10A Action 2008 0602 Attach - Preliminary Official Statement

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every ten years; currently 55%, it will increase to 65% in 2009-10, to 75% in 2019-20 and to 85% from 2029-30 through the remaining life of the Project Area. The percentage is applied to gross tax increment net of 33676 payments, 20% housing set-aside and the County's property tax administration fee. AC Transit Fiscal Agreement. The fiscal agreement with the AC Transit District requires the Agency to pay to the District the District's proportionate share of tax increment from a base adjusted by two percent annually plus a base adjusted annually by 1.125% less the 20% housing set-aside, the county property tax administration fee and ERAF payments. East Bay Regional Parks District Fiscal Agreement. Under its fiscal agreement with the Agency the District receives payments that are equivalent to its share of the 33676 (2%) inflation-adjusted payments, plus revenue from a debt service levy deriving from aDistrict- issued bond. Hayward Area Recreation and Parks District Fiscal Agreement. The fiscal agreement between HARD and the Agency calls for the District to receive the District's proportionate share of tax increment under a formula similar to that used in the County fiscal agreement. As the District is entirely within the unincorporated portion of the Project Area the Agency and the County Economic Development Agency agreed in the Second Amendment to the Memorandum of Understanding between the two agencies, that the payments to HARD are to be made out of the County's share of Project Area tax increment. School District Fiscal Agreements. The San Leandro Unified School District, San Lorenzo Unified School District and the Alameda County Superintendent of Schools have fiscal agreements with the Agency containing identical terms. Each district receive its share of a percentage of tax increment net of the 20% housing set-aside and the county property tax administration fee. The percentage was set at zero through 2003-04, at 30% from 2004-05 through 2011-12, and at 35% from 2012-13 through the remaining life of the Project Area. County Project Area Agreement. The Project Area tax increment is subject to a revenue-sharing agreement (herein and in the Indenture, the "Project Area Agreement") dated as of July 1, 1993 between the Agency and the County of Alameda designed to determine the proportionate expenditure of funds between the unincorporated County portion of the Project Area and the City portion of the Project Area. Under the formula, expenditures in the County equaled 38% of net increment (after deduction of 20% housing, the 33676 2% payments, the County's property tax administration fee, ERAF payments and payments made under fiscal agreements) through 1998-99; 45% of net increment from 1999-00 through 2003-04; 60% of net increment from 2004-05 through 2008-09; and 50% of net increment for the remaining life of the Project Area. The Project Area Agreement was amended on July 1, 2001, designating the Alameda County Redevelopment Agency as the redevelopment authority with jurisdiction over the unincorporated portion of the Project Area and the Redevelopment Agency of the City of San Leandro as the redevelopment authority with jurisdiction over the City portion of the Project Area. The amended Project Area Agreement retained the formula used in the original agreement but directed the City to pay to the County the portion of tax increment revenue designated for expenditure in the unincorporated portion of the Project Area; the City retains the portion designated for expenditure in the City portion of the Project Area. 33676 (2%) Payments. Revenue equivalent to the annual inflation adjustment applied to land and improvement under Proposition 13 is allocated by the Auditor-Controller to several taxing entities. These payments are known as 2% payments for the maximum inflation factor -19-