pages: CityCouncil/2009-07-21.pdf, 4
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CityCouncil | 2009-07-21 | 4 | Director stated redevelopment agency funding is guaranteed in the Constitution; cities have band together to sue the State over taking redevelopment funds; a lot of money in the Education Revenue Augmentation Fund ( (ERAF) is not going to education but is being used to repay the triple flip in some counties; the State maintains that deciding how property taxes are dispersed is the State's purview; the Superior Court determined that the taking [of funds) was illegal; the City's first redevelopment project was the conversion of a shipyard to the Marina Village development; the State is trying to restructure redevelopment, take control of property taxes, and find a vehicle to redistribute funds back to the State. Vice Mayor deHaan inquired how the City can anticipate redevelopment of the former Base. The Development Services Director responded the City no longer has Urban Development Action grants and economic development grants to provide massive infrastructure; stated all of the old, internal infrastructure needs to be cleaned and demolished to support development; State resources are no longer available; stated that she does not have an answer regarding redevelopment of the former Base. Vice Mayor deHaan stated the State Controller provided a chart weeks ago that anticipated an increase of 2% to 3% in the middle of 2010; now, all bets are off. The Interim City Manager stated the $23 billion [State deficit] that allegedly will be cut in half through borrowing does not factor in the future cost of State services; no one has mentioned what the PERS impact will be to the State; unemployment projections do not reflect the reality of government employee layoffs in late May and June the State is not making decisions to cut services, and keeps pushing the responsibility down. Vice Mayor deHaan stated many municipalities are on the brink [of bankruptcy] The Interim City Manager stated nothing has happened the way everyone thought it would back in January; the City is looking at a longer, shallower recovery; revenues and expenditures will need to be evaluated every quarter. Mayor Johnson inquired what would happen if governments start to default on PERS payments. The Interim City Manager responded the PERS Board provides a report Regular Meeting Alameda City Council 4 July 21, 2009 | CityCouncil/2009-07-21.pdf |