The Hollister City Council this week unanimously approved an
ordinance to continue its redevelopment agency operating under the
state’s new rules, which include annual payments back to
California’s coffers.
The Hollister City Council this week unanimously approved an ordinance to continue its redevelopment agency operating under the state’s new rules, which include annual payments back to California’s coffers.
Council members approved the ordinance Monday night. The city is joining the “opt in” alternative after this year’s state budget eliminated the RDA program, but offered the 425 municipalities to enter into an agreement that involves a lump sum payment back, nearly $4 million for Hollister, along with annual payments here of about $950,000.
The city can pay the $4 million fee by having the state withhold $2 million per year, for two years, in housing funds.
In August, the state had required participating agencies to enact an “enforceable obligations payment schedule” for Aug. 1 through December within 60 days of the law taking effect on Oct. 1. Hollister’s payment schedule showed more than $17 million in expenses for the time frame. That includes about $88,000 per month in employee compensation – some of it that goes toward salaries of non-RDA employees, such as the city manager and city attorney, who contribute services to the agency.
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