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HomeMy WebLinkAbout5/3/2000 - STAFF REPORTS (6) i DATE: May 3, 2000 TO: City Council FROM: Assistant City Manager-Spedal Projects STREETS MAINTENANCE&REHABILITATION-AB 2742 RECOMMENDATION: It Is recommended that City Council express its support for AS 2742 which would move some$4 billion, over 5 years, of existing tax dollars from the State to cities for street maintenance efforts. BACKGROUND: The Southern California Association orGovemments(SCAG)2000 legislative strategy Includes a new local government funding source for local roadway maintenance. AB 2742(Baugh&Strickland)would generate some$4 billion over five years and is the Bill supported by SCAG for roadway maintenance. The proposed Bill, summary and Bill attached, would take existing tax dollars and move them from the State General Fund, which is running a huge surplus, to local government. The Bill would generate some$S million annually for Riverside County. As the City attempts to find matching dollars for ttsremaining Measure 8K projects, every new dollar toward maintenance may free up other matching dollars. A Resolution is attached for City Council consideration. ALLEN F. SMOOT,AAE Assistant City Manager-Special Projects APPROVED 46�1 ? City Manager ATTACHMENTS: 1. Resolution 2. AB 2742 Summary 3. AS 2742 Bill I � � Summary of Assembly Bill 2742 Assembly Bill 2742,sponsored by the Southern California Association of Governments, does the following: —— - 1. Shifts.2.2 cents of the state gas tax to cities and counties for maintenance of local streets and roads. This'is approximately$330 million. This action will result in the gas tax revenues being nearly equally shared between the state and local governments,restoring a transportation finance policy that had been in place several decades prior to 1990. Moreover,this allocation of revenue conforms to the pattern of automobile travel which is distributed nearly equally between local streets and roads and state highways. 2. Shifts$330 million generated from sales tax on gasoline that now goes to the state General Fund to the State Highway Account to offset the gas tax shift to local governments. 3. Shifts S186 million generated from the application of the sales tax on 27 cents of the 36 cents state and federal gallonage tax on gasolino to the Public Transit Account. Currently,the revenue generated from the sales tax on 9 cents of the gas tax, approximately$62 million,is allocated to the Public Transit Account. 4. Allocates rho$196 mullion exclusively by population. The existing revenue is allocated by a formula that takes into account population and farebox revenue. The nine county San Francisco Bay Area benefits from the current formula. On a population based formula Southern California and the Central Valley benefit. 5. Creates a statewide transportation capital program that could generate up to$4 billion over five years for transportation facilities. After accounting for the allocation to the State Highway Account, S430 of gasoline sales tax remains in the General Fund. AB 7242 allocates this revenue plus an additional$70 mullion of General Fund revenue to the State Highway Account annually to fund new transportation facilities. A fifty- percent match of state or federal funds is required by localities and regions to use this revenue. Over five years this proposal would generate approximately$4 billion for transportation investments. _ q pf o%va J STA /New PTA Revenues for SCAG Region Per AB 2742 Ze9l �rY1r PoPWaion %aFTa�al Current %ofTetmFAEIw22 %o Tote) Tata un s J (1199) Populatim ADoealon STA rSaY Naw PTA 1998 99 STAt .Furl onda SCAB lnpenal 142,70 0.4% $214,051 0.2% s785, 04% S99B,801 L-sAngeles 9,757.60 29% 31.0r3,59i 31% 53.734,64 29% 61,77f.2 range 2,775 8% 6.116,644 5% 15,285,2 8% 20,40f, Rivenakle 1,473, 4% 2,3K 2% 8.1.3.470 4% 10,501114 I San eenterdkro 1654,00 SY. 2,8f8,b7 3% 8,108,594 6% 11,807,1 ; Ventura 742,00 2% 1,1R5, 1% 4.086.201 2% 5,241, a� Sub4olW '8,54S 1 49% S42,624, 43% M.114,02 49% 5133.738.24 '1 i, L h fr w fr O ri ( 0 0 i it a ) CALIFORNIA LEGISLATURE-1999-M REGULAR SESSION ASSEMBLY BILL No.2742 Introduced by Assembly Members Baugh and Strickland February 25. 2000 An act to add Section 99312.3 to the Public Utilities Code, to add Section 7104 to the Revenue and Taxation Code, and to amend Section 2105 of, and to add Section 163.5 to, the Streets and Highways Code,relating to transportation. LEGISLATIVE COUNSEL S DIGEST AS 2742,as introduced,Baugh. Transportation: funding. (1) The Sales and Use Tax Law provides for the allocation of the revenues derived from the taxes imposed under that law for various specific purposes, with the balance being allocated to the General Fund. It specifically provides for the allocation to the Public Transportation Account in the State Transportation Fund of those state sales and use tax revenues derived from the application of sales and use tax to that portion of the price of motor vehicle fuel resulting from the increase after December 31, 1989, in the rate of state motor vehicle Orel taxes. This bill would require the State Board of Equalization, in consultation with the Department of Finance, to estimate, on a quarterly basis, the revenues, less refunds, derived during the previous fiscal quarter from application of sales and use tax to that portion of the price of motor vehicle fuel resulting from imposition of the federal tax on gasoline and imposition of the tax on motor vehicle fuel under the Motor Vehicle Fuel License Tax Law The estimate would not include the F- NA AB 2742 —2— revenues derived from the application of sales and use tax to that portion of the price of motor vehicle fuel resulting from the increase after December 31, 1989, in the rate of state motor vehicle fuel taxes. The bill would require the board to inform the Controller, in writing, of the amount estimated as specified. The bill would require the board and the department to estimate, on a quarterly basis. the revenues, less refunds, derived during the previous fiscal quarter from application of the sales and use tax to retail sales of motor vehicle fuel, as defined for purposes of the Motor Vehicle Fuel License Tax Law, but excluding the revenues estimated as specified above and the revenues derived from the application of the sales and use tax to the December 31, 1989, increase in the fuel tax. The bill would require the board to inform the Controller, in writing,of this 2nd estimate. The bill would require the Controller to transfer, upon receiving the specified notice, the first amount estimated as specified above from the General Fund to the account. The bill would require the Legislature to appropriate the funds transferred to the account to the Controller for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board The allocation for each of those entities would be based on the ratio that the population within the jurisdiction of the entity bears to the total population of the state. Funds allocated would be expended only for certain transportation planning and mass transportation purposes described in existing law. The bill would require the Controller, upon receiving the specified notice, to transfer the second amount estimated as specified above from the General Fund to the State ffighway Account in the State Transportation Fund. The bill would also require the Controller to transfer annually Elie stun of $156,000,000 from the General Fund to the State Highway Account; each fiscal year commencing with the 2000-01 fiscal year and up to and including the 2004-05 fiscal year. The bill would require the Legislature to appropriate the funds transfwed to the State Highway Account under these provisions to the Controller for allocation to transportation 1 jqptq .�.�ter•;V- -�..••• —3— AB 2742 planning agencies and county transportation commissions. The allocation for each of those entities would be based on the ratio that the population within the jurisdiction of the entity beats to the total population of the state. Funds allocated under these provisions would be programmed and expended only for transportation capital improvement projects that meet certain conditions. (2) Existing law requires at least 90% of the balance deposited to the credit of the Highway Users Tax Account in the Transportation Tax Fund by the 28th day of each month to be apportioned by the Controller to the tides, counties, and cities and counties in accordance with certain statutory formulas. This bill would revise one of the apportionment formulas specified above. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. The people of the Stare of California do enact as follows: I SECTION 1. Section 99312.3 is added to the Public 2 Utilities Code, to read: 3 993123. The Legislature shall appropriate the funds 4 transfmred to the account under paragraph (1) of 3 subdivision (a) of Section 7104 of the Revenue and 6 Taxation Code to the Controller for allocation to 7 transportation planning agencies, county transportation 8 commissions, and the San Diego Metropolitan Transit 9 Development Board. The allocation for each of those 10 entities shall be based on the ratio that the population 11 within the jurisdiction of the entity bears to the total 12 population of the state. Funds allocated under this section 13 shall be expended only for the transportation planning 14 and muss transportation purposes described in 15 subdivision(b)of Section 99310.5. 16 SEC. 2. Section 7104 is added to the Revenue and 17 Taxation Code,to read: 18 7104. (a) The State Board of Equalization, in 19 consultation with the Department of Finance, shall do 20 both of the following on a quarterly basis: 1 lqh AB 2742 w 4—. 1 (1) Estimate the revenues. less refunds, derived 2 dung the previous fiscal quarter under this part at the 3 43/4-percent rate that resulted from imposition of the 4 federal tax on gasoline and imposition of the tax on motor 5 vehicle fuel under the Motor Vehicle Fuel License Tax 6 Law (Part 2 (commencing with Section 7301)). The 7 estimate may not include the revenues described in 8 paragraph (2)of subdivision(a)of Section 7102_ 9 (2) Estimate the revenues, less refunds, derived 10 during the previous fiscal quarter under this part at the 11 43/4-percent rate from retail sales of motor vehicle fuel. 12 as defined for purposes of the Motor Vehicle Fuel License 13 Tax Law, but excluding the revenues estimated under 14 paragraph (1) and the revenues described in paragraph 15 (2)of subdivision (a)of Section 7102. 16 (b) The State Board of Equalization shall inform the 17 Controller, in writing, of the amounts estimated under 18 subdivision(a). 19 (c) Upon receiving the written notice required under 20 subdivision (b), the Controller shall do both of the 21 following: 22 (1) Transfer the amount estimated under paragraph 23 (1) of subdivision (a) from the General Fund to the 24 Public Transportation Account in the State 23 Transportation Fund. 26 (2) Transfer the amount estimated under paragraph 27 (2) of subdivision (a) from the General Fund to the State 28 Highway Account in the State Transportation Fund. 29 SEC. 3. Section 1635 is added to the Streets and 30 Highways Code,to read: 31 1635. The Legislature shall appropriate the funds 32 transferred to the State Highway Account under 33 paragraph (2) of subdivision (a) of Section 7104 of the 34 Revenue and Taxation Code and Section 5 of the act that 35 added this section during the 1999-2000 Regular Session 36 to the Controller for allocation to transportation planning 37 agencies and county transportation commissions. The 38 allocation for each of those entities shall be based on the 39 ratio that the population within the jurisdiction of the 40 entity bears to the total population of the state. Funds 1-� A6 a 5— A$ 2742 1 allocated under this section shall be programmed and 2 expended only for transportation capital improvement 3 projects that meet all of the following conditions: 4 (a) Not less than 50 percent of the project is funded 5 with local or federal Rinds. 6 (b) The project is included in a regional transportation 7 plan, a regional transportation improvement program, 8 and the state transportation improvement program. 9 (c) The project is consistent with all applicable state 10 and federal guidelines governing the regional 11 transportation planning and programming process. 12 SEC. 4. Section 2105 of the Streets and Highways 13 Code is amended to read: 14 2105. In addition to the apportionments prescribed by 15 Sections 2104, 2106, and 2107, from the revenues derived 16 from a per gallon tax imposed pursuant to Section 7351 of 17 the Revenue and Taxation Code, and a per gallon tax 18 imposed pursuant to Section 8651 of the Revenue and 19 Taxation Code, and a per gallon tax imposed pursuant to 20 Sections 60050 and 60115 of the Revenue and Taxation 21 Code,the following apportionments shall be made: 22 (a) A sum equal to the not revenue from a tax of 444 23 23.7 percent of any per gallon tax in excess of nine cents 24 ($0.09) per gallon under Section 7351 of the Revenue and 25 Taxation Code, 414 23.7 percent of any per gallon tax in 26 excess of nine cents ($0.09) per gallon under Section 8651 27 of the Revenue and Taxation Code, and }is 23.7 percent 28 of any per gallon tax in excess of nine cents ($0.09) per 29 gallon under Sections 60050 and 60115 of the Revenue and 30 Taxation Code, shall be apportioned among the counties, 31 including a city and county. 32 The amount of apportionment to each county, 33 including a city and county, during a fiscal year shall be 34 calculated as follows: 35 (1) One [trillion dollars ($110001000) for 36 apportionment to all counties, including a city and 37 county, in proportion to each county's receipts during the 38 prior fiscal year under Sections 2104 and 2106. w I 1 �1 � 7 i AB 2742 —6— 1 (2) One million dollars ($1,000.000) for 2 apportionment to all counties, including a city and 3 county,as follows: 4 (A) Seventy-five percent in the proportion that the 5 number of fee-paid and exempt vehicles which are 6 registered in the county bears to the number of fee-paid 7 and exempt vehicles registered in the state. 8 (B) Twenty-five percent in the proportion that the 9 number of miles of maintained county roads in the county 10 bears to the miles of maintained county roads in the state. 11 (3) For each county, determine its factor which is the 12 higher amount calculated pursuant to paragraph (1) or 13 (2) divided by the sum of the higher amounts for all of the 14 counties. 15 (4) The amount to be apportioned to each county is 16 equal to its factor multiplied by the amount available for 17 apportionment. 18 (b) A sum equal to the WE revenue from a tax of 41.4 19 23.7 percent of any per gallon tax in excess of nine cents 20 (S0.09) per gallon under Section 7351 of the Revenue and 21 Taxation Code, +14 23.7 percent of any per gallon tax in 22 excess of nine cents ($0.09) per gallon under Section 8651 23 of the Revenue and Taxation Code, and 4+4 23.7 percent 24 of any per gallon tax in excess of nine cents ($0.09) per 23 gallon tinder Sections 60050 and 60115 of the Revenue and 26 Taxation Code, shall be apportioned to cities, including a 27 city and county, in the proportion that the total 28 population of the city bears to the total population of all 29 the cities in the state. 30 SEC. 5. The Controller shall transfer annually the sum 31 of one hundred fifty-six million dollars ($156,000,000) 32 from the General Fund to the State Highway Account in 33 the State Transportation Fund, each fiscal year 34 commencing with the 2000-01 fiscal year to and including 35 the 2004-05 fiscal year. The money transferred under this 36 section shall be available for appropriation for the 37 purposes of Section 1635 of the Streets and Highways 38 Code. O 99 I IyP� B � a ArM -s9t�o City of PaL11-1 Sprih-Ig's Office of the City Cleric P 0.Box 2743 °a400rt°s� Pa6n Spungs,Ulfosno '12�63=%43 009 608 553 Harley Spoon a !. 1382 E Andreas Rd Palm Springs, CA 92262 i�o�,,.;•r 'J OS`1i, �i°e'�.)111 i1 :)f3l iliiii3zt _..,.. ._ , � � �I� Office of the City Cierk P O.Box 2743 "Vgt:FonNi Patin Springs,Cali Formr "63-t,43 009 608 548 Robert Randolph&Charlie;Guthrie 1360 E Andreas Rd Palm Springs, CA 92262 _ ............ - . .L 1I;i!.:5ld Jlltilst.sll 1!ii...1:.,..=Jii-lidilflsi l:ill IQ PALM sp� 7' il.1LGJ ©1 _ 01Til J1D1Ilillg6l ... . . Office of the City Cleric P O.Box 2743 Palm Spiings,CafiforniL� 'S2263-2743 009 608 540 Binkley John 1310 E Andreas Rd Palm Springs, CA 92262 - .. ._, � � - . . ._ E�ae,iti;iill[v1fh:551l53 iU511tr.1el n(il ii't i1.51„i4=5itlil (_ Office of the City C(erk *+ P O Box 2743 t�°�«enna`PL Palm Springs,California 't 26,)-=723 009 607 425 James Gallagher 266 N Hermosa Dr �..( Palm Springs, CA 92262 ,..ek{i!1¢{! li51}i,t Sitiii 1. l"I' PALM Sam,, city of Pakm Sp]"h lgs tf l 2 ( Office of the City C(erk .k, P.O.Box 2743 ttt.onT� Palm Spcmgs,Caldorma 12263_'74g 009 608 564 Dillis Knapp - 1474 E Andreas Rd v j Palm Springs, CA 92262 r ' _ G r Office of tine City Gerk P O.Box 2743 „32(,3_�743 Palm Springs,Cahfomia g�<tron ,f 509 071071 John Strutzel&Roger Bafus 1380 E Andreas Rd '7 Palm Springs, CA 92262 009 608 557 James Brandt&Gregory Fed&,ay 1462 E Andreas Rd y 7—C Palm Springs, CA 92262 df �rq i �tAP ; 1] � f a;1tOII�F)f!d3:u111 0?3�J3ti.15_f9L-9O?...9Fa�44Y3i Office of the City Clerk P.O.Box 2743 flFa0.oe�P-°i Yalrn Speings,C"hfomi, 1263-'-''743 009 607 411 Michael Russell 280 N Hermosa Dr f Palm Springs, CA 92262 /Y - '- _ city of Min Springs Office of the City Clea-➢c P O.Box 2743 Palm Springs,Ca[,F m,, ')1163='43 009 607 447 Fred Hunt 1453 E Amado Rd Palm Springs, CA 92262 pLM City of Pa ;lirIl Springs (( 1 Office of the City Clerk P O. Box 2743 Vv<,romaj� Palm Springs,CalifoLnia "`a:i:,—ww✓ 009 608 558 Marcus Pete 282 N Hermosa Dr f� Palm Springs, CA 92262 ' �lou•!�iss1: :€'i,.=.�'i�uloll! ;1linl!tri!!!'s!j, Office of The City Clerk P O.Box 2743 Palm Springs,C¢Idorina 1263-'?43 009 608 556 Fred Morgan Field 1460 E Andreas Rd Palm Springs, CA 92262 RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,CALIFORNIA,EXPRESSING SUPPORT FOR THE PASSAGE OF AB 2742 (BAUGH &STRICKLAND). WHEREAS the City of Palm Springs takes great pride In the condition of Its abdy-year-old streets; and WHEREAS each year it becomes increasingly more difficult to find the funds to continue a comprehensive maintenance program; and WHEREAS the City is mindful and supportive of the Southern California Association of Governments (SCAG) legislative strategy for this year which includes a goal to Increase funding for local street maintenance; and WHEREAS Assembly Bill 2742 (Baugh &Strickland) Is the Bill thisyear attempting to meet the SCAG goal, NOW THEREFORE BE IT RESOLVED that the Palm Springs City Council endorses the passage of AS 2742 for continued street maintenance program viability. FURTHER BE IT RESOLVED that the City Clerk Is hereby instructed to send copies of this Resolution to Assembly Members Baugh and Strickland, as well as to SLAG offices. ADOPTED this day of . 2000. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA City Clerk City Manager REVIEWED&APPROVED AS TO FORM 1y�