Dissolution of the Improvement Agency
What this means as we move forward in a new era ...
On December 29, 2011, the California State Supreme Court ("Court") rendered its' decision in the California Redevelopment Association v. Matosantos case by publishing the worst possible outcome for California cities. The Court determined that AB 1X 26 (the "Dissolution Act") is constitutional while concurrently finding that AB 1X 27 (the "Alternative Redevelopment Program Act") is unconstitutional. The result of those two independent decisions means that all 400 plus redevelopment agencies in the State of California were dissolved as of January 31, 2012.
In Big Bear Lake, it means that the Big Bear Lake Improvement Agency is no longer able to provide financing for substantial and significant public projects and infrastructure or valuable assistance to our local small businesses and related small business supporting agencies. Projects and programs immediately impacted will be the cessation of the Facade and Sign Improvement Program, and consideration of funding a significant capital improvement program which would have included funding substantial infrastructure and public amenity projects that would have benefitted the entire community.
Our City Council elected to become our Successor Agency on February 1st, charged with overseeing the wind down of IA operations over time. Funding that would have continued to flow to the IA will now be used to retire all existing debt and contractual obligations with the remainder going back to various local taxing districts. The State of California views this as a victory for helping to solve the State's budget deficit problems by essentially replacing State funding for schools and other "core" services with local redevelopment funds.