LAKEPORT — The city of Lakeport has drafted a letter in opposition to Gov. Jerry Brown”s recent proposal to eliminate local redevelopment agencies (RDA) in California.
The Lakeport City Council directed Community Development Director Richard Knoll to draft the letter during Tuesday”s council meeting. The council also serves as the Board of Directors of the Lakeport Redevelopment Agency.
Brown announced earlier this month his plan to eliminate local RDAs as of July 1 in order to help make up the projected $25.4 billion budget shortfall for fiscal year 2011/12 by diverting $1.7 billion from RDAs to the state”s general fund.
The diverted $1.7 billion would be used to fund Medi-Cal and trial courts. An additional $210 million that would have otherwise been given to RDAs would be distributed to cities, counties and special districts, according to Brown”s budget proposal.
Local RDAs would be eliminated as of July 1, and urgency legislation in the interim would prevent existing agencies from entering into new contracts.
Existing RDA debts and contracts would be honored using $2.2 billion of the roughly $5.2 billion that would have otherwise been distributed to local RDAs during fiscal year 2011/12. The state would use the remaining $1.1 billion to fulfill one-time pass-through payment obligations.
The budget plan proposes future legislation that would allow local communities to approve economic development projects funded by local tax revenues through 55-percent voter approval.
Knoll, whose duties include Redevelopment director, led a 30-minute discussion with the council Tuesday, during which many council members voiced their opposition to Brown”s RDA-elimination plan.
“This is totally ridiculous,” Councilman Bob Rumfelt said of the proposal. “I want to say another word but ridiculous is the one I can use.”
Councilman Roy Parmentier called the plan “just a lose-lose situation.”
Knoll told the council that the California Redevelopment Association (CRA), a non-profit organization that advocates on behalf of local RDAs and private companies, recommended that local elected officials voice their opposition to their state legislators.
The letter distributed to council members Friday serves as one example of the city”s advocacy efforts, according to Knoll. Each council member is expected to send the letter to Brown, State Senator Noreen Evans and State Assemblyman Wesley Chesbro.
Council members will tell the legislators that abolishing RDAs will limit economic expansion and eliminate many thousands of government and private sector jobs, according to the draft letter released Friday.
The proposed RDA elimination will not provide budget savings and could dramatically decrease the ability of governments to offer affordable housing options, according to the draft letter.
The letter also includes several examples of completed Lakeport RDA projects, including the South Main Street Pedestrian Improvement Project and The Soper-Reese Community Theatre renovation project.
Knoll told the council Tuesday that he recognizes that some RDAs may not positively impact their communities or wisely spend their monies, but that hasn”t been the case with the Lakeport RDA since its inception in 1999. “Certainly in Lakeport, it”s been of significant benefit,” he said.
The State Controller”s Office announced Monday it plans to audit 18 RDAs statewide, ranging from rural cities to smaller counties to larger cities and counties. City RDAs to be audited include San Jose, Richmond, Los Angeles, Fremont, Fresno, Citrus Heights and Anderson. County RDAs to be audited are Riverside and Sacramento.
No Lake County RDA was selected for audit. Knoll told the council that his office would welcome a state audit of the Lakeport RDA.
State Controller John Chiang addressed the audits in a statement released Monday, saying, “The heated debate over whether RDAs are the engines of local economic and job growth or are simply scams providing windfalls to political cronies at the expense of public services has largely been based on anecdotal evidence.”
“As lawmakers deliberate the Governor”s proposal to close RDAs and divert those funds to local schools and public safety agencies, I believe it is important to provide factual, empirical information about how these agencies perform and what they bring to the communities they serve,” Chiang said.
As the debate rages statewide, the city of Lakeport plans to take another opposition step during its next council meeting. The council will vote on whether to approve a formal resolution in opposition to the Governor”s plan, according to Knoll.
Contact Jeremy Walsh at jwalsh@record-bee.com or call him at 263-5636, ext. 37.
