Transcript Budget Recovery and Ass Kicking

What’s In Your Wallet?
How Redevelopment Agencies Divert Millions From Public Safety
Fire Chief Steve Foster, Cosumnes FD
Business Officer John Ebner, Cosumnes FD
What’s In Your Wallet?
Presentation Abstract

The Cosumnes Fire Experience

Impact of RDA law on public safety
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(Unintended) consequences of RDA law
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Amending or changing RDA law
What’s In Your Wallet?
Cosumnes CSD Fire Experience
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Reorganization into the Cosumnes Community Services
District (November of 2006)
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Cosumnes CSD inherits the Galt Redevelopment Agency
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Original RDA enacted in 1983, was set to expire in 2011

RDA amended in 2007 with and extension and expansion
What’s In Your Wallet?
Cosumnes CSD Fire Experience

Unintended consequences of Galt RDA
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Diverting approximately $550K per year (and rising) from
the Cosumnes CSD Fire Department

Total amount diverted by the Galt RDA could be as much as
$38 million over the next 30 years
What’s In Your Wallet?
Cosumnes CSD Fire Experience

What could you do with $38 million?

Galt RDA developed agricultural land into homes and an
industrial park for which the Fire Department has received
no property taxes for the services we provide
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Is this an abusive use of RDA law?
What’s In Your Wallet?
Cosumnes CSD Fire Experience
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Where does abuse occur in RDA law?
Agricultural land
 Blight
 Notification and cooperation with other taxing entities
 Limited challenge opportunities
 Bonding
 General Plan nexus

What’s In Your Wallet?
What is Redevelopment?

California Community Redevelopment Law (CRL)
California Health and Safety Code beginning with 33000 et. seq.
 California Community Redevelopment Act (Enacted 1945; revised
1993)


Over 400 California cities and counties have adopted local
redevelopment plans
What’s In Your Wallet?
The Goals of Redevelopment
Attract new jobs and business
 Create affordable housing
 Stimulate private investment
 Reduce crime
 Build or improve infrastructure
 Preserve open space
 Transform hazardous waste sites (Brownfields)
 Initiate and fund planning efforts

What’s In Your Wallet?
What is a Redevelopment Agency (RDA)?
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Separate public body reporting to a local governing agency
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Any county or city can establish an RDA

Local governing body usually serves as the RDA board
What’s In Your Wallet?
What are an RDA’s powers?
Adopt a budget
 Buy and sell property
 Make certain types of loans or grants
 Construct improvements
 Rehabilitate, modernize, consolidate, or remove structures
 Assist in developing or rehabilitating low-income or
moderate income housing

What’s In Your Wallet?
What are an RDA’s unique powers?
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The ability to purchase private property for resale to another
private person or organization
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The ability to use the power of eminent domain
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The power to collect property tax “increment”
What’s In Your Wallet?
How does a typical RDA accomplish its goals?
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Assembles land for development
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Utilizes tax increment and issue bonds
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Invests in infrastructure to entice private enterprise
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Creates affordable housing opportunities
What’s In Your Wallet?
How does a typical RDA work?
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Alters the distribution of property tax revenue
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Only applies to property within the redevelopment project
area

Adheres to the adopted or amended Redevelopment Plan
What’s In Your Wallet?
How does a typical RDA work?

Existing taxing agencies (such as Fire Districts) continue to
receive property tax allocations consistent with those up to
the plan/amendment adoption date
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Property tax increases are then frozen and incremental
increases, with the exception of pass-through payments, are
taken by the RDA
What’s In Your Wallet?
How does a typical RDA work?

In theory, a successful redevelopment project increases the
value of property within, as well as around, the
redevelopment project area; generating even more value and
an increase in the resultant property taxes
What’s In Your Wallet?
How an RDA affects Fire Services

City Fire Departments
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Fire Districts
What’s In Your Wallet?
Fiscal Impacts to Fire Districts
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Annual loss of property tax increments for the life of the
Redevelopment Agency
What’s In Your Wallet?
What can a Fire District do?
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Get involved!
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Attend all RDA planning meetings (do not miss a meeting)
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Get an attorney
What’s In Your Wallet?
RDA Process
Initial Ordinance
 Joint Public Hearings
 Planning Meetings
 Environmental Impact Report

What’s In Your Wallet?
Things You Can’t Control

Special Consideration for Individual Taxing Agencies
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The RDA can’t make an exception to its rules for a Fire
Department unless all taxing agencies are given the same exception
The Redevelopment Agency
What’s In Your Wallet?
Things You Can Control
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Attend all RDA planning meetings (do not miss a meeting)
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Keeping the community informed
What’s In Your Wallet?
Further Reading
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California Redevelopment Association Website
http://www.calredevelop.org
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California Department of Housing and Development Website
http://www.hcd.ca.gov/rda/

Local, Regional, and State RDA websites
What’s In Your Wallet?