RRA - Item 2 - Loan Of Funds From Redevelopment ProjectTO: HONORABLE CHAIRMAN
AND MEMBERS
ROSEMEAD REDEVELOPMENT AGENCY
FROM: FRANK G. TRIPEPI, EXECUTIVE DIRECTOR
DATE: DECEMBER 12, 2000
RE: RESOLUTION NO. 2000-31 AUTHORIZING A LOAN OF FUNDS FROM
REDEVELOPMENT PROJECT AREA NO. I TO REDEVELOPMENT PROJECT
AREA NO. 2
Project Area No. 1 has funds in reserve that are not required for immediate disbursement and which
the Agency may invest until the funds are needed for project activities or repayment of indebtedness,
pursuant to the authority of Health and Safety Code Section 33603. Project Area No. 2 is in need of
funds for redevelopment activities. Resolution No. 2000-31 authorizes the Rosemead
Redevelopment Agency to loan $1,000,000 in funds from Project Area No. 1 to Project Area No. 2,
by means of an inter-fund transfer of monies between the project areas. The loan shall be repaid at
such times and in such amounts as may be determined by the Agency Board with interest at the rate
of seven percent per annum. This obligation will constitute indebtedness of Project Area No. 2,
payable out of taxes allocated to the Agency pursuant to Health and Safety Code Section 33670.
RECOMMENDATION:
Staff recommends that the Agency Board adopt Resolution No. 2001-31.
DEC 12 2000
1-1 EM No. A -
CALIFORNIA CODES
HEALTH AND SAFETY CODE
SECTION 33603
33603. An agency may invest any money held in reserves or sinking
funds, or any money not required for immediate disbursement, in
property or securities in which savings banks may legally invest
money subject to their control.
CALIFORNIA CODES
HEALTH AND SAFETY CODE
SECTION 33670
33670. Any redevelopment plan may contain a provision that taxes,
if any, levied upon taxable property in a redevelopment project each
year by or for the benefit of the State of California, any city,
county, city and county, district, or other public corporation
(hereinafter sometimes called "taxing agencies") after the effective
date of the ordinance approving the redevelopment plan, shall be
divided as follows:
(a) That portion of the taxes which would be produced by the rate
upon which the tax is levied each year by or for each of the taxing
agencies upon the total sum of the assessed value of the taxable
property in the redevelopment project as shown upon the assessment
roll used in connection with the taxation of that property by the
taxing agency, last equalized prior to the effective date of the
ordinance, shall be allocated to and when collected shall be paid to
the respective taxing agencies as taxes by or for the taxing agencies
on all other property are paid (for the purpose of allocating taxes
levied by or for any taxing agency or agencies which did not include
the territory in a redevelopment project on the effective date of the
ordinance but to which that territory has been annexed or otherwise
included after that effective date, the assessment roll of the county
last equalized on the effective date of the ordinance shall be used
in determining the assessed valuation of the taxable property in the
project on the effective date); and
(b) Except as provided in subdivision (e) or in Section 33492.15,
that portion of the levied taxes each year in excess of that amount
shall be allocated to and when collected shall be paid into a special
fund of the redevelopment agency to pay the principal of and
interest on loans, moneys advanced to, or indebtedness (whether
funded, refunded, assumed, or otherwise) incurred by the
redevelopment agency to finance or refinance, in whole or in part,
the redevelopment project. Unless and until the total assessed
valuation of the taxable property in a redevelopment project exceeds
the total assessed value of the taxable property in that project as
shown by the last equalized assessment roll referred to in
subdivision (a), all of the taxes levied and collected upon the
taxable property in the redevelopment project shall be paid to the
respective taxing agencies. When the loans, advances,.and
indebtedness, if any, and interest thereon, have been paid, all
moneys thereafter received from taxes upon the taxable property in
the redevelopment project shall be paid to the respective taxing
agencies as taxes on all other property are paid.
(c) In any redevelopment project in which taxes have been divided
pursuant to this section prior to 1968, located within any county
with total assessed valuation subject to general property taxes for
the 1967-68 fiscal year between two billion dollars ($2,000,000,000)
and two billion one hundred million dollars ($2,100,000,000), if the
total assessed valuation of taxable property within the redevelopment
project for the 1967-68 fiscal year was reduced, the total sum of
the assessed value of taxable property used as the basis for
apportionment of taxes under subdivision (a) shall be reduced by 10
percent for the 1968-69 fiscal year and fiscal years thereafter.
(d) For the purposes of this section, taxes shall not include
taxes from the supplemental assessment roll levied pursuant to
Chapter 3.5 (commencing with Section 75) of Part 0.5 of Division 1 of
the Revenue and Taxation Code for the 1983-84 fiscal year.
(e) That portion of the taxes in excess of the amount identified
in subdivision (a) which are attributable to a tax rate levied by a
taxing agency for the purpose of producing revenues in an amount
sufficient to make annual repayments of the principal of, and the
interest on, any bonded indebtedness for the acquisition or
improvement of real property shall be allocated to, and when
collected shall be paid into, the fund of that taxing agency. This
subdivision shall only apply to taxes levied to repay bonded
indebtedness approved by the voters of the taxing agency on or after
January 1, 1989.
From: Peter Wallin Fa.: ,1(310)450 0506 To: Karen Ogaw. F.: 1(626)30-,9218 Page 1 of 2 Wednesday, December 06. 2000 2:55 PM
RESOLUTION NO. 2000-31
A RESOLUTION OF THE ROSEMEAD
REDEVELOPMENT AGENCY
AUTHORIZING A LOAN OF FUNDS FROM
REDEVELOPMENT PROTECT AREA NO. 1
TO REDEVELOPMENT PROJECT AREA
NO. 2.
THE ROSEMEAD REDEVELOPMENT AGENCY FINDS. DETERMINES AND
RESOLVES AS FOLLOWS: ,
WHEREAS: The City has adopted Redevelopment Plans for Project Area No. I and for
Project Area No. 2.
WHEREAS: Project Area No. I has funds in reserve that are not required for immediate
disbursement needs and which the Agency wishes to invest pursuant to the authority of
Health and Safety Code section 33603 until the funds are needed for project activities ni
repayment of indebtedness. and
WHEREAS: Project Area No. 2 is in need of funds for redevelopment activities.
NOW, THEREFORE. BE IT RESOLVED:
Section 1. A loan in the principal amount of $1.000;000. to be effected b. an
inter-fund transfer of monies from Project Area No. 1 to Project Area No. 2. is hereby
authorized.
Section 2. The principal autautt of the loan, tooether N.vith interest at the rate of
seven percent per annum, shall be repaid at such times and in such amounts as may be
determined by the Agency Board. The iepayment_obli«ations created hereunder may be
made subordinate. to any interim or permanent financing of the Agency.
Section 3. This obligation shall constitute indebtedness of Project Area No. 2
payable out of taxes allocated to the. agency pursuant to Health and Safety= Code section
;3670.
Section 4. This Resolution shall take effect from and after its adoption and
approval.
From: Peter Wallin Fax: +1(310)4500506 To: Karen Ogawa Fax: rt(626)3079218 Page 2 of 2 Wednesday, December 06.20002:55 PM
PASSED. APPROVED and ADOPTED this 12°i day of December: 2000.
Chairman of Rosemead
Redevelopment A_ency
(Seal)
ATTEST:
Secretary of the Rosemead
Redevelopment Agency
I, Secretary of the Rosemead Redevelopment Agency, do hereby
certify that the foregoing Resolution No. 2000-_ was regularly introduced and adopted by
the Rosemead Redevelopment .Agency; at a regular meeting thereof held on December 12.
2000, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
IN WITNESS WHEREOF. I have hereunto set my hand and affixed the official seal
of the Rosemead Redevelopment Agency this
2000.
Secretary of the Rosemead
Redevelopment Agency
~l