HomeMy WebLinkAboutMINUTES - 02091993 - 1.5 (2) f 8
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TO: REDEVELOPMENT AGENCY s Costa
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FROM: Phil Batchelor �..� County
Executive Director `�T, cGit
DATE: February 9, 1993
SUBJECT: Proposed State Budget Impact on Redevelopment Agency
SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Accept report on the potential effect of the Governor's Proposed 1993-
94 State Budget on the Contra Costa County Redevelopment Agency.
FISCAL IMPACT
See below.
BACKGROUNDIREASONS FOR RECOMMENDATIONS
On January 6_, 1993 the Governor released his Proposed 1993-94 State
Budget. With respect to Redevelopment Agencies, the Proposed Budget
calls for a $300 million diversion from redevelopment agencies
statewide. The proposal indicates that this is, in part, a
. continuation of the $200 million shift which was enacted as part of
the 1992-93 State Budget. It also includes an additional $100 million
which would be saved by limiting the amount of tax increment revenue
a Redevelopment Agency could receive annually to that necessary to
meet current year debt service requirements.
CONTINUED ON ATTACHMENT: XX YES SIGNATURE: L
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOATION OF AGENCY CO TTEE
APPROVE OTHER
SIGNATURE(S) :
ACTION OF AGENCY ON Febr.uary .9 , 1993 APPROVED AS RECOMMENDED X OTHER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT
AGENCY ON THE DATE SHOWN.
Contact: Jim Kennedy
646-4076 ATTESTED February 9 , 1993
cc: Community Development PHIL BATCHELOR,
CAO AGENCY SECRETARY
County Counsel
Auditor-Controller
BY , DEPUTY
sra7thudget.bos
In 1992-93 the Contra _ Costa County Redevelopment Agency lost
approximately $410, 000 in revenue pursuant to SB 617 (this amount
was the Agency's share of the $200 million statewide diversion) .
The amounts from each Project Area were as follows:
Pleasant Hill Bart: $296, 280
North Richmond: 10, 973
West Pittsburg: 73 , 782
Oakley: 32 ,441
Rodeo: -0-
The County Redevelopment Agency's share of the 1993-94 shift of
redevelopment revenues could exceed $600, 000 (this is based on
utilization of a similar methodology to that employed in FY 1992-
93) . The following are preliminary estimates only of the amount of
revenue subject to diversion from the County's Redevelopment
Project Areas:
Pleasant Hill BART: $330, 000
North Richmond: 40, 000
West Pittsburg: 100, 000
Oakley: 95, 000
Rodeo: 35, 000
The second element of the Governor's proposal would limit tax
increment revenue received annually by an Agency to that necessary
to meet current year debt service requirements. Language
implementing this concept has yet to be received; therefore, we are
unable to assess its potential effect at this time. Suffice it to
say that, should the proposal be limited to servicing bonded
indebtedness and other annualized debt, the effect could be
disastrous.
By way gf example, the Redevelopment Agency's 1992-93 fiscal year
budget reflected a total revenue of $4. 1 million. Approximately
50% of that amount was necessary to service bonded indebtedness and
other debt that could be characterized as having a debt service
requirement. The remainder was used for programs not involving
debt, and project administration.
As more information becomes available, staff will provide a better
assessment of the impact of the Budget Proposal, with appropriate
recommendations for action.