Schwab and the Finance Department should all be investigated for intentional fraud of the CRA. Reading of the California Code indicates that funds can go from the City to the CRA but it does not allow for any funds or loans to flow from the CRA to the City.
City Employees who work in Planning Department or any other city function should be available to the CRA but not on the CRA's Payroll. IF there is a need for employees of the CRA they should have been paid for as CRA employees not the way Schwab took what was needed when he needed it. How much of those funds were used to pay for his house, his car, and other non CRA related activities? Apparently he kept such bad records the funds taken can not be reconciled with how they were used. In addition, if his overspending of General Funds on his pet projects, contractors and developers and personal privileges and parties he may have been able to balance the budget.
Current City Manager Betsey Adams has her work cut out for her. She'll need all the help she can get from Jim and Walt. It is clear the ladies on the council will continue to function as if Tom Schwab is the City Manager. Let's hope that Adams takes the aggressive and financially correct actions needed and Jim and Walt can perhaps help one of the others to grasp the need to have a balanced budget, and not be party to any future raiding of CRA assets.
In addition, the expanding of the Debt to Fund City's General Fund should not happen without a Public Vote. The CRA would have to be extended and the debt level increase requires a PUBLIC Vote not a vote of the City Council.