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xN <br />City of San Leandro <br />Meeting Date: March 5, 2012 <br />Staff Report <br />File Number: 12 -096 <br />TO: City Council <br />FROM: Chris Zapata <br />City Manager <br />BY: James O'Leary <br />Interim Finance Director <br />FINANCE REVIEW: James O'Leary <br />Agenda Section: CONSENT CALENDAR <br />Agenda Number: 8.K. <br />Interim Finance Director <br />TITLE: Staff Report for Resolution Approving a Budget Amendment Adjusting <br />Revenue and Expenditure Appropriations Necessary from State Actions <br />Eliminating the San Leandro Redevelopment Agency <br />RECOMMENDATIONS <br />The Finance Committee recommends that the City Council approve the budget amendment <br />adjusting revenue and expenditure appropriations necessary from State actions eliminating <br />the San Leandro Redevelopment Agency. <br />Q611911 �1[a]0I <br />The City Council approves annual budgets based on the best revenue and expenditure <br />information available several months prior to the actual adoption of budget appropriations. As <br />a result, budget adjustments are periodically necessary for changes that arise and require <br />additional budget appropriations or re- appropriations between budget line items. The City <br />Council approved the current City and Redevelopment Agency budgets on June 6, 2011. <br />With the passage of Assembly Bill X1 26 on June 29, 2011, the California State Legislature <br />added several sections to the California Community Redevelopment Law, Health and Safety <br />Code Section 33000 et seq. This bill mandated the dissolution of all redevelopment agencies <br />in California as of October 1, 2011 (subsequently revised to February 1, 2012 by the <br />California Supreme Court), and also outlined several requirements for agencies during the <br />period between the effective date and the date of dissolution. <br />Section 1 of AB X1 26 includes the following provisions that require the revenue and <br />expenditure appropriation adjustments contained in the budget amendment: <br />Upon their dissolution, any property taxes that would have been allocated to <br />redevelopment agencies will no longer be deemed tax increment. Instead, these taxes <br />City of San Leandro Page 1 Printed on 212812012 <br />