Throughout Santa Clara’s history with its Redevelopment Agency (RDA), the City of Santa Clara has always followed the spirit and the letter of the law as it relates to RDAs, working to support economic development and job creation, add affordable housing and revitalize specific areas of the community. With the recent dissolution of RDAs by the State of California, however, the possibility that the State could demand as much as $300 million in assets and real property from the City of Santa Clara - twice the amount of the City’s annual General Fund – remains a real and serious threat as this publication goes to print.
In a letter sent to all residents in November, the Mayor and City Council described the devastating impact that would occur if the State should take this action as part of the dissolution of the City’s RDA. While Santa Clara continues to follow the law regarding the State abolishment of RDAs, City officials strongly believe the State’s potential actions would be “unfounded and improper.” The City assured residents that every step is being taken to protect local city taxpayer assets from these State-wide forced transfers of local taxpayer assets. For Santa Clara, at risk are cash and bond proceeds, real estate and other property acquired over the past decades as part of the City’s redevelopment strategy to support its RDA goals.
The State is now trying to retroactively claim property and assets that were transferred to the City months before the State law to abolish RDAs was even passed. We believe the State has no rightful claim to force us to give up City assets. The State has given indications that it may soon demand that the City transfer these assets – such as the land under Great America Theme Park – putting into jeopardy millions of dollars in rent and lease payments that each year contribute about $13 million to the City’s General Fund. That amount is about equal to the entire annual budget of the Parks & Recreation Department or the combined funds for library operations and street and road repair. It is about half the cost of the City’s firefighters and about half what is spent annually by the City on police patrol and investigators. These examples are only to put the potential impacts in perspective; until the State Controller’s Office letter or other audits are received no specific budget impacts can be considered. Santa Clara’s concerns stem from similar letters received by other cities in the State regarding their former RDAs.
The City remains very concerned. “We believe the State has no rightful claim to force us to give up City assets,” the letter noted. “We have an obligation to our residents and taxpayers to protect your local tax dollars and your local services.”
City staff members continue to travel to Sacramento to speak with State staff and their auditors, to review Santa Clara’s former RDA operations, and to explain the potential severe consequences to our community. Updates on the situation will be posted on the City’s website.
City Budget 101: Flip Book | PDF
- Special Order of Business: Acceptance of Fiscal Year 2011-2012 Mid-Year Revenue Report
- March 27, 2012 Adopt Budget Principles for 2012-2013 and Refer to the City Manager for Implementation During the Fiscal Year 2012-2013
- May 24, 2011 Study Session Powerpoint
- May 24, 2011 Adoption of a Resolution approving the overall rates to be charged to customers for collection and disposal of garbage, refuse, clean green, recycling, annual clean-up campaign and household hazardous waste in the City's residential, institutional and commercial property zoned areas, effective with the July 1, 2011 billing cycle.
- May 24, 2011 Adoption of a Resolution approving Water Rate Schedule 2011-01 and the Recycled Water Rate Schedule 2011-02 which sets the City's water rates for fiscal year 2011-12, effective immediately for water delivered on or after June 1, 2011 and billed beginning July 1, 2011 and adoption of a Resoution approving Sewer Srevice Charges Schedules S-11, S-12a and S-12b which sets the City's monthly sewer service charges for Fiscal Year 2011-12 and 2-12-13, effectively immediately for ervices provided on or after June 1, 2011 and billed on or after July 1, 2011.
- May 10, 2011 City/Redevelopment Agency/Sports & Open Space Authority Joint Study Session to Review Significant Proposed Capital Improvement Projects for FY 2011-12
- May 10, 2011 CIP Powerpoint Budget-CIP-PPT
- April 19, 2011 Adoption of Budget Principles for 2011-2012 and Refer to the City Manager for Implementation during the Fiscal Year 2011-2012
- October 18, 2010 City Manager's Memo to Employees Regarding City's Fiscal Crisis and Contingent Layoff Plan
- June 15, 2010 Public Hearing: Adoption of the 2010-2011 Budget with Proposed 2010-2011 Budget Actions for the City (including Community Development Block Grant and HOME funds), the Redevelopment Agency and the Sports and Open Space Authority, and Municipal Fee Schedule
- May 25, 2010 Public Hearing: Adoption of Resolution Setting the Overall Rates to be Charged to Customers for Collection and Disposal of Garbage, Refuse, Clean Green, Recycling, Annual Clean Up Campaign, and Household Hazardous Waste in the Residential, Institutional, and Commercial Property Zoned Areas
- May 25, 2010 Public Hearing: Adoption of Resolutions Approving Water Rate Schedule 2010-1, Recycled Water Rate Schedule 2010-2, and Sewer Service Charges S-10 for Fiscal Year 2010-11.
- May 25, 2010 Informational Memo: Electric Utility Purchase of Altamont Property
- May 25, 2010 City Council, Redevelopment Agency and Sports and Open Space Authority Joint Study Session on the City's Proposed Annual Budget and the Municipal Fee Schedule for Fiscal Year 2010-11
- May 18 City Council, Redevelopment Agency and Sports and Open Space Authority Joint Study Session on the City's proposed Five Year Financial Plan for Fiscal Years 2011-12 through 2015-16 and proposed Capital Improvement Project (CIP) Budget for Fiscal Year 2010-11 (PDF)
- May 11, 2010 Joint Study Session to Review Significant Proposed Capital Improvement Projects for Fiscal Year 2010-11 and Budget Status Update (PDF)
- April 27 Adoption of Budget Principles for FY 2010-11 - Principles as Modified and Adopted (PDF)
- April 27 Adoption of Budget Principles for 2010-2011 (PDF)
- April 20 Fiscal Year 2010-2011 Budget Status Update (PDF)
- March 30, 2010 Revenue Report to Council (PDF)