City to establish checking and savings accounts for successor agency.
Written by VINCENT WEI / Published June 8, 2012
The city council recently approved the creation of two separate bank accounts to hold the surplus funds from the now defunct Temple City Community Redevelopment Agency.
Without any dissent, Temple City city councilmembers on Tuesday, February 7, 2012, unanimously approved resolutions 12-4794-SA and 12-4793-SA which allows the city to create a “checking account” and “savings accounts” for the successor redevelopment agency.
According to City Attorney Eric Vail, the “checking account” allows the city to issue checks to pay off its bills. The city’s outstanding balances are listed on its “Recognized Obligations Payment Schedule.” Additionally, the “savings account” gives the city the ability to invest any surplus funds to generate interest, which may be used to pay off the former redevelopment agency’s bills.
“This just moves money over to two special funds that are required by law,” Mr. Vail stated.
The city council’s actions follows City Manager Jose Pulido’s February 3 announcement that the Temple City CRA was “officially dead.”
Last June, state lawmakers voted to approve Governor Jerry Brown’s plan to abolish redevelopment agencies throughout California. State Representative Anthony Portantino voted against that bill, while State Senator Carol Liu supported the bill.
California’s cities, including Temple City, later sued to block the bill from becoming law.
However, the state supreme court ruled in December that the state had the power to eliminate redevelopment agencies. The state supreme court also ruled invalid the economic development program, a compromise measure that would enable cities to maintain a different form of its redevelopment agencies.