REPORT TO THE CITY COUNCIL
June 23, 2016
FROM: BRUCE RUDD, City Manager
City Manager's Office
BY: MICHAEL LIMA, Controller/Finance Director
Finance Department
SUBJECT
Title
RESOLUTION - Requiring the Deposit of Redevelopment Agency Loan Repayment Funds into the Emergency Reserve until the Emergency Reserve reaches 10% of the Sum of General Fund Appropriations Plus Transfers.
Body
RECOMMENDATION
Staff recommends that Council approve the accompanying resolution requiring the deposit of Redevelopment Agency loan repayment funds (for loans made from the General Fund to the RDA) into the Emergency Reserve, until the Emergency Reserve reaches 10% of the sum of General Fund appropriations plus transfers.
EXECUTIVE SUMMARY
Since Fiscal Year 2015, the City has been receiving reimbursement from the Successor Agency to the City of Fresno's Redevelopment Agency (Successor Agency) for loans made to the City of Fresno's Redevelopment Agency (RDA) from the City. To date, the City has received $6.1 million of loan repayments. Those monies have been deposited in the City's Emergency Reserve as part of a plan to increase that reserve to 10% of the sum of General Fund appropriations plus transfers per the requirements of the Reserve Management Act (RMA). The accompanying resolution will commit the City to continue depositing RDA loan repayments into the Emergency Reserve until such time as the Emergency Reserve reaches the 10% threshold specified in the RMA.
BACKGROUND
In 2011, the State of California passed ABX1 26, which abolished the Redevelopment Agencies within the state. A provision of that legislation made the repayment of loans issued from sponsoring communities unenforceable. The passage of AB 1484 in 2012 amended ABX1 26 and repealed the prohibition of repayment of loans issued from sponsoring communities, pending approval from the community's Successor Agency board, its Oversight Board, and the State Department of Finance.
In August 2014, the S...
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