Despite the State’s efforts, the City of Turlock is not giving in to eliminating their Redevelopment Agency (RDA) quite yet.
Turlock City Council unanimously voted to authorize an appeal to the Department of Finance (DOF) regarding their estimated payment for continuing the Turlock RDA.
The DOF gave the Turlock RDA an estimated bill of $3.187 million for a voluntary payment in this fiscal year in addition to an approximate $450,000 annual payment thereafter.
“Staff is analyzing the budget and also putting together an appeal of that dollar amount because it takes into consideration the 08-09 fiscal year tax increment, which was higher,” said Turlock Economic Development Manager Heidi McNally-Dial. “(It) doesn’t take into account the 2011 bonds that were sold for the public safety facility.”
At the end of June, Governor Jerry Brown signed the budget and trailer bills that would provide for elimination or voluntary payments from redevelopment agencies.
By mid-July, the League of California Cities and the Redevelopment Associated filed suit, and the State Supreme Court has been taking rapid action in terms of feedback regarding the suit.
For this reason, McNally-Dial said that Staff is hopeful the Court will make a decision soon.
In the meantime, Staff will be analyzing the pros and cons as well as the cost benefit of paying that voluntary dollar amount.
Vice Mayor Amy Bublak suggested making a diagram discussing mandates, values, and any amount of money the City is owed from the State.
There was also some discussion about Senate Bill 90 which refers to regulatory mandated state cost reimbursements to local agencies.
“It would be interesting to look at the SB 90 claims, against what the State is looking for a voluntary payment with the accumulated number of SB 90 claims that are outstanding,” said City Manager Roy Wasden.
Staff will be filing an appeal with the DOF by August 15, and they will be hoping for a more concrete number from the DOF.
By law, if the DOF does not provide feedback by September 15, the issue will get pushed back another month.