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Temecula Redevelopment Agency is Gone But Debt Left Behind

Though the agency in Temecula is gone, there are still projects inked in for completion and the money for those projects -- and those completed -- must be repaid.

This article was modified at 12 p.m. Nov. 4, 2012, to include the information that money to repay bonds is generated by property taxes.

When Gov. Jerry Brown did away with redevelopment agencies throughout the state in 2011, city officials all over California balked at the loss of money that for decades has been used to renovate blighted areas and pay for construction.

Temecula officials were no exception, joining a lawsuit against the state in an effort to keep the RDAs afloat.

The Supreme Court upheld the state's right to abolish RDAs.

Though the agency in Temecula is gone, there are still projects inked in for completion and the money for those projects must be repaid.

"There is a successor agency that is responsible for completing all the transactions started by the Redevelopment Agency," city Director of Development Patrick Richardson recently told Patch.

"The Successor Agency of the Redevelopment Agency of Temecula," is now the entity that gets money from the county twice yearly to pay for the capital improvement bonds issued over the years.

The agency manages money that is generated by property taxes and apportioned to the cities by the county, once the state approves the expenditure, according to Temecula City Councilman Mike Naggar.

Most of the projects started by the Temecula Redevelopment Agency have been completed -- the last set of bonds were issued in 2011 -- but there are still debts to pay for those completed and those left to finish.

To be exact, $90 million debt.

"Those were obligations that we have to continue to pay," Richardson told Patch.

“We can’t enter into any new obligations," he added.

Any tax increments generated by redevelopment projects that are currently up and running go to the state.

When RDAs became history, he said, "$1 billion (total from all California RDAs) went to the state off the top."

Any additional revenue that is generated is divvied up among the taxing entities, such as school districts, the community college district, water district, county and city.

Twice a year, the county controller distributes tax increment to all of the redevelopment successor agencies.

"Twice a year, we have to prepare the recognized obligation payment schedule and we have to send that to the state and we have to outline all debt obligations for a six-month period.

"They (the state) verify that those obligations are valid, they notify the county controller to release those funds," Richardson said.

There are about 11 projects for which the city is still paying; the first set of capital improvement bonds were issued in 2002, he said.

For the fiscal period ending June 30, the total payment from the county to Temecula was $6 million, Richardson said.

That is the money used to pay for the debt incurred by the Redevelopment Agency projects already built and currently underway.

There are two projects only left on the list started by the former RDA -- both of them in Old Town and both of them affordable housing developments.

Designed to combat blight in mostly aging urban areas, redevelopment agencies had the legal authority to define parts of the city as redevelopment areas, and any tax growth in those areas each year went to that city’s redevelopment agency for local improvement projects, instead of to the state.

Opponents of redevelopment agencies, including Brown, said the agencies siphoned property tax dollars away from schools and public safety, and have had had no real spending oversight.

Redevelopment money was earmarked for numerous projects in Temecula, such as the Mary Phillips Senior Center, the Overland Drive bridge, contributions to opening the Cal State San Marcos Temecula campus, the parking garage at The Promenade mall and the I-15 exit at Winchester Road.

Long Time Temecula Resident November 05, 2012 at 04:18 AM
ummm Jamie... perhaps your are not worth debating? perhaps your lies and rhetoric do not rise to the level of of intellegent debate. United Nations in Temecula? Sewer Water in Harveston Lake? Now this article where you inflate debt amounts for your own purposes and use provacative words like "pass it on to our children". You are the worst because you do it in the name of truth, but in reality, you would twist the truth in a minute for your advantage.
Darlana November 05, 2012 at 04:23 AM
Wow Stan. You really represent how we all feel about the rest of Temecula City Council. Jamie White came out and used her real name and phone number. wow. You have proved who you are tonight. You are not a man. You are a weasle hiding behind your keyboard. She showed up. Where are your friends on the city council. We the people deserve a debate but only Jamie White showed up.
Gandhi November 05, 2012 at 08:45 AM
Ummmm Stan, perhaps you're not worth responding to? Your lies and rhetoric do not rise to the level of intelligent debate.
Gandhi November 05, 2012 at 08:48 AM
This coward Stan, isnt worth responding to at all, obviously a shill for one of the incumbents, if not Naggar himself, or just some idiot who likes to argue and has nothing else going on in his life, I'm leaning towards the latter myself. The incumbents were afraid to meet and discuss issues with ANY of the other candidates, not just Jamie, there were other forums where candidates showed up, always minus the two incumbents. We're talkin major fear here. And now we know what they're afraid of, dont we?
Brenda November 05, 2012 at 07:00 PM
What gets me is they are so used to lying, they lie about things they don't even have to lie about. Does that make sense?
Brenda November 05, 2012 at 07:12 PM
Surplus? Where? How do they plan on doing all these wonderful things they lie to us about? If they expect anymore money from the State they are sadly mistaken as the wonderful Jerry Brown will use all and anything he can to keep his illegals happy. Between college educations and drivers licenses, which of course basically make them legal as they change in their illegal paperwork for the "real deal", while skipping to college we paid for instead of OUR Childrens!! Brown might give our city the money to finish the low income housing as long as it says only "his" people can live there free while going to college. LOL So, yes, Naggar and Washington need to retract some untrue statements, which we all didnt believe anyway did we? Please tell me no one didnt!! While the City racked in the big bucks while this City boomed out of control it spent insanely, gave raises and I believe their salaries doubled correct?, most everyone working for the City makes over 100k a year. Then the economy sank, and all we have left is these high salaries we are paying out, still. And it is not going to any better anytime soon.
Brenda November 05, 2012 at 07:32 PM
Gardend, Temecula was a ripe City for corruption, lies and for no one to notice. We grew in leaps and bounds, and faster then any City in the USA, then we got the ONE SINGLE low crime report for 2010 and everyone lived on that for years since. Even thought it was 2 years AGO, everyone still says it today even thou the report of 2011 is horrendous, and wd know 2012 will be doubled in crime. Then we started crashing in 2007. So the bottom line is that this City has had so much going on personally since it started booming in around the mid to late 90's(correct me on years) that the residents didnt take much notice of anything any of these folks sitting in these City chairs, except double salaries, 100k salaries for most working for the City etc. Now since 2010 when the crashing is still going on but a bit more slowly we residents have time to sit back and really look and see what has and hasnt been getting done, who is doing what or not doing, what is lies and what isnt. The one biggest clue that these folks were seriously not doing squat was this hospital that was started over 10 years ago for Temecula that didnt break ground until this year. Loma Linda showed us, Wait!!! How in the world can Murietta get a hospital approved, and built in 2 years and we cant in 10 even get the paperwork finished? That was a big clue we would find out worse in lack of City management.
Eric Cartman November 05, 2012 at 08:14 PM
The patch and anyone that believes the figure that the council has presented is seriously drinking their kool-aid. Both Naggar and Washington claimed that they defeated the quarry and that Temecula is the second safest city in the nation. Well we all know that the quarry has not been defeated and now here is a recent article from a reporter that reports the truth. They campaigned on these lies, I hope that the citizens are smart enough to see through them and fire them tomorrow. Second safest city...NOT!!!: http://www.utsandiego.com/news/2012/nov/04/tp-use-of-second-safest-city-by-temecula/?page=2#article Naggar Ballot Statement: http://i.imgur.com/YPgr3.jpg Washington Ballot Statement: http://i.imgur.com/Be4xL.jpg
Eric Cartman November 05, 2012 at 08:30 PM
Maryann Edwards, how many different names to you use? State Controller RDA report, page 550: http://i.imgur.com/ENV6K.jpg Entire report from the State Controllers website: http://www.sco.ca.gov/Files-ARD-Local/LocRep/RDA_publication_2011.pdf
Eric Cartman November 05, 2012 at 08:31 PM
Corrupt politicians worse nightmare: http://temeculacitizensagainstcorruption.com/
Eric Cartman November 05, 2012 at 08:32 PM
State Controller RDA report, page 550: http://i.imgur.com/ENV6K.jpg Entire report from the State Controllers website: http://www.sco.ca.gov/Files-ARD-Local/LocRep/RDA_publication_2011.pdf
Eric Cartman November 05, 2012 at 08:33 PM
Gardendziner, that's funny! ROFLMAO
Randy Marsh November 05, 2012 at 08:34 PM
It looks like Mike and Chuck have some explaining to do.
Randy Marsh November 05, 2012 at 08:36 PM
It looks like the entire city council has some explaining to do.
John Galt November 05, 2012 at 08:44 PM
Does anyone expect anything different from these self serving politicians? One if the incumbents has been in office for over 12 years. This is a major cause of the corruption. It is not just here in Temecula, it is all over the country. Corruption is rampant. They say what they want people to hear and the sheep will believe whatever they say. All one has to do is open their eyes to see the truth.
Eric Cartman November 05, 2012 at 08:51 PM
Mrs. White, I want to thank you for putting your hat in the ring, we need honest people that are willing to expose the corruption. I have no doubt that you will do an honorable job. It is obvious how low these incumbents are willing to stupe to keep their jobs, even hire thugs to destroy your signs. Tomorrow the citizens will speak and elect new, honest leaders to represent them. God bless you and your family, our prayers for your victory.
Wendy Testaburger November 05, 2012 at 08:55 PM
The City Council said that we have a two million dollar surplus. Why would the Patch publish an article like this? Something isn't right here.
Wendy Testaburger November 05, 2012 at 09:00 PM
Well, I am no sheep but should I not believe what I read? I don't just believe what people say but when the papers are writing articles that substantiate what they are saying, wouldn't you tend to think that it is true? Just a month ago there were several articles out that claimed that we had a surplus. Are the papers lying too?
Gandhi November 05, 2012 at 10:08 PM
One of my favorite "Naggarisms" is that HE BUILT THE HOSPITAL!! I love it! Single handedly HE built the hospital - its on all his election propaganda!! Unbelievable! Funny, I havent seen him out there with a hammer yet!
Gandhi November 05, 2012 at 10:13 PM
@ Wendy Testaburger - then I suggest you start demanding answers, like some of the others here who are merely pushed aside by the "good ole boy" network that is pillaging the city coffers and building memorials to themselves with our money at city hall! THEY LIE Wendy. Read some of the stuff "Jim" is putting links to here, and watch some of the videos. The Patch is getting erroneous information apparently and just publishing it without doing any "investigative reporting". The council members can say anything, the point is, do you believe it? You have a right as a citizen to see ALL city financial reports/agendas and where every dime of our money has gone - go and do it, or check the links provided for you here. Yes, newspapers DO make mistakes by not taking the time to really investigate what they are printing - seems to be a negative trend I've noticed. Used to be able to get true and accurate reports from the news, not any more, unfortunately.
Gandhi November 05, 2012 at 10:15 PM
I wouldnt bother giving the sociopaths a chance - we have the documents/numbers/evidence - why bother letting them twist reality into another bedtime story for the citizens of Temecula? We already know they will do exactly that, they've had their chances.
Gandhi November 05, 2012 at 10:19 PM
Naggar has been in that long, he was an "incumbent" and running for a second term back in 2001, so has Commerchero, and Roberts has been in at least 15 if not longer, Edwards was "placed" into her position from the school board when Stone vacated for greener pastures at the county seat, and Washington has been in there probably around 8 years, if that. They ALL need to go!! The longer they stay in, the more corrupt they become, more "connections" are made, this is how politics work, unfortunately. There are good ones, but they are the "rare bird" and they end up being shoved out early, as they wont "play the game" right with the others.
Gandhi November 05, 2012 at 10:25 PM
Wendy - the newspapers print all kinds of stuff they are "told" by politicians - any idea WHY those politicians might be telling them to print certain stories? You have to check the actual documentation - financial records - do NOT believe all you read in the newspapers!! They are very often wrong. Also, it behooves them to, how shall I put this, know which side their bread is buttered on? They may not be "lying", they may just be repeating what the city TOLD THEM. I seriously doubt that newspapers are going to take the time nowadays to demand evidence, and go over the actual financial reports. We DO owe OVER $500,000,000.00 some to the "Redevelopment Agency" and some to other investors - these numbers are available to any citizen of Temecula who demands to see them - I suggest you do that, and do NOT listen to their lies about not having to pay it back!! It is DEBT and debt must be paid back, I'm sure you know that. IF those businesses in old town cannot pay their share, who do you think has to pay it back? The city!! Or - as the "city" is the citizens of Temecula - its all OUR money - its US!! Dont take my word for anything - check it out yourself, Jim has posted many informative links here - investigate, and then, let other people know the truth also. Do this quickly though as tomorrow is the election - and the crooks need to go!!
Gandhi November 05, 2012 at 10:30 PM
Sorry "Stan" numbers don't lie - unlike YOU! ;)
Brenda November 06, 2012 at 02:01 AM
Those are the questions that should be simple to answer, WHERE IS OUR OWN POLICE DEPARTMENT, COLLEGE, HOSPITAL when this City made so much for so many years? In addition to all the high taxes on property we all paid for so long, even after the crash, businesses Lord, all the income from new business's that built so fast here. We should still be one of the richest Cities in California. God forbid even the two hospitals we did have were so old, small and just the past year got their additions ok'd to be opened. There should have been so much money in reserve for a rainy day like the ones we are having now, not beg Peter and Paul to put in a bus to run up and down Temecula for 4 million bucks.(correct me on the amt, it might be 7, cant remember). Gardend, I wish I had known you when you were running :/ I have not talked to one person who does not want to get the old out and go with some new and hopefully honest, hard working blood. j
Brenda November 06, 2012 at 05:06 AM
Exactly, and its not like we dont have the the latters who just come to argue, whew got enough of those. Arguing doesnt resolve anything and prompts the persons to never agree even morebecause then it becames a win situation instead of agree to disagree, and a who can get the last word in. Instead of resolving it. Same with who sits in our Chairs right? Not one person in our chairs up until today ever admitted any wrong doing or decision making to any of us in Temecula. Or we lied about some things for this reason or that, or we twisted this a bit to help Temecula, or so and so did it. How many different stories we heard about our Hospital I cannot remember, Going back and forth between them and our Council/City Building/Permits, but then this Muslim group walks in turns in papers everything is in order, building is UP! How does that happen in a year or so and a hospital 10 years? So many lies, and so many actions that prove the lies, just like these debates. How can council members that have had those chairs for soooo long not come and answer to us and their running mates? They do have all the answers right having sat in those chairs for so long?
Brenda November 06, 2012 at 05:14 AM
Gard, I would not vote for him just because of this hospital fiasco that went on for 1o yrs ALONE. It was nothing but lies it was our Cities fault, no it was the hospital Mgmt team, no City, no Hospital Mgmt. Then of course the Mgmt team from the hospital via the Patch I believe showed a by date activity by the Mgmt team as opposed to what the City was saying. That was finally when the City finally approved the plans that had been sitting there forever the last time. Because during all this time "they" were being courted by the Owners of the Loma Linda Hospital. Luncheons, trips to Washington supporting privately owned by doctors hospitals etc. All paid for by the owners of Loma LInda. Then the parties, and grand openings! So for those few years Loma Linda was prostituting themselves to everyone in a Chair, our hospital went on hold with papers sitting on "someones" desk. City then says well its the Hospital Mgmt companies fault because of their bad inspections for the prior year. Oh lord, well what about the 9 years before that Council? Hmm? They had a perfect record, awards, rewards, commendations of excellence in care, and was the new hospital built then as we are growing in leaps and bounds? People are sitting in tents for 2 or 3 nights to put in an offer on a house that isnt even built yet? All that money piling in and we cannot get a hospital built?
Brenda November 06, 2012 at 05:22 AM
Wndy, Even if 2 million is true that is a small penny in the piggy bank. Think about it. That was the cost of homes oh around 2006. So, 4 homes, 2 million dollars. Think of every single home that sold in this City, every single business that was bought with property, or without, big and small, think of all the property and other taxes collected? I don't know about the rest of you but property taxes alone on one house is/was in the range of 15k plus extra's through the year for school improvement or parks. All the plans and fee's submitted, inspection fee's, etc. etc. and who can even begin to know how much this City has generated in the past 10 years. If we had a 2 million dollar reserve I would be just as scared. :/
Brenda November 06, 2012 at 05:26 AM
I am going to bed now, and I hope you all have a good night, and sleep well. I am hopeful that it will be out with the too damn old and lying cronies, and in with the new who had better stay as honest and open as they appear to be now. Otherwise there will be a lynch mob. LOL, especially if we dont cut back on what all the City workers make!!! Someone find that article that shows almost everyone makes 100K or over, its insanity. Those need to be cut immediately to pay back this debt that our wonder cronies got us into the last 10 years. LOL, and gave themselves huge raises. Jim great information given out tonight!! Cudos to you and everyone else who delivers the facts as it makes it much easier to discuss.
Gandhi November 11, 2012 at 07:43 AM
Quite disgusted to see the sheeple put the same crooks back in office again. AND apparently the newspaper decided to "investigate" their own story here and update the facts by stating on November 4th that the money to repay bonds is generated by property taxes! Imagine that! Is it just me, or do you feel that most of the people in this city have an IQ of a 9 year old? Temecula gets what it deserves I guess, if they refuse to educate themselves.


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