City wary of future payments
Ryan Carter
Several city- redevelopment projects progressed this year, but city
officials have concerns over continued large payments of property-tax
revenues to the state that could jeopardize future redevelopment
projects.
Questions linger over whether the Redevelopment Agency -- which
collects revenue from portions of the increase in tax-increment value
from a redeveloped property -- will have to make another large
payment to the state next year. Those payments were required by
former Gov. Gray Davis the past two years to help fill a state
education fund.
For the 2003-04 fiscal year, the agency will give $1.3 million to
the state’s Education Revenue Augmentation Fund. The fiscal year
before last, about $800,000 went to the fund, officials said. Local
officials are concerned about the possibility that Gov. Arnold
Schwarzenegger’s administration will continue the required payments
in his proposed 2004-05 budget, due out in January.
“The concern is that [the payments] will continue, and that would
be damaging to the Redevelopment Agency,” said Derek Hanway, the
city’s financial services director. “Property-tax revenues are at
stake, and the question is whether you keep it local.”
Redevelopment officials are bracing themselves.
“Is it possible we will have to make a payment? Yes,” said Ruth
Davidson- Guerra, assistant community development director for
Housing and Redevelopment.
“If it is at the same level as this year ($1.3 million), will it
put us in jeopardy? No. Will it impact our projects? Sure. What would
be at stake is our ability to embark on new projects.”
Officials presented an update on the progress of the city’s
redevelopment projects and the amount of tax revenue they generated
for the city in the 2002-03 fiscal year at Tuesday’s City Council
meeting.
The agency collected $13,600,821 in tax revenue from the Golden
State Project Area, which includes the Empire Avenue corridor in the
area of the city bordering the Burbank- Glendale-Pasadena Airport,
which was scheduled to be renamed Bob Hope Airport today. The agency
collected $1,118,472 from the South San Fernando Project Area. The
West Olive Redevelopment Project Area brought in $2,741,464 in tax
revenue and the City Centre project, which includes the revamped
Burbank Entertainment Village and areas within the civic center,
generated $5,887,074.
The agency takes 20% off the top of its tax revenues to put back
into its community housing programs, and it still must cover
recurring debts from projects, Davidson- Guerra said.