-Mandated Payment To The
Supplemental Educational Revenue Augmentation Fund (SERAF)
1. ^ First reading of Ordinance approved unanimously, or with unanimous vote to allow posting prior to second reading
2. ^ First reading of Ordinance approved without unanimous vote: Ordinance has been published/posted prior to second -
reading; see Attachment
3. ^ Other action re uirin s ecial notice: Notice has been iven, see Attachment
Summary Statement: On July 28, 2009, the Governor signed into law AB 26x4 (effective October 22, 2009) ~ •
which, as amended by SB 68, amended certain provisions of the Community Redevelopment Law Health and
Safety Code Section 33000 et seq:, to require astate-wide $2.5 billion contribution of local redevelopment funds;
over the next two years, to help the State balance its budget. Redevelopment. agencies are obligated to make
these payments in proportion to their relative share of statewide tax increment revenues. The State Director of
Finance notified PCDC that its FY 2009-10 and FY 2010-11 share is $6,123,805, to be allocated over the next
two years to the County Auditor for deposit into a County Supplemental Revenue Augmentation Fund (SERAF)
for distribution to schools to reduce the State's Proposition 98 obligation to fund education. The FY 2009-10
amount, $5,079,099, is due to be paid to the County's SERAF prior to May 10,2010.
The SERAF legislation, H&S Code Section 33690 (d), also requires that the City Council shall, by March 1,
2010, report to the County Auditor as to how PCDC intends to fund the required SERAF allocation. The
California Redevelopment Association (CRA) is prosecuting a class action in Sacramento Superior Court to
declare the SERAF law unconstitutional, as it successfully did with regard to the predecessor "ERAF"
legislation. Trial is scheduled to commence on February 5. CRA is hopeful that the SERAF legislation will be.
struck down prior to the May 10 payment due date, but is uncertain whether there will be a ruling before the
March 1 reporting date.
Attachments to Agenda Packet Item: Exhibit #1 Resolution
Reviewed by Finance Director
: Reviewed by City Attorney: A ro ed b i Mana er:
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Date: - ~j-- ~ ~ Date: Date: Z-~~/D
Rev. # Date Last Revised: File:
EXHIBIT 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA AUTHORIZING
REPORT TO COUNTY AUDITOR REGARDING STATE-MANDATED PAYMENT TO THE
SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND
WHEREAS, pursuant. to authority granted under Community Redevelopment Law (California Health and
Safety Code Section 33000 et seq.) (the "CRL") the City Council (the "City Council") of the City of Petaluma (the
"City") adopted the Redevelopment Plan (as amended, the "Redevelopment Plan") for the Central Business District
and Petaluma Community Development Project Area[s] (the "Project Area[s]"); and
WHEREAS, pursuant to Section 33606 of the CRL, a proposed budget for the 2009-2010 Fiscal Year
was submitted by the Executive Director of the Petaluma Community Development Commission (the
"Agency") and approved by the City and the Agency ;and
WHEREAS, Assembly Bill X4 26, effective October 22, 2009, as amended by Senate Bi1168, effective
November 12, 2009 (together, the "Amendment") amends Section 33334.2 and 33688 of, and adds Sections
33020.5, 33331.5, 33690, 33690.5, 33691 and 33692 to the CRL; and
WHEREAS, the Amendment requires all redevelopment agencies in the State of California to make
payments from any legally available revenue totaling $1,700,000,000 to county Supplemental Educational Revenue
Augmentation Funds ("SERAF") for the 2009-2010 fiscal year and $350,000,000 for the 2010-2011 fiscal year;
and
WHEREAS, pursuant to Section 33690(a) of the CRL, the State Director of Finance has notified the
Agency that the Agency SERAF contribution for the .2009-2010 fiscal year is $5,079,099 (the "Agency SERAF
Contribution"), which the Agency is obligated to pay to the Sonoma County (the "County") Auditor for deposit in
the County SERAF prior to May 10, 2010, unless the Amendment is declared unconstitutional and stayed pursuant
to court order in the pending matter known as California Redevelopment Association v. Genest, Sacramento
Superior Court Civil No. 34-2009-800000359; and
WHEREAS, Section 33690(d) of the CRL requires the City Council to report to the County Auditor, by
March 1, 2010, as to how the Agency intends to fund the Agency SERAF Contribution, or that the City Council
intends to remit the amount in lieu of the Agency pursuant to Section 33692 of the CRL; and
WHEREAS, the Agency's chief fiscal officer has reviewed the contents of this Resolution for accuracy;
N®W, THEREF®RE, BE IT RESOLVED by the City Council of the City of Petaluma as follows:
Section 1. All the recitals above are true and correct and incorporated herein.
Section 2. The City Council hereby finds and determines that the Agency SERAF Contribution, if legally
required to be paid by May 10, 2010, shall be paid from: PCDC Tax Increment Fund Account 5400.
Section 3. The City Manager is hereby authorized to inform the County Auditor, by letter, that the Agency
will make its required SERAF contribution from: PCDC Tax Increment Fund Account 5400.
PASSED, APPR®VED AND AD®PTED this day of , 2010.