City Seeks Court Order

On Friday, July 13, the council met in closed session for an Emergency Special Meeting. The urgency stemmed from a bill the city received from the Orange County Auditor Controller’s office for $2,646,895.

The state is collecting money from cities following the dissolution of Redevelopment Agencies. On July 9, Mission Viejo received a letter demanding repayment by July 12. Fourteen cities in Orange County were billed a total of $53.2 million. While some cities paid under protest, Mission Viejo and Brea are the only cities in OC that didn't pay.

On July 13, the Mission Viejo council voted to have the city attorney seek a court order to prevent the state from collecting. City Manager Dennis Wilberg says $2.6 million is a “gross miscalculation” and nothing is owed. Cities that didn't pay by July 12 could face penalties, including loss of sales tax revenue. The Orange County Auditor-Controller is serving as the state’s collection arm for the 14 OC cities.

Cities may have believed they had more time to repay the state. California is broke and its officials are desperate, but they won’t stop spending. They want their money now. Some Mission Viejo residents might not realize their city doesn’t have the money. If it had $2.6 million to spare, it could have paid like the other cities to avoid penalties. A lawsuit will buy time.

For years, the City Hall and various council majority members up for reelection have claimed the city is practically rolling in dough. Watchdogs have challenged the claims, noting the city generally has less than $500,000 that isn’t encumbered or already spent. If anyone still believes the city is awash in cash, follow the links, including a letter from Wilberg: (link), (link) and (link).