ARA1993-03RESOLUTION NO. ARA93-3
A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
AUTHORIZING A LOAN FROM THE LOW- AND MODERATE-
INCOME HOUSING FUND TO PAY THE STATE MANDATED
AMOUNT TO THE EDUCATIONAL REVENUE AUGMENTATION FUND
WHEREAS, Section 33681 was added to the California Health
and Safety Code by Senate Bill 844, Chapter 700 of 1992, which
provides that during.the 1992-93 fiscal year each redevelopment
agency shall allocate to the Educational Revenue Augmentation
Fund, prior to May 10, 1993, an amount determined pursuant to a
formula contained therein (the "SB 844 Amount"); and
WHEREAS, the California Director of Finance has notified
the Anaheim Redevelopment Agency (the "Agency") that the SB 844
Amount it is required to pay is Three Million Three Hundred
Seventy-Eight Thousand Eight Hundred Ninety Dollars
($3,378,890); and
WHEREAS, Health and Safety Code Section 33681(b)(1)
provides that in order to make the full SB 844 Amount
allocation required by that section, a redevelopment agency may
borrow uD to Fifty Percent (50%) of the amount required to be
allocated to the Low- and Moderate-Income Housing Fund in
Fiscal Year 1992-93; and
WHEREAS, Health and Safety Code Section 33681(b)(2)
provides that as a condition for borrowing pursuant to that
subdivision, a redevelopment agency shall make a finding that
there are insufficient other monies to meet the requirements of
Section 33681; and
WHEREAS, Health and Safety Code Section 33681(d) provides
that the legislative body shall, by March 1, 1993, report to
the County Auditor as to how the redevelopment agency intends
to fund the SB 844 Amount allocation required by Health and
Safety Code Section 33681; and
WHEREAS, the staff report which accompanies this Resolution
concludes that there are insufficient funds remaining, after
payment of all sums required by existing bonded indebtedness
and other existing agreements, and payment of all
administrative expenses, to make the SB 844 Amount payment
required by Health and Safety Code Section 33681; and
WHEREAS, based on the best available data at this time, the
Agency projects that approximately Three Million Two Hundred
Nine Thousand Five Hundred Sixty-Eight Dollars ($3,209,568)
will be required pursuant to Health and Safety Code Sections
33334.2 and 33334.6 to be placed into the Agency's Low- and
Moderate- Income Housing Fund in Fiscal Year 1992-1993; and
WHEREAS, the Agency intends that this Resolution shall
evidence its obligation to repay to the Low- and Moderate-
Income Housing Fund any sums borrowed to fund the SB 844 Amount
allocations; and
WHEREAS, the Agency has been advised by its special legal
counsel that there exist questions regarding the authority of
the State to require redevelopment agencies to pay the SB 844
Amount.
NOW, THEREFORE, THE ANAHEIM REDEVELOPMENT AGENCY DOES
HEREBY RESOLVE AS FOLLOWS:
Section ~. The Agency hereby finds that based upon the
information presented in the staff report accompanying this
Resolution, the Agency has insufficient other monies to pay the
SB 844 Amount required by Health and Safety Code Section
33681(a) without borrowing from the Agency's Low- and
Moderate-Income Housing Fund.
SectiQn 2. The Agency is hereby authorized to borrow up
to One Million Six Hundred Four Thousand Seven Hundred
Eighty-Four Dollars ($1,604,784) from the Agency's Low- and
Moderate- Income Housing Fund, which is projected to be Fifty
Percent (50%) of the amount required to be allocated to the
Agency's Low- and Moderate-Income Housing Fund pursuant to
Health and Safety Code Sections 33334.2, 33334.3 and 33334.6
during the 1992-93 fiscal year, to be used to pay the Agency's
SB 844 Amount obligation pursuant to Health and Safety Code
Section 33681. Such amount shall be repaid to the Agency's
Low- and Moderate-Income Housing Fund by annual repayments to
such fund of one-tenth of such amount on or before the last day
of each of Fiscal Years 1993-1994 through 2002-2003, with the
last payment due on or before June 30, 2003. If such amount is
greater than Fifty Percent (50%) of the actual amount required
to be allocated to the Agency's Low- and Moderate-Income Fund
in the 1992-1993 Fiscal Year, as determined by the Agency
Treasurer and Executive Director as soon as feasible following
%he conclusion of the 1992-1993 Fiscal Year, the excess amount
which was borrowed shall be repaid to the Agency's Low- and
Moderate-Income Housing Fund as soon as possible.
Section 3. The Executive Director of the Agency is
hereby authorized, in cooperation with the City Manager, to
report to the Orange County Auditor that the Agency intends to
fund the allocation required by Section 33681 through funds
borrowed from the Agency's Low and Moderate Income Housing Fund
as provided herein, as well as other revenues derived from tax
increment funds. The Executive Director, in cooperation with
the City Manager, is authorized and dlrec~ed to state in such
report that nothing in such report shall be construed to waive
the Agency,s rights to contest the constitutionality or
legality of such requirement, and that such payment will be
made under protest due to the Agency's belief that such payment
requirement is unconstitutional and illegal.
02/11/93
3741Q/2621/000 -2-
PASSED, APPROVED AND ADOPTED this
March , 1993, by th~ following vote:
2nd day of
AYES: Feldhaus, Hunter, Fickler, Simpson, Daly
NOES: None
ABSENT: None
ABSTAIN: None
Agenc~ Chairman
ATTEST:
Agency Secretary
02/11/93
3741Q/2621/000 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LEONORA N. SOHL, Secretary of the Anaheim Redevelopment Agency, do hereby certify that the foregoing
Resolution No. ARA93-3 was passed and adopted at a regular meeting of the Anaheim Redevelopment Agency held
on the 2nd day of March, 1993, by the following vote of the members thereof:
AYES: AGENCY MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly
NOES: AGENCY MEMBERS: None
ABSENT: AGENCY MEMBERS: None
AND I FURTHER CERTIFY that the Chairman of the Anaheim Redevelopment Agency signed said Resolution
No. ARA93-3 on the 3rd day of March, 1993.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this 3rd day of March, 1993.
SECRETARY OF THE ANAHEIM REDEVELOPMENT AGENCY
(SEAL)