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Description
San Bruno City Council Meeting 10-13-09 10b. Sale of Prop 1A
A
B
Mr.
mayor
and
members
of
the
City
Council
at
the
time
the
City
Council
was
considering
the
city's
own
budget
back
in
may
and
june
of
this
year.
There
was
extensive
discussion
about
the
potential
impacts
to
this
city
and
other
cities
in
California
on
actions
that
the
state
might
be
taking
in
order
to
address
their
own
budget
issues
back
on
August
25th
again,
the
council
was
briefed
on
some
specific
adverse
actions
that
the
state
took
in
adopting
their
budget,
impacting
both
the
city's
redevelopment
agency
and
the
city's
general
fund
I'm
here
tonight
to
suggest
action.
B
The
council
could
take
or
related
to
one
of
those
matters,
and
that
is
the
829
thousand
dollars
that
the
city
will
be
losing
in
property
tax
revenue
to
the
state
this
year,
first
I
thought
I
just
might
mention
that
for
the
redevelopment
agency
the
state
is
proposing
to
take
about
2
billion
dollars
from
redevelopment
agencies
in
in
California
in
this
fiscal
year
in
the
next
fiscal
year.
This
the
Rita,
the
San
Bruno
Redevelopment
Agency,
share
proportionate
share
of
that
2
billion
dollars
amounts
to
about
1.9
million
dollars.
B
In
this
current
fiscal
year,
an
additional
350
million
three
hundred
fifty
thousand
dollars
next
year,
there
is
the
the
redevelopment
taking
is
not
covered
through
proposition
1a.
That
was
passed
by
the
voters
in
2004.
So
there
is
no
fall
back
at
this
point.
Besides
legal
action
that
is
contemplated
and
is
very
close
to
being
filed
by
the
redevelop,
the
California
redevelopment
association
to
benefit
the
redevelopment
agencies
in
that
area.
B
It
comes
to
about
eight
hundred
and
twenty
nine
thousand
dollars
out
of
about
five
and
a
half
million
that
the
city
would
normally
anticipate
receiving
in
in
in
profit
tax
in
working
with
the
League
of
California
cities
and
the
Association
of
Governments,
the
the
legislature
actually
did
come
up
with
a
plan
under
proposition
1a.
That
would
allow
for
this
borrowing
to
actually
be
financed
and
what
what
what?
B
What
is
happening
is
when
the
city,
when
the
property
tax
will
be
taken
from
the
city,
the
normal
accounting
would
be
for
the
city
to
create
an
accounts
receivable
for
that
money,
because
it
is
alone
and
would
be
expected
to
be
paid
back
no
later
than
jun
2013.
So
we
would
set
up
a
receivable
on
our
books.
What
this
program
allows
is
for
us
to
actually
sell
that
that
that
receivable
and
get
the
funds
immediately
and
the
California
State
wide
Community
Development
Authority
would
actually
be
buying
these
receivables.
They
would
in
turn,
issue
bonds.
B
Almost
like
tax
anticipation
notes.
They
would
be
issuing
bonds
that
then,
would
be
paid
directly
by
the
state
when
these
funds
are
repaid
with
interest
in
2013.
So
the
city
would
essentially
be
made
whole
in
the
it's,
not
a
discounted
amount.
There
was
a
similar
financing
several
years
ago
and
I
say
similar
for
motor
vehicle
money.
When
the
state
took
motor
vehicle
money.
In
that
instance,
there
was
a
discount
where
the
city
got
about
ninety
seven
percent
of
the
total,
but
in
this,
in
this
case
the
city
will
receive
a
hundred
percent.
B
B
B
C
C
B
I
I
only
reference
getting
to
the
extent
that
the
the
property
tax
allow
actually
be
withheld.
The
first
payment
will
be
withheld
in
December
when
we
get
our
first
property
tax
payment
and
we
will
be
getting
our
first
reimbursement
from
the
authority
in
January,
so
there
will
be
actually
the
money
will
be
taken
and
will
lose
it
for
a
month
and
then
we'll
and
then
we'll
get
it
and
again.
B
B
C
B
A
A
B
Cities,
counties
and
special
districts,
anyone
that's
losing
property
tax
is
eligible
for
this
program.
The
last
I
had
seen
770
agencies
had
enrolled.
They
hadn't
taken
action
yet
were
kind
of
the
one
of
the
first
ones,
all
the
documentation
just
came
out
last
week
and
so
we're
one
of
the
first
ones
to
have
it
before
the
council.
The
other
thing
I
might
mention
again
as
the
oreck
is
the
transaction
council,
the
documents
and
the
agreement
that
is
in
front
of
you.
We
were
advised
that
no
word
can
be
changed.
No
format
can
be
modified.
B
D
The
chair
by
man
just
have
a
quick
question
when
you
refer
to
redevelop
what
happens
to
the
pass
throughs.
In
other
words,
if
the
state
is
going
to
take
one
point:
nine
million
are
the
pass
throughs
reduced
in
a
pro-rata
basis
or
do
those
passed
through
agencies
because
still
become
whole.
The
pastor.
B
Agency
still
become
whole,
the
calculation
again
for
the
two
billion
dollars.
What
this,
what
the
state
is
is
using
is
the
gross
tax
increment
of
all
agencies
for
the
2006-2007
year,
and
it
is
not.
Net
of
pass
through
pass
through
agencies
will
be
made
whole.
So
so
it
is
on
the
net
it.
It
leaves,
it
leaves
a
204
for
this
year.
It
leaves
a
1.9
taking
from
the
city
with
still
full
obligation
for
all
of
the
pass
through
basic
aid
and
the
and
the
memorandum
of
understanding
with
with
the
county
that
our
agency
has.