It's something Mayor Villaraigosa has been ragging on and now Controller Greuel is jumping in on the action. This morning she held a press conference to put the pressure on City Council to permanently change the policy so money is moved over to the general fund, which is currently seeing a $200 million budget shortfall.
"Currently, if a piece of City property is sold, 50% of the proceeds go into the discretionary account of the Councilmember in whose district it sits at the time of sale, while only 50% goes into the City’s General Fund," an advisory from Greuel explains. "Similarly, the City collects oil pipeline franchise fees when companies run pipelines under City streets. Fifty percent of this revenue also goes into the Councilmembers’ discretionary accounts, while only 50% goes into the General Fund."
A temporary policy change over the last two years has allowed for the surplus property sales to go to the general fund, saving $1.9 million. However, there is a potential for $7 million this year and Greuel wants the Council to act upon it.
Over the last 12 years, nearly $25 million from the sales and fees have accrued.
Add: Greuel's press secretary Ben Golembek reminds us that Greuel was on the City Council, she was the one who authored the policy from two years ago.
