Hawaiian Gardens : Redevelopment Agency May Owe City $1.7 Million

The city’s General Fund, which pays for basic government services, may receive a $1.7-million windfall.

A financial consultant determined that the city Redevelopment Agency has failed to reimburse the city for some of the expenditures the city has made on the agency’s behalf since 1980.

The $1.7-million figure, which includes 10% interest on non-reimbursed charges, is being reviewed by the city’s auditor, Irvine-based Conrad & Associates. City Administrator Nelson Oliva said the city and agency will not act on the reimbursement until Conrad’s report is received in the fall. The General Fund budget for the current fiscal year is $5.6 million.

Oliva said the city staff was assigned to such redevelopment tasks as buying equipment and property with the understanding that the city would be reimbursed. In some cases, there was only partial repayment or none at all, he said.

Fullerton financial consultant Michael J. Wagner analyzed the accounting records and concluded that the Redevelopment Agency should reimburse the city. In a report to the city, Wagner said he could not determine whether the city should be reimbursed for expenses before 1979 because city and agency financial records were incomplete.