City Will Use Courts to Slow State Money Grab

Mission Viejo will ask for a judge's permission to withhold the transfer of redevelopment funds to the school district and other agencies, according to a recent announcement.

It's the latest shot fired in an ongoing battle between cities and the state over control of public money that started when the state dissolved all redevelopment agencies, forcing cities to transfer millions of dollars in redevelopment money to school districts.

Cities across California fought state legislators in court, and the cities lost, requiring them to make the payments to other "taxing entities," which include school districts.

A state law adopted in late June requires cities and other governments with redevelopment agencies to have their redevelopment money assessed by July 9. By July 12, cities were required by the law to make payments to other governments—including school districts—based on the new assessments.

Under the new law, Mission Viejo is expected to pay $2.8 million to other agencies, according to a statement from City Clerk Karen Hamman.

Instead of approving the payment, the City Council voted during closed session Friday to ask that the payment be slowed to give the city more time to assess it. The three-day timeframe the city had to make the payment was described in Hamman's statement as "draconian and irrational."

The new calculations don't take into account $1.6 million the city paid out Feb. 28, Hamman said. The County Auditor-Controller's office, responsible for calculating what the city owed, was unable to include the $1.6 million since it was directed to use state-published data in its calculations, Hamman said.