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April 16, 2012
City Council, Mayor Sanders, City Attorney Goldsmith
City of San Diego
202 C Street
San Diego, California 92101
Subject: ITEM-200: Presentation of the Mayor's Fiscal Year 2013 Proposed Budget.
Revised the former Redevelopment Agency (RDA) EOPS/ROPS Line Item
“City Loans” by Separation of Federal HUD Debt versus City of San Diego
Debt; and the Creation of a Federal Trust Fund for the HUD-Mandated
Regional Continuum of Care Council (RCCC) for the missing $144 million in
Federal HUD Debt, and the accrual of interest on the full $228 million Debt
since July 1, 2009 at an annual rate of 7 percent (%).
References: http://tinyurl.com/20120410a
Item S502. City Council Hearing of April 10, 2012. Initial Draft Recognized
Obligation Payment Schedule (“Initial Draft ROPS"), Second Recognized
Obligation Payment Schedule (“Second ROPS”), and Third Amended and
Restated Enforceable Obligations Payment Schedule (“Third EOPS”).
Dear City of San Diego:
As part of the Fiscal Year 2013 Budget, please revised the former Redevelopment Agency
(RDA) EOPS/ROPS Line Item “City Loans.” Please separation the outstanding $144 million in
Federal HUD Debt and the accrual of interest as their own Line Items.
The April 10, 2012 Line Item "City Loans" by RDA Project Areas includes the outstanding $228
million in Federal HUD Debt mixed together with separate loans from the City of San Diego for
the Water and Sewer Departments (Enterprise Funds), Sales Tax, Capital Outlay, TransNet Prop
A loans, amongst other unknown loans and debts. Corrections are needed to Line Items "City
Loans" to separate out Federal HUD Debt from actual City Department loans and debts. In
addition, repayment of the $78 million Settlement Agreement on June 21, 2010 through
the Federal Office of Inspector General for HUD was also in the EOPS/ROPS as separate Line
Items than “City Loans”, and therefore have been counted twice. Changes are required to the
City of San Diego EOPS/ROPS.
Also attached is an April 9, 2012 letter to Governor Brown from Congressman Bob Filner
regarding repayment of $228 million in Federal HUD funds from former RDA TI that could be
used to end Homelessness amongst Veterans in San Diego by 2015 with help from the State.
Moving forward on the EOPS/ROPS and the FY 2013 Budget we recommend the following:
• A letter from individual City Council Members to Governor Brown approving in concept
the accelerated repayment of outstanding Federal HUD Debt and accrued interest to End
Homelessness in San Diego. And/or a possible City Council Hearing on the matter of
petitioning the State to approve a bank loan of future Tax Increment Financing (TIF), so
the poor and Homeless do not act as the former RDA’s banker.