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Chula Vista Gets Billed for $5.5 million

The city of Chula Vista received a disturbing notice at the July 10 council meeting. City Manager Jim Sandoval told the council the "bad news" was that the city received a bill for $5.5 million dollars from the County of San Diego. The "good news" was that the city had until Thursday, July 12, to pay the bill or start incurring penalties.

Although the county is collecting the money, it is ultimately bound for the state. The $5.5 million bill is a result of AB 1484, and is part of the phasing out of redevelopment agencies statewide. In the wake of the dissolution of redevelopment agencies, cities up and down the state have been presented with similar bills.

The city council responded to the $5.5 million bill in closed session. The reportable item from the closed session reads, "The Successor Agency [which is the city council as another entity] authorized the City to initiate litigation against the State Department of Finance ("DOF), the County of San Diego, and/or other parties as necessary, to challenge the methodology for determining the demanded AB 1484 payment and to enjoin the distribution of any paid amount to other taxing agencies."

Gary Halbert, assistant city manager, said in an interview today that the litigation was a necessary place-holding step, but that it doesn't preclude an amicable settlement. He said the city is currently involved in discussions with the county seeking a resolution to the problem.

Meanwhile, the city council will hold a special meeting today, July 12. The single agendized item is a resolution to approve an appropriation from the Redevelopment Obligation Fund to pay the required amount.

Halbert said, that although the money is available in the obligation fund to pay the bill, technically it has already been committed to other projects like the city's Winding Walk development.

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The city of Chula Vista received a disturbing notice at the July 10 council meeting. City Manager Jim Sandoval told the council the "bad news" was that the city received a bill for $5.5 million dollars from the County of San Diego. The "good news" was that the city had until Thursday, July 12, to pay the bill or start incurring penalties.

Although the county is collecting the money, it is ultimately bound for the state. The $5.5 million bill is a result of AB 1484, and is part of the phasing out of redevelopment agencies statewide. In the wake of the dissolution of redevelopment agencies, cities up and down the state have been presented with similar bills.

The city council responded to the $5.5 million bill in closed session. The reportable item from the closed session reads, "The Successor Agency [which is the city council as another entity] authorized the City to initiate litigation against the State Department of Finance ("DOF), the County of San Diego, and/or other parties as necessary, to challenge the methodology for determining the demanded AB 1484 payment and to enjoin the distribution of any paid amount to other taxing agencies."

Gary Halbert, assistant city manager, said in an interview today that the litigation was a necessary place-holding step, but that it doesn't preclude an amicable settlement. He said the city is currently involved in discussions with the county seeking a resolution to the problem.

Meanwhile, the city council will hold a special meeting today, July 12. The single agendized item is a resolution to approve an appropriation from the Redevelopment Obligation Fund to pay the required amount.

Halbert said, that although the money is available in the obligation fund to pay the bill, technically it has already been committed to other projects like the city's Winding Walk development.

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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