RDA Reso 2004-005 - Laserfiche WebLink

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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 The Redevelopment Law requires that the Redevelopment Plan contain certain limitations on the redevelopment activities of the Agency and related matters. The Project Area was established after the effective date of AB1290 (a major revision of Redevelopment Law that took effect in 1994) and as such, the Redevelopment Plan does not contain a "cap" or dollar limit, on the amount of tax increment that can be collected under the plan. Instead, the Redevelopment Plan contains a statutory time limit on the receipt of tax increment and repayment of indebtedness of 45 years after the date of plan adoption. This limit was extended by one year to July 19, 2045 as a result of astate-mandated payment to the ERAF fund. The Agency's Redevelopment Plan includes a limitation of $750 million on the amount of indebtedness that may be outstanding at any time. The Agency may carry out eminent domain actions in the Project Area for twelve years from plan adoption, or to July 11, 2011. Redevelopment activity can occur for thirty years, until July 19, 2029. The Agency may incur indebtedness for twenty years from plan adoption, or July 19, 2019. The California Legislature recently enacted Senate Bill 1045, Chapter 260, Statutes 2003, effective September 1, 2003 ("SB 1045"). SB 1045 provides, among other things, that the Redevelopment Plan for the Project Area maybe amended to increase the tax increment limit by the amount of the ERAF payments made by the Agency in the Fiscal Years 2002-03 and 2003- -16-