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Santa Ana Tells State: No Christmas Money From Us!

Santa-Ana-City-LogoIn a 4-0 vote on Friday afternoon, the City of Santa Ana officially responded to the state Department of Finance’s demand for $56 million in housing funds. Council members Michele Martinez, Sal Tinajero and Angie Amezcua were unable to attend the special emergency meeting called when the state issued its demand earlier last week.

The funds originally came from redevelopment funding and the state claims that the funds are theirs because they were unencumbered when development agencies were dissolved at the beginning of the year. The City claims that the funds are committed to housing projects and to give the money to the state would place the liability on the city general fund. Having just dug itself out of a $30 million budget hole this year, the city does not have reserves to cover the loss of funding.

Other Orange County cities, as well as the County of Orange, are facing similar demands. Some, such as Anaheim and Brea have met the demand from the state.

Read more on the story at the Voice of OC here.

One Comment

  1. art lomeli art lomeli December 24, 2012

    Seems that the spending was unjustifiable based on the agency’s dissolution that would fund the projects.

    Funding of projects in question should of had wording in the contracts excluding the city from legal responsibility in case dissolution of redevelopment agency. Maybe there is and if so what is the city’ concern?

    It is bussiness. A CEO making bad financial decisions gets replaced. The Santa Ana citizens should not support those making bad financial decisions on their behalf. They should demand accountability. If the city owes money…… it and then deal with those irresponsible city leaders bankrupting the city.

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