State Budget Could Cost Rohnert Park Nearly $3 Million

The newly minted state budget may cost Rohnert Park $2.8 million in city redevelopment funds - which provide for affordable housing projects, and various programs to eliminate urban decay.

Under Gov. Jerry Brown's newly passed ABX1 26 and ABX1 27, the city can "opt in" to retain the Community Development Commission, the local redevelopment agency which administers the funds, by agreeing to fork over a hefty payment to the state.

"The $2.8 million is only a very rough estimate," said Linda Babonis, the city's redevelopment and housing manager. "We will not know for sure how much we'll owe the state until the exact numbers come down from the department of finance in August."

The city can also "opt out," which disolves the agency and eliminates the collection of any revenue, aside from existing bond obligations, as defined by the state.

To avoid dissolution, by November 1, 2011, the city must enact an ordinance agreeing to voluntarily make payments to the state. Once the ordinance is enacted, the redevelopment agency can start allocating money towards new projects.

"We have ," Babonis said. "I'm predicting I'll make a recommendation to keep the agency in tact ... it just depends on how much we're going to have to give to the state and if we can afford it."

The Community Development Commission this month . Monies for the programs, normally  that would be taken out of redevelopment funds, were taken out of an affordable housing fee fund. 

"We're trying to build up healthy reserves for next year," Babonis said.