Tuesday, February 23, 2010

Open Letter to City Council

I just wanted to share in writing that the problem facing all local governments is their debt to development districts using RDA powers. Thirty-three (33%)percent of the average property tax revenues of all cities in the County of San Bernardino goes to pay debt for RDA projects.

In a City such as ours in which the entire City is within a RDA--all growth in property tax revenues--has gone to the RDA.

Why should we be in the position of borrowing from the RDA?

Property taxes are intended for general fund government.

It should pay for fine libraries, police, fire and parks and recreation.

The state is not robbing local government-- it is merely taking back it's portion of the property tax revenues it has given to cities under a complicated system called ERAF--Educational Revenue Augmentation Fund.

The recession of the 1990's forced the state to take back the majority of these funds to meet it's obligation to schools. Every taxing entity that shifts property tax revenues from local government to RDA's--unless a pass-through agreement has been made-- is less money for schools.

Cities claim they need to enter private capital business ventures to increase sale tax revenues.

This "Great Recession" has proven that with a less manufacturing jobs, more money going to too-generous public pensions, grossly inflated managerial salaries, creates a shrinking middle-class. No middle-class, no jobs no consumption of goods that generate sales taxes.

I urge you not to increase the debt capacity of the RDA. If anything all debts we are obligated to should be the end of government folly into private business ventures. No new debt for RDA's. It is taxation without the vote of the people.Sylvia Robles, Grand Terrace Citizen