City Will Buy Prop. A Funds
The City Council on Tuesday approved buying more than $1 million in Proposition A transportation tax allotments from other cities at about half price.
The purchase is part of a fund drive for a commuter hub at the historic Southern Pacific Railroad Depot, 400 Cerritos Ave.
The city agreed to pay La Habra Heights and La Puente 55 cents on the dollar for $900,910 in restricted transit funds. The council also increased its offer to Lawndale to buy $100,000 in Proposition A funds for $52,000, a rate of 52 cents on the dollar.
Smaller cities often sell their restricted Proposition A allotments for unrestricted cash to help pay for needed city services.
La Puente will receive $385,000 for $700,000 in Proposition A funds, and La Habra Heights will get $110,500 for $200,910 in transit taxes.
In July, Lawndale rejected Glendale’s offer to pay a 47.5% rate for transit funds but will reconsider the city’s new offer at a council meeting next month, Lawndale City Manager Tom Devereux said.
Glendale last month bought almost $1 million in Prop. A money from Cerritos and La Canada Flintridge at almost half price.
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