Emphasizing that Glendale’s financial situation will be uncertain well beyond July 1 because of ongoing budget problems at the state level, City Manager Jim Starbird highlighted threats to the city’s gas tax revenues and redevelopment agency funds at the start of today’s budget study session.
Proposals from Sacramento, according to Starbird, now include retaining a large portion of local gas tax revenue and $350 million in Redevelopment Agency funds. Of the $350 million, $3.5 million represents Glendale’s share. Los Angeles County filed a lawsuit to prevent state retention of redevelopment funds, and it is currently on appeal, but court has barred the county from collecting funds.
Council member Dave Weaver added to Starbird’s report, mentioning a state threat to take $3.5 million for four years instead of three if cities don’t accept the state’s proposal. “Greet your local state legislator accordingly,” Weaver said.
Sufficient funds are available for current projects, said Development Services Director Philip Lanzafame in response to a question from Council member Laura Friedman, because the city has a percentage of redevelopment funds in a discretionary account which can be used to cover shortfalls.
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