California Loans News

A proposal to sell $2.9 million worth of California property taxes revenue promissory notes to the state of California has been offered to meet San Bernardino City Manager’s plea for $3 million to even out the general fund.

Charles McNeely, the aforementioned City Manager of San Bernardino, is looking to obtain $3 million from a special California state fund. This money will then be used to cover for various city expenses, like street maintenance costs and patrol car leases. The plan is to sell these promissory notes to the state Association of Counties and state League of Cities, both of which will sponsor a joint powers authority to handle the buying and selling of the said notes. The end result would be about a $4 million cut from initial estimates to pull out from the Economic Development funds.

Some council members, on the other hand, are questioning some of these shifts. They ask whether the proper outside accounts would be properly charged for the services or equipment. Library expenses, one of the expenses specifically outlined, was given special attention by Councilwoman Esther Estrada.

California property taxes revenue IOU’s are a lot like the regular warrants released by the state in that they are both checks made to pay the state’s bills. except that these are checks that can be cashed only on a later period of time. Businesses contracting with the state, income tax refunds, the Student Aid Commission, social service programs and programs for disabled, low-income seniors are just some areas where the state of California can issue IOU’s to pay for its financial obligations.

The proposed plan to sell San Bernardino’s California property taxes revenue IOU’s would be voted on by City Council members this coming August 17.

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