Item #2 First Reading of O-04-04

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CITY OF COLTON AGENDA REPORT For the Council Meeting of February 3, 2004 TO: Honorable Mayor and City Council Item #2 FROM: Candace Cassel, Redevelopment Manag r SUBJECT: Ordinance Adopting and Approving an Amendment to the Existing Redevelopment Plans for the Redevelopment Project Areas Concerning Time Limitations Pursuant to SB 1045. DATE: January 7, 2004 BACKGROUND: California Senate by Senate Bill 1045 ("SB 1045"), Statutes of 2003, Chapter 260, which was approved by the governor on September 1, 2003, requires all redevelopment agencies to make an allocation in the 2003-04 fiscal year to the Education Revenue Augmentation Fund ("ERAF"), based on a statewide aggregate allocation of $135,000,000. Pursuant to SB 1045, the Redevelopment Agency for the City of Colton (the "Agency") is required to make a payment of $281,857 to the ERAF fund by May 10, 2004. To mediate the effects of the ERAF payment on redevelopment agencies, SB 1045 additionally amended the California Redevelopment Law to allow redevelopment agencies to extend the effectiveness of their redevelopment plans and their timeframe to receive tax increment revenues by one year. The amendment to the redevelopment plan may be implemented by an Ordinance of the legislative body and does not require any noticing, hearings or documentation. DISCUSSION/ANALYSIS: By California Law, redevelopment plans adopted prior to January 1, 1994 must establish a timeframe for the redevelopment plan of not more than 40 years or 2014, whichever is later. Additionally, an agency may receive tax increment for up to 10 years after the effectiveness of the redevelopment plan. Adopting this Ordinance will change these dates as identified in Table 1, by one year. FINANCIAL IMPACT: There is no negative financial impact associated with this item. However, the Agency will be eligible to receive tax increment for one (1) additional year for each of its project areas. ENVIRONMENTAL IMPACT: There are no environmental impacts related to this ordinance.