The Sacramento Superior Court, on Tuesday, issued a decision in favor of the State in the lawsuit filed by the California Redevelopment Association (CRA). The CRA’s lawsuit was intended to stop the State’s raid of local redevelopment funds to help the State balance its budget. The CRA immediately appealed the decision and requested a temporary stay to keep local agencies from having to make the payments due Monday, May 10 (until the appeal was decided). Late Friday, the Third District Court of Appeal denied the temporary stay.
To help balance its budget, the State passed legislation to require a statewide $2.05 billion contribution of local redevelopment agency funds over the next two years. Redevelopment agencies throughout the State are obligated to make these payments in proportion to their relative share of statewide tax increment revenues. Mission Viejo’s Community Development Agency must make payments totaling just over $2 million over the next two years. The City’s obligation for Fiscal Year 2009-10 is $1,775,805 and is due to the County on Monday, May 10. The Fiscal Year 2010-11 amount will be $365,268. The CRA appeal is proceeding, but in the meantime, the Agency will proceed to make the $1.7 million payment due Monday and reserve its rights depending on the outcome of the appeal.
