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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 <br />