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HomeMy WebLinkAboutMINUTES - 04231985 - 1.68 TO: REDEVELOPMENT AGENCY r Contra FROM: Phil Batchelor Executive Director Costa DATE: April 5, 1985 "`N "7 SUBJECT: Legislation : Assembly Bill 1995 SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RE.COMME.NDAT ION Adopt a position in opposition to Assembly Hill X99.5 b.y Assembly Member Waters creating a 5 percent tax increment set aside for emergency shelter . FINANCIAL CMPACT Reduces net tax increment revenues to th.e Redevelopment Agency by 5 percent . May lengthen the time period . for ending projects and returning tax increments to local taxing agencies . REASONS FOR RECOMMENDATION/BACKGROUND Existing law provides that not less than 20 percent of all tax increments allocated to a redevelopment agency be used for low - and-moderate- income-housing . This bill would require that an additional 5 percent of tax increments be used for emergency shelter unless certain findings are made . While the provision of emergency shelter to those in need is an essential and laudable service, the funding source earmarked in AB 19.9.5 is inappropriate and unrelated to redevelopment . It should be opposed . for the following reasons . 1 . It undermines the redevelopment process by reducing the funds available for project implementation . 2 . It may unreasonably lengthen projects thereby lengthening the time for debt repayment and return of full property tax to local agencies . 3. It undermines local authority to divide -available taxes according to local priorities and needs . By creating a separate , virtually unassailable, pool of money for one purpose it automatically diminishes funds that might otherwise be used for some equally important purpose ( ie. safety services , healt.h care, etc . ). . X CONTINUED ON ATTACHMENT: YES SIGNATURE: X RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF AGENCY CO ITTEE X APPROVE OTHER SIGNATURE(S) ACTION OF AGENCY 7775 APPROVED AS RECOMMENDED OTHER VOTE OF COMMISSIONERS UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE REDEVELOP- MENT AGENCY �O,N,,THE DATE SHOWN. ' CC: County Administrator ATTESTED Redevelopment Agency Planning PHIL BATCHELOR, AGENCY SECRETARY CSAC Auditor-Controller M382/7-63 BY DEPUTY -4 Legislation : Assembly Bill 1995 April 5, 1985 Page 2 4 . Generally the source of funding proposed has no relationship to redevelopment. 5 . If passed it may open the door to other special interests to tap the tax increment financing mechanisms . TAP: krc