HomeMy WebLinkAboutRDA Reso 2009-2002RDA RESOLUTION NO. 2009-2002
RESOLUTION OF THE CHULA VISTA REDEVELOPMENT
AGENCY AUTHORIZING AN INTERFUND LOAN UP TO
$855,797 FROM THE LOW AND MODERATE INCOME
HOUSING FUND TO THE REDEVELOPMENT FUNDS FOR
THE STATE REQUIRED ERAF PAYMENT; AND
AUTHORIZING NECESSARY BUDGET ADJUSTMENTS TO
APPROPRIATE THE INTERFUND LOAN OF $855,797 AND
THE BALANCE OF $977,307 REQUIRED BY AB 1389 FOR A
TOTAL OF $1,833,104
WHEREAS, Assembly Bill (AB) ]389 of 2008 added Section 33684 to the Health and
Safety Code (H&S) requiring redevelopment agencies to remit a prescribed share to the
Educational Revenue Augmentation Fund (ERAF); and
WHEREAS, the Redevelopment Agency of the City of Chula Vista (the Agency) has a
prescribed ERAF share of $855,797 due by May 10, 2009; and
WHEREAS, AB 1389 also required each redevelopment agency to go through a County
review ofpass-through requirements from fiscal years 2003 through 2008; and
WHEREAS, the County of San Diego has opined that the Agency is subject to pass-
through requirements on "Unitary Tax" revenue. This new interpretation creates an outstanding
pass-through obligation of $977,307, due by February 1, 2009; and
WHEREAS, the Agency continues to discuss the matter with the County Auditor.
Should this dispute not be resolved immediately the Agency would remit the payment with a
statement of protest and a request for a refund of this payment should the matter be resolved in
the Agency's favor; and
WHEREAS, State regulations allow agencies to borrow up to 50% of the current year
revenues to the Low and Moderate Income Housing Fund in order to make the ERAF payment;
and
WHEREAS, staff identified budget savings in the current yeaz by keeping vacant
positions frozen and postponing projects until next yeaz in order to make a portion of the
payments; and
WHEREAS, the Agency has insufficient funds to make the ERAF payment and must
borrow from the Low and Moderate Income Housing Fund; and
WHEREAS, the funds borrowed from the Low and Moderate Income Housing Fund will
be repaid within 10 years from the date the funds aze remitted to the County Auditor; and
WHEREAS, the Agency desires to borrow the amount of the ERAF payment ($855,797)
from the Low and Moderate Income Housing Fund.
NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of
Chula Vista does hereby declare as follows:
RDA Resolution No. 2009-2002
Page 2
(A) The Chula Vista Redevelopment Agency does hereby authorize an interfund loan
up to $855,797 from the low and moderate income housing fund to the Redevelopment
funds for the state required ERAF payment; and
(B) The Chula Vista Redevelopment Agency does hereby amend the fiscal
year 2009 Redevelopment Agency Budget to appropriate the interfund loan of
$855,797 and the balance of $977,307 required by AB1389 for a total of
$1,833,104.
Presented by
Gary Halb ., AI P
Deputy Ci Manager/Development Services
Director
Approved as to form by
B C. Miesfel
rty Attorney
PASSED, APPROVED, and ADOPTED by the Redevelopment Agency of the City of
Chula Vista, California, this 20th day of Januazy 2009, by the following vote:
AYES: Agency Members: Bensoussan, Castaneda, McCann, Ramirez, and
Cox
NAYS: Agency Members: None
ABSENT: Agency Members: None
Cheryl Cox, C airp rson
ATTEST:
n~ rockett, Secretary
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Eric Crockett, Secretary of the Chula Vista Redevelopment Agency, do hereby certify that the
foregoing RDA Resolution No. 2009-2002 was duly passed, approved, and adopted by the
Redevelopment Agency at a regular meeting held on the 20th day of January 2009.
Executed this 20th day of January 2009.
Eric Crockett, Secretary