Glendale Adopts Budget, Omits Housing

The Glendale City Council this week adopted a $192-million spending plan for the coming year after rejecting a request to set aside $880,000 in the current year’s budget for low-income senior housing.

In approving the 1986-87 budget Tuesday, the council allocated a record $19.4 million for capital improvements, including $2 million toward purchase of the 746-acre Inter-Valley Ranch, $1.1 million to build a two-mile pipeline to carry treated sewage water from the city’s treatment plant to Forest Lawn Memorial Park and $550,000 to install fire sprinklers in the Brand Park and Central Branch libraries.

Council members praised city officials and their predecessors for sound fiscal management of the city’s resources. Mayor Larry Zarian pointed out that Glendale is one of the few cities in the state, and possibly in the nation, that has no general bonded indebtedness. The city each year sets aside half of its sales tax revenue for capital improvement projects, which are completed on a pay-as-you-go basis.

No Money Left

However, council members said there is no money left in the 1985-86 budget, which expires next Monday, to set aside tax money earned this year by the Downtown Redevelopment Project. The project collects taxes on the increment between the old valuation of property and new valuation resulting from redevelopment.

Ken Carlson, a Glendale attorney who said he represents a group called the Glendale Coalition for Emergency Food and Shelter, asked council members to allocate 20% of tax increment revenues earned this year for low- and moderate-income housing, as required by state law. However, when the Legislature enacted the law, it allowed established redevelopment agencies, such as Glendale’s, to postpone allocating money for housing projects for up to 10 years so that agencies could meet prior commitments.

Carlson, who has unsuccessfully campaigned for election to the council, said the funds sought “are not a great amount, but a good start” toward resolving “an urgent and critical need” for housing for seniors. He said the money could be used for a variety of projects, ranging from rent subsidies for seniors to seed money for new housing projects.

Spending for Redevelopment

However, Mayor Zarian said the city will earn more money for use on housing later if it spends its increment revenues on redevelopment projects now, which in turn will generate more revenues.

Among projects the city wants to build first are a major luxury hotel and convention facility downtown and a parking garage that will facilitate redevelopment of a two blocks along Brand Boulevard and Broadway.

The council, acting as the redevelopment agency, rejected Carlson’s request by a 4-0 vote. Councilman John F. Day was absent.

Susan Shick, executive director of redevelopment, said the city expects to hold a public hearing in August to decide if any revenues in the 1986-87 budget should be set aside for low- and moderate-income housing.