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What’s In Your Wallet?

What’s In Your Wallet?. How Redevelopment Agencies Divert Millions From Public Safety. Fire Chief Steve Foster, Cosumnes FD Business Officer John Ebner, Cosumnes FD. What’s In Your Wallet?. Presentation Abstract The Cosumnes Fire Experience Impact of RDA law on public safety

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What’s In Your Wallet?

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  1. What’s In Your Wallet? How Redevelopment Agencies Divert Millions From Public Safety Fire Chief Steve Foster, Cosumnes FDBusiness Officer John Ebner, Cosumnes FD

  2. What’s In Your Wallet? Presentation Abstract • The Cosumnes Fire Experience • Impact of RDA law on public safety • (Unintended) consequences of RDA law • Amending or changing RDA law

  3. What’s In Your Wallet? Cosumnes CSD Fire Experience • Reorganization into the Cosumnes Community Services District (November of 2006) • Cosumnes CSD inherits the Galt Redevelopment Agency • Original RDA enacted in 1983, was set to expire in 2011 • RDA amended in 2007 with and extension and expansion

  4. What’s In Your Wallet? Cosumnes CSD Fire Experience • Unintended consequences of Galt RDA • Diverting approximately $550K per year (and rising) from the Cosumnes CSD Fire Department • Total amount diverted by the Galt RDA could be as much as $38 million over the next 30 years

  5. What’s In Your Wallet? Cosumnes CSD Fire Experience • What could you do with $38 million? • Galt RDA developed agricultural land into homes and an industrial park for which the Fire Department has received no property taxes for the services we provide • Is this an abusive use of RDA law?

  6. What’s In Your Wallet? Cosumnes CSD Fire Experience • Where does abuse occur in RDA law? • Agricultural land • Blight • Notification and cooperation with other taxing entities • Limited challenge opportunities • Bonding • General Plan nexus

  7. What’s In Your Wallet? What is Redevelopment? • California Community Redevelopment Law (CRL) • California Health and Safety Code beginning with 33000 et. seq. • California Community Redevelopment Act (Enacted 1945; revised 1993) • Over 400 California cities and counties have adopted local redevelopment plans

  8. What’s In Your Wallet? The Goals of Redevelopment • Attract new jobs and business • Create affordable housing • Stimulate private investment • Reduce crime • Build or improve infrastructure • Preserve open space • Transform hazardous waste sites (Brownfields) • Initiate and fund planning efforts

  9. What’s In Your Wallet? What is a Redevelopment Agency (RDA)? • Separate public body reporting to a local governing agency • Any county or city can establish an RDA • Local governing body usually serves as the RDA board

  10. What’s In Your Wallet? What are an RDA’s powers? • Adopt a budget • Buy and sell property • Make certain types of loans or grants • Construct improvements • Rehabilitate, modernize, consolidate, or remove structures • Assist in developing or rehabilitating low-income or moderate income housing

  11. What’s In Your Wallet? What are an RDA’s unique powers? • The ability to purchase private property for resale to another private person or organization • The ability to use the power of eminent domain • The power to collect property tax “increment”

  12. What’s In Your Wallet? How does a typical RDA accomplish its goals? • Assembles land for development • Utilizes tax increment and issue bonds • Invests in infrastructure to entice private enterprise • Creates affordable housing opportunities

  13. What’s In Your Wallet? How does a typical RDA work? • Alters the distribution of property tax revenue • Only applies to property within the redevelopment project area • Adheres to the adopted or amended Redevelopment Plan

  14. What’s In Your Wallet? How does a typical RDA work? • Existing taxing agencies (such as Fire Districts) continue to receive property tax allocations consistent with those up to the plan/amendment adoption date • Property tax increases are then frozen and incremental increases, with the exception of pass-through payments, are taken by the RDA

  15. What’s In Your Wallet? How does a typical RDA work? • In theory, a successful redevelopment project increases the value of property within, as well as around, the redevelopment project area; generating even more value and an increase in the resultant property taxes

  16. What’s In Your Wallet? How an RDA affects Fire Services • City Fire Departments • Fire Districts

  17. What’s In Your Wallet? Fiscal Impacts to Fire Districts • Annual loss of property tax increments for the life of the Redevelopment Agency

  18. What’s In Your Wallet? What can a Fire District do? • Get involved! • Attend all RDA planning meetings (do not miss a meeting) • Get an attorney

  19. What’s In Your Wallet? RDA Process • Initial Ordinance • Joint Public Hearings • Planning Meetings • Environmental Impact Report

  20. What’s In Your Wallet? Things You Can’t Control • Special Consideration for Individual Taxing Agencies • The RDA can’t make an exception to its rules for a Fire Department unless all taxing agencies are given the same exception • The Redevelopment Agency

  21. What’s In Your Wallet? Things You Can Control • Attend all RDA planning meetings (do not miss a meeting) • Keeping the community informed

  22. What’s In Your Wallet? Further Reading • California Redevelopment Association Website http://www.calredevelop.org • California Department of Housing and Development Website http://www.hcd.ca.gov/rda/ • Local, Regional, and State RDA websites

  23. What’s In Your Wallet?

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