Fontana Mayor Acquanetta Warren and the City Council Oppose Redevelopment Budget Bill, Destabilizes Local Revenues
Fontana, California, June 26, 2012. The City of Fontana is jeopardized by the provisions in AB 1484 and SB 1024, the Redevelopment Budget Trailer Bill. The Legislature just put these measures into print today, giving affected parties less than 24 hours to review the bill before its scheduled hearing in the Senate Budget and Fiscal Review Committee today at 5 p.m. and a potential floor vote tomorrow morning.
What the bills reveals is unsettling. The Legislation neglects to address many issues that have been raised to our Legislators during months of on-going discussions. The Legislation, if not amended will destabilize local governments. The Legislature now has a short window of opportunity to amend AB 1484 and SB 1024. A “safe harbor” provision in this bill was intended to protect those successor agencies that have been given a finding of completion, yet remains open as to subsequent action by the Department of Finance in terms of the final outcome of enforceable obligation funds. To truly be a “safe harbor,” the finding of completion should be the final step for successor agencies. Furthermore, the bill fails to address a lack of due process in the dissolution process. And lastly, the bill authorizes the Department of Finance and county auditor-controller to offset sales and use tax and property tax revenues to successor agencies if the Department of Finance feels there is a lack of compliance.
The City of Fontana urges the Legislature to consider amendments that will clarify the dissolution process and omit those items that could result in tremendous financial consequence to cities and its residents.