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HomeMy WebLinkAboutFin SA Temporary Transfer of FundsSAN RAFAEL SUCCESSOR AGENCY AGENDA ITEM NO.: 7. b MEETING DATE: November 5, 2012 Department: Economic Development Prepared by: Mark Moses Finance Director Executive Director Approval -)J, r� ✓ L� �-- SUBJECT: RESOLUTION OF THE SAN RAFAEL SUCCESSOR AGENCY APPROVING A REQUEST TO THE MARIN COUNTY BOARD OF SUPERVISORS TO AUTHORIZE A TEMPORARY TRANSFER OF FUNDS RECOMMENDATION: Approve the request to the Marin County Board of Supervisors to authorize a temporary transfer of funds. BACKGROUND: The San Rafael Redevelopment Agency ("SRRDA") issued bonds to fund capital improvements in the Redevelopment Project Area. SRRDA has three outstanding bond series, the 1999 Bonds, the 2002 Refunding Bonds, and the 2009 Refunding Bonds. The County of Marin has historically provided an internal County loan to address the Agency's December bond payment. In 2010 and 2011, the County requested the Redevelopment Agency to provide a resolution requesting the loan and the Agency complied. The County has made the same request for the 2012. ANALYSIS: The bond payments are due in June and December, similar to other Redevelopment Agencies in the State. For Fiscal Year 2012-13, the first semi annual debt service payment for the 2002 Refunding Bonds and the 2009 Refunding Bonds totals $ 3,021,731. There is no payment due on the 1999 bonds at this time. The funds must be on deposit with the Trustee by November 27`''. In order to meet this deadline, the Successor Agency must have the funds by November 20, 2012. The bond payments were listed on the Second Recognized Obligation Payment Schedule, which was approved by the State in May 2012 and on the Third Recognized Obligation Payment Schedule, which was approved by the State in October 2012. FOR AGENCY SECRETARY ONLY File No.: -SA 4 r Agency Meeting: Disposition: The Marin County Auditor Controller has indicated that tax increment for the bond payments will not be available until the December 10`h property tax payments are processed. Therefore, the County will require a temporary transfer from other County funds to cover the debt service installment. The transfer will be from County funds and the County Auditor Controller is authorized to make such a transfer pursuant to Article XVI, Section 6 of the California Constitution. Article XVI, Section 6 of the California Constitution states that such temporary transfers cannot exceed 85% of the anticipated revenues accruing to the Successor Agency. The County Auditor Controller has stated that the transfer meets the requirements of the Law and has requested the San Rafael Successor Agency adopt a resolution requesting the County to make such a transfer. FISCAL IMPACT: No direct fiscal impact occurs by adoption this resolution. The Successor Agency has received State approval for the Second and Third Recognized Obligation Payment Schedule for Fiscal Year 2012-13 in the amount of $ 7,921,738. The County is proposing a transfer of $3,021,731, which does not exceed 85% of the anticipated Agency revenues from the 2012-13 approved Recognized Obligation Payment Schedules. RECOMMENDATION: Staff recommends the Board accept the report and approve the resolution requesting the Marin County Board of Supervisors authorize a temporary transfer of funds to pay the December 2012 installment of the SRRDA bonds. "` RESOLUTION NO. 12-2012 RESOLUTION OF THE SAN RAFAEL SUCCESSOR AGENCY APPROVING A REQUEST TO THE MARIN COUNTY BOARD OF SUPERVISORS TO AUTHORIZE A TEMPORARY TRANSFER OF FUNDS WHEREAS, the San Rafael Redevelopment Agency (the "Agency") was established under the provisions of the Community Redevelopment Law (California Health and Safety Code § 33000 et seq.) (the "CRL"); and WHEREAS, pursuant to the CRL the Agency issued its Tax Allocation Bonds Series 2002 and Series 2009 (the "Bonds"); and WHEREAS, on June 28, 2011, the California Legislature adopted and the Governor signed, and on December 29, 2011, the California Supreme Court, in California Redevelopment Association, et al. v. Ana Matosantos, et al., upheld, ABx1 26 ("AB 26"), legislation that amended the CRL and required that the Agency be dissolved on February 1, 2012; and WHEREAS, AB 26 provides for payments on the Bonds from the Redevelopment Property Tax Trust Fund (the "Trust Fund"), which is held by the County; and WHEREAS, the County Auditor Controller has stated there will be insufficient funds in the "Trust Fund allocated to the Successor Agency for the first half of fiscal year 2012-2013 to meet its obligations to make the first debt service payment on the Bonds for fiscal year 2012- 2013; and WHEREAS, Article XVI, Section 6 of the Constitution of the State of California provides that it shall be the duty of the Treasurer of any County to make such temporary transfer from the funds in his custody as may be necessary to provide funds for meeting the obligations incurred for maintenance purposes by any political subdivision whose funds are in his custody and are paid out solely through his office; and WHEREAS, pursuant to Section 34183(c) of AB 26 the County Treasurer may loan any funds from the county treasury that are necessary to ensure prompt payments of redevelopment agency debts; and WHEREAS, it is necessary that the sum of up to and not to exceed $3,021,731.00 be transferred from the general fund in the custody of the County Treasurer to the Successor Agency on november 20, 2012, for the purpose of meeting the obligations incurred for maintenance purposes by the Successor Agency for the 2012-2013 fiscal year; and WHEREAS, the amount to be transferred does not exceed eighty-five percent (85%) of the anticipated revenues accruing to the Successor Agency in the Trust Fund; and I o; 03`,1046268 7 I WHEREAS, it has been the past practice of the County Treasurer to make a temporary transfer from County funds to the San Rafael Redevelopment Agency to make its first semi- annual debt service payment. NOW, THEREFORE, BE IT RESOLVED that the City Council, acting as the Governing Board of the Successor Agency, hereby request the Marin County Board of Supervisors to authorize a temporary transfer of funds. BE IT FURTHER RESOLVED that the outstanding balance of the County funds transferred is due and payable immediately on the earlier of (i) the receipt of Trust Fund revenues collected for the Successor Agency by the County or (ii) January 16, 2013. 1, Esther C. Beirne, Secretary to the Successor Agency, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the San Rafael Successor Agency, held on Monday, the fifth day of November 2012, by the following vote, to wit: AYES: Members: Connolly, Heller, Levine, McCullough & Mayor Phillips NOES: Members: None ABSENT: Members: None 1 05 `;03�� 1096268 'UL ther C. Beirne, Agency Sec er�tary M November 7, 2012 Ms. Dana Proctor Marin County Auditor/Controller's Office 3501 Civic Center Drive Rm. 225 San Rafael, CA 94903 MAYOR GARY O. PHILLIPS COL NCILMEMBER DAMON CONNOLLY COUNCILMEMBER BARBARA I TELLER COUtiCILMEMBER MARC LEVI'*:E ,OBER ANDREW CI YUGAN MCCULLOUGH FINANCE DEPARTMENT PHONE: 415-485-5001 FAX: 415-459-2242 Re: Reimbursement of 11'30/12 debt service payment for San Rafael Redevelopment Agency Tax Allocation Bonds Dear Dana: In accordance with the San Rafael Redevelopment Agency Tax Allocation Bond debt service deposits due November 30, 2012, we request payment by November 20, 2012. Please see attached notice from US Bank and the San Rafael Successor Agency Resolution 4112-2012 requesting the temporary= transfer of funds. 2009 Issue (Trust 41 '15633000) Principal $ 930,000.00 Interest (Due 11130/12) $ 289,725.00 Total 2009 Due $1,219,725.00 2002 Issue (Trust 94471600) Principal $1,495,000.00 Interest (Due 5%31!12) $ 307,006.25 Total 2002 Due $ 1,802,006.25 TOTAL REIMBURSEMENT: $3,021,731,25 Please let me know when the hinds will be electronically transferred into the Westamerica. Successor Agency Account #501-27240-5. ABA 4121140218. Please note the City of San Rafael, as successor to the San Rafael Redevelopment Agency, does not have enough unencumbered monies to fund this payment. Thank you for all Of your assistance. If you have any questions, please feel free to contact me at (415) 458-5001. Sincerely, Van Bach Cc: Roy Given, County Auditor Controller 1 �#0O Ri t, l , I i'� Bo-) s i b SAN RAFAFL. CA 9491 i-! ��6i A UA .z 0 SARA 4f [:.0RCi M 13v 1, V, LV _ L J. JL 111: - [Wbyyankarr,,,-jjj�''',,,���j November 1, 2012 City of San Rafael Attn: Van Bach, Finance Director P 0 Box 151560 San Rafael, CA 94915-0060 FAX: (415) 459-2242 RE; SAN RAFAEL REDEVELOPMENT AGENCY CENTRAL SAN RAFAEL TAX ALLOCATION REFUNDING BONDS SERIES 2009 — TRUST 4135633000 AND TAX ALLOCATION REFUNDING BONDS SERIES 2002 — TRUST 1#94471600 Dear Van Bach; This will serve as a courtesy notice that, pursuant to the provisions of Section 4,03(1) of Resolution No. #77-69 governing the above issues, funds are required to be deposited with the Fiscal Agent for the next Debt Service Payments, on or before November 30, 2012. The amount due is as follows, 2009 Issue (Trust #135633000) Interest due: S 289,725.00 Principal due: $ 930,000.00 Total Due: $1,219,725,00 2002 Issue (Trust #94471600) Interest due: S 307,00615 Principal due: $1,495,QQQ.0Q Total Due: $1,902,006.25 I Total due 11/30/12-. $3,021,731.25 - , 41tzif* MOM RImjnstructions.- U.S. BANK NA. 09 0f0 BNF - U.S. BANK TRUST N.A. A/C -#180121167365 OBI 135633000, 94471600 ATTIN — LINDY JENSEN Sincerely, Lindy(L Jensen" Trust Officer Check Instructions: U.S. BANK TRUST N,A, n, E 7-�IaWkf Or -E L — L -R-41, W-W%QW CM — 9705 P 0 BOX 70870 ST PAUL, MN 55170-9705 CITY OF SAN RAFAEL INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SA/ SRCC AGENDA ITEM NO. r FROM: Mark Moses DEPARTMENT: Finance DATE: 10/25/12 DATE OF MEETING: 11/5/2012 TITLE OF DOCUMENT: RESOLUTION OF THE SAN RAFAEL SUCCESSOR AGENCY APPROVING A REQUEST TO THE MARIN COUNTY BOARD OF SUPERVISORS TO AUTHORIZE A TEMPORARY TRANSFER OF FUNDS s Departphent Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY APPROVED AS TO FORM: AGENDA ITEM: 1 A A f Jrt VIA A' - City Manag6r ® City'Manag6r (signature) City Attorney (signature) NOT APPROVED REMARKS i _�' VIP CITY OF SAN RAFAEL INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SA/ SRCC AGENDA ITEM NO. FROM: Mark Moses DEPARTMENT: Finance DATE: 10/25/12 TITLE OF DOCUMENT: RESOLUTION REQUEST TO THE MARIN COUNTY BOARD O AA lzal epa ment Head (ignature) DATE OF MEETING: 11/5/2012 +OR AGENCY APPROVING A ,E A TEMPORARY TRANSFER fi (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY APPROVED AS TO FORM: AGENDA ITEM: 1Tlf City Manager (signature) City Attorney (signatur )