Politics & Government
Sonoma Files Suit Against State Agency
Sonoma joins growing number of cities seeking to thwart state from raiding its general fund.
Sonoma officials on Wednesday announced that they've filed suit against the state's Department of Finance in a move aimed at thwarting the agency from raiding the city's general fund.
Sonoma joins a growing number of municipalities seeking similar action that has swelled to over 130.
The city hopes to recover $3,819,244 million in bonds it says improperly went to the state agency amid the statewide Feb. 2012 Dissolution Act.
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That action effectively dissolved the city's Community Development Agency, city officials said.
The bond money that the city is trying to recover is currently being held by the state, City Manager Carol Giovanatto said.
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The lawsuit is described by city officials as a last resort after meetings with state officials failed to produce a deal.
Cities statewide pursuing similar actions have have experienced an approximately 50 percent recovery rate, Giovanatto said.
“The CDA issued these Bonds in good faith for purposes of public improvement projects as stated in our Bond documents.,” Giovanatto said.
“The State is now seeking to retroactively invalidate these Bonds even though they were issued at a time when it was lawful and valid to do so. The City is fighting to uphold our obligations to Bondholders to complete those projects.”
