RDA Reso 2004-005 - Laserfiche WebLink

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("ERAF"). The legislation includes a $75 million one year shift of property taxes from redevelopment agencies to the State. The required Agency contribution for 2002-03 was $221,249. The State's Fiscal Year 2003-04 Budget requires redevelopment agencies to transfer a total of $135,000,000 to the ERAF in Fiscal Year 2003-04. The transfer must be completed by May 10, 2004, and the Agency's contribution for 2003-04 will be $408,486. The Agency has funds on hand to make the ERAF payment with respect to Fiscal Year 2003-04. ERAF payments are an obligation of the Agency as a whole; payment is not required to be derived from any particular project area. The Governor's recent budget proposal for Fiscal Year 2004-05 again projects significant deficits in the State's General Fund and again includes a proposed transfer of $135,000,000 by redevelopment agencies to the ERAF. Although the amount is currently uncertain, the Agency expects to have an ERAF obligation for the 2004-05 fiscal year and is taking action to have funds available. The Agency cannot predict if ERAF payments beyond fiscal year 2004-05 will be required by the State but expects payments to continue into the foreseeable future. See "RISK FACTORS -State Budget Deficit; ERAF." Assessed Valuation Tax Revenues are generated from increases in the total assessed value above the base year value. In or about August of each year, the County Auditor-Controller provides a report of the current year and base year values for the Project Area. The base year assessed valuation for the Project Area was established as the assessed valuation in the constituent sub-areas comprising the Project Area in the year prior to the first year of the redevelopment plans for each sub-area. Between 2000 and 2003, total assessed valuation increased in the Project Area by approximately seven percent, growing from $735 million in 2000-01 to $787 million in 2003-04. The secured roll accounted for 81% of the total valuation in the Project Area in 2003-04 and the unsecured roll accounted for 19% of the total. The Agency expects that the nearly completed Bayside Business Park, a project which includes seven buildings on 20 acres on Davis Street will first appear on the tax roll in 2004-05. In addition to tax revenue from the incremental secured, unsecured and utility roll values the Agency receives revenue from supplemental assessments and the unitary roll (AB454 revenue). Supplemental assessments are assessments of properties for which new construction or sales occurred during a tax year. The assessments are for the pro-rated portion of the remaining tax year and, if the construction or sale occurs after the January 1 lien date, for full value of the property during the subsequent tax year. The Agency expects to receive $172,500 in revenue from supplemental assessments in the Project Area during 2003-04. Supplemental revenue is a variable revenue source and is available for payment of the Bonds but is not included in the calculation of tax increment available for bonding. Unitary roll revenue, allocated to all jurisdictions from a countywide tax rate area, amounts to $1,100 in 2003-04. The revenue is included in the table below. The following table summarizes the assessed valuation of property in the Project Area and corresponding tax increment during fiscal years 2000-01 through 2003-04. -18-