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While tax increment funds were handled separately for Plaza 1 and Plaza 2 since inception, administering
<br />project funds became cumbersome as these two Project Areas functioned as one downtown business area.
<br />To more efficiently and effectively manage projects and programs, the two Project Areas were merged in
<br />the last Implementation Plan period. It remains an administratively complex project area because of the
<br />many sub -areas it contains, each with their different time limits and in some cases, varying pass- through
<br />requirements.
<br />Program Funding
<br />Funding for the Redevelopment Agency's Economic Development and Public Improvement Projects in
<br />the Plaza, like the other two project areas and the Affordable Housing Program, mainly comes from tax
<br />increment, a portion of the property tax revenue collected in all the redevelopment project areas. "Tax
<br />increment" consists of the taxes collected on the increase in assessed value (over and above the base
<br />year assessed value) of properties in the redevelopment areas, starting from the date of Redevelopment
<br />Project Area designation.
<br />Table 2 shows the projected tax increment for the Plaza Project Area for 2009 -10 through 2013 -2014. It
<br />shows what portion of these funds will go to the Affordable Housing Program (20% Housing Set - Aside)
<br />and what portion has already been committed to outstanding debt obligations. A mandatory payment to
<br />the Supplemental Educational Revenue Augmentation Fund (SERAF) is not shown below, but is
<br />included in Table 3 later in this section.
<br />As shown in Table 2, debt service consumes almost two - thirds of the gross tax increment received in the
<br />Plaza. The largest component of the debt service is for repayment of Tax Allocation Bonds (TABs)
<br />issued in 2002 to support capital improvements in the Plaza. Payments to a debt service escrow fund
<br />were initiated in 2009 -10. Because the Plaza is projected to reach its legal cap for receiving tax
<br />increment revenue prior to the full retirement of the 2002 TABs, the Agency is setting funds aside in
<br />advance to ensure that all debt obligations can be met.
<br />Tahle 2. Plaza Tax Increment - 2009 Estimates
<br />Fiscal
<br />Year
<br />Gross Tax
<br />Increment
<br />20%
<br />Housing
<br />Set -Aside
<br />Pass
<br />Through
<br />Payments
<br />General
<br />Fund Loan
<br />TAB Debt
<br />Service
<br />Debt Service
<br />Escrow
<br />Available
<br />Tax
<br />Increment
<br />2009 -10
<br />2,935,590
<br />(576,641)
<br />(239,541)
<br />(300,000)
<br />(1,345,850)
<br />(200,000)
<br />273,558
<br />2010 -11
<br />2,947,111
<br />(578,150)
<br />(255,806)
<br />(300,000)
<br />(1,348,538)
<br />(187,293)
<br />277,324
<br />2011 -12
<br />2,972,585
<br />(582,428)
<br />(272,657)
<br />(300,000)
<br />(1,348,288)
<br />(187,493)
<br />281,719
<br />2012 -13
<br />3,026,929
<br />(592,454)
<br />(290,254)
<br />(300,000)
<br />(1,350,903)
<br />(205,994)
<br />287,324
<br />2013 -14
<br />3,082,303
<br />(602,661)
<br />(308,345)
<br />(300,000)
<br />1 (1,351,063)
<br />(227.192)
<br />293,042
<br />Source: City of San Leandro, Urban Analytics
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