City Council
MEETING DATE: 2/28/2018
TITLE:
Title
Support for Propositions 68 and 69
End
FROM:
Charlie McClendon, City Manager
RECOMMENDATION:
Recommendation
This item is provided for information, discussion and direction only.
Body
BACKGROUND:
The June statewide election ballot information has been posted by the Attorney General and the Secretary of State and the League of California Cities is seeking the support of California cities for two of the 5 measures that will appear on the June 5th ballot, Propositions 68 & 69. The League is asking for resolutions in support from cities.
DISCUSSION:
Proposition 68 - California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018, a.k.a. SB 5 (De Leon - 2017) or simply the 2018 Park/Water Bond.
Passed by the legislature on September 16, 2017, SB 5 - now known as Proposition 68 - was signed by the Governor to place a $4 billion bond on the June 2018 ballot that would fund parks, water, climate and environmental programs. If the voters approve Proposition 68, local governments would receive funding for local park improvements and will be eligible for grants to fund water, local parks, coastal and climate resiliency projects. A detailed funding breakdown is attached, along with a fact sheet, a sample resolution, and a priorities document. The full text of the initiative is also attached.
Proposition 69 - Motor Vehicle Fees and Taxes: Restrictions on expenditures: appropriations limit, a.k.a. ACA 5 (Frazier, 2017).
Passed by the legislature on April 6, 2017, ACA 5 - now known as Proposition 69 - was part of the agreement to secure passage of SB 1, the transportation funding proposal which is now law. Although ~70% of the SB 1 funds are already named in the Constitution and are therefore can only be used for transportation, ~30% of SB 1 funds are going to newly formed accounts which must be called out in the CA Constitution in order to prevent them from being diverted by the legislature in the future. Proposition 69 will prohibit the legislature from raiding these new transportation funds and ensures that these funds cannot be borrowed or diverted by the legislature and can only be used for transportation purposes.
The Yes on 69 campaign is a broad coalition of business, labor, local governments, transportation advocates and taxpayers. Some of the organizations who have already pledged their support: California Alliance for Jobs; California Association of Councils of Governments (CALCOG); California State Association of Counties (CSAC); California State Conference NAACP; California State Council of Laborers; California Transit Association; California Trucking Association, the Los Angeles Area Chamber of Commerce; and the CalChamber.
No on Repeal of SB 1 - Proposed Initiative No. 17-0033
Although this proposed initiative has not qualified for the November 2018 ballot at this time, the Coalition that worked on fully funding the maintenance of our transportation network for decades is not wasting any time opposing this proposal and the League would like cities to consider pre-emptive opposition to any SB 1 repeal effort at the same time as you protect these funds by supporting Proposition 69.
As written, the proposal to repeal SB 1 would rob our communities of critical transportation improvement funds and require that any future fuel tax or transportation fees be approved by a statewide vote of the electorate.
If passed, billions in funding currently being used to maintain our transportation network would be cut off - reducing funding to the pre-SB 1 levels which were inadequate to stave off the crumbling of our bridges, highways and roads. Proper preventative maintenance of our streets and road is by far cheaper than waiting for a road to fail (~8x cheaper) and driving over broken roads filled with potholes is not only dangerous and creates congestion, it also costs motorists in the LA Metro Area an average of $892 annually in additional vehicle maintenance.
The Attorney General’s title and summary of the proposed measure and the initiative language are attached.
Attached are two sample resolutions - one which only indicates City Council support of proposition 69 and one that has both a YES on 69 and a NO on Repeal of SB 1.
Also attached are two items from the League related to a potential initiative that could dramatically change the requirements for the adoption of local tax measures. The initiative is currently called the Tax Fairness, Transparency and Accountability Act of 2018. It would apparently require a supermajority (minority rule) on any tax measure and could potentially affect rules governing the adoption of fees and also might affect the imposition of taxes in newly annexed areas.
FISCAL IMPACT:
Analysis by the League of Cities indicates that Cathedral City will receive approximately $1.2 million per year in funding for street maintenance when SB1 is fully implemented. An initial allocation of $200,000 for Cathedral City will be available if the Park Bond (Prop 68) is approved.
ATTACHMENTS:
Prop 69 Priorities
SB1 Myths vs Facts
Draft Yes on 69 ONLY Resolution
Draft Yes on 69, Oppose Repeal of SB1 Resolution
Fact Sheet Prop 69
Final Resolution SB5 Park Bond
SB5 Park and Water Bond Funding
AG Analysis on SB1 Initiative
Language on SB1 Initiative
Tax Fairness, Transparency and Accountability Act of 2018 (2 items)