10A Action 2008 0602 Attach - Preliminary Official Statement

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Allocation of Taxes Secured taxes are due in two equal installments. Installments of taxes levied upon secured property become delinquent on December 10 and April 10. Taxes on unsecured property are due March 1 and become delinquent August 31. The County Auditor-Controller is responsible for the aggregation of the taxable values assigned by the Assessor as of the January 1st lien date for property within the boundaries of the Project Area. This results in the reported total current year Project Area taxable value and becomes the basis of determining tax increment revenues due to the Agency. Although adjustments to taxable values for property within the Project Area may occur throughout the fiscal year to reflect escaped assessments, roll corrections, etc., such adjustments are not assumed in the tax increment projection shown herein. Revenue from the secured and unsecured roll is distributed to the Agency in two payments, with half in January based on December tax collections and half in May from April collections. An additional adjustment payment may be made at year-end. The unitary roll revenue is paid in two installments in January and May. Tax revenue from supplemental assessments in the Project Area is separately distributed in monthly payments to the Agency. Alameda County has implemented the Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (the "Teeter Plan"), as provided for in Section 4701 et seq. of the California Revenue and Taxation Code (which allows each entity in the County to draw on the amount of secured property taxes levied on its behalf rather than the amount actually collected). The Agency participates in the Teeter Plan, therefore, the Agency's secured property tax revenues reflect total levies, rather than the actual amount collected. The application of the Teeter Plan could be terminated by the County Board of Supervisors and the Board of Supervisors may discontinue the procedure under the Teeter Plan with respect to any tax or assessment levying agency in the County if the rate of secured tax delinquency for that agency in any year exceeds 3% of the total of all taxes and assessments levied on the secured rolls in for that agency. In the event that the Teeter Plan or its application to the Agency is terminated, the amount of the levy of tax increment received by the Agency would depend upon the actual collections of the secured taxes within the Project Area. Unsecured taxes are not allocated under the Teeter Plan. Limitations on Tax Revenues As amended, the Redevelopment Plan includes the following limits: Plan Life :.............................................................................July 11, 2034 Final Date to Incur Debt :......................................................July 11, 2013 Final Date to Collect Tax Increment and Repay Debt:.........July 11, 2044 Limit on Tax Increment allocated to the Agency :.................$2.650 billion Limit on Outstanding Bonded Indebtedness :.......................$880 million The Redevelopment Plan includes a cap on tax increment that may be collected during the life of the Project Area. The tax increment cap is $2.65 billion. The Agency reports that it has collected approximately $54.7 million through 2006-07 after deducting ERAF payments of $1.7 million. The Agency is not projected to reach the cap on tax increment prior to the last date to -17-