pages: CityCouncil/2010-01-26.pdf, 9
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CityCouncil | 2010-01-26 | 9 | find a cash fund from which to borrow; inquired whether other cities would need to cover cities within the County that cannot pay, to which the Interim City Manager responded in the negative. The Interim City Manager continued the presentation. Mayor Johnson stated redevelopment would be impacted tremendously; cities are no longer going to be able to commit tax increment to development projects. The Interim City Manager stated the legislature and Department of Finance have had very little communication in the past; the Department of Finance tried to explain that old base numbers cannot be used for calculations; some cities have already made pledges; no bond proceeds are left for tax allocation bonds; the West End Capital Improvement Projects' net cash available has gone down from $11.4 million to $6 million in one year. Mayor Johnson stated the State is putting in policies that will kill jobs. The Interim City Manager stated 80% of tax increment is the most flexible and is used to subsidize commercial and industrial development and job creation. Councilmember Gilmore stated that she is infuriated with the State; the State was $24 billion in debt; the State did not cut their budget but took property tax money from cities; the State is also taking redevelopment money; the current deficit is $14 billion and will probably go back up to the previous deficit. Councilmember Tam stated the State deficit was up to $21.6 billion last week. Councilmember Gilmore stated the State has taken property taxes and redevelopment money and is threatening to take gas tax; the State is not acting to cut its budget; at some point, the State will not be able to squeeze any more money out of local jurisdictions. The Interim City Manager stated the Governor's proposal is to eliminate furloughs, require State employees to pay part of PERS, and cut school administration costs; that she is still uncertain how the State will use ERAF to pay the traffic court; Alameda's gas tax of approximately $1.3 million is used for pothole repair. Councilmember Gilmore stated the State will have to act to cut their budget sooner or later. The Interim City Manager stated one-third of the Assembly will be termed out and 17%will be up for re-election; the proposed payment plan is very conservative and ensures that all obligations are covered; no action is needed tonight; the matter will come back to Council for approval. Special Joint Meeting Alameda City Council, Alameda Reuse and Redevelopment Authority and 9 Community Improvement Commission January 26, 2010 | CityCouncil/2010-01-26.pdf |