Piedmont city coffers will receive $800,000, thanks to the Proposition 1A Securitization Program approved this week by the City Council.

With the city budget stretched thin due to state take-aways and a decrease in property transfer taxes because of the slow housing market, the windfall "is the way to go, the best deal ever," City Administrator Geoff Grote told the council. The Council voted unanimously to enter the program.

The city will receive the payments in two installments on Jan. 15 and May 3. The money may be used for any purpose and provide immediate cash relief to the city, Finance Director Mark Bichsel said.

The program allows local entities to sell their property tax receivables and receive cash payments in return. A total of $1.8 billion could be dispensed to California cities and counties.

The California Statewide Communities Development Authority along with the California State Association of Counties and the League of California Cities developed the proposition. Senate Bill 67 passed Oct. 14 and the governor's signature gave the program the green light. The bill was passed to relieve municipalities of the burden of loaning the state their property tax revenues.

The CSCDA issues bonds; bondholders receive their repayment from the state at a later date. The state will have to pay the interest due bondholders and any bond transaction costs. Participating agencies have no obligations with respect to the bonds in

The Council reviewed the proposal at its Oct. 19 meeting but took no action. They wanted to be sure, and asked for further analysis by bond counsel Sam Sperry. Sperry assured the Council he saw no hidden costs or risks to the program.

Resident George Childs disagreed when the program was introduced.

"Don't look at this as free money. Look with great suspicion. It's too good to be true, will be paid by the taxpayers," Childs said.

All-night talking signs were also up for debate. City planner Kate Black introduced an ordinance that would regulate electronic monitors, such as the ones at the Piedmont Valero station. The monitors provide weather, traffic updates and advertising to patrons as they pump their gas. Some cities such as Sausalito and Ross prohibit the "talking signs." Other cities accept them on a case-by-case basis.

The issue might be moot for Piedmont. Station owner Simon Ho said this week the monitors are gone.

"The company went out of business and came and removed them about two to three months ago," Ho said.

Ho received about $400 per month income from the now-defunct company for carrying their monitors. Now he is shopping around for another company to provide that service. Earlier this year, the Council said the monitors could stay if they were only on during business hours and generated no more than 50 decibels from 5 feet away.

When Ho bought the station in January, the monitors were already there, installed without a permit by the previous owner. Ho was thrust into the controversy over whether the "talking signs" were a blight or a blessing. Mayor Abe Friedman liked them, while Councilman Dean Barbieri thought they were a nuisance.

The Council on Monday was divided over several issues. Should they be allowed 24 hours a day? Would regulating hours of operation prohibit free speech? Would regulation of TV monitors affect 24-hour bank ATMs that have screens?

The Council asked Black to come back with amendments to the proposed sign ordinance for the second reading at an upcoming meeting.