Grand Terrace

By Canan Tasci, Inland Valley Daily Bulletin
Posted: 02/26/14, 11:19 AM PST | Updated: 1 hr ago

GRAND TERRACE >> City Council members were expected to go over their mid-year budget Tuesday evening until they received information that could possibly throw a wrench into their finances.

Calling the issue a “fiasco,” Interim City Manager Ken Henderson said the city received information — via its consultants — that the previously approved redevelopment property tax trust fund percentages the city was supposed to receive had changed.

For a city with recent concerns over its finances, it got everyone’s attention.

Henderson said the city was originally told by the San Bernardino County Auditor-Controller/ Treasurer/Tax Collector’s Office the city’s share of the property tax residuals would be 20 percent. Then late last year they received information it had increased to 45 percent, which is what staffers used to base the city’s 2013-14 mid-year budget finances on and its five-year budget stabilization plan.

That number now has shrunk to 29 percent, Henderson said.

A email was read from the Rosenow Spevacek Group, the city’s property tax consultant, confirming the county’s determination of the 16 percent decline in property tax residuals.

Based on that information, council members agreed to wait on discussing their mid-year budget until a March 11 meeting in the hopes of getting more information about the change in its fiances.

“I can’t say what the exact impact is because we do not know. We have to essentially recreate our mid-year budget review documents and we have to tweak once again our five-year stabilization plan to get a complete impact of what this means to the city,” Henderson said.

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