A Tidbit from the Controller’s Redevelopment Agency Audit

FINDING 4 — Most Redevelopment Agencies Charged Expenditures That Were Questionable can be found on Page 9 of State Controller John Chiang’s audit, released March 7, of 18 large and small redevelopment agencies around the state.

As an example of such expenditures, the audit cites the City of San Jose which charged 25 percent of the salary and fringe benefits of the mayor, the 12 members of the city council and 40 city council staff members to the redevelopment agency.

One-fourth of the mayor’s $127,000 salary is $31,750. One-fourth of a city council member’s $90,000 salary is $22,500. Multiplied by 12 council members that’s $270,000.

In response to the audit, the redevelopment agency said the 25 percent was “based on the level of services provided (by the mayor and city council) in their capacity as the agency’s board and that the allocation of costs is based on several factors,”  the controller’s report quotes them as saying on Page 31.

“Agency representatives provided a detailed explanation of the project areas as well as core services provided by the (redevelopment agency) but failed to address the basis of how the 25 percent allocation was derived.

“Without a measurable basis to allocate costs, the 25 percent remains arbitrary,” the controller concludes.

Of the state’s 450 redevelopment agencies, the boards of 376 of them are coty councils, according to Chiang’s Community Redevelopment Agencies Annual Report, issued December 31, 2010.


Filed under: Budget and Economy


  1. Yikes!

    Comment by Pat Henning, Sr. — 3.07.2011 @ 9:53 pm

  2. One wonders why so many City Managers, Supervisors, and Mayors,Sheriff’s make more than the Governor of California. Could they be making the argument that their job is that much tougher than dealing with 120 other elected officials. And lets not forget that these re-development agencies are all about giving taxpayer money to big business. Most businesses must make their decisions on where to locate based on their financial ability to pay for the infrastructure and building. New buildings build with public funds look nice on a brochure but what about the picture of the small businesses that went under because they could not compete with big box stores. Big box stores should stand on their own financial wealth and build only what they can afford. How many re-development funded business have closed their doors. Can anyone say Hard Rock!

    Comment by Management Slug — 3.08.2011 @ 10:40 am

  3. Former assembly speaker/SF mayor Willie Brown was on radio not long back vigorously defending the use of redevelopment funds as a slush fund for mayors and councils to dip into \\"for the things they need.\\"

    Brown is so steeped in corruption (he\\\’d call it \\"practical politics\\") that he doesn\\\’t even realize why that\\\’s wrong. But some of us do.

    Comment by Boomer — 3.08.2011 @ 11:55 am

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