The Seal Beach City Council approved an ordinance that will allow the city to keep it’s redevelopment agency. The ordinance was passed on second reading as part of the Monday, Aug.8 consent calendar.
In related news, on Thursday, Aug. 11, the California Supreme Court agreed to hear the lawsuit challenging the constitutionality of legislation that abolishes redevelopment agencies. The court granted a partial stay that temporarily stops the state from forcing cities to pay to keep their RDAs.
The high court is expected to make its decision before Jan. 15, 2012. That is the deadline for cities to make their first “voluntary” payments as the law calls the required annual fee, according to the League of California Cities.
The Seal Beach City Council had discussed the options for the RDA prior to approving the ordinance.
The council held a special meetings on Tuesday, Aug. 2 in Fire Station 48 near Leisure World and met again at a special Redevelopment Agency meeting at 5 p.m., Monday, Aug. 8, prior to the regular council meeting.
As previously reported in the Sun, the council had two options: pay what state law calls “voluntary payments” each year in exchange for allowing the RDA to exist or disband the RDA and have a successor agency subject to state-appointed oversight boards.
Last week’s decision meant the Seal Beach City Council opted to keep the RDA and pay $937,868 for fiscal year 2011-12.
An Aug. 8 staff report to the City Council by Mark Persico, director of Development Services, outlined the risks of keeping the Redevelopment Agency.
One of those risks is that the cost of keeping the RDA could go up in future years.
“For example, if the total amount paid by agencies in FY 2011-12 does not equal the $1.7 billion anticipated by the state budget, this could trigger the need for additional (payments),” Persico wrote.
The city might not have enough money to make the payments in the future. In that case, Seal Beach would have to disband the RDA.
Staff identified money in the budget that was designated for a storm drain project that could be used to make the first payment.
