06-24-1989 - Laserfiche WebLink

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Councilmember Norton inquired as to the amount of money owed to the City by the Redevelopment Agency, notin9 the scheduled repayment for fiscal year 1989-90 was not sufficient to repay the 9% interest on the loan. The City Manager discussed redevelopment investment theory, indicating that monies not currently being repaid to the General Fund were reinvested in redevelopment projects. He noted the ratio of reinvestment to repayment was a policy decision of the City Council. The City Manager outlined several of the problems facing the City, statin9 all City service areas were underfunded and affirming the Administration's support of efforts to raise more funds to meet service needs. Councilmember May inquired into the City's reserve fund; the City Manager responded the reserve fund ratio was not a matter of publication. He also reviewed his efforts to decrease City expenditures over the past few years. The Manager explained the priorities with respect to meeting obligations of the Redevelopment Agency such as allocating funds to low and moderate-cost housing, debt service, and other such items, and indicated repayment of Agency debt to the City was the lowest priority. Councilmember Norton inquired as to whether it would be possible to charge the operating expenses of the Museum to the Redevelopment Agency. The Manager indicated Agency expenditures were limited to capital items. He also explained that the Agency activity was currently in transition from urban renewal to repayment and 1991-92 was projected as the year when the tax increment would significantly increase. Finance Director Rod Coloma noted that although the City's budget was meeting the City's basic needs, reserve funds balances should be increased to protect the City. ADJOU~J~MENT - At 12:00 p.m. to 9:00 a.m., July l, 1989, in Room 831, City Hall, 20 Civic Center Plaza. C~ln~ce C. Guy erk of the Council!-- · CITY COUNCIL MINUTES 183 JUNE 24, 1989