Ventura County Grand Jury • 2002-2003 • Agency Response
Response to: City of Oxnard River Ridge Golf Course

Ciwmanager Dphilipe.gatch

Published: June 05, 2003 13 pages
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Note: Missing finding numbers detected: F5

Findings and Recommendations 13 findings

F2 Page 7
In 2994 the StateAssemblycreated a "use it or lose it," bill (AB1290) related to the 20% set aside funds. Agencies worried that the State could then takebackunused funds. It stated that if agencies did not expend or encumber excess surplus (defined below) in the low and moderate income housing fund within one year from the date it became surplus, the agencymust either, (a) disbursethe excess voluntarilyto a housing authority or otherpublic agency exercisinghousing development powers or (b) expend or encumberits excess within two additional years. It also provided that after three years ifit has not spent or encumbered, the agencywould be subject to sanctions. The definition of"surplus" is any unexpended or unencumbered amount in an agency's low and moderate-income fundthat exceeds one million dollars or the aggregate ofthe amounts deposited during the agency's last fowfiscal years.
Related Recommendations (1)
R2
Page 9
The Board ofSupervisors should designate a County office to provide for the issuance of a report with enough detail as to the types and sizes ofhousingunits created and indicatingthetotal amount of tax dollars diverted to CRAS so that the public can assess the benefits ofthe expenditures. (c-2)
F3 Page 7
Health and Safety Code section 33334.2 subdivision (a), allows a CRA to make findings, based upon sufficient factual information, that need exists in the comnrunityto improve, increase orpreserve the supplyoflow and moderate housing that percentage less than 20 percent ofthe tax income or some increment revenues are sufficient to meet those needs. Ifsuch findings are properly made, the CRA is not required to use all or part ofthe 20 percent set aside funds." 1
Related Recommendations (1)
R3
Page 9
Authorize an appropriateCountyagencyto maintain a public file where annual reports and statement ofindebtedness from all cities within the Countywouldbe located forpub2ic review. (c-1)
F4 Page 8
`The present law indicates tax increments are only available to CRAS that are in debt. Once the debt is paid, the property tax increment is not available to CRAS for the project. This encourages the CRAS to remain in debt so theymay collect the funds. It should be noted that most ofthe funds received by staying in debt goes to paythe interest on the debt. I F-S. There is no specific agency with oversight and auditpowerover CRAS except forthe Iagislative bodies that create the CRAs. Except as mentionedbelow they are largelyexempt fom government oversightby anyagency other than a Grand Jury.
Related Recommendations (1)
R4
Page 9
Cities should their present policy and consider holdingthe CRA meetings separate review as a function not related to the regular counci! meetings. (c-3) R-S. The cities within the County fumish the same reports, as they are required to submitto the State Contro]ler's office to the designated Countyoffice. (C-1) 3
F6 Page 8
If a CRA defaults on its debt, a cityhas no legal responsibility to bail out theirdefaultingCRA. However, city credit and credibility are damaged,because as most CRA boardmembers are also I members ofthe citycouncil.
No recommendations for this finding
F7 Page 8
The Califomia State Controller's office "annual report offinancial transactions"of issues an CRAs. Each cityis responsible to submit a report on the status of"low and moderate income housing"
No recommendations for this finding
F8 Page 8
The above reportmust aiso contain a form entitled " Statementoflndebtness". Thisreportmust I also be filed withthe CountyAuditor on or before October 1 ofeach year.
No recommendations for this finding
F9 Page 8
The Health and SafetyCode, section 33080 (a) requires every CRA to file withthe State Controllerwithin six months ofthe end ofthe agency's fiscal yearall the documentsrequiredby 33080.1. In addition, a copy ofthis report, upon written request, mustbe fumished to anyperson or taxing authority.
No recommendations for this finding
F10 Page 8
Although a CountyBoard ofSupervisors has no legislative oversight ofCRAs, manyhave adopted "policies" within the Board ofSupervisorspolicymanuals to have some oversight. I AttachmentB is a recent example ofLos Angeles CountyBoard ofSupervisors action.
No recommendations for this finding
F11 Page 8
Before the approval of a redevelopmentplan, the agency shall conduct a publichearing on the plan. CRAS are required to publish a notice ofthe hearing, not less than once a week for four successive \\sleeks prior to the hearing. Thenotice shall be published in a newspaper ofgeneral circulation andpublished in the affected community. It is required thatthe notices be non-technical and in a clearand coherent mannerusingwords with everyday common meanings.
No recommendations for this finding
F12 Page 8
Copies efthepublished notices shall alsobe mailed first class to the lastknown owner ofeach parcel ofland in the desiyiated in the redevelopmentplan. In addition, notice shall also be area provided to al] residents and businesses within the project area at least 30 dayspriorto the hearing.
No recommendations for this finding
F13 Page 8
Citizen involvement is minimal in most CRA planning operations. Project Area Commiftees (PACs) are required at the formation of a CRA residential project. Once the project is approved, there norrnally is no continuingcitizen involvement with the plan. Agencies are not required to notiy or recall the PACs, ifthe plan revised. is
No recommendations for this finding
F14 Page 8
Manyofthe cities within the Conntyhold their CommunityRedeveloprrkentmeetings the on night the City Counci2 meetings and that night's published City Council agenda. Some of same as on the cities have separate agenda for the CRA meeting also listed. a
No recommendations for this finding
F15 Page 8
The Grand Jury requested infomiation from CountyCounsel as to what remedies are available if a CRA fails to complywith the provisions ofits redevelopmentplan or its implementation. The law 2 piroviies * forjudicial review ofCRA actions, without speciyingwho maybring such action. There are specific procedures that havebeen established for review ofredevelopmentplans. A CRA maybe subject to a taxpayer's suit. The Attomey General has the power to bring actions to enforce state law. While no specific agencyis given oversight responsibilities with respect to CRAs, various means are available by whichjudicial review ofthe agency's actions maybe obtained. There appearto be no penalty provisions contained in the law. The onlyenforcementmechanismavailable in the law is for bondholders, affected individuals or organizations, taxpayers or the Attomey General to file suit asking a court to enforce the requirements ofthe law. Conclusions C-1. The citizens ofVentura County have little access to information regarding CRAs. There is no central location withinthe Countywhere reports and other informati4n avai2able. Each CRA is are required to submit specific reports to the State Controllers office. A compilationofthesereports is I published on the Intemet. It is difficult at best to determine any particularcity's information. (F-4, F-7,
No recommendations for this finding

Conclusions 2