City to Pay for Redevelopment Agency Pending Court Ruling

Facing a Jan. 15 deadline, the El Cerrito City Council Monday night unanimously approved paying $1.85 million next year to if the state Supreme Court upholds a new state requirement that cities pay to keep such agencies.

The vote by the five-member council, which was acting also as the Redevelopment Agency board, reaffirmed . If the state high court upholds the state's new law requiring cities to pay for keeping Redevelopment Agencies, El Cerrito would have to pay $1.85 million next year and about $500,000 in 2013 followed by escalating amounts for several more years, according to a staff report.

City staff had asked the council, in light of updated financial projections, to determine if it still wanted to proceed with the first payment on Jan. 15.

"I'm in favor of this because I think we have to protect the projects we have in the hopper," said Mayor Bill Jones.

The city's quandary was precipitated in July with the enactment of two state laws that were part of the plan to balance the state budget: AB1x26 and AB1x27. The former dissolved local Redevelopment Agencies in the state, and the latter gave cities an option to keep their agency by making voluntary annual payments.

The League of California Cities and the California Redevelopment Association sued to block the state's action, and the state Supreme Court in effect suspended Redevelopment Agencies until it could issue a ruling, which is expected next month.

El Cerrito's city officials, like those in many other cities in California, have strongly criticized the state actions. The staff report for Monday's council meeting said, "The State’s attempt to eliminate redevelopment agencies and require cities to pay to participate in future revitalization efforts is misguided and illegal. Voters have repeatedly sought to end State raids of local government funds, of which this is just another example."

The staff report, which is attached to this article, outlines which programs the city's Redevelopment Agency would be able to continue if the city has to make the payments and what programs would have to be put on the shelf until new funding is found.