Rosemead City Council will meet Tuesday (01-10-12) to decide what to do as a result of the loss of millions because the State Legislature and the State Supreme Court have abolished the Community Redevelopment Agency (CRA).

In addition, about 25% of the funds or $1.72 million went to various taxing agencies that received them as “pass-though” payments.
The staff report stated that about $2.45 million was used to pay off CRA debt. Of the remaining amount, $1.4 million was allocated for low/moderate income housing fund and $1.43 million for local redevelopment and economic development activities.

“Effective February 1, 2012 the Commission must immediately cease all expenditures related to the remaining $2.8 million remaining,” the staff report said.

As a result the city’s General Fund must absorb all salaries, benefits and operational costs funded by redevelopment revenues until reductions in city operations can be made.

The Rosemead council will consider a resolution designating the city as the successor Agency to the CRA. Meeting starts at 6 p.m.