(July 8, 2008) -- Saying city management's allocation of state-voter-approved Prop 1B bond money for street repairs isn't equally divided across the city -- and charging that parts of LB in Redevelopment areas are getting shortchanged on over $15 million in infrastructure repair money (nearly $8 million expected this year) -- Councilmembers Tonia Reyes Uranga and Rae Gabelich have agendized a July 8 Council item asking management to revise its allocation to provide what they call "a more equitable distribution" of funds throughout the city.

"Even though voters from throughout the City approved Proposition 1B, the allocation of money for street repairs is not distributed equally in each district. Districts in which the Redevelopment Agency approved funding for additional street repair work are receiving a smaller allocation of Proposition 1B funds," the 7th and 8th district Council reps write.

The agenda item is the most recent example of an issue that continues to split LB neighborhood advocates: to what extent, if at all, should LB City Hall be allowed to tap Redevelopment money -- which is supposed to be used to fight blight -- to pay for infrastructure items that would normally be funded by budget allocations or ordinary city bond measures.

One of the more acrimonious examples of this occurred in connection with construction of the North Division police station in Scherer Park...which city management originally indicated would be funded through General Fund appropriations or a bond...but then sought (and obtained) support from some NLB residents (including North Redevelopment Project Area members) for using Redevelopment money to build the police facility (an action that left other civic activists fuming).

The item confronts a more basic issue: different parts of LB aren't equal in their infrastructure needs. Older parts of town are dealing with chronic problems...while newer parts of sprawling ELB struggle to handle more miles of sidewalk and other infrastructure items.

In their agendizing memo, the Councilmembers Reyes Uranga and Gabelich write in pertinent part:

In November 2006, the voters of California approved Proposition 1 B, which authorized the sale of more than $1 billion in bonds for infrastructure improvements, with a portion of the bond proceeds allocated directly to cities for infrastructure repairs.

Long Beach's share of this allocation will amount to $15,425,294, with the first amount released this year to the City totaling $7,947,949.

The proposition was approved by more than 61 percent statewide . In Long Beach, the ballot measure received 66 percent support, with a majority of voters in each council district approving the measure .

Even though voters from throughout the City approved Proposition 1B, the allocation of money for street repairs is not distributed equally in each district. Districts in which the Redevelopment Agency approved funding for additional street repair work are receiving a smaller allocation of Proposition 1B funds .

When the Council approved an initial list of projects in December 2007, it was indicated that the list allowed for future allocation modifications if deemed appropriate. The Redevelopment funds are intended to enhance the quality of life in blighted areas . Those areas should not be penalized with fewer infrastructure dollars that were approved by voters throughout the City.

Recommended Action:

Request the City Manager to revise the allocation of Proposition 1B funds to provide a more equitable distribution of Proposition 1B funds throughout the City.