HomeMy WebLinkAboutAGENDA REPORT 2008 0618 CC REG ITEM 08AMOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: David C. Moe II, Redevelopment Manager
BY: Jessica Sczepan, Administrative Specialis
DATE: June 11, 2008 (Meeting of 6/18/08)
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CIiYOFMOORPARK, CALIFORNIA
City Council Meeting
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SUBJECT. Consider Ordinance to Modify Terms and Restrictions Related to
Financing and Implementation of the Moorpark Redevelopment Project
BACKGROUND & DISCUSSION
The City Council adopted Ordinance No. 110 on July 5, 1989, approving the
Redevelopment Plan for the Moorpark Redevelopment Project ( "Project ").
The Redevelopment Project currently has a time limit to incur indebtedness of July 5, 2009.
After July 5, 2009, the Redevelopment Agency will no longer be able to issue bonds or
establish new loans with the City of Moorpark. Without sufficient debt, the Agency will no
longer be able to collect tax increment generated from the Project Area and the tax
increment will be distributed back to the affected taxing entities, such as the County of
Ventura, Ventura County Community College District, and Moorpark Unified School District.
Without additional tax increment the Agency will not be able to complete all goals and
objectives of the Redevelopment Plan.
In 2001, the California legislature adopted SB 211 which amended Section 33333.6(e)(2)
of the Health and Safety Code and allowed redevelopment agencies to eliminate the time
limit to incur new debt. With the elimination of the time limit to incur indebtedness, the
Agency will be able to issue new bonds and establish loans, allowing the Agency to
continue to collect its full tax increment revenues. Over the next 22 years the Agency would
receive an estimated $123,000,000.00, after pass -thru payments. (Assumes 3% growth in
Agency revenue per year.) There is a minimal fiscal impact associated with eliminating the
time limit to incur indebtedness, which is discussed in more detail below.
In 2003, as part of the State Budget approval, the legislature adopted SB 1045 which
required an Educational Revenue Augmentation Fund ( "ERAF ") contribution by all
redevelopment agencies for fiscal year 2003 -04. To offset the loss of this revenue, SB
1045 allows the City to extend the effective date of the Redevelopment Plan and the last
date to receive tax increment by one year.
Honorable City Council
Page 2
June 18, 2008
The attached Ordinance implements these provisions. The City Attorney has reviewed the
attached ordinance and has confirmed that it may be adopted without complying with any
other procedures applicable to the amendment of a redevelopment plan.
FISCAL IMPACT
As a condition to eliminating the time limit to incur indebtedness, SB 211 requires the
Agency to make statutory pass- through payments to taxing entities with which the Agency
does not currently have a pass- through agreement. The amount is based on a percentage
of any increases in assessed value which occur after the tax year in which the original final
date to incur indebtedness would have occurred.
Calleguas Municipal Water District (CMWD) does not currently have a pass- through
agreement with the Agency. As such, adoption of the SB 211 Ordinance will trigger
statutory pass- through payments with CMWD. The Adjusted Base year for these payments
will be the 2009/10 fiscal year. Starting in 2010/11, CMWD will receive pass- through
payments calculated as follows: 20% of 0.941 % of tax increment generated over the base
year 2009/10. The following example shows how the payment is calculated the first year:
09/10 Adjusted Base Year Value: $971,966,130
10/11 Property Tax Payments: $1,001,125,114 (assuming assessed valuation growth at 3 %)
Gross Tax Increment: $291,590 (deduct adj. base year from 10/11 payments X 1%)
0.941 % of Gross Tax Increment $2,743
20% of 0.9% of Gross Tax Increment $549 (AB 1290 Statutory pass — through rate)
This amounts to a total estimated pass- through payment to CMWD of $505,586 for the
remainder of the plan. (See Attachment No. 2)
Eliminating the time limit to incur indebtedness would help the Agency to secure future tax
increment and could result in millions of dollars in additional bonding capacity to the
Agency. In light of this fact, staff feels that payment of the pass- through to CMWD would
have a minimal impact on the Agency's ability to accomplish the goals of its
Implementation Plan.
STAFF RECOMMENDATION
Introduce Ordinance No. for first reading, waive full reading, and schedule
second reading and adoption for July 2, 2008.
Attachment No. 1 — Ordinance No.
Attachment No. 2 — Projected New Pass - Through Payments
ATTACHMENT 1
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AMENDING THE REDEVELOPMENT
PLAN FOR THE MOORPARK REDEVELOPMENT PROJECT
AREA EXTENDING THE TIME LIMIT OF THE EFFECTIVENESS
OF THE PLAN AND PAYMENT OF INDEBTEDNESS AND
RECEIPT OF PROPERTY TAXES BY ONE YEAR AND
ELIMINATING THE TIME LIMIT ON THE ESTABLISHMENT OF
LOANS, ADVANCES AND INDEBTEDNESS PURSUANT TO
HEALTH AND SAFETY CODE SECTION 33333.6.
WHEREAS, the Redevelopment Agency of the City of Moorpark, California (the
"Agency "), has been designated as the official redevelopment agency in the City of
Moorpark to carry out the functions and requirements of the Community Redevelopment
Law of the State of California (Health and Safety Code Section 33000 et seq.) and to
implement the Redevelopment Plan; and
WHEREAS, the Agency is engaged in activities necessary and appropriate to
carry out the Redevelopment Plan ( "Plan ") for the Moorpark Redevelopment Project
Area ( "Project Area "). The Plan area was adopted by the Agency's legislative body, the
City Council of the City of Moorpark. The Plan was adopted by Ordinance No. 110 on
July 5, 1989; and
WHEREAS, the plan was amended by Ordinance No. 111 on July 5, 1989
( "Amendment No. 1") and Ordinance No. 202 on December 14, 1994 ( "Amendment No.
2" (collectively, the "Amended Plan "); and
WHEREAS, the Amended Plan has a time limit of July 5, 2009, within which the
Agency may incur debt in conjunction with implementation thereof in conformity with the
California Community Redevelopment Law (CCRL; California Health and Safety Code
Section 33000, et seq.); and
WHEREAS, pursuant to section 33333.6 of the Health and Safety Code, a time
limit on the effectiveness of the Redevelopment Plan and a time limit on the period for
payment of indebtedness and receipt of property taxes under the Redevelopment Plan
have been established; and
WHEREAS, the provisions of the Redevelopment Plan are currently effective
until July 5, 2029 and no loan, advance or indebtedness to be repaid by tax revenues
shall be incurred by the Agency after July 5, 2009; and
WHEREAS, Section 33681.9 of the Health and Safety Code was added by
Senate Bill 1045 ( "SB 1045 ") which took effect on September 1, 2003, which requires
the Agency during the 2003 -04 fiscal year to make a payment for deposit in Ventura
County's Educational Revenue Augmentation Fund ( "ERAF "); and
Ordinance No.
Page 2
WHEREAS, on March 17, 2004 the Agency paid $135,608 into Ventura County's
Educational Revenue Augmentation Fund (ERAF) during the 2003 -04 fiscal year; and
WHEREAS, by and through Senate Bill 211, Section 33333.6 of the Health and
Safety code was amended to provide that after January 1, 2002, a legislative body may
amend a pre -1994 redevelopment plan to eliminate the time limit to incur indebtedness
and to further provide that such ordinance may be adopted without compliance with
CCRL Section 33354.6 Article 12 of the CCRL, or any other provision of the CCRL
pertaining to amendments of redevelopment plans, except that the redevelopment
agency must make the payments to affected taxing entities required by CCRL Section
33607.7 from the date each constituent plan reaches the previously existing deadline(s)
to incur debt; and
WHEREAS, by and through Senate Bill 1045, Section 33333.6 of the Health and
Safety Code was amended to provide that as to redevelopment plans originally adopted
before January 1, 1994, and when such redevelopment agency is required to make
payment to the ERAF in fiscal year 2003 -2004 pursuant to Section 33681.9 of the
Health and Safety Code the City Council as the legislative body of the Agency may
amend the Redevelopment Plan to extend by one year the time limit on the
effectiveness of the Redevelopment Plan and eliminate the time limit to repay
indebtedness and receipt of property taxes under the Redevelopment Plan; and
WHEREAS, Section 33333.6 further provides that such ordinance may be
adopted without compliance with the normal procedures for redevelopment plan
amendments; and
WHEREAS, the City Council desires to adopt this ordinance to amend and
eliminate certain time limitations of the Redevelopment Plan, as more particularly set
forth below, in accordance with Section 33333.6, as amended by SB 1045 and SB 211 ;
and
WHEREAS, The enactment of this Ordinance is exempt from the California
Environmental Quality Act (Public Resources Code Section 21000 et seq.)( "CEQA ")
pursuant to CEQA Guidelines Section 15378(b)(4) because it is a fiscal activity which
does not involve any commitment to any specific project which may result in a
potentially significant physical impact on the environment; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The current time limit on the effectiveness of the Redevelopment
Plan, is hereby extended by one year, to July 4, 2030. The Moorpark Redevelopment
Agency is hereby authorized to act with respect to the Redevelopment Plan at any time
during which the Redevelopment Plan is effective.
Ordinance No.
Page 3
SECTION 2. The current time limit on paying indebtedness or receiving property
taxes pursuant to the Redevelopment Plan and Health and Safety Code Section 33670
is hereby extended for one year to July 4, 2040. The Moorpark Redevelopment Agency
is hereby authorized to act with respect to the Redevelopment Plan at any time during
which the Redevelopment Plan is effective.
SECTION 3. The time limit on the establishment of loans, advances and
indebtedness set forth in the Amended Plan and the implementation thereof, is hereby
eliminated; and the Agency is hereby authorized to establish loans, advances and
indebtedness with respect to the Amended Plan in accordance with all remaining
provisions of the Amended Plan, at any time during which the Amended Plan is
effective.
SECTION 4. Except with respect to the amendments set forth herein, the
Amended Plan, is and shall remain unchanged and in full force and effect in accordance
with its terms.
SECTION 5. The City Clerk is hereby directed to file a Notice of Exemption with
the County Clerk of the County of Ventura pursuant to CEQA Guidelines Section 15094.
SECTION 6. If any section, subsection, sentence, clause, phrase, part or portion
of this Ordinance is for any reason held to be invalid or unconstitutional by any court of
competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council declares that it would have adopted this Ordinance
and each section, subsection, sentence, clause, phrase, part or portion thereof,
irrespective of the fact that any one or more section, subsections, sentences, clauses,
phrases, parts or portions be declared invalid or unconstitutional.
SECTION 7. This Ordinance shall become effective thirty (30) days after its
passage and adoption.
SECTION 8. The City Clerk shall certify to the passage and adoption of this
ordinance; shall enter the same in the book of original ordinances of said City; shall make
a minute of the passage and adoption thereof in the records of the proceedings of the City
Council at which the same is passed and adopted; and shall, within fifteen (15) days after
the passage and adoption thereof, cause the same to be published once in the Moorpark
Star a newspaper of general circulation, as defined in Section 6008 of the Government
Code, for the City of Moorpark, and which is hereby designated for that purpose.
Ordinance No.
Page 4
PASSED AND ADOPTED this day of 2008
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
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ATTACHMENT 2
SB 211 AFFECTED TAXING ENTITIES
PASS THROUGH PROJECTIONS
PROJECTED
NEW
PASS THROUGH
PAYMENT
FY CWMD
Adj. Base 09 -10 Base Year
1
10 -11 $
548
2
11 -12
1,113
3
12 -13
1,695
4
13 -14
2,295
5
14 -15
2,912
6
15 -16
3,548
7
16 -17
4,203
8
17 -18
4,877
9
18 -19
5,572
10
19 -20
6,288
11
20 -21
7,644
12
21 -22
9,041
13
22 -23
10,480
14
23 -24
11,962
15
24 -25
13,488
16
25 -26
15,061
17
26 -27
16,680
18
27 -28
18,348
19
28 -29
20,066
20
29 -30
:21,836
21
30 -31
23,659
22
31 -32
25,536
23
32 -33
27,470
24
33 -34
29,462
25
34 -35
31,513
26
35 -36
33,626
27
36 -37
35,803
28
37 -38
38,044
29
38 -39
40,353
30
38 -39
42,732
First 20 years Total: $ 177,658
Total $ 505,856