- What is ABX1 26?
ABX1 26 immediately suspends and prohibits redevelopment agency
activities, meaning the bill stops any city from taking on new
building projects that would be a new expenditure. Additionally,
the bill prevents a city's ability to execute relocation plans. The
only activity that is allowed at this point in time, according to
the bill, is to allow a city to continue to make bond payments and
perform existing agreements with redevelopment agencies.
- What is ABX1 27?
To avoid being dissolved, a redevelopment agency may continue to
operate if a city agrees to make payments to the state. The city
would need to adopt an ordinance that would would commit certain
payments to the state through a county auditor. An agency
automatically goes into the dissolution process if its city elects
not to pay the state. Also, penalties built into the bill include a
stipulation in which all debt owed to a city from redevelopment
projects is redirected to the state should the city elect not to
pay to keep its redevelopment agency.
- What is a redevelopment agency?
A redevelopment agency targets a certain part of the city and it
receives a greater portion of that area's tax revenue. It freezes
the property tax base during the year it is put in place.
Additional tax revenue beyond that is known as the increment, which
is funneled into the agency.
Posted: Wednesday, July 6, 2011 12:00 am
Updated: 10:41 am, Wed Jan 30, 2013.
Two trailer bills that are part of the recently passed
California state budget have caused major building projects in Galt
to come to an abrupt halt and have left city officials without a
definitive plan on how to move forward.
The trailer bills — ABX1 26 and ABX1 27 — place strict
regulations on redevelopment agencies throughout the state, from
suspending and prohibiting any further agency activity to requiring
cities to individually pay the state a specified amount of money to
keep their redevelopment agencies open — something Galt city
officials are concerned may not even be legal.
Or, use your
Wednesday, July 6, 2011 12:00 am.
Updated: 10:41 am.