THE ATTACHED INFORMATION WAS RECEIVED AND DISTRIBUTED AFTER PUBLICATION OF THE INITIAL AGENDA PACKET FOR THE SEPTEMBER 13, 2011, CITY COUNCIL MEETING

Transcription

1 ITEM #15 San Marcos Redevelopment Agency Status THE ATTACHED INFORMATION WAS RECEIVED AND DISTRIBUTED AFTER PUBLICATION OF THE INITIAL AGENDA PACKET FOR THE SEPTEMBER 13, 2011, CITY COUNCIL MEETING Released on: 9/13/11 Date at 3:00 p.m. Time

2 City of San Marcos/San Marcos Redevelopment Agency REDEVELOPMENT WORKSHOP

3 WORKSHOP OVERVIEW Review of ABX1 26 (Redevelopment Dissolution) & ABX1 27 (Voluntary Alternative Redevelopment Program - VARP) Financial Impacts of ABX1 26 & ABX1 27 RDA Lawsuit sutupdate 2

4 ABX RDA DISSOLUTION - OVERVIEW October 1 - Redevelopment Agency terminated. Successor Agency formed to dispose of RDA assets and assume payment of enforceable obligations. City could be Successor Agency; should City decline to become the Successor Agency, the first taxing agency that volunteers becomes the Successor Agency. Oversight Board needs to be formed to oversee Successor Agency activities. Allow for enforceable obligation payments to be made, except for repayment amounts owed prior to July 1985 Disposition of agency assets 3

5 ABX RDA DISSOLUTION - OVERVIEW Tax increment would be redistributed as ordinary property tax to the current taxing agencies: State/schools County Special Districts City of San Marcos (approx. $132,000 for FY 11/12) City could decide to assume the housing functions and take over those assets. 4

6 ABX1 27 VARP OVERVIEW City would be required to make an est. $17.5 million payment to the State in FY 2011/12 and $4.2 million annually thereafter. City submitted an appeal to the Dept of Finance If upheld, amount decreases to $15.9 million for FY 11/12 and $3.8 million annually thereafter. Future annual payments are affected by growth in assessed valuation and new indebtedness. An opt-in ordinance needs to be adopted prior to October 1, (Council adopted July 26, 2011) 5

7 DISSOLUTION OPTION FINANCIAL IMPACT TO AGENCY Description FY2010/2011 Gross Tax Increment $56,007,933 Affordable Housing Set-Aside (13,144,947) Debt Service on existing bond indebtedness (22,438,964) Tax Increment Pass-Throughs (18,618,229) Personnel Costs ( 1,527,141) Other Contract Services ( 1,837,853) Returnable to Agency $ 1,163,583 Average 1% Share of Prop. 13 Funds to City 7.2% Increase in City Property Tax Funds attributable to end of RDA $ 83,778 Information presented - Preliminary FY2010/2011 unaudited financials 6

8 IMPACTS OF VARP Required City Payment FY 2011/12 FY 2012/13 annual payment Former Payment (FY09/10,FY10/11) $17.5 million $ 4.2 million SERAF- (RDA housing funds) $24.4 million Loan Payment needs to be repaid over 5 years ($4.88 million/yr) Source of Funds to pay VARP RDA Housing set aside RDA Non housing funds Non RDA funds 7

9 IMPACTS OF VARP Funds Available as of June 30, 2011 FY 2011/12 (no repayment required) RDA housing fund - $13 million available Non housing - Potential bond proceeds reimb. (approx. $10M) FY 2012/13 (annually thereafter) Non housing future net tax increment Other non-housing funding sources Loss of Potential Tax Increment 8

10 BENEFITS VARP Protects Agency Assets Preserves tax increment revenue Preserves City/Agency control over redevelopment activities Creek District University District Grand Avenue Palomar Station Richmar SPA Preserves Agency ability to fund future infrastructure 9

11 10

12 Cumulative Increment From Inception Through FY 2010/11 Gross Net of Set-Aside & Pass-Through Project Area No. 1 $206,844,528 $ 119,496,129 Project Area No. 2 $11,630,996 $ 63,128,085 Project Area No. 3 $309,604,652 $ 109,660,117 Total $658,080,176 $ 292,257,331 11

13 P j Projected d Tax T Increment I $250 Millio ons $200 $150 $100 $50 $0 Fiscal Year *The in due tto th the expiration 1 and *Th declines d li i Fiscal Fi l Year Y and d are d i ti off ttax iincrementt collection ll ti in i Project P j t Areas A d 2 respectively. ti l 12

14 RDA AVAILABLE BOND PROCEEDS as of June 30, 2011 (Preliminary - Unaudited) Non-Housing Bond Proceeds $40,593,348 56% Housing Bond Proceeds $32,356,364 44% 13

15 RDA REVENUES Fiscal Year 2010/11 (Preliminary - 06/30/11 Unaudited) Tax Increment $56,007,933 93% Other $1,634,669 3% Transfers In $1,181,230 2% Rental Income $20,122 0% Interest $1,314,553 2% 14

16 RDA EXPENDITURES Fiscal Year 2010/11 (Preliminary - 06/30/11 Unaudited) Tax Increment Pass- Through $18,618,229 34% Housing Loans/Developers $3,330,184 6% Debt Service $23,620,194 43% ERAF $4,163,078 7% Transfers Out $1,181,230 2% Housing Loan Programs $451,302 1% Administration 1% $3,364,994 6% 15

17 PASS-THROUGH ALLOCATIONS Fiscal Year 2010/11 County of San Diego $8,283,239 44% SMUSD $6,758,089 36% Other $281,762 2% Palomar Pomerado Health $141,069 1% Office of Education $624,153 3% Vallecitos Water District $765,399 4% Palomar College $900,598 5% SMFPD $863,072 5% 16

18 IMPACTS OF DISSOLUTION TO AFFORDABLE HOUSING Dissolve RDA Agency City take over housing activities and assets; Establish a Housing Authority to conduct housing activities and take over assets; Transfer housing activities and assets to the County Housing Authority Voluntary Alternative Redevelopment Program Act Protection of all Agency housing assets and future tax increment 17

19 UPDATE ON CRA LAWSUIT Status of CRA Lawsuit Filed on July 18, 2011 Stay issued August 17, 2011 Impacts of Stay Lawsuit time-line September 9, 2011 State to submit brief September 24, 2011 CRA to file response Supreme Court to issue decision no later than January 15,

20 REDEVELOPMENT WORKSHOP Questions? 19