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6:30 P.M.

 

                                                                             

INVOCATION:                       Chaplain Jon Arnold, Providence Saint Joseph Medical Center.

                                                The Courts have concluded that sectarian prayer as part of City Council

                                                meetings is not permitted under the Constitution.

 

FLAG SALUTE:

 

ROLL CALL:

 

 

JOINT MEETING WITH THE CITY COUNCIL:

 

1.      ORDINANCE TO EXTEND PLAN LIMITS OF THE GOLDEN STATE, CITY CENTRE, WEST OLIVE AND SOUTH SAN FERNANDO REDEVELOPMENT PROJECT AREAS AS AUTHORIZED BY SENATE BILL 1045 AND THE AFFIRMATION OF EXISTING INDEBTEDNESS AND A PROPOSED PUBLIC IMPROVEMENT DEBT OBLIGATION:

 

The purpose of this report is to receive authorization from the Redevelopment Agency (Agency) Board to extend the Plan Effectiveness Date and the Debt Repayment and Receipt of Tax Increment Date for the Golden State, City Centre, South San Fernando and West Olive Redevelopment Project Areas as authorized under Senate Bill (SB) 1045; affirm existing indebtedness for the Golden State, City Centre, and West Olive Project Areas; and, approve a new Public Improvement Debt Obligation.

 

Existing law required a redevelopment agency to make an Educational Revenue Augmentation Fund (ERAF) payment to the County Auditor during Fiscal Year (FY) 2002-03.  This allocation was determined in accordance with the State mandate.  SB 1045 requires all redevelopment agencies in the State to make similar ERAF allocations in FY 2003-04 based on a statewide aggregate allocation of $135 million.  Individual agency payments are determined as a proportion of that agency�s share of the total tax increment collected statewide as in ERAF shifts of previous years.  Each agency�s payment is calculated based on 50 percent from gross tax increment received and 50 percent from net tax increment received after pass-throughs to other taxing entities.  Each agency must allocate the specified amount to the County Auditor for deposit into the ERAF on or before May 10, 2004.

 

The Bill looks at the ERAF payment as an obligation of the agency.  Therefore, if an agency has more than one Redevelopment Plan, thereby more than one fund, the Bill does not require each fund to pay its proportionate share of the agency payment.  Finally, ERAF payments made in FYs 2002-03 and 2003-04 can be subtracted from revenues that count against a redevelopment plan�s tax increment ceiling.  For the Agency, this would only apply to the West Olive Redevelopment Project Area that has a tax increment cap of $60 million. 

 

Based on the formula described above, the Agency�s payment is calculated to be $1,343,094.  SB 1045 authorizes an agency having to make an ERAF payment to amend its Redevelopment Plan(s) to extend the time limit on the effectiveness of the plan by one year.  The Bill further authorizes an agency having to make an ERAF payment to amend its Redevelopment Plan(s) to extend the time limit on use of tax increment to repay indebtedness by one year. 

 

SB 1045 requires the Agency to make an ERAF payment for the FY 2003-04.  However, the Bill authorizes the City to extend its Redevelopment Plan limits to help minimize the impact of the ERAF payment on the Agency�s ability to execute projects and repay debt, by allowing agencies to extend the Plan Effectiveness Date, and the date to use tax increment to repay debt.  SB 1045 makes no mention of timeframes for passing the appropriate ordinance to make these amendments, however, the California Redevelopment Association recommends that agencies complete these amendments as soon as possible.  By extending the Plan Effectiveness Date and the date for Debt Repayment and Receipt of Tax Increment by one year for the Golden State, City Centre, West Olive and South San Fernando Redevelopment Project Areas, the Agency will have another year to complete projects, receive tax increment and repay debt.  The Agency will receive an estimated $47,840,630 in net tax increment during the one-year period.  The estimated present value equivalent of this amount is $13,590,277.

 

Each year the Agency files a Statement of Indebtedness with the State outlining all  the Agency debt obligations.  Recently, staff has undertaken a review of the various debt obligations, to ensure that the Agency maintains sufficient debt obligations in order to obtain all of the tax increment over the course of the term of each project area.  This is particularly important for the Golden State and City Centre Redevelopment Project Areas, which currently cannot incur additional debt beyond 2003.  It was noted that a number of the documents had minor deficiencies such as not having a stated termination date, and in the case of the Youth Endowment Services Fund, the debt obligation was in the form of a resolution rather than a promissory note.   Also, an additional debt obligation is recommended to fund public infrastructure projects, if and when tax increment funds become available beyond the debt obligations already identified. 

 

Recommendation:

 

Introduction of proposed City Council ordinances entitled:

(Motion and voice vote only)

1.   AN ORDINANCE OF THE COUNCIL OF THE CITY OF BURBANK EXTENDING THE TIME LIMITS ON THE LIFE OF THE SOUTH SAN FERNANDO REDEVELOPMENT PROJECT AREA REDEVELOPMENT PLAN AND THE TIME LIMITS TO COLLECT TAX INCREMENT FROM THE SOUTH SAN FERNANDO REDEVELOPMENT PROJECT AREA REDEVELOPMENT PLAN FOR THE PAYMENT OF INDEBTEDNESS.

 

2.   AN ORDINANCE OF THE COUNCIL OF THE CITY OF BURBANK EXTENDING THE TIME LIMITS ON THE LIFE OF THE CITY CENTRE REDEVELOPMENT PROJECT AREA REDEVELOPMENT PLAN AND THE TIME LIMITS TO COLLECT TAX INCREMENT FROM THE CITY CENTRE REDEVELOPMENT PROJECT AREA REDEVELOPMENT PLAN FOR THE PAYMENT OF INDEBTEDNESS.

 

3.   AN ORDINANCE OF THE COUNCIL OF THE CITY OF BURBANK EXTENDING THE TIME LIMITS ON THE LIFE OF THE GOLDEN STATE REDEVELOPMENT PROJECT AREA REDEVELOPMENT PLAN AND THE TIME LIMITS TO COLLECT TAX INCREMENT FROM THE GOLDEN STATE REDEVELOPMENT PROJECT AREA REDEVELOPMENT PLAN FOR THE PAYMENT OF INDEBTEDNESS.

 

4.   AN ORDINANCE OF THE COUNCIL OF THE CITY OF BURBANK EXTENDING THE TIME LIMITS ON THE LIFE OF THE WEST OLIVE REDEVELOPMENT PROJECT AREA REDEVELOPMENT PLAN AND THE TIME LIMITS TO COLLECT TAX INCREMENT FROM THE WEST OLIVE REDEVELOPMENT PROJECT AREA REDEVELOPMENT PLAN FOR THE PAYMENT OF INDEBTEDNESS.

 

Adoption of proposed City Council resolution entitled:

A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AFFIRMING EXISTING REDEVELOPMENT AGENCY DEBT AND AMENDING AND ESTABLISHING CERTAIN OTHER REDEVELOPMENT AGENCY DEBT TO THE CITY.

 

Adoption of proposed Redevelopment Agency resolution entitled:

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK AFFIRMING EXISTING AGENCY DEBT AND AMENDING AND ESTABLISHING CERTAIN OTHER AGENCY DEBT TO THE CITY OF BURBANK.

 

 

CONSENT CALENDAR: (Items 2 and 3)

 

The following items may be enacted by one motion.  There will be no separate discussion on these items unless a Council Member so requests, in which event the item will be removed from the consent calendar and considered in its normal sequence on the agenda. A roll call vote is required for the consent calendar.