Property Tax Allocation
Redevelopment Area in Chula Vista
12.5% Redevelopment activities $13.12 million total Tax Increment '07-'08 $13.12
million total tax
increment 17.5% Of total 19.2% 19% Of total 9.6% Total: $8,300,000 after pass throughs 53%
$13.12 million total
Tax Increment '07-'08
$13.12 million total
after pass throughs
As this chart shows if your property was in a Redevelopment area in 2007-2008 the city of Chula Vista, special districts, schools and the County only got what they were getting before the property entered a redevelopment area. THE $2,500,000 IN PASS THROUGHS MOSTLY WENT TO THE SCHOOLS A LOT LESS THAN THE 55% THEY WOULD NORMALLY GET.** All increases in value become tax increment (the 10% of all taxes collected in the county in chart above for Redevelopment). In Chula Vista this is how that money is to be spent for 2007-2008:
As you can see 17.5%(less than 20% because of a loan year before) goes into the Low-Mod Housing fund (where 8.6% goes to debt service and 39% to salaries and supplies, leaving very little for affordable housing) and 19% is passed through as required by law to other agencies.
The rest is spent 34.9% on Administration (salaries and supplies) and 53% on debt service (all agencies are required to have debt as a condition of receiving tax increment) for a grand total of 87.5% Administration and Debt Services-expenses that would not exist without the redevelopment agency.
The paltry 12.5% that actually goes to "Redevelopment Activities" breaks down to another loan payment and more money to supplies and services. The $400,000 payment to Goodrich is from a deal dating from 1991 where Goodrich agreed to a land swap to free up the south side of its campus for redevelopment in exchange for the Rados property taken by eminent domain to the North. They finally got possession of this property in 2008.
The losers here are the libraries, the county (which provides parks, health services, courts, tax collection and other services to the community), special districts, schools and the city's General Fund.
**THE STATE CREATED THE ERAF EDUCATIONAL REVENUE ENHANCEMENT FUND INORDER TO RESTORE SOME OF THE PROP 98 REQUIRED FUNDING TO THE SCHOOLS lost to the RDAs in the state (and to reduce the state's share). IN 2003-04 AND 2005-06 THE REDEVELOPMENT AGENCIES WERE REQUIRED TO PAY MONEY INTO THIS FUND. EVERY YEAR THE CITY AND THE COUNTY ARE REQUIRED TO PAY INTO THIS FUND FROM THEIR SHARE OF PROPERTY TAXES-a further burden on the General Fund and the county caused by redevelopment. This slide came from presentation by Ed Van Eenoo in 10/07.
Where is there a Community Benefit?