HomeMy WebLinkAboutAGENDA REPORT 2011 0316 CC REG ITEM 09D ITEM 9.D.
City Council Meeting
MOORPARK CITY
AGENDA REPORT acTl°,� idtA
TO: Honorable City Council
FROM: David C. Moe II, Redevelopment Manager 0c,
DATE: March 10, 2011 (Council Meeting of 3/16/11)
SUBJECT: Consider California Redevelopment Association and League of
California Cities' Request for Financial Support for Legal Services
BACKGROUND & DISCUSSION
On January 10, 2011, Governor Brown announced his desire to eliminate
redevelopment agencies as part of package of proposals to address a budget shortfall
of $25.4 billion in the FY 2011-12 California State Budget. The budget shortfall consists
of an $8.2 billion projected deficit for 2010/11 and a $17.2 billion gap between projected
revenues and spending in 2011/12. The Governor's proposal includes $12.5 billion in
budget cuts, $12 billion in tax extensions and changes, and $1.9 billion in other
solutions. The Governor is calling for a statewide special election in June to extend
taxes currently set to expire for five more years.
Just three months after 61% of Californians overwhelmingly voted to stop state raids of
local government and redevelopment funds, a majority of legislators in the Senate and
Assembly budget committees voted to support proposals to raid redevelopment funds
(Assembly Budget Committee) or abolish redevelopment altogether (Senate Budget
Committee). Shockingly, members in both committees voted on these proposals even
though there is no actual bill language.
California Redevelopment Association ("CRA") and the League of California Cities
("LCC") have sent a letter to every redevelopment agency executive director, requesting
that their agency promptly send a check to help finance part of the cost of the litigation
that is being planned against the state if the redevelopment proposal remains in the
budget. Each agency's requested contribution is based on the pro rata share of total
tax increment in 2008-09. The Redevelopment Agency of the City of Moorpark's
("Agency") requested contribution is $400.00.
Staff recommends the City and Agency join the CRA and LCC in their fight against the
state on this matter by contributing the requested $400.00 to help finance the lawsuit, if
the abolishment of redevelopment agencies is included in the State FY 2011/12 Budget.
It is proposed the City fund this proposal.
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Honorable City Council
March 16, 2011
Page 2
FISCAL IMPACT
The $400.00 amount can be funded from the existing budget appropriation for legal
services. If any additional amount is requested for this purpose, staff will return to the
Council for consideration.
STAFF RECOMMENDATION
Provide financial support in the amount of $400.00 to the CRA and LCC to assist with
the lawsuit against the State of California to prevent the abolishment of redevelopment.
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