HomeMy WebLinkAboutH Item - Addressing the Infrastructure Issue - Ballot MeasurZl _ Z- _ 4N f fp,4
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HUNTINGTONBEACH CITY COUNCIL MEMO .�
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Honorable Mayor and City Council Members
From: Ralph Bauer, City Council Member
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Date: August 21, 2001 ,o a
Subject: "H" ITEM FOR AUGUST 27, 2001 CITY COUNCIL MEETING —
ADDRESSING THE INFRASTRUCTURE ISSUE
STATEMENT OF ISSUE:
In reviewing the issue of dealing with infrastructure, it would seem desirable to
review the successes we have had and the constraints we face.
SUCCESSES
1. A group of about 60 citizens, together with the staff and Council Members,
have defined the problem of infrastructure needs and have brought forth
concrete proposals.
2. Financing of the sewer portion of infrastructure will be completed shortly. An
oversight committee will be in place.
3. Attention has been focused on infrastructure via a community outreach
program.
4. A ballot measure imposing a utility tax on the fuel use by the AES plant could
be on the March ballot. This measure will generate about one million dollars
annually and a companion advisory vote will suggest these funds be used for
infrastructure only.
CONSTRAINTS
1. The U.S. is facing a downtown turn in the business circle with many people
losing their jobs.
2. The City of Huntington Beach is facing uncertainty in income due to possible
losses in revenue from employee retirement taxes, utility tax initiatives,
vehicle license reduction fees, and further erosion in property taxes due to the
state energy crisis.
3. Timing of future income sources from the Hyatt, Wal-Mart, Lowes, Huntington
Center, Blocks 104 and 105, and the 31 Acres are uncertain.
4. No citizen -based infrastructure advocacy group has been organized and
come forward to help with any election.
5. Substantial cuts in the budget and uncertain future income from other
sources has given us a five-year ending balance of close to zero.
6. A citizen opinion survey indicates strongly a lack of support for financing a
Community Facilities District.
CONCLUSIONS
We have had some success and we also face substantial constraints. In
balancing these factors I conclude that now is not time to come forward with a
ballot measure to fund a Community Facilities District. I thus wish to make the
following motions:
POSSIBLE ACTIONS FOR COUNCIL CONSIDERATION:
I move that::
1. The Community Facilities District vote be postpone until 2003.
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Rationale: There is as yet no citizen advocate group in place to help with the
election and the opinion poll indicates the proposal will fail.
2. The utility tax issue for AES and the companion advisory vote for
infrastructure funding be placed on the March 2002 ballot, as was done
previously. [N�'OU�CD V?AP*K Hd�."pA Tj;-zm %1A11
Rationale: This measure almost passed the last time it was on the ballot.
With the power not destined to stay only in California, people from outside
California will help pay this tax. Further, a Citizens Oversight Committee in
the Charter will help in convincing the public to vote yes.
3. We put a 15% minimum commitment of General Fund Annual Income
towards infrastructure. [ct RDMr UT"TCK SC'IqVP -r§s 19 91--irl4w (bj•k]
Rationale: We want to make sure that some constant minimum financial
effort is put towards infrastructure.
4. The Oversight Committee for all infrastructure funds be the Public Works
Commission. [T. LTA I
Rationale: Each Council Member appoints one commissioner, thus another
committee is not needed. The Board is already designated as the oversight
for the sewer fund.
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xc: Ray Silver
Connie Brockway
David Biggs