Opinion ID: 1366362
Heading Depth: 3
Heading Rank: 2

Heading: Earlier Dispute Between the Parties

Text: In 1977 the Agency and former auditor Benning had a dispute over payment of tax increment revenues. Benning instituted a declaratory relief action against the Agency alleging among other things that the Agency's statement of indebtedness for fiscal year 1977-1978 was deficient. Thereafter Marek was elected and replaced Benning as plaintiff in that lawsuit. The matter was resolved in January 1979 when the parties negotiated a settlement in the form of a stipulated judgment entered by the superior court. The stipulated judgment outlined a number of procedures relating to the submission and review of annual statements of indebtedness thereafter. Under these procedures, the Agency was to maintain accounting records reflecting the status of the special fund into which tax increment revenues are paid pursuant to section 33670, subdivision (b) (see fn. 3, ante ). Additionally, subsequent statements of indebtedness were to show all funds of the Agency on hand or otherwise available and separately account for funds arising from tax increment revenues and from other sources. Further, the Agency was to identify the moneys committed to specific obligations or indebtedness and to provide the Auditor copies of contracts documenting the claimed indebtedness. In this regard the stipulated judgment provided: To the extent [the] Agency has any monies ... which are not specifically committed or allocated to a particular obligation or indebtedness of the Agency, the ... Auditor shall consider such monies as being available for general expenditure purposes to pay, in whole or in part, any of the indebtedness shown on [the] Agency's Statement of Indebtedness when [the] Auditor calculates the distribution of tax increment revenues pursuant to Health and Safety Code Section 33675(d).