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HomeMy WebLinkAbout1998-10-27 - AGENDA REPORTS - SMART GROWTH PRINCIPLES (2)AGENDA REPORT City Manager CONSENT CALENDAR Item to be presented byf Jeffrey Lambert DATE: October 27, 1998 SUBJECT: THE LOCAL GOVERNMENT COMMISSION REQUESTS THAT THE CITY JOIN THEM IN CREATING A STRATEGY TO MEET THE CHALLENGES OF A GROWING POPULATION BY SUPPORTING THE "SMART GROWTH PRINCIPLES". DEPARTMENT: Planning and Building Services RECOMMENDED ACTION Endorse the "Smart Growth Principles". BACKGROUND Mayor Heidt has asked that the City consider endorsing the attached "Smart Growth Principles". California needs a strategy for smart growth to meet the challenges of growth management and improving the quality of life. It's up to citizens and elected officials to manage growth and improve the quality of life for all Californians, present and future. The "Smart Growth Principles" were created by a statewide coalition of organizations known as the California Futures Network (CFN). The "Smart Growth Principles" include; planning for the future, promoting prosperous and livable communities, providing a wider range of housing and transportation opportunities, conserving greenspace and the natural environment, and. protecting agricultural and forest lands. By endorsing the "Smart Growth Principles", Santa Clarita will be joining municipalities, public groups, businesses, and leaders to provide the tools and support needed to deliver a high quality of life to all residents of the state. ALTERNATIVE ACTIONS Council may choose not to endorse the "Smart Growth Principles". 2. Other direction as determined by the City Council. FISCAL IMPACT None by this action. ATTACHMENTS Literature on the "Smart Growth Principles" JJL:ACGaep AR-4, �OVED s:\council\smartMdocIUJ iIIIIIIIIIIII;;;ll�iii !!!! INN LOCAL GOVERNMENT COMMISSION 1414 K St. a Suite 750 a Saaamento, CA 93814 a 916448-1198 Board of Directors September 29, 1998 Councilmember Gilbert Garcia Chairperson City a Santa Barbara Dear Local Government Commission Member: Supervisor Laurence L Laurent County of Szniw>om w The Local Government Commission would like to ask you to join us in supporting Supervisor Barbara Kondylis "Smart Growth Principles" developed by an important new statewide coalition, the Treasvrer Counh ofascrer California Futures Network. Rosemary Mayor Corbin California's population is booming. According to the state Department of Finance, Councilmember John Heilman California could add as many as 15 million new people in the next two decades. Our city of West Hollywood challenge is to manage this growth to improve the quality of life for all Californians. Mayor Pat Kuhn How California addresses the social, economic,, and en:riroz+s:ental challenges of rapid ON of Oakdale growth will be determined, in large part, by local officials making local decisions. Yet, in Mayor John Longville Citv of Rialto many ways, the necessary work at the local level can only succeed if it is fostered by action at the state level as well. Councilmember Bev Perry Cit set Tire. Supervisor Charles Peterson Unfortunately, the state has been more of an impediment than a partner to California's County ofnlmdoeino local communities. As the enclosed fact sheet outlines, for a decade Sacramento has Councilmember Thomas P. Pico, Jr. balanced the state budget on the backs of local communities, while failing to anticipate City of Pleasanton the needs for a growing population. Despite the most prosperous economy m a Councilmember Bob aler Citi m Redondo Beach B generation, Sacramento continues to divert billions of dollars in property taxes from local communities to bail out the state budget. Meanwhile, state investments in the basic Councilmember Paul Rosenstein City of Santa Monica foundations of our communities — transportation systems, schools, parks, libraries, Councilmember Constance E. Stewart public safety, and the other services that are key to our quality of life —have simply not City of Arcata been made. Executive Director Judith A. Corbett California needs a strategy for Smart Growth to meet this challenge. We're encouraged that the California Futures Network (CFN) is working to make Smart Growth a reality. The CFN is a non-partisan, non-profit statewide coalition of organizations who share a common desire to promote economically, socially, and environmentally sustainable land use in California. I was one of the founders of the network and serve on the CFN's Steering Committee. By endorsing the CFN's "Principles for Smart Growth," local officials, environmental- ists, and civic, business, labor, agriculture and community leaders are sending a strong message to Sacramento that we need to give local communities the tools and support they need to deliver the California Dream for all the residents of the state. When you return the enclosed endorsement form, the CFN will include your name in full-page ads in statewide newspapers to ensure that the message is delivered loud and clear to state policymakers. For more information, please contact the California Futures Network at (510) 238-9762. Thanks for your support! Sincerely, bojawdc- JUDITH A. CORBETT Executive Director f..- 916-448-8246 .mail: Igcdbbs.marnexus.mg web Page: www.igcorg Printed on recycled paper ali—Tor nia ntures FACT SHEET: etwork LAND USE AND STATE/LOCAL FINANCE TAX, SPENDING, AND REVENUE CONsmAum Over the last two decades, California has been locked into a fiscal straitjacket. To retain a compet- itive edge in the global economy, all indicator point to the need for increased levels of investment in the state's infrastructure, environmental quality, and human capital. Yet the abIlity.of state and local governments to raise revenues and make public investments to meet these needs is severely hampered by a myriad of voter -approved tax and spending limitations. As a recent study by the League of California Cities pointed out: • Proposition 13, enacted in 1978, imposed a one percent maximum property tax rate, tolled back property tax values for tax purposes to their 1974-1975 levels, and limited increases in assessed value to two percent per year or upon change of ownership. Proposition 13 also imposed voter approval requirements for special taxes and allowed the Legislature to allocate property taxes. • Proposition 4, enacted in 1979, imposed spending limits on the state and local governments. Proposition 62, enacted in 1986, imposed voter approval requirements on new or increased general and special taxes. Proposition 62 also limited real property transfer taxes. It took the courts nearly a decade to resolve questions regarding the constitutionality of Proposition 62's voter approval requirements. Proposition 218, enacted in 1996, imposed new limits and procedural requirements on the imposition of taxes, assessments, and property. related fees. The constitutional amendment limits the authority of local governments to impose taxes on property -related assessments, fees, and charges, requiring them to be approved by property owners. (Financing Cities: Cfry Financing in the DeeadesAfter Proposition 13, League of California cities.) The state found itself in a severe budget crunch in the early 1990s. In response. the Legislature and the Governor shifted a substantial portion of the local property tax base of cities, counties, and special districts to the state General Fund. using the authority granted by Proposition 13 to allocate local property taxes. The total value of the property tax shift is $3.6 billion annually. Despite the return of better economic times and increases in state budget revenues, the shift mechanism remains in place and will grow as property values grow. This means an ever- increasing portion of property taxes continues to be shifted away from cities and counties that provide basic services, while local governments have less means of raising revenues to keep pace with increasing service demands. (League of California Cities.) THE IMPACT oN LAND USE Local communities have used many strategies to respond to this fiscal dilemma, including a growing use of development fees, ballot measures to override tax and spending caps, and competition for revenue-producing development. Cities and counties have learned to pursue high- value tax -generating development projects such as office parks, auto malls, and "big box" retail outlets that bring in more revenue than they cost to service, and that can cover their up -from infra- structure costs through development fees, assessment districts, and other creative financing mechanisms. In the process, the regional jobs/housing imbalance worsens, as more commercial sites are approved while affordable housing projects lag behind the creation of new jobs. The result is more traffic congestion, longer commutes for employees, more air pollution from increased vehicle use, and a steady deterioration of the quality of life throughout a region. %aIIf­o,n1,a ture etwork As property taxes are shifted from local govern- ments and the ability to impose fees and assess- ments declines, local governments ate left with their portion of the sales tax as the most important source of new growth -related revenue. Sales taxes are allocated to local governments on a site-based formula, with revenues flowing to the jurisdiction where the taxes were collected. These revenues may bear little or no relation to the costs of providing services and facilities to accommodate development The result is a fierce conflict over retail devel- opment, creating an imbalance in regional devel- opment pattems. As new retail cutlets proliferate, . existing main streets, strip malls, and older shopping centers battle vacancies because retail capacity exceeds the market demand. Meanwhile, housing and industrial sites may be in short supply. Instead of seeking to create balanced communities with a mix of residents, workers, and shoppers, communities offer tax giveaways and other major concessions to attract retail outlets, ignoring the long-term costs in pursuit of short-term revenues. For example, a shopping mall sited in the unincor- porated area of the county right next to the city line may generate traffic and housing demand in a nearby city, stimulating the need for police, fire, and other municipal services without providing the property or sales tax revenue to support them. Or a minimum -wage big box retail outlet developed in a city.might attract unemployed or low-wage job seekers, increasing the local population and creating the need for costly county services without providing sufficient additional county fimdirg to pay for them. THE DECLINE OF LOCAL COOPERATION This "fiscalization of land use" poisons good working relationships among local agencies. Cities compete with one another to attract a regional automobile mall, using litigation as a last resort. Counties block efforts by cities to annex land or incorporate, fearing the fiscal consequences of the lost tax revenues on already -strapped county finances. And because real estate development occurs within the context of the overall regional economy, these conflicts add little to the overall economic prosperity of the region. As the former Mayor of Pasadena put it: "Every' city is trapped by an absurd and obsolete financial structure dictated by the Legislature and the Governor. Until it is reformed, cities will continue to obsessively pursue every penny of each other's sales tax revenues and give short shrift to the underlying health of the local and regional economy. They will continue to fight over dividing regional wealth, instead of working together to increase it." (Rick Cole, Lfetra /nvasmenr Report, March 1998.) TIrE STATE'S ROLE IN FISCAL REFORM The state needs to create a state/local fiscal partnership to manage growth and enhance California's quality of life. Elements that state policy makers should consider include: Target state financial support for infrastructure investments that reinforce compact, efficient development within existing communities. Increase state financial support for programs that conserve or protect sensitive lands threat- ened by development, , Reduce the reliance of local agencies on the sales tax and make it easier to raise and share revenues. One option is to restore the local portion of the property tax shifted from cities and counties to those jurisdictions that plan and achieve more balanced, compact land use, patterns. Provide incentives that promote better land use patterns through strategies such as regional . revenue sharing for communities that improve the jobs/housing balance within a sub -region, authority to enact local financing measures by less than a two-thirds vote, or sharing a portion of the state income tax with local communities based on the number of residents that both live and work in the community. alif—on ta etwork uCALIFORNIA FUTURES NETWORK etwo The Smart Growth Principles for California •The Challenge of Sprawl California's quality of life is at risk. Poorly planned, sprawling development threatens us all — urban, suburban and rural residents alike. We see the signs all around us. Runaway sprawl causes traffic congestion and long commutes. People have less time for their families and communities. As more land is paved over, water is polluted by runoff. As people drive further, there is more smog in the air. Open space, farmland and natural areas are destroyed. Despite one of the strongest economic booths in California's history, many communities throughout the state have rates of poverty and unemployment two to three times the national average. Town centers, rural main streets, historic districts and residential neighbor- hoods deteriorate as poor planning and land use decisions drain the economic vitality from existing cities and towns. Taxpayers in existing neighborhoods bear the burden of extending costly services to sprawling cookie -cutter subdivisions on the edge of town or in the middle of nowhere. Police and fire protection, schools, parks, libraries and other services decline. Crime, blight and suffering too often follow. California's population of 33 million people is projected to increase by 50 percent in the next 20 • Smart Growth Principles for California years.At the current rate, we are adding nearly four million people — or the entire city of Los Angeles— to the state's population every seven years. If suburban sprawl continues unchecked, our quality of life will deteriorate drastically in the years ahead. • Ensuring a High Quality of Life In today's global economy, businesses can invest anywhere in the world. Good jobs go to those regions and communities that can attract and retain entrepre• neurs and a qualified workforce. By acting with foresight, Californians can ensure the high quality of life — including excellent schools, choice of affordable housing near jobs, prosperous local businesses, efficient transportation alternatives, safe neighborhoods, good libraries; parks and open space, and a clean environ- ment — we need to compete in the global economy. But to achieve this future, we must act now at the state level to curb sprawl. Local action, while impor- tant, is not enough. State government makes the rules that govern land use planning, financing and develop- ment in California's communities. By enacting more equitable and effective state policies for taxing, spending, land use and development, based on the following principles, we can protect and enhance the quality of life for all the people of California. 1 • Plan for the Future: Make government more responsive, effective and accountable by reforming the system of land use planning and public financing. L • Promote Prosperous and Livable Communities: Make existing communities vital and healthy places for all residents to live, work and raise a family. 3• Provide Better Housing and Transportation Opportunities: Provide efficient transportation alternatives and a range of housing choices affordable to all residents, without jeopardizing farmland, open space and wildlife habitat. 4• Conserve Green Space and the Natural Environment: Focus new development in areas planned for growth while protecting air and water quality and providing green space for recreation, water recharge and wildlife. CJ • Protect California's Agricultural and Forest Lands: Protect California's farm, range and forest linds from sprawl and the pressure to _ convert farmland for development. --------------------------------------- I Endorse the Smart Growth Principles By endorsing the Smart Growth Principles, you grant the California Futures Network (CFN) permission ro publidy me your name. - 0 Individual O Organization Name: Title: Organization: Address: City/State/Zip: Phone: E-mail: Please mail or fax this form to: CFN, 2201 Broadway, Suite 815, Oakland, CA 94612 Fax: 510.238.9769 11 CFN is a statewide coalition dedicated to econ mically, socially and environmentally sustainable land use in Califomia. I I