TITLE
Recommendation to receive a report on services proposed to be continued following the dissolution of the former Redevelopment Agency of the City of Long Beach, and direct City Manager to continue to provide these and other services to help ensure the City and community needs are met. (Citywide)
DISCUSSION
On January 17, 2012, the City Council elected to be the designated Successor Agency to the former Redevelopment Agency of the City of Long Beach (RDA) under the provisions of AB1X 26. Under the revised schedule provided by the Supreme Court in upholding the constitutionality of AB1X 26, the dissolution of the RDA was effective February 1, 2012. With the dissolution of the RDA, the Successor Agency is responsible for payment of all "enforceable obligations" of the former RDA and for disposal of the RDA's assets.
The unprecedented and immediate wind down of 60 years of public finance practice in one month's time has wreaked havoc across the State as cities struggle to meet the mandates of AB1X 26. Staff is continuing to assess the immediate and long-term impact of RDA's dissolution on all aspects of government. Over the past month, many steps have been implemented to reduce potential liabilities to the General Fund, including a significant reduction in workforce and a cessation of programs or activities that might generate unfunded liabilities.
Although many costs have been or will soon be eliminated, there are a number of former RDA costs that are recommended to be continued even though reimbursement through AB1X 26 is not assured due to the role of the Oversight Board and the California Department of Finance in approving any expenditures of the Successor Agency. Programs such as code enforcement, graffiti abatement and debt service, are important programs to continue until the funding issue is sorted out. The City's position is that these expenditures are enforceable obligations and should be reimbursed as part of the dissolution process. Should it be...
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