HomeMy WebLinkAboutSA Resolution 09-2012 (Assembly Bill 1484)RESOLUTION NO. 09-2012
RESOLUTION OF THE SAN RAFAEL SUCCESSOR AGENCY
APPROVING A PAYMENT TO THE MARIN COUNTY AUDITOR -
CONTROLLER TO SATISFY DEMAND FOR REIMBURSEMENT OF
PROPERTY TAX FUNDS PURSUANT TO ASSEMBLY BILL 1484
WHEREAS, the California State Legislature enacted Assembly Bill xl 26 (the
"Dissolution Act") to dissolve redevelopment agencies formed under the Community
Redevelopment Law (Health and Safety Code Section 33000 et seg.); and
WHEREAS, on December 29, 2011, the California Supreme Court delivered its decision
in the California Reclevelopment Association v. Matosantos case, finding AB xl 26 (the
"Dissolution Act") largely constitutional, with the result that all California redevelopment
agencies, including the Redevelopment Agency of the City of San Rafael (the "Redevelopment
Agency") would be dissolved on February 1, 2012; and
WHEREAS, on January 3, 2012 and pursuant to Health and Safety Code Section 34173,
the City Council of the City of San Rafael (the "City Council") declared that the City of San
Rafael, a municipal corporation, would act as successor agency (the "Successor Agency") for the
dissolved Redevelopment Agency effective February 1, 2012; and
WHEREAS, on February 1, 2012, the Redevelopment Agency was dissolved pursuant to
Health and Safety Code Section 34172; and
WHEREAS, the Successor Agency now holds the former Redevelopment Agency's non-
housing funds and assets and is charged with the responsibility of paying off the former
Redevelopment Agency's existing debts, disposing of the former Redevelopment Agency's
properties and assets to help pay off debts and return revenues to the local government entities
that receive property taxes (the "Taxing Entities"), and winding up the affairs of the former
Redevelopment Agency; and
WHEREAS, pursuant to the Dissolution Act an oversight board (the "Oversight Board")
has been established with specific duties to approve certain Successor Agency actions pursuant
to Health and Safety Code Section 34180 and to direct the Successor Agency in certain other
actions pursuant to Health and Safety Code Section 34181, all subject to final approval by the
California Department of Finance ("DOF"); and
WHEREAS, on June 27, 2012, the State Legislature passed, and the Governor signed,
Assembly Bill 1484 ("AB 1484"), which makes clean-up amendments to the Dissolution Act,
including a clarification that all 2011-2012 tax increment that was distributed to redevelopment
agencies, including amounts distributed to agencies in December 2011, are subject to the
Dissolution Act, and
WHEREAS, pursuant to AB 1484 the Marin County Auditor -Controller was required,
by July 9, 2012, to notify all Marin County successor agencies of any "residual amounts" still
owed to the Taxing Entities from FY 2011-2012 tax increment distributions, and the Successor
Agency was required to pay the stated residual amounts to the County no later than July 12,
2012; and
WHEREAS, AB 1484 authorizes the assessment of penalties against a successor agency
for failure to comply with the July 12 deadline, in a sum equal to 10% of the amount owing, plus
1.5% of the amount owing for each additional month until it complies. In addition, a failure to
pay may result in the State's withholding of future sales and use tax distributions to the
Successor Agency scheduled for July 18, 2012 and continuing until the full amount owed the
Taxing Entities has been paid; and
WHEREAS, due to the very specific way in which the DOF has required the County
Auditor -Controller to calculate the "residual amounts," the Marin County Auditor -Controller
was required to make the calculation of the residual amounts owing by the Successor Agency
without taking account of the fact that all the tax increment moneys distributed to the
Redevelopment Agency in December 2011 were (properly) used at that time to make payments
on the Redevelopment Agency's bonded indebtedness; and
WHEREAS, as a result of this omission, the Marin County Auditor -Controller has
erroneously determined that the Successor Agency is still in possession of tax increment money
that was distributed to it in December 2011, and therefore in possession of "residual amounts" to
be reimbursed pursuant to AB 1484; and
WHEREAS, on July 9, 2012, the Marin County Auditor -Controller sent a "Demand
Notice" to the City demanding payment of $1,731,446 by the end of business on July 12, 2012;
and
WHEREAS, the Successor Agency does not in fact have funds available with which to
pay the full demand amount; and
WHEREAS, due to the three-day turnaround period provided by the Legislature for
payment of the residual amounts, the Successor Agency Staff was unable to obtain relief from
this demand prior to the July 12 deadline for payment and determined to pay, under protest, such
funds as were available as a good -faith payment; and
WHEREAS, the Successor Agency will continue to work with the DOF and the Marin
County Auditor -Controller to clarify that the Successor Agency does not in fact owe any residual
amounts;
NOW, THEREFORE, BE IT RESOLVED that the Board of the Successor Agency
hereby affirms and approves the payment of $148,589 to the Marin County Auditor -Controller
on July 12, 2012 as a good -faith payment of the demand for reimbursement of property tax funds
pursuant to AB 1484.
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I, Esther C. Beirne, Secretary of the San Rafael 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 sixteenth day of July, 2012, by the following
vote, to wit:
AYES: Members: Connolly, McCullough & Mayor Phillips
NOES: Members: None
ABSENT: Members: Heller, Levine
Esther C. Beirne, Secretary
San Rafael Successor Agency