Councilmember Carl DeMaio issued the following memo today where he asks for an explanation of why the city’s downtown redevelopment cap was raised without following the public process and analysis period approved in June by the City Council. In light of the big push by the Mayor and City Council to pass Prop D’s massive General Fund tax hike, DeMaio questions the timing and impact of the decision.
DeMaio issued a statement as the memo was released:
“This action will have a major impact on the City’s General Fund. Had the cap not been increased, money would have gone back into the General Fund – for basic services like police, fire and roads. Taxpayers should ask a simple question: Why do we need a massive tax increase for the General Fund with Prop D when city leaders are diverting monies away from the General Fund through this action?
DeMaio also criticized the process by which the cap was raised:
“This 11th-hour, unilateral action by the state completely shut the public out of the process. Raising the redevelopment cap diverts money from our city’s financially-strapped General Fund. There is a wrong and right way to do this – but the state legislature took that decision out of the hands of our community and imposed an outcome that could pose significant risks to city taxpayers.”
DeMaio has long stated that he could support an increase in the cap as long as certain safeguards and guarantees were contained in the deal to protect the General Fund. Attached is the memorandum where he asked the City to begin the process of analyzing options relating to the cap.
For a full copy of the report the IBA did on the impact of the CCDC cap increase on the General Fund, contact Councilmember DeMaio’s office at 619-236-6655.