HomeMy WebLinkAboutAgenda StatementCITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE: August 2, 2011
AGENDA ITEM NO.
ITEM TITLE:
Resolution of the City Council of the City of National City authorizing the filing of an appeal to ABx1 27
and authorizing the City Manager to execute documents in support and furtherance of an appeal.
PREPARED BY: Brad Raulston DEPARTMENT: Community Services
PHONE: Ext. 4256 APPROVED BY:
EXPLANATION:
ABx1 27 requires the City to pay a remittance to the state in order to continue the redevelopment
agency. The estimated amount of the remittance, based on the 2008-09 annual report, is $4.8 million.
The final number will be sent to the City on August 1, 2011. Health & Safety Code section 34194
(b)(2)(L) provides that a city may appeal the amount of remittance billed by the California Department of
Finance on the basis that the information in the Controller's report was in error or that the percentage of
tax increment necessary to pay for tax allocation bonds and interest payments has increased by 10
percent or more over the percentage calculated in the Agency's 2008-09 annual report. The CDC
issued bonds in 2011 (2011 Tax Allocation Bonds), increasing the debt service by approximately 30%
since 2008-09. As the Department of Finance will be basing its calculation of the remittance due on the
2008-09 report, which does not include the 2011 Tax Allocation Bonds debt service, staff believes an
appeal is warranted, as provided in ABx1 27. A ruling on the appeal should be forthcoming by
September 15, 2011, but the deadline may be extended by the Department of Finance to October 15,
2011..
FINANCIAL STATEMENT:
ACCOUNT NO.
N/aN
ENVIRONMENTAL REVIEW:
N/AN
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
APPROVED:
APPROVED:
STAFF RECOMMENDATION:
Authorize the filing of an appeal pursuant to ABx1 27 and authorize the City Manager to execute
documents in support and furtherance of an appeal.
BOARD / COMMISSION RECOMMENDATION:
Finance
MIS
ATTACHMENTS:
Attachment 1: Resolution