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FSC asks city to not borrow from restricted funds

By: Stephanie Dumm News Messenger Reporter
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The city’s Redevelopment Agency and Public Facilities Element were part of last Thursday afternoon’s fiscal sustainability committee meeting focus. The committee recommended that the City Council “acquire the assistance of outside sources with contract and bond law background and RDA knowledge to determine the best course of action to meet the successor agency’s debt obligation.” That’s because the state of California ordered last year that all California redevelopment agencies be dissolved, according to previous News Messenger reports. “The city has many investments in properties and home loans,” said Lee Guth, special funds subcommittee chairman. “In that process, we better control our own destiny so we have appropriate people in contract law to protect our investments.” The committee recommended the City Council “adopt a policy stipulating there will be no borrowing from restricted funds going forward,” and “borrowing from unrestricted funds must be shown to have specific identified revenue sources to repay the money borrowed.” Another recommendation was that volunteers from the community should be found to “assist in maintaining parks and streets.”