Two weeks ago, the City Council voted to start funding, with $1.2 million from the city’s General Fund, a unique 25-year-old housing voucher program that had been funded by the Redevelopment Agency before the state ordered it to dissolve.
In most cases, this program has proven to be costly and has not returned the benefits touted by some.
While this program was designed to assist qualified recipients by providing housing vouchers for up to five years as a transitional support safety net, the city’s own analysis of the program shows that some recipients have been taking advantage of the rental assistance program for nearly 15 years!
Rather than correcting the problem, the City Council compounded it by making the horrendously dangerous decision to spend one-time General Fund Reserve monies on an on-going rental assistance program.
It is clear that last century solutions do not address 21st century housing demands.
The city must not only look at new and creative ways to address the affordable housing crisis in Culver City, it should look at financial decisions that threaten our city’s economic stability.
Two weeks ago, California’s Legislative Analysis Office delivered a report titled
“California’s High Housing Costs: Causes and Consequences,” you can read it by clicking here.
Among conclusions is that cities, especially near the California coast, must create policies that facilitate the building of more homes and apartments. There are better ways of building affordable housing than taking funds away from the city’s reserves that are meant as a hedge in times of emergency or for critical capital improvement programs and infrastructure.
We must remember that the money the City Council is spending is money that the city did not save or receive through prudent budgeting over the years.
No. It is spending money it received by selling city property (current assets) and changing those assets from real property into cash.
As the leading business organization in Culver City, the Chamber of Commerce supported the recent sales tax increase, something few business organizations would do.
We were assured at the time that the city would do its best to take advantage of new revenue streams and not continue to rely on reserves and new taxes to fund essential city services and programs like the rental assistance program.
One stipulation of passing Measure Y (the sales tax increase) was that the city establish a Finance Advisory Committee to help monitor how the Measure Y funds would be spent.
That has turned out to be a disingenuous effort at public oversight.
Despite an 8-0 vote, with one abstention, the Finance Advisory Committee recommended against the continuation of funding for the Rental Assistance Program.
By funding this on-going program with reserve funds, the City Council ignored its fiscal responsibility and obligation to the city.
If the City Council continues its reckless spending without generating new revenue streams, it won’t be long before the city will be forced to sell City Hall, police and fire stations, our beloved parks or lease out public streets to pay for housing vouchers and other pet programs.
Mr. Rose, president/CEO of the Chamber of Commerce, may be contacted at ssssteve@culvercitychamber.com
There is truth in this statement. This decision was fiscally shortsighted. The council could and should have done better.
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