Saturday, March 13, 2010

Why there should be no CRA Pocket... Schwabs Words

Below is extracted from statements made by Former City Manger/ CRA Director Tom Schwab.

........ Thomas Schwab, Lark Street, stated that he was surprised to see an article in the paper that seemed to infer that the City Council was unaware that the Agency was making loans to the City. I refuse to believe that none of the City Council Members during the last 10 years recognize the fact that we used the Redevelopment Agency to balance the budget. In fact the current budget that was adopted last year by the entire Council, including Council member Stanckiewitz, included the same transfer that they did the last 10 years. Last year there was hundreds of thousands of dollars transferred from the Agency to the City and it was called overhead. He feels that people need to realize that the Redevelopment Agency is kinda like global warming if you believe in it, I can make arguments either way, whether is great or terrible. The one thing that you need to remember when you talk about right pocket and left pocket is that we are both pockets. The City is the Redevelopment Agency, and the City Council is the Board for the Agency. The City Manager is also the executive director of the Redevelopment Agency and the same is true for the City Attorney, Finance Director and City Clerk. That borrowing has been going on for many years, every single budget and every single financial statement, if you know how to read it, shows you that those transfers were going and will continue to go on. He challenged the Council to adopt a budget that does not take any money from the Redevelopment Agency.
Now Remember what he was quoted as saying in the News Paper Coverage.
-------"He borrowed the money from the CRA with no intention of the city paying it back."
Now Remember that this is the same well informed City Council that knew nothing about the Criminal Investigation that Tom Schwab halted protecting Steve Berry from possible Fraud and Embezzlement Charges.
Now Remember this is the same well informed City Council that approved the Staff Recommendations some saying they never read the Council Packets prior to the meetings.
Remember when the robbing the CRA to fund the City General Fund Projects was pointed out by citizens Ex City Manager chastised the speakers saying.. "You just don't understand financial reports".
Remember when the quarter report was done and Cortes, Garcia and Ferre clearly were confused and not able to follow the explanations Bernie Simmons was trying to present to them. Walt and Jim were clear on what was happening then. The CRA was being drained to pay for City General Fund Expenses. They were told this is "Normal" and will be paid back when funding comes in.
Well, folks you can't have it both ways. Walt has been consistent about speaking his concern about spending funds for things that are not absolutely necessary. Even if he later voted along with the rest for "Unity's Sake". You see where the pretense of Unity at the meetings got Jim Miller. You see where it has gotten the City.