CC - Item 4I - Redevelopment Pass Through PaymentsE M P
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ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: ANDREW C. LAZZARETTO, CITY MANAGE
DATE: APRIL 24. 2007
SUBJECT: ELECTING TO RECEIVE REDEVELOPMENT PASS THROUGH
PAYMENTS
SUMMARY
Heath and Safety Code Section 33607.5 (b) allows for taxing agencies to receive a
portion of any pass through payments generated by project, areas amended after
January 1, 1994. Project Area No. 1 in the City of Rosemead was amended in January
2002, at which point in time the Community Development Commission became
responsible for passing through 25%D of the growth in tax increment beginning FY 2003-
04 to all affected taxing agencies including the City of Rosemead.
This means that the City, as a taxing agency, is eligible to receive a portion of the 25%
pass through of tax increment growth. Based on FY 06-07 tax increment revenues, the
City is eligible to receive around $50,000.
Staff Recommendation
Staff recommends that the City Council adopt City Council Resolution No. 2007-13
(Attachment 1) electing to receive payments pursuant to Health and Safety Code
Section 33607.5 (b).
ANALYSIS
In January 2002, the Rosemead City Council amended Project Area No. 1 eliminating
the time limit to establish new debt. As part of this amendment, 25% of any new tax
increment generated in Project Area No. 1 would be passed through to all affected
taxing agencies, including the City of Rosemead.
The Health and Safety Code allows for the City of Rosemead to collect its fair share of
the pass through. In order to do so, a resolution must be adopted by the City Council
electing to receive the payment. Once Los Angeles County receives the adopted
resolution, the City's fair share of funds will be calculated and payment will be remitted
to the City accordingly.
APPROVED FOR CITY COUNCIL AGENDA:
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City Council Meeting
April 24, 2007
Pace 2 of 2
Based upon FY 06-07 tax increment revenues, the City's portion is approximately
$50,000. It should be noted that this amount will vary from year to year depending upon
the building activity in the project area.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Administrator/RCDC Deputy Executive Director
Attachment 1 - Resolution No. 2007-13
RESOLUTION NO. 2007-13-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA, MAKING AN ELECTION TO
RECEIVE PAYMENTS PURUSANT TO HEALTH AND SAFETY
CODE SECTION 33607.5 (B) FOR REDEVELOPMENT PROJECT
AREA NO. 1
WHEREAS, the Community Development Commission of the City of
Rosemead ("Agency") has prepared an amendment to the redevelopment plan
(the "Redevelopment Plan") for Redevelopment Project No. 1 eliminating the time
limit to incur new debt; and
- WHEREAS, Section 33333.6 (e)(2) of the Health and Safety Code
provides that if an Agency amends the redevelopment plan to eliminate the time
limit to incur new debt, and no pass through agreement exits, the amounts
required pursuant to subdivisions (b), (c) (d) and (e) of Section 33607.5 must be
paid to each affected taxing entity, including the City, if the City elects to receive
such tax increments; and
WHEREAS, the City of Rosemead is an affected taxing entity under
Section 33607.5;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
ROSEMEAD RESOLVES AS FOLLOWS:
Section 1. Pursuant to Health and Safety Code Sections 33333.6 (e)(2)
and 33607.5, the City Council hereby elects to receive its share of the twenty-five
percent (25%) tax increment pass-through payment authorized by Health and
Safety Code Section 33607.5(b) commencing with the first fiscal year the Agency
is required to make such payments to the affected taxing entities and continuing
each year thereafter.
Section 2. That the City Clerk shall certify to the passage and adoption of
this resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED ON April 24, 2007.
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ATTEST: Mayor
City Clerk