Redevelopment Debt $642 Million

I was reminded by an automated email from the City that the Redevelopment Agency's Oversight Board has a meeting coming up on Tuesday May 22 at 3PM in the City Council Chambers.  

I was also reminded just how much debt our City Council (acting as the Redevelopment Agency) has incurred on our behalf over the past couple of decades.

According to the report from the City to the State we taxpayers are on the hook for $641,969,234!

And what did you get for your money?  High-density apartments, parking garages, and a number of employees to figure out how to give us more debt.  I know that sounds harsh but that is what we are left with.  There were very few projects that made improvements to the infrastructure and even those were relatively minor.

Its sad that we have squandered so much and received, as a community, so little in return.

Reducing the debt will take hard work, dedication, and vision.

Supreme Court Rules on Challenges To the State's Plan to Dissolve Redevelopment Agencies

(From http://www.courts.ca.gov/16345.htm)

Court Decides the State Has the Authority to Dissolve Redevelopment Agencies but Does Not Have the Authority to Condition Their Continued Existence on Required Payments

San Francisco — Resolving challenges filed by the California Redevelopment Association, the League of California Cities, and the cities of San Jose and Union City, the California Supreme Court today upheld the constitutionality of Assembly Bill 1X 26, which dissolves redevelopment agencies and redirects their property tax revenues, and struck down Assembly Bill 1X 27, which would have allowed redevelopment agencies to continue to operate, but only if they opted in on a plan that required annual payments.

On July 18, the California Redevelopment Association and the League of California Cities filed a petition asking the court to overturn both Assembly Bill 1X 26 and Assembly Bill 1X 27.  On August 11, the court agreed to hear the lawsuit and issued a partial stay of various provisions of both bills and to issue a decision before January 15, 2012.  The court expedited briefing and argument on the matter and held oral argument on November 10.

In a majority opinion authored by Associate Justice Kathryn M. Werdegar, the court upheld the enactment of Assembly Bill 1X 26, dissolving redevelopment agencies and redirecting their property tax revenues.  The court explained that, because the Legislature had the authority to create redevelopment agencies, it also had the corollary power to dissolve them.  The court noted that although Proposition 22, as enacted by the voters in 2010, amended the state Constitution to impose additional limits on the state's fiscal powers, nothing in that initiative or other parts of the state Constitution guaranteed the continued existence of redevelopment agencies.

The majority, however, held that Assembly Bill 1X 27 was unconstitutional because it conditioned the ability of redevelopment agencies to conduct new business on agreeing to an annual payment plan based on a portion of property tax revenues allocated to redevelopment agencies.  The court explained that this opt-in plan violated Proposition 22 because that measure arose in opposition to similar past legislation and was intended to preclude further required payments based on redevelopment agency property tax revenues.

The majority opinion by Justice Werdegar was signed by Associate Justices Joyce L. Kennard, Marvin R. Baxter, Ming W. Chin, Carol A. Corrigan, and Goodwin Liu.

Chief Justice Tani Cantil-Sakauye joined the majority opinion upholding Assembly Bill 1X 26, but dissented with respect to the conclusion that Assembly Bill AB 1X 27 was unconstitutional.

The Chief Justice observed that neither Proposition 22's history nor its express language appeared to prohibit the opt-in payment plan created by Assembly Bill 1X 27.  The dissenting opinion noted that it appeared the Legislature had carefully drafted Assembly Bill 1X 27 so as not to violate Proposition 22 by allowing the annual payment to come from any local revenue source and not specifically redevelopment agency funds, which Proposition 22 expressly protects.  The Chief Justice concluded that Assembly Bill 1X 27 does not facially conflict with the state Constitution and further noted that the parties presented no evidence that the measure would actually violate the state constitution in practice.

The court unanimously reformed Assembly Bill 1X 26, which had been largely stayed during the pendency of this action, by extending its various deadlines by four months.

__________________________________________________

To read all of AB 1X 26, click HERE or go to http://leginfo.ca.gov/pub/11-12/bill/asm/ab_0001-0050/abx1_26_bill_20110629_chaptered.html.

To read all of AB 1X 27, click HERE or go to http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0001-0050/abx1_27_bill_20110629_chaptered.html.

Fullerton City Council Meeting - Tomorrow at 6:30PM

Speak up and be heard. 

6:30PM at Fullerton City Hall

303 W. Commonwealth Ave.

Read the City Council Agenda HERE!

Another county sues municipality over redevelopment merger

The Ventura County Star is reporting a familiar story being played out throughout California.  Redevelopment agencies have been attempting to merge their zones or areas into a single massive redevelopment area.

According to the Ventura County Star, Simi Valley merged three redevelopment areas into one last June.  Ventura County objected and has sued.  The County claims the area is not blighted.

Sound familiar?  It should!  Fullerton has done the same thing with their massive merger of redevelopment areas. 

The Fullerton Redevelopment Agency merged areas in 2009 and was sued by the County of Orange as well as a local resident and businessman.  Fullerton ended up paying millions for their greed to the County in property tax revenue that the County was going lose.  Over the next 45 years, the City could pay out as much as $500-million. 

Many of these legal battles may not be fought in the courtroom at all.  The California Supreme Court has been asked by the State's 425 redevelopment agencies to overturn the state legislation passed earlier this year which abolishes all redevelopment agencies unless they pay a "fee" to cover some of the lost revenue. 

It's somewhat satisfying to watch agencies fight one another over taxes.  The Cities, through their redevelopment agencies are like little Tea Parties trying to pay as little in taxes as possible.  It's really quite funny until you realize its all OUR money.  The City, County, and State took my money, squandered most of it on "overhead", and then gave what was left to another agency...

Special thanks to Redevelopment.us for bringing this story to my attention.

For more on Fullerton's Redevelopment Agency, CLICK HERE.

City Task Force Seeking Ideas

Here is a Press Release from the City of Fullerton as they begin their work to address Fullerton's homeless. 

_________________________________

Do you have an idea – large or small – that could improve the resources and services provided to Fullerton’s mentally ill homeless? The City of Fullerton and the Fullerton Task Force on Homelessness would like to hear from you.

           

Just log onto FullertonTaskForce.info and share your ideas.
           

FullertonTaskForce.info is an interactive virtual “town hall” website dedicated to soliciting ideas and feedback from the community about improving information sharing, services and resources related to the mentally ill and homeless in the community.

           

Al Zelinka, community development director for the city, said FullertonTaskForce.info provides residents, business people, students and other interested stakeholders with “a creative and convenient way to share ideas, provide feedback, and make recommendations on a broad variety of issues related to this outreach effort.

           

“This new public engagement platform allows a more diverse audience of participants that might not be able to attend conventional public meetings. Anyone interested in providing constructive ideas and solutions can simply jump on-line from work, home, school or wherever they have Internet access, and join in the discussion.”  

The on-line forum will be used in conjunction with traditional public meetings to provide information to the task force.

           

“We are always looking for better ways to capture input and ideas from citizens,” said Rusty Kennedy, director of the Orange Cou8nty Human Relations Commission and task force chairman. “FullertonTaskForce.info is a great way to engage with people who cannot attend public meetings.”

           

Kennedy added, “This technology allows us to interface with hundreds of Fullerton residents and the public at-large. We appreciate that Fullerton residents have a strong desire to be involved in a constructive discussion regarding these issues in our community and this platform will allow us to better listen to citizens’ ideas and solutions.”

           

Further information about FullertonTaskForce.info may be obtained by calling Zelinka at (714) 738-3347, or Rob Ferrier, assistant to the city manager, at (714) 738-6760.

REMINDER - FOCUS ON WEST FULLERTON - TONIGHT

You’re invited to…

A Dialogue with
Fullerton City Manager Joe Felz

Fullerton Police Captain Dan Hughes

Fullerton Community Development Director Al Zelinka

And other members of your City of Fullerton team

TONIGHT!

WHY?
Over the next several months, meetings will be organized to facilitate dialogues between the Fullerton community and members of its City of Fullerton team.

The purpose of this planned meeting is to have a productive dialogue between West Fullerton community members and City staff about quality of life issues and explore approaches, ideas, and solutions related to them.

WHEN?
TONIGHT - Wednesday, November 2, 2011 – 6:00pm-8:00pm

WHERE?Fullerton Main Library – Conference Center
353 W. Commonwealth Ave. Fullerton, CA 92832

MORE INFORMATION…For more information, please contact Al Zelinka, Community Development Director for the City of Fullerton at 714-738-3347 or alz@ci.fullerton.ca.us.

Stockton's Redevelopment Failure Gives Fullerton a Dismal Outlook

A Bloomberg Businessweek article on Stockton (CA) Redevelopment's possible default should have many of Fullerton's Redevelopment Agency supporters biting their nails. 

Stockton declared a fiscal emergency in May and is now warning that the RDA may default on a 2006 bond obligation with the debt service outpacing revenue to the tune of $858,000. 

Fullerton has several outstanding redevelopment bond obligations.  In July 2010 the Fullerton RDA announced spending $22.7-million for low-income housing and then in October 2010 the RDA passed a $29-million bond which is expected to cost taxpayers $45.5-million of the following 16 years.

Putting these figures in perspective, the Fullerton RDA receives about $17-million per year to cover all of the agency's debts and project development.

And we cannot forget yet another expense incurred by Fullerton's RDA, something I call the "Brown Taxes" after our own Governor Brown.  Sacramento's ABX1-26 & 27 is aimed at recovering tax revenue from redevelopment agencies, Fullerton's RDA paid out $6.26-million in Brown Taxes.

This is the same redevelopment agency which planned to spend $6-million to move a McDonald's 200 feet! 

With several bond obligations, Brown Taxes, slumping property tax increment revenue, poor direction, and pending litigation, the Fullerton Redevelopment Agency would be doing us all a favor if they just closed their doors for good.

FOCUS ON WEST FULLERTON - City Officials Seek Public Input

You’re invited to…

on November 2, 2011

A Dialogue with

Fullerton City Manager

Fullerton Police Captain

Fullerton Community Development Director

And other members of your City of Fullerton team

Joe FelzDan HughesAl Zelinka

WHY?

Over the next several months, meetings will be organized to facilitate dialogues between the Fullerton community and members of its City of Fullerton team.

The purpose of this planned meeting is to have a productive dialogue between West Fullerton community members and City staff about quality of life issues and explore approaches, ideas, and solutions related to them.

WHEN?

Wednesday, November 2, 2011 – 6:00pm-8:00pm

WHERE?

Fullerton Main Library – Conference Center

353 W. Commonwealth Ave. Fullerton, CA 92832

MORE INFORMATION…

Fullerton at 714-738-3347 or alz@ci.fullerton.ca.us



For more information, please contact Al Zelinka, Community Development Director for the City of

FOCUS ON WEST FULLERTON

Will State Controller Audit Fullerton?

California State Controller John Chiang has issued his report on an audit of  the City of Montebello.

Earlier today Chiang said in a press release "At the expense of local job development, street repair, and schools, Montebello has made it a habit to tap legally-restricted funds to cover its budget and cash shortfalls.  It appears that the City moved money wherever it wanted, whenever it wanted, regardless of the law or the intended purpose of those taxpayer dollars."

With Fullerton using earmarked funds for non-fund related expenditures, it's just a matter of time before the Controller's Office finds their way to our own City Hall.

Fullerton has a couple of municipal codes that specify how the money for certain funds are to be used, such as our Sewer Fund or the Sanitation Fund.

After a cursory review of the City's budget for FY2011-2012, I wrote about these funds and some of the ways in which our tax dollars have been misappropriated.  Read about it HERE.

City Council Meeting Tonight

There is a City Council meeting tonight at 6:30 in the City Council Chambers at City Hall, 303 W. Commonwealth Ave.

So many of you have been coming out and expressing your thoughts and concerns about Fullerton and the pressure is mounting.  Keep the pressure on them and don't let up. 

We are all concerned about the elephant in the room, the death of Kelly Thomas at the hands of Fullerton police officers. 

We must also not loose site that city officials, beginning with the City Council, have continued to waste tax dollars and resources to pay for certain elite benefits and infrastructure boondoggles.  That money - OUR MONEY - can and should be used to benefit everyone, not just well-connected developers and powerful public employee unions.  

Fullerton's own Police Officers Association has demonstrated quite well their condescending and elitist attitude and abusive use of authority towards anyone who questions their actions or, god forbid, wants officers held accountable ever since Kelly was beaten into a coma on July 5th.  This is the same union that protects bad cops, uniformed thieves and badge-wearing sexual predators from justice.  Its the same union whose members give out tickets to protest supporters who honk their horn.  What has the Fullerton Police Officers Association done for the People of Fullerton?  Lies, cover-ups, and corruption. 

And in case you think I'm anti-cop, I'm not.  I'm anti-bad cop and pro-good cop.  There is a difference. 

City offers housing rehabilitation loans for homeowners

I have mixed thoughts on the City making loans to residents but I tend to favor this program.

It is far cheaper for taxpayers to give homeowners loans for minor repairs than it is to have code enforcement (or Community Preservation Officers) write tickets and then have the City Attorney file a civil suit against a homeowner.

By doing this, the City is taking a proactive role in combating blighted conditions.  These loans may also help prevent the “need” for the Fullerton Redevelopment Agency to condemn properties as part of that Agency’s fight against blight.

Here is the City’s press release:

 

Does your plumbing leak or your house need a fresh coat of paint? How about other basic safety improvements such as a new roof or repairing faulty wiring or heating to curb high energy costs?

           

If your answer to any of these questions is "yes," but your checkbook balance says it’s out of the question, don't give up: The City of Fullerton may be able to lend you a hand.

           

The City, through its Housing and Community Development Office, offers both deferred and below-market interest rate loans to Fullerton homeowners through its Housing Rehabilitation Program.

The loans are funded through the federal Housing and Urban Development Department's Community Development Block Grant Program, and qualifying homeowners must meet the program’s income criteria and guidelines. .

           

"The goal of the program is to assist low- and moderate-income residents who cannot afford to keep up their homes on their own," explained Sylvia Chavez, housing programs assistant for the city. "By providing them with a way of taking care of their homes, the City is helping protect their quality of life, as well as their property values."

           

Below-market rate loans of up to $65,000 are available for qualified applicants. The loans carry a low interest rate of 6 percent or below, and the maximum repayment period is 15 years.

           

Homeowners unable to qualify for the below-market rate loans may qualify for a deferred loan, Chavez continued. Deferred loans require no monthly payments and no interest, and are reviewed every 15 years for eligibility. The loans come due upon the sale or transfer of the home.

           

Senior citizen homeowners (62 years of age or older) who only receive federal or state financial assistance, such as Social Security or disability, are allowed to bypass the bank application and apply directly for a deferred loan.

           

Applications and further information about the loan programs may be obtained by calling Chavez at (714) 738-6874, or by coming to the Housing and Community Rehabilitation Office on the second floor of Fullerton City Hall,

303 W. Commonwealth Ave.

           

Applications and further information are also available under the Community Development Department section of the City website at www.ci.fullerton.ca.us.

Solar Powered Library, Do the Savings Add Up?

Does the end justify the means? 

We can apply that question to so many various topics but I would like to see how the Library’s new photo voltaic system (solar panel array) holds up to the scrutiny.

The system is costing taxpayers $676,100to purchase and install and will take 45-70 years to break even if the savings pencil out to $10,000 to $15,000 per year as suggested by city engineering staff.  The problem is that the warranty is only good for 25 years leaving taxpayers exposed for an addition 20 to 45 years! 

The cost does not include routine maintenance to clean the panels which is necessary to maintain efficient production of electricity. 

In the end, we will spend much more replacing outdated panels and repairing antiquated technology than we will save by using these panels.  I’m all for sensible environmental policies but this policy just isn't sensible, it’s downright wasteful.

Shouldn't we be seeking to SAVE taxpayers money rather than subsidize the solar industry?

So, does the end justify the means?

Something else I have often wondered but never researched is how much greenhouse gas will be produced manufacturing these panels and will that pollution reach 100% mitigation by using these panels for 25 years? 

Is Redevelopment About to Expand?

It sure looks that way. 

Among the Agenda items for Tuesday night's City Council meeting is Item #18, a MOU between the Cities of Fullerton, Buean Park, La Habra, Brea, Placentia, Yorba Linda, County of Orange, and the Orange County Workforce Investment Board is paving the way for a North Orange County Economic Development Partnership. 

That's a mouth full.

It looks like maybe this new agency could dodge some of Sacramento's pay-to-play redevelopment taxes recently enacted.

It also creates a much larger muscle for the redevelopment community to flex.  As it stands, three council members could end the Fullerton Redevelopment agency with a simple vote.  This new agency would be nearly impossible to dismantle once in place.

There is a bunch of fluff and superfluous wording that sells conservatives on a regional investment strategy.  And with Dick Jones, Don Bankhead, and Pat McKinley on the council, you can rest assured the MOU will pass.

Congressman Tom McClintock Calls for End to Redevelopment Agencies

(from www.StopTheMoneyPit.com)

Joining a chorus of organizations representing private property rights, taxpayers and faith based organizations, conservative stalwart Congressman Tom McClintock is calling for an end to California's 425 redevelopment agencies. In a YouTube video, the Congressman calls out RDAs for abusing private property rights and wasteful government spending, including $6.9 million for a mermaid bar.  He points out that local taxpayer dollars that would otherwise go to local police and fire protection are going into the pockets of politically connected interests. 

Click Here to Watch!

  

In recent weeks, conservative leaders and organizations have been calling on Republican legislators to abandon their support for RDAs. In March of this year, Governor Brown's effort to abolish RDAs failed due to Republican opposition, despite independent analysis that concluded that there is no reliable evidence that redevelopment creates net new jobs.

A website, www.StopTheMoneyPit.com, was launched to build public support for SB 77 and AB 101, legislation that abolishes RDAs.

Congressman McClintock urges you to contact your state legislator!  Click here to find out who represents you in the California State Legislature.

Contrasts in Architecture Are Rare in Fullerton

I'm not an architect nor do I pretend to be.  At best, I notice some architecture while clearly ignoring other types.  I'm a land surveyor, not a building surveyor.  So when I see structures, I look to quantify them, not qualify them.

At least that was my modus operandi until May 11, 2011. 

On that day I was walking Independence Mall in Philadelphia and admiring the history and reflecting on what it would have been like in 1776.  As I crossed Market Street to go look at the Liberty Bell I looked left and right scanning the streets.  Then something caught my eye.  The antique cityscape had something shiny and new nestled in between two pieces of historic-looking buildings.

Those who have visited Independence Mall will agree that they are awed by Independence Hall, the Liberty Bell, Christ Church Burial Ground, and other important pieces of American history.  It is breathtaking for those with that certain affinity for history.

And in the midst of this structural history I find my eyes gazing on a structure unlike anything else on the Mall.  For that matter, I don't recall ever seeing anything like this structure with my own eyes. 

The structure has jutting polished metal forming right angles and contrasts sharply against the backdrop of American history.  The building's unusual placement on the Mall speaks volumes of its purpose, though no billboards announce what that may be. 

As I circle the Mall admiring the formation of our Country, my mind and camera wander back to the building, now more striking than when I saw it just moments ago. 

Nearing the building, I look for signs as to what the building is and what it represents.  Seeing none and realizing I'm now short on time, I turn away to make my next appointment.

Troubled by the mystery, I turn to the internet to find my answer. 

I find Google Earth to be a great tool for understanding our world.  Once again, the tool came through with an answer which was supported by additional sources.

The National Museum of American Jewish History stands as a monument to, as the name implies, American Jews.  Its purpose is to connect Jews more closely to their heritage and to inspire in people of all backgrounds a greater appreciation for the diversity of the American Jewish experience and the freedoms to which Americans aspire.  The architect, James Polshek, has created a striking symbol of American Jews and their story through the placement and use of materials, textures, shapes, and colors.  You can see more of James Polshek's work at http://ennead.com/#/projects/nmajh.

This experience, seeing the building on the Mall and recognizing the unusual beauty of its presence in that location has caused me to question the direction the City of Fullerton has traveled for decades. 

A recent Friends for Fullerton's Future blog post brought to light the Redevelopment Design Review Committee's selections of less than inspiring architecture. 

I used to have the strong opinion that modern designs just would not work in our downtown.  After long debates and discussions with friends and my visit to Philadelphia I am confident that it can work well. 

Entrepreneurs looking to raise the bar and make their place in Fullerton should look to innovative designs which will stand in contrast to our old and confused architecture.  More importantly, when every other building is a bar or tattoo parlor, business owners need to look at ways of setting their establishment apart from the rest of the herd. 

There is a great transcript of a debate on this architectural issue that took place at Harvard in 1982.  Click HERE and read the arguments that shape our structural world. 

What's in the "Capital Improvement Program"

What’s a CIP and why do we have one?

The City of Fullerton’s Engineering Department webpage does not offer an easily found answer as to what the CIP is or why one exists.  However, the currently proposed 5-year CIP or Capital Improvement Program says that “the CIP is a planning tool for short- and long-term capital improvements and development.”  The CIP continues, adding “It links Fullerton’s fiscal planning process to physical development. “  I look at it as the 5-year budget plan for the City’s infrastructure.

According to the proposed 5-year CIP, the City projects spending $46,060,450 for 2011-12 and $32,866,050 for 2012-13, with a five=year total of $206,920,550.  The Fullerton Redevelopment Agency has a projected five-year total of $6,020,000.

As you can see, these are not exactly small figures and therefore should not be taken lightly. 

The funding sources include property taxes and various excise taxes attached to services. 

More importantly, what does it cover?  What will get fixed?

One of the first things Fullerton residents and business owner’s hope will get covered are the City’s roads.  Rest assured, the roads are addressed in the CIP but not as fast or frequent as many of us might like.

To understand the road repair portion we have to look at what constitutes our streets.  There are curbs, gutters, sidewalks, asphalt, trees, and all of those utilities. 

Of the $46,060,450 for 2011-12 about $4,043,000 is to be spent on resurfacing existing roadways.  About $270,000 will cover curbs and gutters.  Last year Mayor Pro Tem Bankhead said that Redevelopment funds pay for those sidewalks around town that need repair. The Redevelopment Agency’s total planned contribution towards curbs and gutters is just $20,000.  And of the $4,043,000 to be spent on resurfacing our roads, $1,000,000 is from the Redevelopment Agency.

Now let’s consider our water system and keep in mind two things: 1) our water rates will increase at least 7.8% in just the next year; 2) the CIP does NOT include the rate increase; 3) there is 10%-11% that is skimmed from our water bills to cover general funding obligations like police, parks, and fire in the form of a franchise tax.  The tax amounted to $2.5-million last year that does not go back into our water system.   The total projected spending for the water system is $1,600,000 for 2011-12.  Now imagine taking that $2,500,000 that is diverted each year and put it back into the water system.  That would give us $4,100,000 to invest in our water system without having to raise water rates.

Now let’s look at what many taxpayers might consider pork.  Here is a short itemized list of proposed expenditures of the next 2 fiscal years:

$60,000 - Target Retrieval System for the gun range at the Police Department

$155,000 – Duane Winters Field Fence Replacement (this is the baseball field across from City Hall.  The Flyers are in negotiations to use the field for their independent league)

$350,000 – To design and install a pump to circulate water used for the spray ground at Valencia Park.

$150,000 – “Safety enhancements” at various public facilities.

$25,000 – “Public Art Program” from Redevelopment Agency

$183,000 – Replace gates and fencing at Basque Yard (Director Hoppe noted at last week’s Planning Commission meeting that the gates are poorly designed and require constant maintenance.  Nice to know we got our money’s worth!)

$158,600 – “Downtown Plaza Stage Improvements”

Taking the cake is $50,000 in my book is the item shown as “window coverings” at Basque Yard!

So, if we aren’t spending all of our CIP on roads and the water system, then where is it going?

Aside from some of the “pork” noted above $40,417,450 will go into the 57FWY/Chapman intersection ($238,000) as well as widening Bastanchury east of St. Jude ($625,000) and the grade separations ($28,800,000There is also the sewer system which will receive about $4,500,000.

Looking over all of these items and funds I am compelled to ask the question WHY?  Why are we allocating $50,000 for window coverings for one of our newest facilities while our water system is crumbling and we are looking at closing the Hunt Branch Library?

A similar question was asked to Public Works Director Don Hoppe who responded by saying that these allocations represent the standard maintenance and replacement plan for these facilities.  It’s a good answer if we applied a similar philosophy to our countless roads, waterlines, street lights, etc.  Unfortunately, it looks like we are not thinking outside the box when it comes to investing in our infrastructure.  It will take City Council Members and a City Manager with courage to take a hard look at the budget and make sensible decisions that reflect prioritized needs.  I’m not holding my breath…

Crony Capitalism and Social Engineering: The Case against Tax-Increment Financing

Thanks to MORR for bringing this to my attention.  Go subscribe and get daily updates on issues regarding taxpayer funded redevelopment agencies.

Here is a brief excerpt from the Cato Institute and as the title alludes, taxpayer funded redevelopment is nothing more than "Crony Capitalism and Social Engineering".

_____________________________________________________________

Policy Analysis no. 676

Crony Capitalism and Social Engineering: The Case against Tax-Increment Financing

by Randal O'Toole

Randal O'Toole is a senior fellow with the Cato Institute and author of The Best-Laid Plans: How Government Planning Harms Your Quality of Life, Your Pocketbook, and Your Future.

Tax-increment financing (TIF) is an increasingly popular way for cities to promote economic development. TIF works by allowing cities to use the property, sales, and other taxes collected from new developments — taxes that would otherwise go to schools, libraries, fire departments, and other urban services — to subsidize those same developments.

While cities often claim that TIF is "free money"... Read More Here

City of Fullerton's Proposed Budget Unveiled - $274.9-Million to be spent

The City of Fullerton unveiled the proposed budget for fiscal year 2011-2012 and 2012-2013.

The budget appears to be largely a rearrangement of the deck chairs with no real cuts proposed.  There are proposed cuts in certain projected spending to help make up for significant increases in employee benefits.

There were no explanations about the benefits increasing which Councilmember Whitaker took issue with. 

Councilmember Quirk-Silva reminded staff that last year there were several ideas proposed for generating revenue and increasing fees such as the tow franchise which will be heard by the Council later this year.  Quirk-Silva expressed appreciation that the tow franchise was moving forward but would like to know about the other measure proposed last year.

One of my major concerns continues to be the infrastructure.  As Public Works Director Hoppe pointed out, we still have a nearly $150 million dollar paving deficit to deal with.  The current paving plan does not adequately address this nor does this proposed budget.  I hope the council members and City Manager Joe Felz will give serious consideration and address our infrastructure with this budget.

Below are the summaries for the proposed budget. (click on image to read)  The big question remaining in my mind is how does $274.9 million in taxpayer expenditures next year benefit my family, my neighborhood, and the quality of life in my community?

Tonight the future of Downtown Fullerton is in your hands...sort of

Upcoming Council Meeting

April 19 the Fullerton City Council will vote on a settlement between Pacific Coast Home and the City over last year’s council vote to not approve the West Coyote Hills development.  This item is sure to bring out supporters and opponents of the development.  Go to OpenCoyoteHills.com to see a few of the supporters.

The Council will also vote on the formation of a Citizens’ Committee for review of the 2011 Comprehensive Water Rate Study Report.  With Proposition 218 (1996) on the books, the City Council and staff will need to pull out all of the stops in order to get any support from voters for raising water rates during the worst recession since the Great Depression. 

Also on the agenda is a City-wide clean up effort proposed by the Public Works Department.  The plan is to remove graffiti, replace damaged traffic signs, and improve landscaping throughout Fullerton- also known as urban blight.  The funding will come from several sources.  NONE of the funding will come from the Redevelopment Agency which is responsible for removing urban blight in all of the Redevelopment Areas. 

Based on the maps of the Redevelopment Areas, it would appear that the Redevelopment agency should be contributing substantially to the maintenance costs in their respective areas.  Why aren’t they?

Only a few short weeks ago the Fullerton Redevelopment Agency couldn’t get rid of their cash and assets quick enough.  It’s time for the City Council members to take responsibility for the City they serve and use Redevelopment Agency funds to remove blighted conditions. 

There are other issues on Tuesday's agenda, some important and some not.  I hope you can come out and speak up on the issues, whatever your position may be.