Second in a series
Re “Not So Fast on City Hall’s Debt Reduction”
[img]1305|right|Andy Weissman||no_popup[/img]Early on Friday evening, City Manager John Nachbar circulated the latest good news for City Hall from Sacramento:
Subject: More DOF News
Chief Financial Officer) Jeff Muir heard today from the DOF staff person assigned to Culver City, that the DOF will reverse their position on the upcoming Recognized Obligation Payments Schedule (ROPS), and give us the money necessary to pay debt service, to avoid a default of our outstanding RDA debt.
Also, the $11+ million dollar dispute will be permanently resolved in our favor, so we won’t face this particular issue again.
In light of this, we should not appeal our lawsuit pertaining to this matter (deadline Monday, Dec 9). It would be “bad faith” to do otherwise, since the reason we heard today is that Council member Weissman made the DOF aware of our looming need to make a decision regarding the appeal.
We will not hear formally until later, probably middle of the month.
Thanks to Councilmember Weissman for his persistent, diplomatic “pinging” of DOF staff.
Mr. Weissman wanted to be certain to place the news in perspective, while noting that the latest develop0ment was unrelated to Friday’s almost $20 million debt reduction by the state Dept. of Finance.
“The (financial and long-range) implications are huge,” he said. “But this is not a sexy story at this point.
“The implications for the city, should the Dept. of Finance not have made the determination it rendered on Friday to release the monies that were necessary to pay our debt service, our outstanding redevelopment debt, would have had negative implications short-term and long-term.”
(To be continued)
