Cerritos Transfers $10.1 Million in Funds to the State

Cerritos Completes $17.1 Million Transfer to Taxing Entities

Mayor Edwards said: “The loss of $17.1 million will have a direct impact on the financial resources of the City, which would require city officials to closely evaluate future operating expenses.”

Completes a $17.1 million transfer to taxing entities.

By Brian Hews

Cerritos: The State recently informed Cerritos that the city was required to transmit an additional $10.1 million in Redevelopment Funds, which the city transmitted to the Los Angeles County Auditor-Controller Dec. 20, 2012.

After the Meet and Confer of Nov. 9, State Finance officials told Cerritos officials, “based on a review of additional or clarifying information provided Finance is revising some of the adjustments made in the previous Due Diligence Review determination letter.”

State Finance officials also adjusted an additional $1 million, as the Agency had transferred $1 million to the City on February 1, 2012 and the funds were expended for valid Recognized Obligation Payment Schedule obligations.

Also, State Finance adjusted $6 million, as the Cerritos Successor Agency had transferred $6 million to the City which transmitted the funds to the Los Angeles Auditor-Controller on July 12, 2012 for distribution to taxing entities, thus leaving the $10.1 million left to be paid.

City Manager Art Gallucci told Los Cerritos Community Newspaper that the money in question was money owed the city by the Redevelopment Agency and had been allocated for an affordable senior housing project, Cuesta Villas.

Gallucci said he noted the law states any redevelopment funds, which comes from local property taxes that weren’t allocated for projects or low to moderate income housing needs to be returned to the county.

“This was not the case here,” the longtime Cerritos executive stated.

Current Cerritos Mayor Jim Edwards said the city’s independent auditor, Pur and McGeady, who prepared the Successor Agency’s Due Diligence Review to determine the amount of cash that was available for distribution to the affected taxing agencies, including the City, County and State, said the review concluded that no cash equivalents were available for distribution.

The review was approved by the Oversight Board of the Successor Agency to the Cerritos Redevelopment Agency and submitted to the Finance Department on Oct. 15.

In speaking with Pur and McGeady on Nov 9, Ken Pur told LCCN that the report was only half done, and that they would have the remainder done for the Meet and Confer. When asked about how the report was approved Oct 15 when only half completed, he declined to comment. “It’s the city’s position that no payment is required at this time,”

Mayor Edwards said: “The loss of $17.1 million will have a direct impact on the financial resources of the City, which would require city officials to closely evaluate future operating expenses.”