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HomeMy WebLinkAboutE-10 County Park MeasureCONSENT ITEM E-10 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: LOUIE F. LACASELLA, MANAGEMENT ANALYST DATE: JUNE 20, 2016 SUBJECT: AUTHORIZATION TO SEND A CORRESPONDENCE TO SUPERVISOR HILDA L. SOLIS CONVEYING THE CITY’S CONCERNS WITH THE PROPOSED LOS ANGELES COUNTY PARK TAX SUMMARY: On May 3, 2016, the Los Angeles County Board of Supervisors met to discuss a proposed countywide tax measure that will likely be put before the voters for consideration in November 2016. The proposed measure seeks to enact a $0.03/square foot parcel tax that would be assessed against usable structures on each parcel in Los Angeles County (not including parking structures). The funds generated from the parcel tax would be used towards park, recreational facility, and open space needs. If enacted at the $0.03/square foot parcel tax, an individual who owns a 2,000 square foot house would pay $60/year for the park measure. This action authorizes the distribution of the attached letter (Attachment 1) to Supervisor Hilda L. Solis regarding concerns with the proposed Los Angeles County Park Tax. RECOMMENDATION: Staff recommends that the City Council take the following action: 1) Authorize the distribution of a letter to Supervisor Hilda L. Solis conveying the City’s concerns with the proposed Los Angeles County Park Tax. DISCUSSION: The City has been a grateful beneficiary of the Prop A 1992 and 1996 measures and a number of important projects have been funded or partially funded utilizing Prop A funds, including Slauson Park Community Pool, Memorial Park, Veterans Park, Zacatecas Park, as well as many other large and small projects. As the County has indicated, this funding will sunset in 2019 and it is a priority for the County to replace this funding. In March 2015, the Los Angeles County Board of Supervisors approved a motion to initiate the Countywide Comprehensive Parks and Recreation Needs Assessment. This represented an unprecedented effort to document existing parks and recreation facilities in cities and unincorporated communities and to use this data to determine the scope, scale, and location of park needs in Los APPROVED COUNCIL MEETING 6/20/2016 Letter to Honorable Hilda Solis June 20, 2016 Page 2 Angeles County. The Parks Needs Assessment is designed to help local officials, park agencies, and residents understand the future steps that need to be taken to ensure all communities have adequate access to parks. The County is using the results of this assessment to present a new ballot measure to the voters in November to replace the sun-setting current measure. The San Gabriel Valley City Manager's Technical Advisory Committee and the San Gabriel Valley Council of Governments (SGVCOG) were recently given an overview of the results from the L.A. County Parks Needs Assessment effort that took place over the last several months. Most of the San Gabriel Valley cities, participated in the community outreach effort, and the findings consistently indicate the important role that parks, recreational facilities and open space play in the quality of life for communities, and highlight the support residents give to that effort. While the results of the assessment showed needs in all communities, the County's proposed allocation distribution raises issues over fiscal equity to communities where the tax would be levied. The SGVCOG is requesting that the following issues be considered for the new proposed ballot measure: Increase Local Return: Currently, many communities are only guaranteed to receive approximately 30-35% of the funds that they contribute. Cities are requesting an allocated, at a minimum, 75% of the funds contributed. Increase Flexibility And Ease Access To Local Return Funds: In order to access even those funds that are "guaranteed," cities must participate in an application and review process. This increases the administrative burden and lessens the ability of cities to meet the future needs of their communities. Cities are requesting that the District work to simplify any steps that are necessary for cities to access their local return funds, and that the use of the funds be as flexible as possible to allow communities maximum local control in identifying open space and recreational needs. Clarify Process For Allocation Of Future Excess Funds: As currently written, the ballot measure is unclear as to how future excess funds will be allocated and what level of discretion the Board of Supervisors will have in allocating these funds. In order to increase transparency, Cities are requesting that the ballot measure be clarified to clearly state that any future excess funds will be allocated according to the same formula as identified in the measure and that a minimum of 75% of any future excess funds will be returned to local communities. Reduce The Set-Aside For Planning And Administration: Currently, the ballot measure proposes allocating 8% of total funds to the Open Space District for planning and administration. Cities are recommending that this amount be reduced and reallocated to funding for projects and maintenance. There are many details related to the park tax measure as currently drafted that Staff has identified as being of concern. Regardless of the merits of the actual tax measure, the proposal does not seem to provide an equitable share of the revenues that would be raised and has been structured in such a manner that some communities, like Azusa, would be paying a disproportionate share of the costs without receiving a fair return. Letter to Honorable Hilda Solis June 20, 2016 Page 3 If the $0.03/square foot parcel tax were enacted, Azusa property owners would contribute around $821,195.97 annually. However, as currently written, the City would only be guaranteed $379,423.09 back. This means that Azusa would only be getting back $0.46 out of every $1.00 paid in taxes for use towards Azusa based parks and open space needs. Given the current structure of the proposed park tax measure, Staff does not believe that the proposal is fair for Azusa. Only getting back 46% of the funding paid for by Azusa residents for local community park projects is estimation an unequitable distribution of the funding raised. The Los Angeles County Board of Supervisors were planning on considering the overall park tax measure at their June 21, 2016 meeting, however, Staff received notification that the discussion has been postponed to a later date. Staff believes it is important that Supervisor Hilda L. Solis be advised of the concerns outlined above and has prepared the attached letter (Attachment 1) for City Council consideration. It is also important to note that ultimately, should the Los Angeles County Board of Supervisors place the item before the voters in November 2016, the tax measure will require 2/3 voter approval in order to pass. FISCAL IMPACT: There is no fiscal impact associated with the recommended action. Prepared by: Reviewed and Approved: Louie F. Lacasella Troy L. Butzlaff, ICMA-CM Management Analyst City Manager Attachments: 1) Letter to Honorable Hilda Solis regarding Proposed Park Measure