City, school officials respond to Brown's budget
Two key elements of Gov. Jerry Brown’s state budget plan—calling a special election to extend higher income, sales and vehicle taxes and eliminating redevelopment agencies—have drawn specific responses from local city and school district officials.
In unanimous votes, Placentia-Yorba Linda school trustees supported placing a “revenue extension measure” on a June ballot, and City Council members initiated four procedures to “safeguard” funds held by the city’s 27-year-old Redevelopment Agency.
School trustees advocated putting a measure on a June election ballot calling for a five-year extension of previously adopted “temporary” tax increases “to protect our schools and students by making education a priority in our state.”
Among 10 “whereas” clauses in a recently adopted resolution is one that notes “the governor’s budget proposal to limit further cuts to schools … is dependent on voter approval of an extension of existing temporary tax increases.”
Superintendent Dennis Smith told trustees the district could lose up to $330 per average daily attendance or an equivalent of about $8 million in 2011-12 after cutting about $30 million the past five years “should this special election not take place or fail to pass.”
City actions focus on preserving funds held by a Redevelopment Agency that collects “tax increment” revenue from 2,984 of the city’s 11,125 acres. The “increment” is the increase in property taxes after creation of a redevelopment project area.
The city’s project area includes 2,640 acres on the eastside designated in 1983 and 344 acres on the westside designated in 1990. Annual income is approximately $21 million.
In the first of four votes, council members, who also serve as Redevelopment Agency directors, authorized City Manager and agency Executive Director Steve Rudometkin to quickly repay $6 million in loans the agency owes the city, if the agency is dissolved.
“The agency’s ability to use tax increment to repay the existing city loans will be placed in limbo if the governor’s plan is adopted,” Finance Director Dave Christian told council, adding that officials want to be able to “turn on a dime,” depending on Brown’s proposal.
In a second vote, the council and agency committed $10.1 million to three projects to create a “contractual obligation” to pay for the work, if the state dissolves the agency.
The projects include the $2.5 million cleanup of underground gas station contamination at Imperial Highway and Lemon Drive, a $2.4 million Savi Ranch sign replacement and $5.2 million for possible acquisition, relocation and demolition of Town Center housing.
In a third vote, the council and agency authorized staff to begin steps to issue agency bonds to finance Town Center infrastructure projects. The agency can sell about $20 million in bonds based on current tax increment revenue, according to Christian, who noted consultants recently pegged possible infrastructure costs at about $29 million.
Finally, council authorized a Yorba Linda Housing Authority, with council members serving as commissioners--but without any additional pay, stipends or fringe benefits.
The housing body could administer the $21.4 million estimated 2010-11 balance in the agency’s low and moderate income housing fund, should the state dissolve the agency.
In unanimous votes, Placentia-Yorba Linda school trustees supported placing a “revenue extension measure” on a June ballot, and City Council members initiated four procedures to “safeguard” funds held by the city’s 27-year-old Redevelopment Agency.
School trustees advocated putting a measure on a June election ballot calling for a five-year extension of previously adopted “temporary” tax increases “to protect our schools and students by making education a priority in our state.”
Among 10 “whereas” clauses in a recently adopted resolution is one that notes “the governor’s budget proposal to limit further cuts to schools … is dependent on voter approval of an extension of existing temporary tax increases.”
Superintendent Dennis Smith told trustees the district could lose up to $330 per average daily attendance or an equivalent of about $8 million in 2011-12 after cutting about $30 million the past five years “should this special election not take place or fail to pass.”
City actions focus on preserving funds held by a Redevelopment Agency that collects “tax increment” revenue from 2,984 of the city’s 11,125 acres. The “increment” is the increase in property taxes after creation of a redevelopment project area.
The city’s project area includes 2,640 acres on the eastside designated in 1983 and 344 acres on the westside designated in 1990. Annual income is approximately $21 million.
In the first of four votes, council members, who also serve as Redevelopment Agency directors, authorized City Manager and agency Executive Director Steve Rudometkin to quickly repay $6 million in loans the agency owes the city, if the agency is dissolved.
“The agency’s ability to use tax increment to repay the existing city loans will be placed in limbo if the governor’s plan is adopted,” Finance Director Dave Christian told council, adding that officials want to be able to “turn on a dime,” depending on Brown’s proposal.
In a second vote, the council and agency committed $10.1 million to three projects to create a “contractual obligation” to pay for the work, if the state dissolves the agency.
The projects include the $2.5 million cleanup of underground gas station contamination at Imperial Highway and Lemon Drive, a $2.4 million Savi Ranch sign replacement and $5.2 million for possible acquisition, relocation and demolition of Town Center housing.
In a third vote, the council and agency authorized staff to begin steps to issue agency bonds to finance Town Center infrastructure projects. The agency can sell about $20 million in bonds based on current tax increment revenue, according to Christian, who noted consultants recently pegged possible infrastructure costs at about $29 million.
Finally, council authorized a Yorba Linda Housing Authority, with council members serving as commissioners--but without any additional pay, stipends or fringe benefits.
The housing body could administer the $21.4 million estimated 2010-11 balance in the agency’s low and moderate income housing fund, should the state dissolve the agency.
posted by Jim Drummond at 12:00 PM
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