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HomeMy WebLinkAbout1990-05-22 - AGENDA REPORTS - PROP 108 CLEAN AIR (2).r AGENDA REPORT City Manager Approval Item to be presented NEW BUSINESS Ken Pulskamp DATE: May 22, 1990 SUBJECT: PROPOSITION 108 DEPARTMENT: City Man BACKGROUND This item is on the agenda to register the City of - Santa Clarita's support for the Passenger Rail and Clean Air Bond Act, Proposition 108. Because it is a bond measure, the law requires Prop 108 to appear separately on the ballot. This proposition will not go into effect unless both Prop 111 and 108 receive voter approval. Prop 108 would allow the state to sell the first billion dollars of a total of $3 billion in general obligation bonds. The bonds will be used to raise funding for high priority capital rail projects on inter -rail (Amtrak) and commuter and urban corridors throughout the state. The Saugus -Los Angeles commuter rail corridor, is eligible for this additional funding. The remaining $2 billion scheduled for the same purpose is scheduled to go before the voters in November of 1992 and 1994. In addition to the apparent transportation benefits, Prop 108 will remove 75-125 traffic autos per every rail car and reduce air pollution. RECOMMENDATON That the City Council adopt Resolution 90-93 in support of Proposition 108 and in conjunction authorize Mayor to sign letters of support. ATTACHMENTS � 9 Resolution Proposition Adopted: ' a r Summaries I Agenda Item:.�&_ 0 RESOLUTION NO. 90-93 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, TO SUPPORT PROPOSITION 108 WHEREAS, the state of California faces serious problems in its fiscal policy which threaten both transportation and environmental programs; and WHEREAS, Prop 108 will authorize the sale of the first $1 billion of General obligation bonds to be used for mass transit guideways on specified rail corridors including urban, commuter and intercity rail progress to effectively address these areas; and WHEREAS, Prop 108 is a companion bill to Prop 111 and will provide the rail transit portion of the comprehensive transportation blueprint outlined in Prop 111 - The Traffic Congestion Relief and Spending Limitation Act; and WHEREAS, Prop 108 is supported by a broad coalition including Governor George Deukmejian, State Superintendent of Schools Bill Honig, California Association of Highway Patrolmen, California Taxpayers Association, California Transportation Commission, League of Women Voters of California, California Chamber of Commerce, California School Boards Association, California State Automobile Association, County Supervisors Association of California, League of California Cities, California Commission on Aging, International Union of .Operating Engineers, AFL-CIO, California Police Chiefs Association, California Retired Teachers Association, California Professional Firefighters, California Business Roundtable, University of California Board of Regents, California State University Board of Trustees, and many others; and WHEREAS, reduction of the state's traffic congestion and air pollution will require substantial 'investments in alternative methods of transportation including rail transit. NOW THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF SANTA CLARITA SUPPORTS PASSAGE OF PROP 108, THE PASSENGER RAIL AND CLEAN AIR BOND ACT, ON THE JUNE 5, 1990 BALLOT. of PASSED, APPROVED AND ADOPTED THIS MAYOR day ATTEST: 0 PASSED, APPROVED AND ADOPTED THIS CITY CLERK I HEREBY CERTIFY that the City Council of the City of held on the day of the Council: AYES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS • day of MAYOR the foregoing Resolution was duly adopted by Santa Clarita at a regular meeting thereof, , 19_ by the following vote of -2- CITY CLERK Passenger Rail and Clean Air. Bond Act of 1990 Official Title and Summary , PASSENGER RAIL AND CLEAN AIR BOND ACT OF 1990. This act provides for a bond issue of one billion dollars ($1;000,000,000) to provide funds for acquisition of rights-of-way, capital expenditures, and acquisitions of rolling stock for intercity rail; commuter rail, and rail transit programs. Appropriates money from state General Fund to pay off bonds. Summary of Legislative Analyst's estimate of net state and local g6yernment fiscal impact: If all authorized bonds are sold at 7.5 percent and paid over the typical 20.year period, the General Fund will incur about $1.8 billion to pay. off .bond principal ($1 billion) , and interest ($790 million).. The estimated annual cost of bond principal and interest is $90 million. Final Vote. Cast by the Legislature on AB 973 (Proposition 108) rAssembly: Ayes '68 Senate: Ayes 38 ., Noes 6 Noes . 0 Analysis by the Legislative Analyst Background '. :. Commission (CTC)' reviews highway, rail and other .The passenger rail transportation system in California transportation projects proposed for state funding. The includes, intercity rail, commuter rail, :and urban rail CTC decides which projects . should be funded on transit services. apriority basis. The projects include those proposed by • Intercity*. rail primarily serves ... business . or thestate Department of Transportation and by local and recreational travelers between cities in California : regional agencies. The selected projects are . then and to other, parts of the country. Intercity rail scheduled in a seven-year funding plan adopted .by. the service is typically operated by .Amtrak and includes CTC: services. such as the San Diegans from San Diego to proposal ' Santa Barbara, and" the.- San ; joaquins from Bakersfield to Oakland:. This measure authorizes the state to sell $l .billion in Commuter rail service .offers frequent general -obligation bonds to provide funds for rail capital _generally service during commute hours to :serve commuters. outlay. This authorization, however, would only take - Service during other, periods of the day typically is effect if voters approve Proposition 111 .The Traffic limited. The Peninsula Commute 'Rail Service Congestion Relief and Spending Limitation Act of 1990, .. (Caltrain) from San Francisco : to San Jose is .an also to be decided at this election. General obligation example of this type.of service. bonds are backed by the state, meaning that. the state is 9 Urban . rail . transit provides regular . service. obligated to pay the principal and interest. costs on these throughout the day, generally within an urban or bonds. General Fund revenues would be used to pay metropolitan area.. Examples of such service .include these costs. These revenues come primarily from the the Sacramento Light Rail System, . the San Diego state corporate and personal income taxes -and the state ` ': Trolley and'. , the': San Francisco Bay Area Rapid.. sales tax:.. (An overview - of . the . state's bond debt is . •' transit'(BART) System.:';:..:: '_ presented 'at the end of the argument section in the Costs to operate 'these three types of passenger rail . supplemental ballot pamphlet.).: service' in -California are . covered;. in. 'part; by-- fare.Upon -: appropriation by the Legislature, the bond i revenu'e'es.1ii addition, the rail services receive funds from, .. money would be -.available for rail capital outlay. These . '; •:. various local, state'. and federal sources to subsidize their, : projects must be located on routes and corridors specified operating --expenses: In',1989-90; . the state. provided- in, the measure, or. in future statutes -enacted by the approximately $20 million to support the operating costs Legislature of passenger.rail services : The measure requires that at least percent of the Capital Costs. . Capital costs for California's passenger .15 total .bond funds be': spent'. for intercity' rail purposes. rail services are also funded from various local;, state and. . These funds must be allocated among projects in eligible ' federal ' sources. These . costs. include -acquiring .railroad 'intercity rail corridors based on the relative populations ;rights -of way; constructing rail (and, related) facilities, served by each corridor and acquiring. trains::. Currently, state funding ,for these capital costs is made available from motor v6hicle'fuey. Fiscal Effect ("gasoline".) taxes, commercial vehicle (`,truck") weight',!.. The fiscal effect of this measure. would depend on fees, and a portion of the state sales tax: The amount 'of.' whether. 'voters , approve Proposition. 111, The Traffic state funds provided for these purposes varies from year Congestion. Relief and Spending Limitation Act of 1990. to , :year. In 1989-90, the . state's_ contribution was, If Proposition 111 -is approved by voters at this election, approximately $120 million: the passage of this measure would result in the following Under . current law, the. California. Transportation . fiscal effect: 8, - P90 • • Direct Costs of Paying Off the Bonds. For these types of bonds, the state typically makes principal and interest payments from the state's General Fund over a. period of about 20 years. If all of the bonds authorized by this measure are sold at an interest rate of 7.5 percent, the cost would be about $1.8 billion to pay off .both the principal ($1 -billion) and . 0 interest ($790 million) . The average payment.. for,-. principal or- principal and interest would be about $90 million per, year. ) . If Proposition 111 is not approved, this measure would. not take effect and, consequently, it would have no fiscal, . effect. Text of Pro This law proposed by Assembly Bill 973 (Statutes of .1989, Ch. 108) is `submitted to the people in accordance with the provisions of _Article XVI of the Constitution. This proposed law adds sections to the Streets and Highways Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SEC. 2. Chapter 17 (commencing with Section 2701) is added to Division 3 of the Streets and Highways Code, to read: CHAPTER 17. PASSENGER RAIL AND CLEAN AIR BOND ACT OF 1990 Article 1. General Provisions 2701. This chapter shall be known and may .be cited as the Passenger Rail and Clean Air Bond Act of 1990. 2701.01. As used in this chapter, the following terms have the following meanings:' (a) "Committee" means the Passenger Rail Finance Committee created pursuant to Section 2701.12. (b) "Department"means the Departmentof Transportation: (c) `Fund" means the Passenger Rail Bond Fund created pursuant to Section 2701.05. .2701.02. The Legislature has provided that, in addition to the one billion dollars ($1,000,000,000) authorized pursuant to this chapter, the Passenger Rail and Clean Air Bond Act of 1992 will be submitted {or voter approval for the issuance of additional bonds of one. bil ion dollars ($1,000,000,000) in 1992 and the Passenger Rail and Clean Air Bond Act of 1994 will be submitted for voter approval for the issuance of additional bonds, of one billion dollars ($1,000,000,000) in 1994 fora total of three billion dollars ($3,000,000,000). . Article 2. Transportation Improvement Program 2701.05. The proceeds of bonds issued and sold pursuant to this. chapter shall be deposited in the Passenger Rail Bond Fund, which is hereby created. 2701.06. The money in the fund, upon appropriation by the Legislature, shall be available, without regard to fiscal years, for acquisition of rights-of-way, capital expenditures, -and acquisition of rolling stock for intercity rail, commuter rail, and urban: rail transit and for capital improvements which directly support rail transportation, including exclusive busways which are converted within 10 years after completion of construction into rail lines, grade separations to enhance rail passenger service, and multimodal terminals. 2701.07. The. appropriations for capital improvements and acquisition of rolling stock for intercity rail, commuter rail, and urban rail transit shall be used only on the following routes and corridorsand those specified by statutes enacted by the Legislature: (a) Intercity Rail. (1) LosAngeles-San Diego. (2) Santa Barbara Con nty-LosAngeles. (3) Los Angeles-Fresno-Sai: Francisco Bay area and Sacramento. (4) San Francisco Bay area -Sacramento -Auburn. (5) San Francisco -Eureka. (b) Commuter Rail. (1) San Francisco -San Jose. . (2) SanJose-Gilroy. (3) Gilroy -Monterey. (4) Stockton -Livermore. (5) Ora ngeCon nty-LosAngeles. (6) Riverside County -Orange County. (7) San Bernardino County-LosAngeles. (8) Ventura County -San Fernando. Valley -Los Angeles. Prop P90 Law `(9)� Saugus-LosAngeles. (10) Oceanside -San Diego '(11) Escondido -Oceanside. -(c) . Urban Rail Transit. (1) Sacramento. (A) Roseville extension. (B) Hazel extension. (C) Meadowview extension. . (D) Arendextension.' (2) San Francisco Bay Area Rapid Transit District ;:(A) Bayfair-East Livermore t, (B) Concord-EastAntioch. (C) Fremont -Warm Springs. (D) Daily City -San Francisco International Airport. (E) Coliseum -Oakland International Airport. (F) Richmond -Crockett. . (G) Warm Springs -San Jose. (3) Alameda and Contra Costa Counties. (A) Pleasanton -Concord. (4) Santa Clara County. (A) Sunnyvale -Santa Clara. (B) San Jose-Vasond. (C) State Highway Route 237. . (5) San Francisco City and County. (A) Extensions, improvements, and additions to the San Francisco Municipal Railway. (6) San Francisco -Santa Rosa -Sonoma. ; (7) Santa Cruz County. (A) . Boardwalk area -University of California at Santa Cruz. (8) Los Angeles Metro Rail: (A) Wilshire/Alvarado-Wilshire/Western. • (B) Wilshire/Alvarado-Lankershim/Chandler (C) San Fernando Valley extension. (D) Union Station -State Highway Routes 5 and 710. (E) Wilshire/Western-Wilshire/State Highway Route 405. (9) Los Angeles County Rail Corridors.. (A) San Fernando Valley. (B) Pasadena-LosAngeles. (C) Coastal Corridor (Torrance to Santa Monica). ' (D) SantaMoniea-LosAngeles. (E) State Highway Route 5 (F) State Highway Route 110. (10) San Diego County. :...,..._...:_. (A) EI Cajon -Santee. (B) Downtown -Old Town. - (C) Airport -Point Loma. . (D) Old Town -Mission Valley. (E) Mission Valley -La Mesa. (F) LaJolla-Miramar. (G) Old Town -Del Mar. (H) Downtown -Escondido. (I) Chula Vista-Otay Mesa. 2701.08. At least 15 percent of the money in the fund shall be used for intercity rail purposes and shall be equitably expended on intercity rail corridors based on the relative population served by each corridor. Article 3. Fiscal Provisions 2701.10. Bonds in the total amount of one billion dollars ($1,000,000,000), exclusive of refunding bonds, or so much thereof as is necessary, may be issued and sold to provide a fiend to be used /or carrying out the purposes expressed in this chapter and to be usea to reimburse the General Obligation Bond Expense Revolving Fund_ (Continued on page 60).., - 9. 1231 t .. •r SAI! � . .. .... '. _ 108 ;. Passenger Rail and., Air Bond Act of Argument in Favor of Proposition 108 Rail transit will remove thousands of automobiles from congested...„•;Santa Cruz Count :. streets and highways, it. will speed workers to and from their jobs and homes safely and it will reduce the dangerous pollution of the air we Boardwalk -University of California -Santa Cruz ', .. breathe. LosAngeles-Metro Rail: I RAIL TRANSIT IS THE KEY TO A BETTERTRANSPORTATION Wilshire/Alvarado-Wilshire/ San Fernando Valley Extension' 1. FUTURE and Proposition 108 the Passenger Rail and Clean Air Bond Western Union Station -State Routes 5/710' ' Act, WILL MOVE CALIFORNIA INTO A NEW . ERA OF RAIL Wilshire/Alvarado-Lankershim/ Wilshire/Western-Wilshire/;;..; Chandler TRANSIT. Route 405 Proposition 108, a well-planned P p program for improving and Los Angeles County Rail Corridors: ' expanding rail transit systems statewide, is an important part of the San Fernando Valley Santa Monica -Los Angeles_.,,.,,. ;. INNOVATIVE and COMPREHENSIVE TRANSPORTATION Pasadena -Los Angeles. Route 5 BLUEPRINT provided by Proposition 1l1. Coastal Corridor (Torrance -Route 110 Most of the programs created by Proposition 111 -will be funded by Santa Monica) proceeds from the gas tax. Because Proposition 108 is a bond measure, it San Diego: .must appear separately on the ballot. :;. El Cajon -Santee La olla-Miramar J i;f �:,t . '. Proposition 108 will authorize a $1 billion bond issue. The following : ._ Downtown -Old Town Old Town -Del Mar intercity, commuter and urban corridors and extensions would. be eligible for Proposition 108 funds: Airport -Point Loma Downtown -Escondido Old e Town -Mission Valley Chula Vista-Otay Mesa INTERCITY RAIL: Mission Valley -La Mesa Los Angeles -San Diego Bay Area-Sacramento-AuburnCurrently, Santa Barbara -Los AngelesSan Francisco -Eureka Los Angeles the state provides little assistance for rail transit. According to a report from the California Transportation Commission, state funding for -Fresno -Bay Area/Sacramento rail should be increased. COMMUTER RAIL: The BENEFITS of PROPOSITION 108 FOR ALL OF CALIFORNIA San Francisco -San Jose San Bernardino County- San Jose -Gilroy Los Angeles ARE ENORMOUS: Congestion relief: EVERY RAIL CAR REMOVES 75-125 AUTO Gilroy -Monterey Ventura County -San Fernando Stockton -Livermore Valley -Los Angeles FROM TRAFFIC.And frustrated commuters would have real alternatives to battling traffic in our most congested corridors. Orange County -Los Angeles Saugus -Los Angeles Riverside County -Orange Oceanside -San Diego BETTER AIR quality and ENERGY. SAVINGS. Light rail can be built at one-tenth -the cost o County Escondido=Oceanside URBAN RAIL TRANSIT: hOSaT-EFFECTIVE: hi Remember, Proposition 108.is only part of the overall transportation _ Sacramento: Roseville extension Meadowview extension program provided by Proposition 111. For Proposition 108 to take effect, Proposition 111 must also be approved by the voters. So it's important to VOTE YES on BOTH PROPOSITIONS 108 AND 1111 Hazel extension Arena extension 4.BOTH ARE SUPPORTED BYA BROAD BIPARTISAN COALITION, BART. Bayfair-East Livermore Coliseum -Oakland Airport including the League of Women Voters, seniors, transportation, the business community, law enforcement, education, labor, health Concord -East Antioch Richmond -Crockett care and taxpayer associations. Fremont -Warm Springs Warm Springs -San Jose Daly City -SF Airport Join the movement toward a SAFER, CLEANER and MORE EFFICIENT TRANSPORTATION SYSTEM! Alameda and Contra Costa: VOTE YES on PROPOSITIONS 108 and 111! Pleasanton -Concord Santa Clara: TOM NOBLE Sunnyvale -Santa Clara Route 237 San Jose-Vasona President California Association of Highway Patrolmen (CHP) San Francisco: KIRK WEST Extensions, improvements and additions to the San Francisco President, California Chamber of Commerce ' Municipal Railway San Francisco Santa Rosa -Sonoma JIM COSTA Member of the Assembly, 30th District Rebuttal to Argument in Favor of Proposition 108 There is no doubt that many of the rail programs which would be financed by thepassage of Proposition 108 would be beneficial. The finance.these At some point, taxpayers must say "NO MORE DEBT. NO MORE SPENDING.” method chosen to projects is questionable. The rush to pay for so many programs with general obligation bonds Help keep California fiscally healthy . and .VOTE. NO ON a PROPOSITION is NOT SOUND FISCAL POLICY. 108. GENERAL OBLIGATION BONDS ARE PAID FOR BY ALL TAXPAYERS. These are the types of bonds which would finance the HONORABLE RICHARD L. MOUNTJOY projects listed in Proposition 108.. Member of the Assembly, 42nd District On the other hand, these same projects could be. financed with HONORABLE DENNIS BROWN revenue bonds. REVENUE BONDS ARE PAID FOR BY USERS OF THE SYSTEM. Member of the Assembly, 58th District The expansion of public debt through the sale of bonds for so many HONORABLE ERIC SEASTRAND i projects, no matter how worthwhile, will have a negative impact on our Member of the Assembly, 29th District children and grandchildren who will have to pay for these debts. Bonds are simply not "free money." _ 10 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. , - P90, . • ' Y ,r f • 1.08 Passenger Rall and Clean ' A lr. Bond Act of 1990 1 Argument Against Proposition 108 Proposition 108 �s. a bond measure which would finance worthwhile Does. it make any sense to spend so much of our tax dollars to pay off r transportation projects in California. Our op osition to this measure is debts? ability to ' not based on the worthiness of the projec s bu denoan further. but M du Cal, and ure other. esssent al state services will be jeopardized aiflwe ' on the wisdom of increasing California's d y continue to approve bonds to finance what- we cannot afford. Our Last year, California sold more general obligation bonds than, an year in its history—$1.6 billion. Thomas Hayes, . State Treasurer, children, grandchildren, and great grandchildren will pay the price for anticipates sales of. general obligation bonds in excess of $2 billion this our "buy now later" mania. Bonds simply are not free money. We need to pay as we go not year. .'mortgage the future. Vote NO on Proposition 108 Look at the cost' of bonds on "this. ballot alone. The ;sum' .is staggering .. '. a number too high for most of us to really comprehend. . As you might expect, the amount of in taxpa�6rs in the future will RICHARD L. MOUNTJOY pay on this debt is also staggering. .,Member of the, ssembly, 42nd District a During fiscal year 1989=1990, $657 million (1.63 percent of the State's ' 'DENNIS BROWN General Fund) will be spent for principal and interest payments on Member of the Assembly, 58th District debts. It is anticipated that during fiscal year 1990-1991, ercent of payments.for ERIC SEASTRAND debt service will rise.to $est restraintion, or about 2 inthe approvapof.bonds in the 1990'sl Fund. Even if we show ments to soar from Member of the Assembly, 29th District Treasurer Hayes expects principal and interest pay the current $657 million level to $3.5 billion by the year 2000, Rebuttal to Argument Against Proposition 108 The ts are clear: Sound, hile rojects make Everyo ne in. California, INCLUDING THE OPPONENTS othis N excellentcinvestments. Since everyonewagreeP this s program is. 'SOUND SOUND measure, AGREES that THE RAIL TRANSPORTATION PROJECne THIS BOND MEASURE ARE WOR THIS be makingpand� is viton al to 8 is A For Pr posi on 108 to take effectO1Propos tion 1� must be approved ; exactly the kind of investment we keeping the California economy healthy and prosperoous. b John theBROADBIPARTISAN COALITION of business, our schools, Every $10 million in transit capital investment su ports 770 jobs and' produces $33 million in business revenues. seniors, law enforcement, health care, higher education labor and Improved rail transit will RELIEVE THE TRAFFIC CONGESTION .taxpayers and . which is choking our cities and will Pave the way for ANEW ERA OF ..VOTE YES on PROPOSITIONS 108 and 177 PROSPERITY.' pay GEORGE DEUKMEJIAN That prosperity, in turn, generates the tax dollars to a off the bonds. Governor: The benefits of these investments stretch out for many years in an . improved economy. ,That's a basic fact of economics. which the LARRY McCARTHY opponents apparently do not understand. utious whenPresident, California Taxpayers Association There is no doubt that Californians should be ca' THOMAS HAYES _ approving bonds. However, some bonds should be approved. THIS, ONE SHOULD BE APPROVED. CALIFORNIA HAS THE HIGHEST CREDIT RATING POSSIBLE Treasurer . from each of the. nation's top bond rating agencies. ... for accuracy by any official agency is printed on this page ar Argumene the opinions of the authors and have not been checked pg0 p 11 sk UVS()H Ic 111&108 TNERES A LOT RIO NG ON IT! The Passenger Rat and Clean Air Bond Act Moving California into a New Era of Rail Transit Proposition 108 is the rail transit bonding portion of the comprehensive transportation blueprint outlined in Proposition 111 » the Traffic Congesdon Relief and Spending limitation Act. As required by this visionary package, over the next four years, voters will be asked to approve three separate S 1 billion rail transit bond measures, totalling S3 billion. Proposition 108 on the June ballot' is the first of these measures. Although the law requires that Proposition 108 — because it is a bond measure -- appear separately on the ballot, it will NOT go into effect unless BOTH Propositions 111 AND 108 receive voter approval in June. Proposition 108 will fund high priority capital outlay rail projects on intercity (Amtrak), commuter and urban corridors throughout the state. (Eligible corridors are listed on the reverse side.) Proposition 108 will usher California into a new era of rail transit. It will: • Provide frustrated commuters and everyday citizens with real, and safe, alternatives to battling traffic. I • Remove thousands of automobiles from our congested streets and highways. In fact, experience shows that every rail car removes 75 to 125 automobiles from traffic. • Reduce dangerous pollution levels in the air we breathe. • Prove cost-effective, light rail can be but7t at one-tenth the cost of highways. • Keep California prosperous. According to fiscally conservative State Treasurer Thomas Hayes, "Proposition 108 is exactly the kind of Investment we should be making and is vital to keeping the California economy healthy and prosperous% Join the movement toward a SAFER, CLEANER and MORE EFFICIENT TRANSPORTATION SYSTEM! VOTE YES on 108 and YES on 111! a m ®®® Ar PROPOSITIONS 111 AND 108. 1�®®� RECEIVE to®®® ®®®® a MAY 0 8 1990 IBM= PUNL i:'1YUtiKS UEPARTMEt C : V C= SANTA CLARJA The League Of A weekly Newsletter Published by the League of California California Cities on the Impact on Cities by Cities Propositions 111 and 108. Friday May 4, 1990 No. 3 What Are Propositions 111 and 708? Here's The Scoop Appearing on the June 1990 ballot will be Proposition 111 (titled "The Traffic Congestion Relief and Spending Limitation Act of 1990" and formerly known as SCA1). It contains three elements: - It revises the spending limit calculations for local government and the state. The revisions will allow for your appropriations limit to be adjusted annually at a rate to keep pace with the economic growth in your city. - It allows for increases in vehicle fuel taxes and truck weight fees to fund Caltrans, county and city transportation improvements. These new funds, which come from increases in the gas and diesel tax and commercial vehicle weight fees, would be exempt from and confirms state and local appropria- tions iimits. - It revises the school funding initiative passed in 1986 to balance the state's educational needs with the needs of other state services. Impact on: Spending Limit How would setting my city's limit be different? Currently, cities adjust their limits based on the change in the cost -of -living only. If Prop. 111 is passed, a city would adjust its "Gann Limit," or spending limit, by either 1) the change in California's per capita personal income or 2) the percentage change of growth in total assessed value due to non-residen- tial construction. In addition, cities currently may adjust their spending limits based on changes in population within the city. Legislation currently being negotiated (Senate Bili 88) to implement Proposition 111 would allow for one of two methods to change the limit based on population increases: either 1) changes in popula- tion in the city, or -2) the percentage increase in population for the entire county. continued on Page 4 This Is•A Weekly: Every One In City Hall Needs To See It Every citizen needs to understand the impact that Propositions 111 and 108 will have on cities, including city employees. In addition to takine a position on these measures -- they State League Board of Directors has voted to support Props. 111 and 108 -- tell the news medic about your position and find ways to tell your citizens and employees. One easy step every city can take is to ensure all employees get a copy of this weekly newsletter that is prepared by the League of Califor- nia Cities and distributed with the weekly Legislative Bulletin. One other easy step for every employee to take is to tell his or her neighbor about what this measure does and what the impact will be on cities (see the related article that described what the measures do). Every city official can take a moment to write a letter to the editor of the local newspaper informing them of the impact the measure will have on cities. More information about these activites is available by calling the League office at 916/444-5790. a List Of Supporting Cities and Their Role With Ballot Measures Organizations; Contin- ued From Last Week with the June election approaching quickly and with two measures -- Proposi- tions 111 and 108 -- that affect cities so greatly, the League has prepared a California State Student Association guide to help cities know what role cities, elected officials and employees can play in the initiative and referendum process. Cal. State Univ. Board of Trustees - California Taxpayers' Association California Tax Reform Association The following series of questions and answers are excerpted from the California Transit Association League's Guide which is being mailed to all cities. A city official should always Cal. Transportation Commission consult with the city's attorney concerning the propriety of any given course of conduct. Cal. Union of Safety Employees Cal. for Better Transportation Californians-for Higher Education USE OF CITY RESOURCES ON BALLOT MEASURES Children Now Coalition for Project Delivery May cities and the League of California Cities analyze the effect of Congress of California Seniors ballot measures on cities and publicize this-information? ._-.--- . Consulting Engineers Assn of Cal. Yes, cities and the League may use public resources to objectively evaluate a County Supervisors Assn of Cal. ballot measure's impact on municipal government. The results of such fair Faculty Association of California and objective analysis may be then made available to the newspapers, Community Colleges advocacy groups and others, who may make use of the information if they Health Access of California choose. Japanese-American Republicans Jewish Public Affairs Committee of May cities contribute public funds to ballot measure campaigns California which have already qualified for the ballot? Laborers' International Union of No, the courts have determined that allowing government to "take sides" in North America ballot measure campaigns gives one side an unfair advantage which might League of California Cities League of Women Voters of Cali. I distort the electoral process. Also, using public money to support a given position on a ballot measure may result in a taxpayer's money being used to Lutheran Office of Public Policy - support a position with which the taxpayer does not agree. This kind of California "forced speech" may run afoul of the first amendment. Motor Vehicle Conference National Association of Social I May cities use city staff, equipment and supplies to .generate Workers - California ChapterI Off-Highway Motor Vehicle promotional materials on behalf of ballot measures which have Recreation Commission I already qualified for the ballot? Women's Older t :omen's League of California No, this approach suffers from the same infirmity as contributing n' g public mope} Professional Engineers in I to a ballot measure campaign: it uses public resources to give one side an unfair advantage in the Cal.Government campaign. Project 90, A Coalition of Business, Labor & Health May the League of California Cites contribute money or use its Retired Public Employees Assn staff resources to advocate support for or opposition to ballot State Building and Construction ; measures? Trades Council of California The coups have not sper;ific2liy ruled on this issue, however, the California Statewide University Policy Legislature's a,torney has concluded 1112; allowing the League to play this role Association Triple A Council of California would impermissibly permit cities to do indirectly what they cannot do directly, The League makes it a practice to follow the same rules cities must follow. UAW Region 6, International Union, I United Automobile, Aero What is the difference between impermissible "promotional" and space and Agricultural I permissible "informational' material? Implement Workers of There is no hard and fast rule for judging whether a communication is America I promo- tional rather than informational. Material which exhorts voters to "vote yes" is, United Domestic Workers of I of course, promotional; however, documents which do not contain such America United Way of California I exhortations may nonetheless be considered promotional. Some of the factors courts look at in determining whether a publication is a "fair presenta- University of California Board of tion of the facts are the publication's style, tenor and timing. The standard is - Regents University of California Student a strict one: the publication must be 2UE!2!y informational to pass legal muster. When in doubt, leave any questionable language out. Association continued on next page .J t Ballot Guide - Continued Do the courts distinguish between the use of public resources to develop a measure for the ballot and the use of public resources to support a measure once it has qualified? One appellate court has allowed Los Angeles County to use public resources to develop a criminal justice measure for the ballot. The measure was pro- posed by a committee formed by the county to study certain procedural changes in the criminal justice system. The court determined that, as long as the activities did not involve advocacy of a single viewpoint with the object of influencing voters on the issues, public funds could be spent formulating and drafting the initiative and obtaining sponsors for it. Although the decision was good news for the county, some attorneys have expressed reservations about relying on -the decision for the proposition that local public entities may use public resources to develop a measure for the ballot. May a city council pass a resolution supporting or opposing a ballot measure? The courts have not specifically ruled on this issue either, however, it appears that the first amendment would protect a city's right to do so. INDIVIDUAL ELECTED OFFICIALS May an individuai elected official take a position on a ballot meas- ure? - Yes, a public official does not give up his or her first amendment riahts to speak out on governmental matters upon being elected to office. However, an elected official should not use city resources to "campaign" for or against a given ballot measure. At least one city attorney believes, however, that it would not be impermissible "campaigning" for a city council member to express his or her views on a ballot measure in correspondence with constitu- ents. That city attorney also cautions his council members to keep Proposition 7:;'s provisions on mass mailings in mind whenever the council members communicate with their constituents. May an elected official use his or her campaign funds to contrib- ute to aualiNr, support or oppose a measure for the ballot or support or copose a qualified initiative? The state Fair Political Practices Commission (FPPC) says that an elected official may contribute his or her campaign funds to quality, support or oppose a ballot measure, as long as the initiative campaign committee is not "con- trolled" by another candidate. Does it matter when the campaign funds were collected? According to the FPPC, the propriety of contributing campaign funds to a committee to qualify, support or oppose a ballot measure does not depend on when the c2mp2ign funds were raised. How should such contributions from campaign funds be re- ported? The FPPC says the recipient of the funds (the ballot measure campaign committee) shouid report the receipt of funds as contributions received; the local elected official's campaign committee should report the contribution as an expenditure made. Future editions of Update will include additional information on this subject. Majority Of Newspaper Editorials Supporting Measures The following newspapers have editorialized in support of Propositions 111 and 108 Clearlake Highlands Observer -American Fresno Bee Gilroy Dispatch Los Angeles Times Modesto Bee Sacramento Bee San Bernardino Sun San Diego Union Ukiah Daily Journal Vacaville Reporter I i The Orange County Register I �I is the only paper known by the �€ 91 League to be in opposition 2t jf this time. Sampie Resolu?ions Available Frohn League Office in Sacramento Cities wishing to take a position on Propositions 111 and 108 can contact the League at 916/444-5790 to obtain copies of resolutions adopted by other cities and drafts that can be used as a model. Cities who have adopted a resolu- tion either supporting or opposing either ballot measure are asked to forward a copy to the League office, 1400 K Street, Sacramento, 95814, or by faxing a copy to 916/444-8671. 0 i What Props. 171 & 108 Finally, Prop. 111 would exclude from the spending limit any appro- priations for certain capital ex- penses, defined as land, capital improvements or equipment that exceed S100,000 and have a life expectancy of ten years or more. It would also exclude from the limit any future increases in the gas tax or truck weight fees. Impact on: Transportation What does Prop. 111 do to relieve congestion? In conjunction with Prop. 108, a rail bonds measure, $18.5 billion will be provided over the next ten years to do the following: o Funding the 1988 State Transpor- tation Improvement Program (STIP) shortfall - $3.5 billion. Projects to be funded are in the current 1988 project plan. o Subvention to cities and counties - $3 billion. Half the fund is for cities and half for counties, to be distrib- uted to cities based on population. Cities will have to maintain their local contributions to the transporta- tio . system and in counties with an urbanized area of 50,C00 or more, develop a Congestion Management Plan in order to receive the funds. Cities can expect to receive an &vera :e o' 56.66 p r capita annually once the full tax increase is in place. T',e flrst year vlill result in about half A.at amount, with the subvention increasing each year until it reaches the fuil amount in five years. o Flexible Congestion Relief Pro- gram - S;, billion. Highways, local roads and transit guideway projects are eligible for funds under this program. Funds would be spent on the most cost-effective project designed to reduce congestion as determined by the California Trans- portation Commission. Will Do For Cities, Counties And The State o State -local transportation partner- ship program - $2 billion. The money in this fund can be used entirely by local government for local highway, local road or transit guideway projects, and must be matched at least on a dollar -for - dollar basis with local funds. o Intercity rail, commuter rail and urban rail transit - $3 billion. Also on the June ballot is Proposition 108, which authorizes the sale of $1 billion in general obligation bonds to be used for mass transit guideways, on specified rail corridors, including urban rail, commuter rail and intercity rail. Two additional $1 billion bond measures for the same purposes are scheduled to go before the voters in November, 1992 and November, 1994. Fifteen percent of the $3 billion is specifi- cally allocated for intercity rail projects. o Inter -regional roads - $1.25 billion. This would be for specified state highway routes primarily outside urban areas. o Traffic system management - $1 billion. For use on transportation systems management projects on state highways and local roads designed to increase carrying capacity without increasing lanes, as determined by the CTC. o Retrofit soundwalls - $150 million To complete all remai; ting sound- walls designated in the current I soundwail program. o Environmental enhancement and mitigation - $100 miilion. For use on urban reforestation and other environmental mitigation measures to ease the environmental effects of transportation facilities. o Transit'operation and/or capital - $500 million. This would fund the State Transit Assistance Program and would be apportioned to all areas of the state with half the apportionment based on population and half on transit operator revenues. o Maintenance and rehabilita- tion of state highways - $1 . billion. To be used on addi- tional state highway mainte- nance and rehabilitation costs. m How Does Proposition 108 Enter Into All This'? Prop. 108 would authorize the state.to sell the first $1 billion Of a total of $3 billion in general obligation bonds to raise funding for passenger rail transportation. The second $1 billion bond authorization will be placed on the November 1992 general election ballot and the third on the November 1994 general election ballot. This total of S3 billion is pan of the $18.5 billion to be raised in total for all the projects planned as part of Proposi- tions 111 and 108. i3 Po)ect Lis — r� i,� I' 'Nay To City Hells Beginning next week, the League will be distributing to all cities the transportation projects that will be funded should Propositions 111 and 108 pass in the June election. The projects were developed by the state and by counties and does not include city projects to be funded by the funds that flow directly to cities from the measures. The projects are listed by county and each city in the county will get that area's project list.