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Home My WebLink AboutK- 5 Adoption of Resolution of support for AB 680- Sacramento Regional Smart Growth Act 2002 :. •. ,• IF OP . . 6 6 - „ ,,, ., .41,0.? ,...„.„,,,.. _, ,,,,f, ., _ . , ,* '4,44 ' - z AZUSA. CONSENT CALENDAR TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT K. PERSON, ASSISTANT CITY MANAGER VIA: RICK COLE, CITY MANAGER I DATE: FEBRUARY 19, 2002 SUBJECT: ADOPTION OF RESOLUTION OF SUPPORT FOR AB 680 - SACRAMENTO REGIONAL SMART GROWTH ACT OF 2002 RECOMMENDATION It is recommended City Council adopt a resolution supporting Assembly Bill 680 -the Sacramento Regional Smart Growth Act of 2002 BACKGROUND Under the current law, Bradley-Burns Uniform Local Sales and Use Tax Law, cities and counties are allocated I% of the sales tax for every retail purchase that takes place within their jurisdictional boundary. Given the history of the state-local fiscal relationship, local jurisdictions rely heavily on their ability to grow their sales tax dollars. Land use decisions are too often "fiscalized". New growth is located based on the desire of each city and county to qualify for more and more sales tax revenues. As a result, cities and counties within a given region are constantly looking for ways in which to bring more retail sales tax generators into their jurisdictional boundary. This leads to endless competition among cities and counties for finite retail sales tax dollars. The Problem The Sacramento region suffers among the worst air quality and traffic congestion in the nation, while facing the prospect of one million new residents within the next twenty years. The current site-based distribution of the Bradley-Burns sales tax has promoted competition among local jurisdictions for retail and commercial development with little recognition of the impact those decisions have on larger regional quality of life issues, including adequate transportation, air quality, loss of open space and the supply of affordable housing. The result is a region full of unbalanced communities. The Solution: AB 680 The Sacramento region has a golden opportunity to finally begin addressing some of our great regional challenges - traffic congestion, air pollution, housing, unbalanced communities, and assisting the needy. These problems demand an approach that promotes our working together as a region. AB 680 provides that approach through a more equitable redistribution of the Bradley Burns sales tax. Under the bill, as amended: Each city and county would retain their 2003 base year sales tax dollar amount and growth would be distributed according to the following formula: • Situs - Return 1/3 of all regional sales tax growth no differently than it is today, on a point of sale basis. This will enable jurisdictions to recover infrastructure costs related to building neighborhood retail facilities. • Per Capita - Return 1/3 of all regional sales tax growth on a per capita basis. A per capita distribution would place all jurisdictions on a more level playing field, would minimize the fiscal incentive cities and counties have to compete, and improve the jobs-housing balance. • Regional Need-Return 1/3 of all regional sales tax growth on a point of sale basis if the city or county demonstrates two things: (1)a commitment to open space and infill projects; and (2) that it is doing its fair share in dealing with the region's housing and social service needs. This formula creates new incentives to promote the building of more balanced communities. Cities and counties would be rewarded for building homes and retail, not just retail. • AB 680 would create a Sacramento region open space and agricultural land conservancy, as well as direct the region to develop a regional impact fee on commercial and residential development. • AB 680 allows a county, and its cities, to opt out of the sales tax sharing provision of the bill if the county adheres to strict open space acquisition and good growth policies, and already executes revenue sharing with multiple cities within the county. • AB 680 exempts cities and counties within the Sacramento region from the provisions of Government Code section 53084 because AB 680 accomplishes the same goals contained in that code section. Since cities and counties are locked in at a base year revenue amount, an auto dealership or big box retailer moving to new jurisdictions would not negatively impact the previous jurisdiction. Because AB 680 requires 1/3 of sales tax revenue to be shared, a city or county that loses an auto dealer or big box retailer would not only keep their base revenue, but also share a percentage of the growth from the city the retailer moves to. • AB 680 would reward multi-county regions that engage in Smart Growth Principles, which include regional tax revenue sharing, provision of social services, enhancing open space and agricultural land acquisition, transit oriented development(s), and/or infill development(s). Incentives include: 1. Beginning in 2008-2009 fiscal year, 1% of the funds allocated for the state transportation fund pursuant to Proposition 42; and 2. Ten(10)points awarded to applications for the State Department of Housing and Community Development for the following programs: The Jobs-Housing Balance Program,The Cal Home Program, and the Multi-Family Housing Assistance Program. An evaluation of AB 680 will be conducted by the Legislative Analyst Office in 2010 to determine whether the pilot is successful. AB 680, the Sacramento Regional Smart Growth Act of 2002, is a Sacramento regional pilot. It is a modest step that will bring the region together to begin meeting its very real challenges. Over the years there has been much discussion in the Sacramento area about regionalism; AB 680 provides an opportunity to act. If the region develops an alternative revenue-sharing agreement, that agreement shall supercede the sales tax sharing portion of AB 680.The bill shall apply in 2004 to provide the region's cities and counties an opportunity to develop an alternative. • FISCAL IMPACT There is no fiscal impact as a result of the adoption of this resolution. Obviously, passage of AB 680 or any other sales tax sharing legislation would have an effect on local sales tax revenues. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, ENDORSING THE SACRAMENTO REGIONAL SMART GROWTH ACT OF 2002(AB 680) WHEREAS, City of Azusa supports AB680's goals of curbing the fiscalization of land use and promoting smart growth; and WHEREAS, the City has been aggressive in ensuring that its land use plans and development are consistent with good growth, promoting a strong livable community, sustainable over the long term; and WHEREAS,the City makes a conscious effort to build its fair share of the regions's affordable housing and provides its fair share of the region's social services; and WHEREAS,under the current system of sales tax distribution,the City is below the regional per capita sales tax average, largely because the City has refused to chase sales tax dollars by building excessive big box retail developments; and WHEREAS,the current system of sales tax distribution does not provide incentives for jurisdictions that want to do plan smart and in a balanced manner;and WHEREAS, the City recognizes that with upwards of one million new residents projected for the Sacramento region during the next twenty years,AB680's goals will be essential in curbing urban sprawl, traffic congestion and poor air quality; and WHEREAS,the bill provides incentives to implement smart growth policies through the "regional need" portion of the sales tax increment redistribution and through the availability of Caltrans' administered project funding opportunities; and WHEREAS, the City appreciates the open and collaborative manner with which assemblymember Steinberg has engaged local agencies in the region as part of the bill's development, and wishes to thank Assemblymember Steinberg for his efforts; NOW, THEREFORE BE IT RESOLVED AND ORDERED that theCity Council of the City of Azusa declares as follows: The City of Azusa supports the Sacramento Regional Smart Growth Act of 2002 (AB680). The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED,APPROVED AND ADOPTED this 19`h day of February, 2002 MAYOR I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Azusa, at a regular meeting thereof, held on the 19`h day a of February, 2002, by the following vote of the Council: AYES: COUNCILMEMBERS: