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2011-02 "-` RESOLUTION NO. 2011- 02 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE, CALIFORNIA,AMENDING THE FISCAL YEAR 2010-11 COMMUNITY REDEVELOPMENT AGENCY BUDGET AND ALLOCATING A DEPOSIT INTO THE SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND WHEREAS,the California Budget Act of 2009, requires redevelopment agencies to shift property tax revenue to K-12 schools or the county office of education during fiscal year 2009-10 and 2010-11; and WHEREAS, such funds are required by the California Budget Act of 2009 to be transferred to the county auditor and be deposited in the Supplemental Educational Revenue Augmentation Fund(SERAF)no later than May 10, 2011; and WHEREAS,the redevelopment agency is required to determine that it has available funds to fund the required SERAF transfer and that, if needed, such payment may come from redevelopment low mod housing funds and, if needed, such payment may come from general funds of the city or any other legal source of funds; and WHEREAS,the governing board must communicate to the county auditor its intention to remit such SERAF transfer payment to the county auditor no later than March 1, 2011; and WHEREAS,the California Department of Finance has determined that the Community Redevelopment Agency of Grand Terrace share of the 2011 SERAF transfer payment in accordance with Health and Safety Code §33690 to be in the amount of $448,636; and WHEREAS,the Board of Directors adopted the 2010-11 fiscal year budget of the Community Redevelopment Agency of Grand Terrace and appropriated funds in accordance with the State Budget Act of 2009 and ABx 4-26; and WHEREAS,the governing board believes that the California Budget Act of 2009 requirement to shift property taxes from redevelopment agencies to K-12 schools or the county office of education is improper, illegal and furthermore supports the efforts by the California Redevelopment Association and the City of Fountain Valley Community Redevelopment Agency in a lawsuit and subsequent appeal filed in Sacramento Superior Court on October 20, 2009, seeking to block sections of budget trailer bill ABx 4-26, which was approved as part of the FY 2009-10 and FY 2010-11 State budget; NOW THEREFORE,the Board of Directors of the Community Redevelopment Agency of Grand Terrace does hereby resolve, declare, determine, and order as follows: Section 1. There are sufficient funds in the unreserved,undesignated non-housing 1 Fund Balance Reserves of the Community Redevelopment Agency to pay the determined SERAF transfer payment for FY 2010-11. Section 2. The Agency will remit the required SERAF transfer from unreserved, undesignated non-housing fund balance reserves of the Community Redevelopment Agency, as determined by the Department of Finance, and advise the County Auditor Controller its intent to deposit$448,636 into the Educational Revenue Augmentation Fund no later than May 10, 2011. Section 3. The Agency reserves the right to a receive an immediate refund from the state or county auditor should the requirement to shift property taxes from the redevelopment agency, contained in the California Budget Act of 2009, be determined illegal or invalid at a later date. PASSED, APPROVED, AND ADOPTED this 8th day of February, 2011. Attest: Secretary of the Grand Terrace Community Chairman of the Grand Terrace Redevelopment Agency Community Redevelopment Agency 2 ` Resolution 2011-02 I, Brenda Mesa, Secretary of the Community Redevelopment Agency of the City of Grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the Community Redevelopment Agency of Grand Terrace held on the 8th day of February, 2011, by the following vote: AYES: Agency Members McNaboe, Sandoval and Hays; Vice-Chairman Garcia and Chairman Stanckiewitz NOES: None ABSENT: None ABSTAIN: None Brenda Mesa Agency Secretary/City Clerk Approved as t form: John R. HaipeOAen ttttorney