City Attorney Provides Legal Opinion Justifying DeMaio’s Proposal to Transfer Convention Center Debt Service to CCDC
Councilmember Carl DeMaio today joined three other City Council Members to form a voting block to advance a proposal to transfer debt service on the Convention Center from the General Fund to the Redevelopment Agency. DeMaio is joined by Councilmembers Marti Emerald, Todd Gloria, and Kevin Faulconer.
“I applaud my colleagues for taking advantage of this opportunity to achieve permanent savings in the General Fund – and to earmark the savings to protect police, fire and lifeguard services,” concluded DeMaio.
Utilizing Redevelopment Funds to protect General Fund services is one of the elements of DeMaio’s recently released Roadmap to Recovery plan. Since taking office, DeMaio has proposed transferring the Convention Center’s debt service to the Redevelopment Agency to protect General Fund services like police and fire.
“When I first proposed this transfer it was on the basis that the Convention Center debt service should never have been a General Fund responsibility in the first place. It is more appropriate to have the Redevelopment Agency fund the Convention Center, particularly given the city’s financial crisis,” noted DeMaio.
DeMaio and other City Council colleagues had requested that the City Attorney provide legal guidance on their authority to transfer the debt during a previous hearing on debt refinancing.
At a budget committee hearing, City Attorney Jan Goldsmith announced that the debt service could indeed be transferred through a reimbursement agreement.
While open meeting restrictions prevent more than four city council members from signing a memorandum, DeMaio is optimistic that the Council will advance the proposal with at least 5 votes when it is considered.
A full copy of the memo can be found at www.CleanUpCityHall.com