RDA Reso 2004-005 - Laserfiche WebLink

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04. SB 1045 also permits the Redevelopment Plan to be amended to add one year on to the duration of the Redevelopment Plan effectiveness and on to the period for collection of tax increment revenues and the repayment of debt. Agency Tax Sharing Obligations AB1290 Tax Sharing. Under the 1994 amendments to redevelopment law known as AB1290, any extension of certain fiscal limits in then-existing redevelopment plans without pass-through agreements triggered a statutory pass-through payment schedule, however since the Project Area was established in 1999 (post-AB1290) it is automatically subject to the statutory pass-through provisions of AB1290. AB1290 Statutory Pass-Throughs. The AB 1290 formula is set forth in Section 33607.7 of the Redevelopment Law and, to the extent incorporated therein, in Section 33607.5 of the Redevelopment Law, and is referred to herein and in the Indenture as the "Statutory Pass- Throughs". Under the Statutory Pass-Throughs the Agency is to pay to the affected taxing entities percentages of tax increment generated with respect to the increase in assessed valuation of the Project Area following certain years. The allocation of pass-through payments to each taxing entity is based on the allocation factor assigned to each entity by the County. Approximately 20% of the tax increment in the Project Area is paid to taxing entities during the initial ten years of the Project Area. In year ten, an additional base threshold is established and another payment stream is added equal to 16.8% of tax increment over the year-ten threshold. In year thirty a third base threshold is established and payments equal to 11.2% of revenue over that threshold are added to the payments made to taxing entities. The allocation ofpass-through payments to each taxing entity is based on an allocation factor that is assigned to each entity by the County. The County calculates an additional factor for most non-school entities that is the percentage of the entity's revenue to be paid into the Educational Revenue Augmentation Fund ("ERAF"). It is the Agency's practice to pay to each taxing entity the entity's full allocation factor, including the percentage that the entity would pay to ERAF. See "ERAF Obligations" below. According to the Fiscal Consultant, over the life of the project area, the Agency expects to pass approximately 30% of its tax increment through to taxing entities. These payments are a prior obligation of the Agency and are paid by the Agency from tax increment receipts before payments on the Bonds. ERAF Obligations In connection with its approval of the budget for the 1992-93, 1993-94 and 1994-95 fiscal years, the State Legislature enacted legislation which, among other things, reallocated funds from redevelopment agencies to school districts by shifting a portion of each agency's tax increment, net of amounts due to other taxing agencies, to school districts for such fiscal years for deposit in the Education Revenue Augmentation Fund ("ERAF"). The amount required to be paid by a redevelopment agency under such legislation was apportioned among all of its redevelopment project areas on a collective basis, and was not allocated separately to individual project areas. In connection with its approval of the budget for the 2002-03, the State Legislature enacted legislation which reallocated funds from redevelopment agencies to school districts by shifting a portion of each agency's tax increment, net of amounts due to other taxing agencies, to school districts for such fiscal years for deposit in the Education Revenue Augmentation Fund -17-