11-203 Resolution 11-203
A RESOLUTION OF THE CITY OF MENIFEE IN OPPOSITION TO THE ADMINISTRATION'S
PROPOSAL TO ABOLISH REDEVELOPMENT AGENCIES IN CALIFORNIA
WHEREAS, as part of its 2011-12 budget proposal, the Governor has proposed permanently abolishing
California's more than 400 local redevelopment agencies; and
WHEREAS, this proposal represents more of the same misguided and illegal State budget raids
of local government funds that voters have repeatedly sought to end, most recently in November 2010
when an overwhelming 61% of voters elected to stop State raids of local government funds, including
redevelopment funds; and
WHEREAS, this proposal will bring very little financial benefit to the State. According to the State
Controller's Office, redevelopment agencies have more than $87 billion in bond and other contractual
obligations that legally must be repaid before revenues are available to any other purpose. In fact,
according to the State Department of Finance's own budget documents, there will be zero State savings
in out years from shutting down redevelopment; and
WHEREAS, this proposal will destroy local economic development, including hundreds of
thousands of jobs and billions of dollars in local economic activity throughout California. In fact, in
Riverside County, abolishing redevelopment will destroy the City of Menifee's ability to solve its present
public health and safety issues regarding the Quail Valley Sewer Project and the Romoland Line A Storm
Drain Project; and
WHEREAS, throughout California, redevelopment activities support 304,000 jobs annually,
including 170,600 construction jobs, contribute over$40 billion annually to California's economy in the
generation of goods and services, and generate more than $2 billion in state and local taxes in a typical
year; and
WHEREAS, eliminating redevelopment will take away one of the few tools local governments
have to comply with state requirements to plan for more compact urban development supported by
transit-oriented development, housing,jobs and infrastructure; and
WHEREAS, eliminating redevelopment will destroy the development of affordable housing in
California. Redevelopment agencies are the second largest funder of affordable housing, behind only the
federal government, responsible for over 98,000 units of affordable housing since 1993; and
WHEREAS, shutting down redevelopment agencies is a violation of multiple State and Federal
constitutional provisions.
THEREFORE, BE IT RESOLVED that the City of Menifee formally opposes the Administration's
proposal to abolish redevelopment in California.
THEREFORE, BE IT FURTHER RESOLVED, that the City of Menifee authorizes its council and
city staff to communicate its opposition to this proposal to the Governor, the Legislature, business groups,
and citizens.
PASSED AND ADOPTED this 1ST Day of February, 2011.
Wallace W. Edgerton, Mayor
Attest:
Z
Kathy Bennett, City Clerk