HomeMy WebLinkAboutStaff Report 3.C 01/23/2012 �ALtr�
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DATE: 1/23/2012
TO: Honorable Mayor and Members of the City Council through City Manager
Honorable Chair and Members of the Petaluma Community Development
Commission through the Executive Director
FROM: Bonne Gaebler, Housing Administrator VP
SUBJECT: Resolution Of The.Petaluma City Council And The Petaluma Community
Development Commission (PCDC) Pursuant To.Health And Safety Code Section
33354.8 Regarding Forgiveness Of A Loan, Advance Or Indebtedness Owed By
A Public Body
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolutions Of The Petaluma City
Council And The Petaluma Community Development Commission (PCDC) Pursuant To Health
And Safety Code Section 33354.8 Regarding Forgiveness Of A Loan, Advance Or Indebtedness
Owed By A Public Body
BACKGROUND
One of redevelopment agencies' (RDA's) powers is the ability to divert property tax revenues
from counties, cities, special districts, and school districts. To receive these revenues,
redevelopment officials must file detailed annual statements of indebtedness that allow county
auditors to track the agency's income, expenditures and available.revenues. County auditors
then allocate property tax increment revenue to pay the agencies' debts.
Redevelopment:agencies can,create debt by issuing tax allocation bonds and revenue bonds, and
loaning ntoney to the underlying.cityor county. For example, although it has never been a
practice with the City of Petaluma and PCDC, an RDA and its city can create debt under a
contract that requires the city to build public works that benefit a project area. In return the
agency pays the city specified amounts of property tax increment revenues each year until the
city has enough money to build':the public works project.
Critics worry that some redevelopment agencies' loans to other public agencies exist only to
create debt that justifies the diversion of property tax increment revenues.
Agenda Reviews
City Attorney ` , JI Finance Director City Manager
DISCUSSION
Toboostfiscal transparency and political accountability,.AB936 requires the•following: RDA
officials must give detailed advance notice of their plans to wipe other public agencies' debts off
the books. The agency must adopt.a resolution at least 15 days before it acts on the proposed
forgiveness. The bill also requires each.RDA to adopt a resolution by February 1, 2012 that
declares whether or not the agency forgave a public body a loan, advance, or indebtedness from
January 1, 2010 through December 31, 2011.
The attached_resolutions specify that the City/PCDC has not forgiven, during the reporting
period, the repayment wholly or partially, of any loan, advances or indebtedness.
FINANCIAL IMPACTS
•
Since the City/PCDC has not forgiven any loans, advances, or indebtedness, there is no financial
impact of this bill.
ATTACHMENTS
1. Resolution of PCDC regarding forgiveness of a loan, et al.
2. Resolution of the City Council regarding forgiveness of a loan, et al. •
Exhibit #1.
A RESOLUTION OF THE PETALUMA COMMUNITY DEVELOPMENT
COMMISSION (PCDC) PURSUANT TO HEALTH AND SAFETY CODE SECTION
33354.8 REGARDING FORGIVENESS OF A LOAN,ADVANCE OR INDEBTEDNESS
OWED BY A PUBLIC BODY
WHEREAS, the PCDC (the "Agency") is a redevelopment agency engaged in
redevelopment activities pursuant to the California Community Redevelopment Law, Health and
Safety Code Section 33000 et seq.; and
WHEREAS, effective January 1, 2012, Health and Safety Code Section 33354.8 requires
that the Agency adopt a.resolution, on,or before February 1,2012, declaring whether or not it has
forgiven, during the period of time-commencing January 1, 2010, through December 31, 2011
(the "Reporting Period") the repayment, wholly or partially, of a loan, advance, or indebtedness
that has been owed by a public body to the Agency.
NOW THEREFORE, BE IT RESOLVED that the PCDC hereby:
1. Declares that the Agency has not forgiven, during the Reporting,Period, the repayment,
wholly or partially, of any loans, advances,or indebtedness owed to the Agency by any public
body.
2. Directs the Executive Director of the Agency to transmit a copy of this Resolution to the City
Council of the City of Petaluma and to the California State Controller within ten days of its
adoption.
It is hereby certified that the foregoing Resolution No. was duly introduced and adopted
by the PCDC at a meeting held on the 23rd day of January, 2012, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED: ATTESTED:
Chair Agency Secretary
Exhibit #2
A RESOLUTION OF THE.CITY COUNCIL OF THE CITY OF PETALUMA
PURSUANT TO HEALTH AND SAFETY CODE SECTION 33354.8 REGARDING
FORGIVENESS OF A LOAN, ADVANCE OR INDEBTEDNESS OWED BY A
REDEVELOPMENT AGENCY
WHEREAS, the Petaluma Community Development Commission (the "Agency") is a
redevelopment agency engaged in redevelopment activities pursuant to the California
Community Redevelopment Law, Health and Safety Code Section 33000 et seq.; and
WHEREAS, effective January 1, 2012,.Health-and Safety Code Section 33354.8 requires
that the City of Petaluma (the "City") adopt a resolution, on or before February 1, 2012,
declaring whether or not it has forgiven, during the period of time commencing January 1, 2010,
through December 31, 2011 (the "Reporting Period") the repayment, wholly or partially, of a
loan, advance, or indebtedness that has been owed to the City by the Agency.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby:
1. Declares that the City has not forgiven, during the Reporting Period, the repayment, wholly or
partially, of any loans, advances or indebtedness owed to the City by the Agency.
2. Directs the City Clerk to transmit a copy of this Resolution to the California State Controller
within ten days of its adoption.
It is hereby certified that the foregoing Resolution No. was duly introduced and adopted
by the City Council of the City of Petaluma at a meeting held on the 23rd day of January, 2012,
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED: ATTESTED:
Mayor City Clerk