REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT
BOARD GOVERNED COUNTY SERVICE AREAS
AND RECORD OF ACTION
July 14, 2020
FROM
MATTHEW ERICKSON, County Chief Financial Officer, Finance and Administration
SUBJECT
Title
Subordination of tax increment revenues from the Town of Apple Valley Redevelopment Agency
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the County of San Bernardino, Board Governed County Service Areas and San Bernardino County Flood Control District approve the subordination of the statutory pass through payments for the proposed Town of Apple Valley Redevelopment Agency bond issuance and authorize the Chief Executive Officer to sign the approval.
(Presenter: Katrina Turturro, Deputy Executive Officer, 387-5423)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Pursue County Goals and Objectives by Working with Other Agencies.
FINANCIAL IMPACT
Based on the financial projections, there will be no impact to the County, Board Governed County Services Areas (CSA 60) and the County Flood Control District. Should property tax revenue in the redevelopment area decline, resulting in insufficient funds to meet all obligations, debt service payments would be made prior to the County receiving any of its property tax revenues.
BACKGROUND INFORMATION
The Successor Agency to the Redevelopment Agency of the Town of Apply Valley (Successor Agency) has submitted a request pursuant to the California Health and Safety Code Section 34177.5(c) to subordinate the County’s statutory pass through payments to a proposed bond issuance for the Successor Agency. Approval of this request places debt service payments above the County’s statutory pass through payment in priority order. Requests made under 34177.5(c) can only be denied if substantial evidence shows that the Successor Agency will not be able to pay both the debt service and the County’s tax increment. The Successor Agency has provided estimated future revenues and expenses that indicate that it will have sufficient revenue to meet its debt service obligations and continue to pay the County its statutory pass through payments.
On May 15, 2007 (Item No. 84), the Board of Supervisors approved subordination of tax increment revenues from the Town of Apply Valley Redevelopment Agency.
PROCUREMENT
Not applicable
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Michelle Blakemore, County Counsel, 387-5445) on June 29, 2020; Finance (Amanda Trussell, Principal Administrative Analyst, 387-5423) on June 22, 2020; and County Finance and Administration (Katrina Turturro, Deputy Executive Officer, 387-5423) on June 24, 2020.