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HomeMy WebLinkAbout12/23/2009� B A K E R S F I E L D CITY MANAGER'S OFFICE MEMORANDUM Dec T0: Honorable Mayor and City Council aT FROM: Alan Tandy, City Manager �a� SUBJECT: Generallnformation Yesterday, several staff members and I met with our League of California � representative for an update on League activities, One of the discussion item government revenue protection measure which the League has developed for Nover measure, which just received official Title and Summary from the Attorney GenE designed to protect a broad range of local government revenue sources from any pr� by the state. The measure, which is a Constitutional Amendment, includes protections taking or borrowina of local revenues, including; • The State Excise Tax on Gasoline and Diesel Fuel (commonly referred to as HUTA • The Sales Tax on Gasoline and Diesel Fuel (commonly referred to as Prop. 42 func • Property Tax; • Tax Increment; • Vehicle License Fees; and • Locally Imposed Taxes, The Council will have a presentation by League staff and an agenda item in January Resolution in support of this measure. At first review, this measure provides important local government revenues at a time when the Legislature is contemplating "creativE thing for local governments) solutions to deal with the twenty-plus billion dollar budg are facing, Many of you will recall past measures which attempted to prevent the state from ta� governments; however, those efforts always included loopholes which allowed "borro funds, This has proven to be problematic and this measure is designed to close a current restrictions, Attached are three documents which will nrovide m�rP inf�rr Honorable Mayor and City Council December 23, 2009 Page 2 The next step in the process will be a signature gathering effort to qualify the rr November 2010 General Election Ballot. We will continue to monitor and update yc progresses, MISCELLANEOUS NEWS As a reminder, I will be taking vacation next week, and John Stinson will be out, a� Smiley will be in charge, and the office will have contact information for both John event of an emergency, The following reports are enclosed; ■ Neighborhood Stabilization Program Update; � ° ■ Homelessness Prevention and Rapid Re-Housing Update; ■ Construction Division's weekly update of the roadway paving projects; and ■ Streets Division's weekly work schedule, AT:rs:al cc: Department Heads Roberta Gafford, Assistant City Clerk Da1e: Uecernt�er Initiati.ve O9-�C�6�� (�mdt, The Atto�-ne_y Gene�-�.l of Califo�-nia }��s �,i-e��red t�1e fo11c��,ving ti�le anc� �u1���n�,�-�;r c�f t��� � puz•pose and points of the �ropos�cl mea.st�� e: 1�.Idt>I-�1�I`�'� 'I'�IE �`I' A'I'.� ��Il�'1 `I'�I�tC FLTI�II)� LT�.E�3 .F��t 'T'.It �I���i3�T��7 o� ��c�L �o���r���� ��o�E��s ��r� s��vTC�s. r���r�Tl� CC�I�I�T'ITLTTY.�I�f�I, �.I�II.L:�II)I�'I�I�1'T. Prohibits th� �tat� fr.��n �}�iftiil�, ial4i�z�, bc�rr� restz•i�ting th� use of ta� reve�zues dedi.cated b�T la��,T to fiind loc�l �o�.Tern7�aent s�nTices, commutlity �-edevelopment �i-ojects, OI' tl'c'lI1S�J01'f�,t1011 �T'OJeCtS a,I1Cl S81'V1C2S. .PI'OI11b1�S ��iE �2'�TIl C��I�.y121�,� C�]8 C�IS�I'I�7L1f10I1 O� �i�� 1'�'4��11U�S �02' t�1�S� �JLiI'�JOS2S e�I�TI �tiJ�iG�1 t�le �.7r�}�%�I'11C it necess�.i•_y due to a seve�-e siate fiscal hai-dship. 5uminary of �stimate by .Le�islative At and L)irecto�r of Firlance c�f fisc�l iin��act c�n state a7�d loc�l `overnn�ent: �i�t�ifica�lt cons on stai� atrthor�ity over city, c�l�nt��, special distri�t, and recLevelop�nent agetl��' f1111C�5. A.; result, higher ancl more sfabl� Iocal resources, potentiall_y �ffecting billions of doilars in s 31eaI'S. CO211I71�I]St1�T�t� 1'�C�L1C1:10215 Ifl St�.t� 1'�S�UI'CSS, 1'�SL1ItII2�; IIl 1112,�UI" C�2U.C��.S�S lIl S�`��� spending anci/or incr�ases in state revenues. (09-0063.) :,': .�1::., it'... December 4, 2009 Hon. Edmund G. Brown Jr. Attorney General 1300 I Street, 17th Floor Sacramento, California 95814 Attention: Ms. Krystal Paris Initiative Coordinator Dear Attorney General Brown: Pursuant to Elections Code Section 9005, we have reviewed the proposed cor tional initiative related primarily to state authority over local government resou� (A.G. File No. 09-0063, Amdt. #1-NS) and below is our revised analysis of the ini fiscal effects. BACKGROUND Local governments receive resources from various sources, including fundin� state tax revenues that are then given to local governments, as well as from local: posed taxes and fees. Transportation Funding State transportation resources are derived from several major sources includi cise taxes and sales taxes on gasoline and diesel fuels that are deposited into vari state transportation accounts. In general, as described below, the revenues from � taxes are required to be used for specified transportation purposes, including di� tion to local governments. Current law generally allows these funds to be loaned porarily on a cash flow basis between the state's various transportation accounts der to pay monthly obligations, such as Caltrans' payroll and payments to const� contractors. While fuel tax revenues generally can be used only for transportatio: poses, the California Constitution allows, under certain circumstances, for these . nues to be loaned for up to three years to the state's General Fund for non- transportation purposes. Ai _ i _ r_ _ _ _ _ � _ - . _ _ A _ _ _ ■. _ ■ w. • � Hon. Edmund G. Brown Jr. 2 December roughly $3 billion in revenues. The Constitution requires that revenues from the � be used only for transportation purposes, mainly to fund highway and road repa: improvements. Current law requires that these revenues be deposited into the sta Highway Users Tax Account (HUTA) and be allocated by formulas. Specifically, j thirds of gas tax revenues in the HUTA are allocated to the state, mainly for Caltr maintain and repair the state's highways. The other one-third of the revenues is g to cities and counties for local street and road maintenance and improvement. Th islature currently can amend this allocation through passage of a bill signed by th Governor. State Sales Tax on Gasoline and Diesel Fuel The state currently charges a sales tax on the purchase of gasoline and diesel f State law requires that almost all of these sales tax revenues be used for transport purposes. These purposes include local street and road improvements, projects tr pand capacity on the state's highway and transit systems, planning, and transit aY operations. A portion of the sales tax on gasoline and diesel fuel is deposited into Public Transportation Account (PTA) for the specific purposes discussed below, ` the rest of the revenues deposited into the General Fund. PTA Funding. Current law requires that funds in the PTA be used only for tra� tation planning and mass transportation purposes. Funds in the PTA are statutori located by formula to local transit operators and the state for mass transportation poses. The Legislature currently can amend this formula through the passage of a signed by the Governor—subject to certain limitations as interpreted by the court Proposition 42 (2002) Transfer. The Constitution requires that the gasoline sal� revenues deposited into the General Fund be transferred to the Transportation In ment Fund (TIF). These funds have been counted as tax revenues for purposes of lating the minimum amount of K-14 education funding required under Propositi< Over the past five years, these revenues have averaged roughly $1.4 billion per yE Under certain conditions, the Constitution allows this transfer to be suspended. S pended amounts, however, must be repaid with interest within three years. The I lature currently can change the allocation of TIF resources through the passage of signed by the Governor. Other Local Government Revenues Dr�r�er4v T�v Hon. Edmund G. Brown Jr. 3 Decembei provision is known as a"Proposition 1A (2004) suspension," after the measure t� tablished this procedure. Proposition 1A (2004) Suspension. No more than twice in ten years, during a state fiscal hardship, the Legislature may modify property tax allocation laws to crease for one year the percentage of property taxes allocated to cities, counties, � special districts. The Legislature must repay each local government's reduced pr� taxes, with interest, within three years. In 2009, the Legislature enacted a Proposi (2004) suspension, shifting 8 percent of every city, county, and special district's 2 property taxes to educational agencies—a total of $1.9 billion in shifted revenue. state must repay each local government by June 30, 2013. Tax Increment The Constitution and other statutes authorize city and county redevelopment cies to create "project areas" in blighted, urban areas. After a redevelopment age: creates a project area, it receives all the growth in property tax revenues (called " crement") generated in the area. Other local agencies serving the project area cor to receive the amount of property taxes they received before the agency created t ject area. To partially mitigate the fiscal effect of redevelopment on other local agencie� law requires most redevelopment agencies to "pass through" a portion of their t� crement to other agencies serving the project area. In addition to these ongoing � through obligations, the state periodically has required redevelopment agencies make payments to schools. Current law, for example, requires redevelopment ag to contribute to schools $1.7 billion in May 2010 and $350 million in May 2011. T} payments to schools offset a commensurate amount of required state spending. I velopment agencies currently are challenging in court the state's constitutional a ity to require these payments. Mandates and VLF State-Reimbursable Mandates. The Constitution generally requires the state � imburse local governments when the state "mandates" a new local program or h level of service. In general, the state reimburses local governments for mandates through appropriations in the arinual budget act. Vehicle License Fee (VLF). State law imposes a 1.15 percent VLF on the deprec value of cars and trucks. The Department of Motor Vehicles (DMV) collects the ` Hon. Edmund G. Brown Jr. 4 Decembe: Using Base VLF Revenues to Offset State Mandate Costs. The Legislature ha authority to modify base VLF allocation statutes, including shifting revenues to ] governments to offset their costs to implement a state mandate. In 1991-92, for e� the state (1) modified the VLF depreciation schedule to generate higher revenue� (2) changed VLF allocation statutes to distribute the new revenues to counties re ble for new health and social services mandates. Because the increased VLF reve offset the counties' costs to implement the mandates, the state was not required 1 propriate mandate reimbursements to counties in the annual budget. Other Local Revenues The Constitution authorizes local governments to impose local taxes for local poses. Over the years, local governments have imposed a wide range of local tax cluding Bradley-Burns sales, business license, utility users, and transaction and i taxes. The Constitution generally does not authorize the state to use or reallocatE nues raised under these taxes. PROPOSAL This measure amends the Constitution to constrain the state's authority to re� or make changes to state and local resources and their allocation after October 2� Under the measure, the State Controller would reimburse affected local governn accounts within 30 days if the state were found to have violated any of its provis Funds for these reimbursements, including interest, would be continuously app� ated from the state General Fund and do not require legislative approval. Any st enacted between October 21, 2009 and the effective date of this measure that wo� have been prohibited under this measure would be repealed. Transportation Funding Prohibits Borrowing or Redirection of Certain Transportation Resources. Th ure prohibits gasoline and diesel excise tax revenues, gasoline sales tax revenues funds deposited into the PTA from being loaned temporarily, or permanently, tc General Fund, or any other state fund. This eliminates the state's ability to borro transportation funds for non-transportation purposes. The measure also elimina trans' ability to make temporary loans between various transportation accounts age cash flow—such as to pay staff and to fund the construction of projects. Requires Gasoline Sales Tax to Be Deposited Directly Into the TIF. The mea� • .� r .i i . i• . � i � _ i i' - -'i- '-- � _ .i Hon. Edmund G. Brown Jr. 5 December Requires Public Process to Amend Allocations. This measure requires the Cal Transportation Commission to conduct public hearings and prepare a report befc Legislature could enact changes to the allocation of either gas tax revenues in the or gasoline sales tax revenues in the TIF. Specifies Allocation of PTA Funds in Constitution. The measure specifies in t] Constitution the portion of PTA funds that would be made available for various � grams. Under the measure, about one-half of all PTA funding would be given to ] transit agencies for operational support. These allocations could not be changed v a vote of the people. Other Local Government Revenues Property Tax. The measure eliminates the state's authority to shift property ta from cities, counties, and special districts to schools during a severe state fiscal ha ship. Under the measure, the state would continue to be responsible for the repay local governments for the 2009 Proposition 1A (2004) suspension, but could not s] property tax revenues to schools again. Tax Increment. Under the measure, the Legislature could not enact laws after � ber 21, 2009 that require redevelopment agencies to shift funds to schools or othe7 cies beyond any amounts required by statutes in existence on January 1, 2008. Th� of the measure's provisions regarding the $2 billion 2009-10 and 2010-11 redevelo shifts (enacted before October 21, 2009) is not clear. While the measure does not c� provisions directly repealing these payments, it declares these laws to be illegal u existing constitutional provisions. It is possible that this declaration could affect tl come of the pending litigation regarding these payments. VLF. The measure eliminates the Legislature's authority to reallocate VLF revE to offset state mandate costs. This provision would not affect the 1991-92 VLF cha that reimburse local governments for health and social services costs. Other Local Revenues. The measure specifies that the Legislature may not rea borrow, or use revenues raised from locally imposed taxes. FISCAL EFFECTS This measure does not affect the total amount of state and local government rf nues. Instead, it relates primarily to state authority over local government resourc While some elements of this measure would be subject to future interpretation by Hon. Edmund G. Brown Jr. 6 Decembei Higher and More Stable Resources for Non-Education Local Governments Long-Term Effect. Given the number and magnitude of past state actions affe local tax revenues and resources, this measure's restrictions on state authority to such measures in the future would have potentially major beneficial fiscal effects non-education local governments. For example, the state could not enact measur require redevelopment agencies to pass through more revenues to schools. Simil the state could not suspend payments to local transit agencies to pay state costs. : cases, this measure would result in non-education local government resources bE more stable—and higher—than otherwise would be the case. The magnitude of i creased local resources is unknown and would depend on future actions by the � Given past actions by the state, however, this increase in local resources could bE lions of dollars in some years. These increased local resources could result in hig: spending on local programs or decreased local fees or taxes. Near-Term Effect. Given past state actions during times of state fiscal difficuli possible that this measure would invalidate some inconsistent state laws enacted tween October 21, 2009 and the effective date of this measure. While the nature a terms of these state laws is not known, any such repeal likely would result in hig and / or more stable revenues to cities, counties, special districts, and redeveloprr agencies (non-educations local governments) than otherwise would be the case. ] tion, as noted above, the measure's fiscal effect on pending litigation regarding $ lion of redevelopment funds is not clear. Lower Resources for State Programs In general, as we discuss below, the measure's effect on state finances would opposite of its effect on local finances. That is, this measure would result in decreas sources being available for state programs than otherwise would be the case. Resources Available for State Budgetary Purposes. Under the measure, the si could not: (1) use redevelopment or other local funds to support education, (2) b� or redirect fuel or property tax revenues as part of a state budget solution, or (3) rea: VLF revenues to offset state mandate reimbursement obligations. As a result, the st� would need to take alternative actions to balance the state budget in some years- as increasing taxes or decreasing spending on state programs. Given current and ous actions by the state, we estimate that this decrease in state fiscal authority co duce state resources by billions of dollars in some future years. Hon. Edmund G. Brown Jr. 7 Decembe: Summary of Fiscal Effects The measure would have the following major fiscal effects: • Significant constraints on state authority over city, county, special dist and redevelopment agency funds. As a result, higher and more stable resources, potentially affecting billions of dollars in some years. Comn rate reductions in state resources, resulting in major decreases in state ing and/or increases in state revenues. Sincerely, Mac Taylor Legislative Analyst Michael C. Genest Director of Finance �� �.��y�f�r�i�c�� tc� „� �� p'�"��.��� � ' � � � �� �s s ,,,�,��' �f_ w �,�r: �� _ ��i{�}��y�rs � V�t�) ��r�uic�� g Ire www.�avelo�,�lservicc�s.con� � a �� ��x , � ;� � � � i y � :r �: , � : �� . � � , ; , �.: _ ' i � WHAT 15 YCIUR I�EA�U�E AN� WHAT D(�E� li PROP��E TQ D�? The L�c�l Tax�ay�r, P«b(ic S�fe�y anr� Trar�spe��r�tian PrQte�tion hct is a c�nstit��tionai �rr��ndmen� th workinc� �a �I�ce on G�li�orni�'s �1���n7b�r 2Q1 Q�t�te�ri�� b�llof. Th� inifi��iv� �r�uld �fia� �� St��� fr� borrowing funding for local public safety, transpor�ation, �ransit ar�d oth�r essential I�cal government s Specifically, fihe m�asur� v�ould: ✓ Prohibit the St�te fra� takir�g, bmrr�uvin �g r redire�tinq Ir�cal tax�� e� func�s dedicat�d ta p emerc�cv respor►se and other vit�! local goverrnnent services. The measure would clo�e lo� prevent the fiaking af fiunds currently de�icafied �o cifi�es, counties, spe�iai dis�icts and red�rrel��rr I� L�OU{Ci �IS(3 �C1Ci �Ii� St���'s fisc�lly irr�sponsib(� prac�i�� of borrov�inc� Idc�( gc�vemmenfi property ✓ Proie�f vital, declicated transportati�n and �ublic transit fund� frvm �tate r�id�. Th� m��s� prevent S��te E�orrowing, �aking or r�edi�ecting af the state sa[�s t�x on c�aso(ine (Prop �2 �unds� ar User� Tax an gasolin� (HtJTA� func�s that vc�ter� h�ve dedicated ta transpor�atic�n maintenance anc improvemet�ts. It w�uld also prev�nt the State from redirecting or taking public transit funds. ✓ Pr�te�t I�cal taxpayers by keeping more of a�r (ocal tax d�ll�rs local �rhere there's m�re accour vat�rs, and by �nsurir�g once and fior �11 t��t ���r gas taxes go to ��nd ro�d improveme���s. The ms reduces pressure for I�cal tax �nd fe� increase� that become necess�ry when the State redir�cfis WHY IS IT NEEDED? Unfortlan�te{y, the State has confinued its irr�sponsibfe practice of tafcing an� b�rrowing iocal faxpayei dedicated �ransportation fiands. The �Q09/10 sta�e budqet b�rror�rs_and_takes a�_rap _ximately_�5 billion count� t��nsit, rec�eveio�rnent and s��cial distriet f�nds thi� yea� despite �h� f�c� th�� v�ters have orre p�ss�d ballot measures to k�ep local �undinq at fihe local level to provid� �ssential I�cal �ervices. Thi; and pr�vi�us, ongoing sfi�t� r�ids and borrowing j�apardize t�e services �alifornians need mo�t; inclu fire and em�rgency �11 �er�ices; loc�l ec�nomic �evelopment and redevel��rnent; ri���� transit like � commut�r r�il; and transpor�ati�n improv�menfs like raad repairs and c�ngestion relief, VIle need to p� me�sur� ta praf�ct �hese vit�l local s�rvices fram �tate rraids �nd borr�rr�ing. ISN'T �UNI�ING FOR L�CAL COVERNMENT AND T�ANSPOI�TATIQ�! ALREA�Y PROTECTEI� ST�►iE RAID►S? C�iif�r�i� voters hav� av�r�rf�eirr7ingi� passed �e�arate me�sures fio pr�vent the State �rom raiding fo� gnvernment and tr�ns�orta�ion funds. Howev�r, �ach and �very year �he Stat� attempfis to take or bo� /YA�//�YHYYYA�t� 4WAFY[�S'�AK�']�iFIN WYt� ff'AYlfy14 �IIYR/41YiItl IiP16'tN'AlS6'��f1�/\[� !1Y 1��/1NH� P11H/YIY1N �1\IAYf+IAH[� �19+]� Yt�95/A � Took $2.05 billion in loc�l r�d�velapm��t fiunds, d�s�ifi� � r�c�n� �u��ric�r Court ruling thafi s� �jpes of raids ar� uncon�tifution�l. + �hif��c� �9� � r7liili�n in tr�n�i"� �����i�c� ��va}� fr����i ;�w�l �������i� ���r��i��. �P�� ��a�� i� ����F� �irE��� f�p�s nf raic�s �r�� unGnnstifiufii�n�f. � Vot�d to take more th�n �1 billion of th� local gov�rnment shar� o� the Highway Us�r Tax (Hl ���f� b�nd d�k�� (but th� m��sur� sfall�d i� A�v�mbh�s), Th�s� ar� ��tn�is �ha� i��v� �I����}�f� b�� financ� loc�l ra�d rep�irs �n� maint�n�nc�. � Tocak ac�idn to �fimina�e the st�t� sal�s fiax �n gas�lin� (�rop 42 funds) and HUTA �nd r�plac �asolin� "fee" th�t would have n� con�fiitufiion�l prc�fie�fii�n �rafr� fiu�ur�� r�i�s b� �� i��i�f���are � ulfiimafi�ly v�t��d this rr�e�sur�). • Thr�ater�e� to b�rr�w Prop 42 franspor�atiQn fund� tc� �dd��5s the Sfaf�'s d�fi�i�. C}ur m��sur� ��c�u1d cl��� la��h�les in �urr�r�t I�E� tn�� fih� le�i�l�car� h�L ��pl�ited to fi�l�� �r r�i���i�fi I� �nd i� would tight�n ���fiic�ns of �h� I�w �c� pr�ver�t illeg�l �tat� �unding raids of loc�l gc�vernm�nt �nd fi funds �efor� th�y h�p�a�n. 1lVHY �QE� YOUh' i���! aU6�E P�2�V�NT THE �TAT�E F(�nl� �C��'�t�V1lING L�CAL GQV�.l�N�11EP TRA�i�Pt��2TATIt�N ��1���'� The lacal �o�l�rnPr�ent r���er�ue ��r�fiectia�7 m��s�.�r� ir� �OQ� {Pr�p ��} an� �� �r�nspart��i�r� rev�nu� � me�sui-e in 20Q6 {Prc�� 1�,} included �rovisians fih�t �Ilovv th� Stafie to borrow these funds during fiisca emerg�nci�s. H�wev�r, �fiter �everal bud��t cycl�s it is cl��r that th�s� b�rrou�ing pravisi�ns ar� nc�t f lacal gc�v�rnments �n�i firar�sp���tion s�rvic��; bu� fiscally irrrespc�nsibl� f�r fhe Sfi�t�. �3orr�u��ir�g �h�s� funds on(y plunges aur �fate d�ep�r info debt bec��as� fhe funds must to �� r�paid, with ir�teresf wifhir The borra��ring ►�vas m�anti to pr�avic�e �n �uflet in �hart-term k�ur�c�e� ar��rg�nci�s, but i�'s insi��cl b�i�1c paper �ve� strur,tur�l bu�get problems. For ex�mple, the ita�� h�s na cle�r �ay to p�y back t�e �2 b interes� in local properly t�xes that �he State is k�orrowing as part af �his year's 20�9�?_010 State budgE lawmak�r� bori��wed these �u�ids an�va}�. V11ha'c's mor�e, becau�e fihe State has th� authori�y to borr�ow I�c�l government and transp�rtation fund; m�s� l�nc�rtainty f�r cities and c�un�ies who nee� to plan �nd pass f�eir Ic�ca! b�a�gets, anc� far tr�n�p tr�nsif pl�nners ���ha ar�rt'� sur� if �he�f can r�ly �n fi��s� r����n«es in any �iv�n year. D(JES THIS I��A�U�� INCi�EA��E C�� DECR�A�E R�U�NU�S FQ� Lt�CAL �Ci�I��N�+�Ei�T� �l TF�ANSPi��T#�TI�N Af�� TF�AN�6�? This measure does not increase or d�crease fih� exis�ing revenues thafi are d�dicaied to local gov�rnr tr�ns�,�r-�ati�n �nd fir�nsit f��nds. It �impiy prevents fhe Sta�e fron� �orrra�nring or raidin� existin� lacal c�c transp�r��ti�r� and tr�ns�� �e��en���s th�f voter� ha�;�e d�dica�ed fo these �enlices. 1N0�!'T THIS �I�6CE �U� ST�TE'S �uD�ET �YSTEM E1lEN WQF��E �V FURTHER Pt�TTIN� A I C�iV �►iLLIC�N� tiF� i�t�l[_i_�1R� I�i Fl i�ld7i�l6 �? �+ .� e Second, it's imp�rtanfi to rem�rribe�� th�t �h�s� a��� funds th�,t �afier:� h�v� ��RE��Y ciec�ic����i fi� I���I �ransp�rfi�tior� and i���nsit service�. l�� �re not d��i��fiinc� �n;� ��E!,�� fu�c�i�i� f�r �,��se s�r�vi���; ka��t ����; if�at the will of vofiers is upheld by prafiecting loc�l govef�nm�nt �nd franspartaiion funds from furfher Stc borrov�rin�. This r��orm is �iscal(y responsible and � key s��p in (ong-fi�rrn r���rm �or C�li�c�rnia. Th� State h�s gott� this de�p fiscal mess in large p�rt k�ecause lauvmak�rs h���e r�lied r�n budget gimmicks like f�pping intc protecfied funds �r�d borro�ving vErhi�h �nly push�s oui� prai�l�r77s inio fi��� future. HC.IW ��D�� THI� I����U�� �IT IN�+� i�HE i�E�D F0� �31�G��1� l���t���l C�F STA�E ���E��1�tF C�LI�tJf��liA? This mea���re is � n�cessary �nci responsible fir�s� st�p �ow��d �isc�f r�form in �alifornia. Vir�tually every fihat St�t� r�foE�ms rriust includ� fil�e restor�ti�n af m�r� lo�al c�r��rol av�r ioc�l tax dpll�r�, �nd mavin� : closer fo th� ���pl� at th� loc�l {ev�l. This m�asur� �nsur��� Ic�c�l c�ntrol, �r��li�fi��ilit�, �n� ��c�u���� fax dollars tha� ar� used �o provide ih� mosf �ss�nti�l Incal s�rvices. 1�lILL TNI� f�EA�U�E I�PA�i FUI�DIN� FC�� PU�L1C SCH�t�LS, H��LT�-iC��E �� i�THE� �E No. This measure does n�t ��ke �w�y funding frar� schools ar any oth�r s�rvic� fun��d by the Stat� bE only prof�cts EXIS1"!N� f��nds fh�� �r� alr��c�y d�dic�t�� to Ic�c�l servic�s (ik� �aubiic s����y and �r�f���� �his m��sure in r�a��ray alfiers Proposi�ion 9�, u�hich gua�-ant�es funding I�vels f�r l��1� s�h�ols. H�t1� 1�1lL1. �HIS �IEA��l�� l��'�CT TAXP�YERS? ThiS me��ure pravide5 �ur�h�r pr�t�ctic�ns for existi�7gr�v�nu�s thaf voter� h�v� �(r��dy d�di�at�d �� (c gov�rnment, tr�nspa�fatiar� �nd tr�nsi� servic�s. If dae� nai increa�e faxe�. In �act, fhis m��sure profi�c by Ice�ping mare of ���r tax �ollars loc�l v+lhere the��'r� more accountable. An� �his r��ea��are d�crea�es locat tax �r�d f�� incr��ses at tl�� I���i goveri�m�nt I�vel �n�� become �e���d �°�het� fih� s��t� t�kes lac� and loc�l gav�r�nments ar� fiorced to look for new revenues to protect vital services. � �� I� E I� � F I E L L� Economic and Community Development Department M E M O R A N D U M December 17, 2009 1 )�' � r ��" �,:� r���Y r \ Jy TO: Alan Tandy, City Manag�r � 1;:: �'Ar� FROM: Donna L. Kunz, Economic Development Director �l�BJECT: Neighborhood Stabilization Program Update Attached is the monthly NSP Progress Report for December. Among the highl *We continue to see strong interest in the NSP Down Payment Assistance pro� date we have closed escrow on 13 applicants, with many more inquiries being *The Housing Authority continues to be aggressive in the purchase of foreclosE properties. An additional six homes are in escrow and offers are pending on fi� others. *Escrow closed November 30 on the purchase of Pinewood Glen Retirement Community (formerly Castlewood). Rehabilitation work will begin in January. DL S:\NSP\Monthly Report Dec 2009.docx � O � N L Qi .a � d V d 0 O �A, /�W� LL � N i � � L a a � Z � � ,� '� C � � p � N � .� � � •� t�n O � � � � 0 � � •� � O � C � >+ � � O +� � 2� � V � � . _ � ,� ` (� p � •'= t� � N � z O " � � � � � � � � � U � .�C p � � � � U � O = � � � � � � ° o° o � o " .c � -o U � cn � o •� � � cn � o :� � � � � � � ,x p � c N � � � .� � � � � � � �(� C� cn � � � �n � � . � � � � � � � cd ��°a`�i� .��E°c�°x-°o�� o�ai �� a`�i cu �� �,� >, •- � o c� c� � o U OC � c � .c o c o p � � � � �. � �n � N >, � � c •-+ � � Q � � Q � � Q � � � a � � � � � N C �� � .0 �'p �— O �O �a N� p c� � O''' � c� � T � Q �� O c� ��n � (� O � E Q- ,.'C-� C � � tn � N -Q •� � Q � �°,, a� � � O � o Q o °' T � � � � ° �o °c' '_ c � Q � � a� c � � � a�i � � a� o � � �c � ° �� ��oC--� Q,cs3=... c._ cu u� v� -°a � c° a' o ° a�i n� E� a X 3:� �' ����' E E� � � .� � o � _ � � � � o o cn� � o � � � a� �'� � O -a cu � +�'' fn v�i � c� "� .�C C R3 c�.� � v�i w a � L � ai O O cLS t� a f/i Z cLf O> c� I— O m� ��� ci3 � i� Rf W U Z � � Q cLS O O O r O O O O p pNp M r O CD O 00 O � � O T �� O '� m � � O C�O M � � N O� 0�0 C� � � r T CV `"' n T T '^ T 'A � ` VT v/ /��/� W � � � � � � r� 0 � � � � � � M� 0 � O? O N 0�0 r� O � N � M � M � � Cw� � � � f0 `�-' �O �✓ T x � `/ � � W � °o °o °o 0 0 °o °o, °o °o QO O O � O O � N OMp CMO O d�' � O � M� ONO r.� � M N O c0 1� N � V/ � T T m (� T (�} T �%} V ��\ W � C � � � � O O >' Z � � o Q .� A N � v— O� Y � .p , o L � � � p � � tSi O � r -� .p :� i .� '+. U O � L c� � � � � � � '� O. '� = N � �" � � o Z � � N "� � Qv Q^ � c.� � � �° ", c� � � � c� c � L ca c c� °� rn � �� � o � � � .c � o Q ,� o c� � '�n a> i a� � o a-°i �-� � �s cn � � a� u� � c c *- c� � � � o o � U � � '� .� � �Q .� U o.� �' �'•°� E � � a� � � c 'o o '�n • ..,_. � •� o µ- � ,� • c� Q O � � � � 7 O � � � 'C � � C 'C C � N ,..� �� Q � "a (�6 � � Q O� — � � L � � � �� � Q� U C� �� L RS O.� �' LD �� �a =•� Q'� � � I-'� '� c > � � � � -Q � � a�i � � � � c� � 3 `� � a.- �� .- � T- L c� 2 c� � c� c� (A �� � °�' v� E � � A. K E I�. S�F I E L I� Economic and Community Development Department M E M O R A N D U M December 18, 2009 �' ` �.�) TO: Alan Tand , Cit Mana er ��,; ;��:; �' ���' � Y Y 9 '� ; „� ' °� � FROM: Donna L. Kunz, Economic Development Director �l�BJECT: Homelessness Prevention and Rapid Re-Housing Update To date, no funds under HPRP have been expended. Bethany Services has re� a$40,000 advance of funds for the start up of HPRP efforts. According to its e� director Louis Gill, Bethany needs the up front funds to assist with cash flow. An advance is permissible under HUD regulations. However, our agreement wi� Bethany clearly states funding will be on a reimbursement basis. We await add supporting documentation from Bethany to justify its request for an advance. SI we find it sufficient and justifiable, the agreement with Bethany for HPRP would require a Council amendment. Bethany could begin work under HPRP in mid-F DL S:\HPRP\Reporting\Monthly Reports\Monthly Report Dec 2009.docx CONSTRUCTION DIVISION WEEKLY UPDATES ROADWAY PAVING PROJECTS Status update of the roadway paving projects currently awarded as of Decem Stockdale Highwav - California to Wetherly and Country Club Lane to Ashe Roa All work on this project has been suspended until after the Christmas Holidays. - currently open to thee lanes in each direction with some lane closures occurrin hours of 8:30 AM and 4:30 PM on weekdays. The scheduled completion date c February 10, 2010. AMERICAN RECOVERY AND REINVESTMENT ACT PROJECTS: Mt Vernon Ave - SR178 to University Avenue All work on this project is complete Ashe Road - White Lane to Ming Avenue Paving operations are complete and striping operations are underway; howev� of paving due to an unstable subgrade area that was previously undetected h Plans are being made to repair this area. This project is expected to be complf 2010. Wilson Road - White Lane to Planz Road Paving operations on Wilson Road are complete. Striping of the street is nearly however, weather conditions are preventing the contractor from completing tl street. This project is expected to be complete by December 30, 2009. Hughes Lane - White Lane to Planz Road Paving operations on Wilson Road are complete. Striping of the street is nearly however, weather conditions are preventing the contractor from completing tl street. This project is expected to be complete by December 30, 2009. Wible Road - Pacheco Road to White Lane Work on this street has been postponed until after the Christmas holidays. This K expected to be complete in January 2010. Paqe 1 of 2 STREETS DIVISION — WORK SCHEDULE WEEK OF DECEMBER 28, 2009 — JANUARY 1, 2010 Resurfacinq/Reconstructinq streets in the followinq areas: Preparing streets for reconstruction (lowering utility manholes) in the area betw District Boulevard & White Lane, west of Gosford Road. Miscellaneous Streets Division proiects: Installing curb & gutters in the area between California Avenue & 4t" StrE Chester Avenue (CDBG FUNDED PROJECT). Working on the Ming Avenue widening project. THIS SPACE INTENTIONALLY LEFT BLANK Paqe2of2 STREETS SWEEPING SCHEDULE Monday, December 28, 2009 Between Coffee Rd. & Verdugo Ln. — Brimhall Rd., south to the Kern River boui Cul-de-sacs, west of Windsong St., between Brimhall Rd. & Thistlewood Ct. City areas between Rosedale Hwy. & Stockdale Hwy. — Verdugo Ln, to the wes Between Jenkins Rd. & Allen Rd. — Stockdale Hwy. & Birkenfeld Ave. Between Hosking Rd. & Astro Ave. — So. "H" St. & Union Ave. Tuesday, December 29, 2009 Sweeping streets in areas that are not on a set sweeping schedule. Wednesdav, December 30, 2009 Sweeping streets in areas that are not on a set sweeping schedule. Thursdav, December 31, 2009 HOLIDAY — NO SWEEPING SERVICE. Frida Janua 1 2010 HOLIDAY — NO SWEEPING SERVICE.