(Mendocino County) GJ looks at county's RDAs, which face elimination

Ukiah Daily Journal Staff
Updated: 07/06/2011 11:59:50 PM PDT

Report recommends that cities develop alternative revenue streams

The Daily Journal

With the state's redevelopment agencies (RDAs) facing elimination following the passage of California's latest budget, the Mendocino County grand jury explored the "inner workings" of the RDAs in Ukiah, Willits and Fort Bragg.

According to the grand jury's report, the 1945 California Redevelopment Act enabled "the formation of local RDAs to eliminate blighted properties and to improve selected areas. More than three-quarters of California cities and many counties have RDAs."

The city councils of Ukiah, Willits and Fort Bragg, as well as the Mendocino County Board of Supervisors voted to create RDAs, the GJ continues, explaining that the initial funding for RDAs came from bond sales, then increases in property taxes (ideally resulting from projects) are directed to the respective redevelopment agencies.

However, the local RDAs did not form citizen advisory committees, which are "allowed and encouraged under RDA Rules to gain greater input, trust and understanding."

The GJ describes those committees as groups that collaborate "with the agencies throughout every step of the redevelopment process, from identifying a project area to construction and project completion."

These groups ensure that projects reflect community needs and priorities, and keep other community members informed about the progress of the project."

The GJ recommends that the local RDAs "establish citizen
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advisory committees to allow for greater public input and oversight."

The GJ also recommended that the "City of Ukiah budget employee staffing allocations to the actual time spent on RDA business."

In a finding not identified as specific to the URA , the GJ notes that "employee salaries are paid with RDA funds disproportionate to the time spent on RDA business. More than one RDA employees' salary and benefits are paid 100 percent with RDA funds, even though they do not perform 100 percent RDA business."

The Ukiah Redevelopment Agency (URA), pays "significant portions of 18 employees' salaries and benefits," including 50 percent of City Manager Jane Chambers', 80 percent of Assistant City Manager Sage Sangiacomo's, 100 percent of Project and Grant Administrator Guy Mills', 50 percent of City Clerk Joanne Currie's and 40 percent of Senior Planner Kim Jordan's salary.

The GJ also notes that the city "has discussed the possibility of employee layoffs should the state abolish or significantly change the structure of RDAs."

The latest state budget calls for the elimination of the state's RDAs, but allows them to make large additional payments to the state in order to remain operating.

The GJ also recommends that the RDAs "partner with their local Code Enforcement Agency to compel owners of blighted properties to comply with Health and Safety Codes," and that "cities and counties develop alternative revenue streams to replace anticipated RDA revenue losses."

The GJ reports that this year, the URA will pay the state $2.1 million of tax increment. The agency's anticipated revenue for 2010/11 was $808,288, with $640,401 for salaries and $66,247 for operations and maintenance.

Some past and present URA projects include: the Alex Rorabaugh Gymnasium and Activity Center; Redwood Business Park infrastructure; Orchard Avenue Bridge; 322 units of affordable housing (between 1990 and 2007) and the Downtown Beautification Project.

http://www.ukiahdailyjournal.com/ci_18426665