ARA-2011-007RESOLUTION NO. ARA- 2011 -007
A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
APPROVING THE BORROWING FROM ITS LOW AND MODERATE
INCOME HOUSING FUND FOR THE PURPOSE OF PAYING THE
AGENCY'S SUPPLEMENTAL EDUCATIONAL REVENUE
AUGMENTATION FUND (SEF Q F) PAYMENT FOR FISCAL YEAR
2010 -11 AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33690.5
WHEREAS, the Anaheim Redevelopment Agency ( "Agency ") is a redevelopment agency
duly organized and existing under the California Community Redevelopment Law, Health and Safety
Code Section 33000, et seq., ( " CRL ") and has been authorized to transact business and exercise the
power of a redevelopment agency pursuant to action of the City Council ( "City Council ") of the
City of Anaheim ( "City "); and
WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the
Amended and Restated Redevelopment Plan ( "Redevelopment Plan ") for the Anaheim Merged
Project Area ( "Merged Project Area ") which was adopted by and through a series of ordinances of
the City Council of the City of Anaheim, specifically Ordinance Nos. 5913, 5914, 5915, 5916, 5917,
5918, 5973, and 6034; and
WHEREAS, pursuant to CRL Sections 33334.2, 33334.3, 33334.6, 33333.10 and 33333.11
not less than thirty percent (30 %) of the tax increment allocated to the Agency each year from the
Merged Project Area are deposited into the Agency's Low to Moderate Income Housing Fund
( "Housing Fund ") that are expended to increase, improve and preserve the community's supply of
affordable housing for persons and families of low or moderate income available at an affordable
housing cost; and
WHEREAS, as a part of the state budget process, pursuant to CRL Section 33690.5
( "SERAF Legislation "), the Legislature has mandated that redevelopment agencies make certain
payments intended to offset expenses of local educational agencies for public education; and
WHEREAS, these payments are referred to as Supplemental Educational Revenue
Augmentation Fund ( "SERAF ") payments; and
WHEREAS, pursuant to CRL Section 33690.5, during the 2010 -11 fiscal year, the Agency
must deposit $3,300,000 in the Orange County Supplemental Educational Revenue Augmentation
Fund ( SERAF) on or prior to May 10, 2011, and
WHEREAS, a provision of the SERAF Legislation, specifically Section 33690.5(c)(1),
purports to mitigate the impact of the SERAF payments by authorizing redevelopment agencies to
borrow from either the amount required to be allocated to the Housing Fund, pursuant to
CRL Sections 333342 and 33334.3, or any moneys in the Housing Fund, or both, to make the full
allocation required by the SERAF Legislation; and
WHEREAS, there are insufficient moneys available to the Agency to make the SERAF
payment required by the SERAF Legislation; and
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WHEREAS, the Agency's Housing Fund has sufficient funds available to carry out the
Agency's affordable housing program and to make the payment required by the SERAF Legislation;
and
WHEREAS, no contracts executed by the Agency will be impaired if the Agency borrows
moneys from the Housing Fund to make the SERAF payment pursuant to the authority provided by
Section 33690.5(c)(1) of the SERAF Legislation; and
WHEREAS, the funds borrowed from the Housing Fund pursuant to Section 33690.5(c)(1) of
the SERAF Legislation are required to ne repaid in full on or before June 30, 2016; and
WHEREAS, a lawsuit has been filed challenging the validity of CRL Sections 33690 and
33690.5 ( "SERAF Litigation" ); and
WHEREAS, any SERAF payment made by the Agency pursuant to the SERAF Legislation
shall be made under protest and only if and to the extent such SERAF payment is required by law as
it now exists or is hereafter amended, modified or otherwise enacted by the California Legislature.
NOW, THEREFORE, BE IT RESOLVED that the Anaheim Redevelopment Agency does
hereby resolve as follows:
Section 1. The facts set forth in the recitals above are true and correct and hereby
incorporated into the Agency's findings and determinations.
Section 2. The Agency is hereby authorized to borrow the entire amount required to be
allocated to the Agency's Housing Fund during this fiscal year, pursuant to Sections 33334.2 and
33334.3 of the California Health and Safety Code, and any moneys in that fund, to make the full
SERAF payment required by Section 33690.5(a) of the SERAF Legislation.
Section 3. The Agency hereby finds and determines as follows:
(a) There are insufficient moneys available to the Agency to make the SERAF
payment required by the SERAF Legislation.
(b) The Agency° s Housing Fund has sufficient funds available to carry out the
Agency's affordable housing program and to make the payment required by the SERAF Legislation
and no contracts executed by the Agency will be impaired if the Agency borrows moneys from the
Agency's Housing Fund to make the SERAF payment pursuant to the authority provided by Section
33690.5(c)(1) of the SERAF Legislation.
Section 4. The Agency shall repay the borrowed amount, in full, to the Housing Fund on
or before June 30, 2016.
Section 5. The Executive Director is hereby authorized and directed to report to the
County of Orange, County Auditor regarding how the Agency intends to fund the SERAF payment
required by the SERAF Legislation.
Section 6. If and to the extent required by law, the Agency shall, on or before May 10,
2011, remit an amount equal to the amount determined for the Agency pursuant to
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CRL Section 33690.5(a)(2)(J) to the County of Orange, County Auditor for deposit in the County's
Supplemental Educational Revenue Augmentation Fund. The Agency's payment of the amounts
described in Section 33690.5(a) of the SERAF Legislation shall be made under protest, based on the
allegations set forth in the complaint filed in the SERAF Litigation, as it may be amended from time
to time. In the event the SERAF Litigation results in the invalidation of the SERAF Legislation or
otherwise results in a revocation or negation of the Agency's obligation to make the payment
required by the SERAF Legislation the Agt=y shall not make the payment described it this
resolution.
Section 7. The Agency Secretary shall certify to the adoption of this Resolution.
THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY
ANAHEIM REDEVELOPMENT AGENCY THIS FIFTEENTH (15 DAY OF FEBRUARY
2011, BY THE FOLLOWING ROLL CALL VOTE:
AYES: Chairman Tait, Agency Members Sidhu, Eastman, Galloway, Murray
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
ANAHEIM LOPMEN CY <�/al
By L�r
Tom Tait, Chairperson
ATTEST:
LIND N. A DAL, ITY CLE
72
Linda N. Andal
L. - I)ALLEY, CITY ATTORNEY
Jo oodheadIV
ssistant ity Attorney
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