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25 Section 33676 Payments Taxing entities are also able to separately receive their share of the growth in valuation due to inflation, known as Section 33676 payments or the 2% payments, pursuant to the Sections 33676 of the Redevelopment Law. The Successor Agency is subject to this tax sharing arrangement with the Flood Control District, the Mosquito Abatement District, the Bay Area Rapid Transit District and the City of San Leandro. Additionally, as a result of the court’s decision in Santa Ana Unified School District v. Orange County Development Agency, the Successor Agency is also required to make, and is currently making, such payments to the San Leandro Unified School District and the Chabot-Las Positas Community College District. See Appendix H - “FISCAL CONSULTANT’S REPORT” for further information. Statutory Pass-Through Payments In certain circumstances, Sections 33607.5 and 33607.7 of the Redevelopment Law require redevelopment agencies and successor agencies to make statutory pass-through payments to taxing agencies whose territory is located within a project area, to alleviate the financial burden or detriment caused by the redevelopment project. As required by the Redevelopment Law as modified by the Dissolution Act, the County Auditor-Controller is responsible for administering all negotiated and statutory pass-through payment calculations and payments. The Former Agency began making statutory tax sharing payments with respect to the Plaza 1 Project Area in fiscal year 1996-97 and the West San Leandro/MacArthur Boulevard Project Area in 2000-01, to those taxing entities with which the Former Agency did not already have tax sharing agreements. Those taxing entities that had entered into a Pass-Through Agreement with the Former Agency (see “-Pass-Through Agreements” above) will continue to receive tax sharing payments in accordance with the terms of that agreement. Taxing entities that do not have tax sharing agreements in place receive statutory pass- through payments in accordance with the three-tiered formula for statutory tax sharing payments set forth in the Redevelopment Law. These statutory tax-sharing payments began in fiscal year 2004-05 and utilize the assessed values for fiscal year 2003-04 as an adjusted base year value for the first tier. These taxing entities receive their prorated shares of a tax sharing amount that is defined as being 25% of the revenue derived from the difference in assessed value in the current year and the assessed value in the adjusted base year and net of a calculated amount equal to the former 20% housing set-aside requirement. In the eleventh year after initiation of the statutory tax sharing payments (fiscal year 2014-15), a second tier of tax sharing payments will be initiated using the assessed values of year 10 (fiscal year 2013-14) as an adjusted base year value. These taxing entities will then begin to additionally receive their prorated shares of a tax sharing amount that is defined as being 21% of the revenue derived from the difference in assessed value in the current year and the assessed value in the second adjusted base year and net of a calculated amount equal to the former 20% housing set-aside requirement. See Appendix H - “FISCAL CONSULTANT’S REPORT” for further information about statutory pass-through payments.