R.P.V. Renewal Agency Budget a Big Loser in Fiscal Crunch

The Rancho Palos Verdes City Council, acting as the Redevelopment Agency board of directors, Tuesday slashed the agency’s budget for the current fiscal year from $2.9 million to $821,000.

As a result of the cuts, the agency will severely restrict expansion of work designed to abate slow moving slides in the Portuguese Bend and Abalone Cove landslide areas.

City Manager Paul Bussey said the cuts result from the $3 million deficit the city had faced before council members in December made large cuts to balance the budget. The Redevelopment Agency receives most of its money from the city General Fund.

Bussey said the agency also faces uncertain funding in the future because it may lose revenues from a Los Angeles County Improvement District bond issue that is now in litigation. The bond issue is slated to generate $10 million for landslide work in the redevelopment area. Stripped from the budget is funding for further geologic investigation and the expansion of drainage and sewage improvements in the area, said Bussey.

The $821,000 budget, which comes largely from federal block grant funds, will be used to maintain existing grading and drainage work, perform geologic monitoring and some testing, as well as to lobby state, local and federal agencies for more funds.

The board also voted to ask the city to loan it $364,400 to help fund the budget. The City Council will probably approve the loan at its meeting on Tuesday, bringing the agency’s indebtedness to the city to $1.8 million.