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HomeMy WebLinkAboutResolution 2008-163 support for 2009 state legislative priority issuesMARANA RESOLUTION N0.2008-163 RELATING TO INTERGOVERNMENTAL RELATIONS; AUTHORIZING AND DIRECTING THOSE AUTHORIZED TO LOBBY ON BEHALF OF THE TOWN OF MARANA TO REPRESENT AND PURSUE THE TOWN OF MARANA 2009 ARIZONA STATE LEGISLATIVE AGENDA PRIORITY ISSUES BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: Section 1. That certain document known as "2009 State Legislative Agenda Priority Issues" is hereby referred to, adopted and made a part of this resolution as if fully set out here. Section 2. Those persons authorized by the Town of Marana to lobby on its behalf and registered as such with the Secretary of the State of Arizona pursuant to Arizona Revised Statutes § 41-1231 et seq. are hereby authorized and directed, subject to the continuing supervision of the Town Manager and the Town Council, to represent and pursue the legislative interests of the Town of Marana by supporting legislation that embodies any of the following basic principles: A. Empowering the Town of Marana with sufficient flexibility to address an expanding and changing variety of local needs and conditions. B. Establishing appropriate means to adequately compensate the Town for the costs of complying with state-mandated requirements. C. Providing the Town with the means to cope with inflationary cost increases, population growth and escalating service requirements. D. Enabling the Town to provide public services in a more responsive, efficient and cost- effective manner. E. Ensuring that the Town has the ability to provide, manage or operate critical infrastructure necessary to promote or maintain the health and safety of residents, preserve and direct land use and ensure the future sustainability of the community. F. Defining appropriate fiscal and administrative responsibilities within various Town, State/Town and County/Town joint programs. Section 3. In addition to those basic principles set forth in Section 2 of this resolution, the following specific objectives, as elaborated upon in the 2009 State Legislative Agenda Priority Issues document, shall be pursued at the State level: A. Support of Economic Development Program Funding B. Protection of Cities and Towns from State-Shared Revenue Tax Cuts C. Oppose Measures That Allow State Government to Cost-Shift Programs to Local Governments to Balance State Budget - 1 - 11/24/2008 4:53:22 PMJHW D. Support Efforts to Preserve Access to Water Resources for Municipal Governments E. Maintenance and Support for Existing and New Transportation Funding F. Creation of aSub-Geographic-Based Sales Tax to Improve Major Transportation Corridors G. Support the CAGRD Request to Amend Bonding Authority and Approve a Membership Fee H. Collection of Assured Water Supply Credits for the Recharge of Storm-Water I. Support of Alternative Energy Source Requirements for Future Growth J. Support Establishment of a Pima County Sports Authority Section 4. Legislation that is inconsistent with any of the basic principles set forth in Sections 2 and 3 above should be opposed or appropriate amendments pursued. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 2nd day of December, 2008. ATTEST: Mayor Ed Honea ' ~ J,.. ocelyn C ronson, Town Clerk APPROVED AS TO FORM: ., i ~..~ ~. { `` rank C~Ssidy, Town Att ey t~~ - 2 - ///24/2008 4:53:22 PMJHW ~_ 2009 State Legislative Agenda Priority Issues The Town of Marana supports state appropriation, authorization and other legislative action for the following issues: • Support of Economic Development Program Funding • Protection of Cities and Towns from State-Shared Revenue Tax Cuts • Oppose Measures That Allow State Government to Cost-Shift Programs to Local Governments to Balance the State Budget • Support Efforts to Preserve Access to Water Resources for Municipal Government • Maintenance and Support for Existing and New Transportation Funding • Creation of aSub-Geographic-Based Sales Tax to Improve Major Transportation Corridors • Support the CAGRD Request to Amend Bonding Authority and Approve a Membership Fee • Collection of Assured Water Supply Credits for the Recharge of Storm- Water • Support of Alternative Energy Source Requirements for Future Growth • Support Establishment of a Pima County Sports Authority Su{~port and Funding of Economic Development Programs a Tools BACKGROUND: Attracting high-wage jobs to Arizona is critical to the State's economic health. Yet at a time of fierce competition for these jobs, Arizona lacks adequately funded tools to be successful. Cities and towns need additional support from the State for new_job attraction because they not only compete ~yith cities in other states but also frequently with state govermnents themselves. The state. is working on a program to support municipalities. In October 2007, Governor Napolitano formed the Arizona Economic Resource Organization (AFRO). This group is a bold new public/private pa~°tnership, set up as a nonprofit corporation. with representation from across the State. AFRO board members plan to collaborate on a regional basis and work with local economic development programs. AFRO also seeks to strengthen local economic development programs through coordinated. efforts. Additionally, tlae fe~v economic development tools tlae State of Arizona has in place have recently been called: into question. Incentive programs such as the Government Property Lease Excise Tax (GPLET) must be preserved by the State so that municipalities can continue to benefifi from their use. PRESENT STATUS: The Town of Marana has reached a critical juncture in its economic development efforts. In the short term, the TOFVn seeks to formulate and execute an economic development strategic plan to include infrastructure planning, high- wage jobs, and industry creation along key corridors. The Town is also actively working to build its future downtown area and central business district. The AFRO program is currently seeking seed funding to build a reserve of capital investment for economic development partnerships. Marana's population is expected to grow to nearly 100,000 by 2030 and 200,000 at build-out, with the need. for employment opportunities and tax base diversification becoming increasingly apparent. Therefore, additional state support is c~•itical to the economic sustainability of the Toc~~n. SPECIFIC REQUEST: The Town of Ittlarana urges the state legislature to identify, fund and implement economic development programs to provide support to Arizona communities. Furthermore, the Town urges lawmakers to maintain the existing economic development and incentive programs already used by municipalities, Financial incentives will attract high-tech. businesses with good-paying jabs to Marana that will improve the local economy, create tax revenue for the town, state and schools, and encourage similar businesses to move to this area. Protection of Cities and Towns from State-Shared Revenue Tax Cuts BACKGROUND: Arizona municipalities rely heavily on state-shared revenues to supply services. While tax cuts are ftequently viewed as being. beneficial to Arizona citizens, a reduction in state-shared revenues would severely impact local services. The state distributes to cities and towns 15% of income taxes two fiscal years following the fiscal year in which the state actually collects the income taxes. Each municipality's share of the revenues is allocated in proportion to its population compared to the total population of the state. Additionally, the municipality receives revenues ftom the State Shared Sales Tax. The. state establishes a base of which 25% is shared with all incorporated cities and towns. This revenue source is based on economic conditions during the year for which the income was taxed and is subject to fluctuations in employment, corporate profits, tax credits and exemptions. Additionally, the State Shared Sales Tax is highly dependent on consumer confidence, unemployment, interest rates. Most important, this revenue source is also subject to changes made by the state legislature. PRESENT STATUS: The Town of Marana's population grew according to the mid- decade census, thus adjusting its state-shared revenues significantly for the 06/07 fiscal year. For State Shared Income Taxes in fiscal year 08/09, the Town expects a 6% increase over fiscal year 07/08 to $3,989,771. For the State Shared Sales Taxes in fiscal year 08/09, based on figures provided by the Arizona Department of Revenue, the Town expects a 2% increase over fiscal year- 07/08 distribution to $2,496,844. However, the Town is already seeing reductions in the State Shared Sales Taxes distributions for fiscal year 08-09 due to the State economy. Additionally, the State of Arizona is predicting a budget shortfall in the current fiscal year of $1.2 billion. Frequently, state-shared revenues are the first place legislators look to find funds to address the shortfall. Revenue projections are a cornerstone of the budget process and the general fund, where shared sales and income tax revenues are deposited. These revenues combined are the second largest source of operating funds and comprise 19% of the general fund revenue budget. Although the Town evaluates projections such as growth, inflation, and recession, consistent shared revenues are needed to plan for the Town's fiscal health. SPECIFIC REQUEST: The Town of Marana requests that the state legislature hold all municipalities harmless in the event of tax cuts or revenue shortfalls. If the legislature implements a tax cut or there is an economic recession, state-shared funding levels should be maintained. Oppose Measures that Allow State Government to Cost- Shift Programs to Local Governments to Balance the State Budget BACKGROUND: When the Arizona Legislature and Governor Napolitano agreed on the FY 2009 budget of approximately $10 billion in expenditures, revenues were projected to increase by 6.1%. In contrast, the first quarter of the current fiscal year has experienced an 8.9% decrease in revenue from all three tax revenue categories (sales, individual income and corporate income tax). As a result, it is projected that the current fiscal year budget has a revenue shortfall of approximately $1.2 billion. Given existing economic conditions in Arizona,-the FY 2010 budget is currently projected to have an additional $2.2 to $3.0 billion revenue shortfall, depending on how the FY 2009 deficit is resolved. . Long term, the Joint Legislative Budget Committee is forecasting that sales tax and individual income tax collections will remain below FY 20071evels until FY 2012. Five major state program activities account for 92% of all state General Fund expenditures, with education leading all agencies with 44% of spending. Of the $ I O billion state budget, approximately 65% is either mandated spending based on statutory formulas or voter-protected. Accordingly, only $3.5 billion of a $10 billion budget is considered discretionary spending and, thus, available for reductions in spending or adjustments in priorities. PRESENT STATUS: Recognizing the significant declines in General Fund revenues, state government has been developing a menu of options to address the current and future revenue .shortfalls. Solutions include increasing taxes (unlikely), decreases in state spending, sweeping funds from non-General Fund programs to the General Fund, debt and various budget management options. In FY 2009, the enacted state budget. included a provision that required municipal governments to contribute nearly $30 million to assist in balancing the state budget. The Town of Marana's proportionate share was identified as $97,000. In response, the League of Arizona Cities and Towns filed a special action with the Arizona Supreme Court contending that the fund transfer violates a constitutional provision that requires two-thirds of the Legislature to approve any increase in state revenues. Additional litigation from private sector interests have also been filed in reaction to other fund transfers impacting industries and professional licensees. SPECIFIC REQUEST: Urge the Legislature to resist the temptation to shift state program expenditures to local governments in order to balance the state budget. Support Efforts to Preserve Access to Water Resources for Municipal Governments BACKGROUND: Despite the current economic conditions, population growth is projected to double within the Tucson Metropolitan Area by 2025. Based on previous growth trends, the Town of Marana is anticipated to experience one of the highest growth rates in the region. As a result, it is critical that the community continue to secure all necessary water resources in order to maintain current service demands as well as to prepare for future resource and service requirements generated by new residential and employment related development. PRESENT STATUS: Existing state statutes require municipal governments within Active Management Areas to develop and maintain adequate water resources to sustain development within each incorporated municipality. While state statutes governing water resources are imperfect, the current statutory requirements generally represent balanced water management criteria for limited resources between municipal, regional and state governments. SPECIFIC REQUEST: The Town of Marana urges the state legislature to continue to provide municipal governments with the statutory responsibility to develop and manage water resources in order to provide existing and future residents with appropriate levels of service. Maintenance and Support for Existing and New Transportation Funding BACKGROUND: The enormous growth of the State of Arizona and its counties, cities, and towns in recent years has placed a tremendous burden on local transportation systems. This scenario, coupled with large increases in construction costs, has generated a need for increased funding to complete the infrastructure required to address traffic congestion problems local governments are facing. At present, the Town of Marana, as well as other cities, towns and counties in Arizona, receives transportation funding in the form of three major funds: Highway Users Revenue Fund (HURF), Local Transportation Assistance Fund I (LTAF I), and Local Transportation Assistance Fund II (LTAF II). HURF, collected from motor fuel, vehicle registration, operator license, and other transportation-related taxes and fees, is limited to street and highway expenditures. Approximately 27.5 percent of HURF is distributed to cities and towns using a formula. based on population and overall fuel sales at the county leveh LTAF I, funded by proceeds from the Arizona Lottery, is restricted. to transportation-related uses and is distributed on a population formula to cities and towns. LTAF II funds are generated through a combination of revenues from the multi-state lottery game. Use of LTAF II funding is restricted to transit-related expenses only unless the distribution is less than $2,500. When significant budget deficits exist, legislators often consider cuts in state-collected, locally shared revenues. Economic downturns frequently accompany budget deficits. Thus, at a time when local jurisdictions can least afford cuts, state lawmakers are considering diversion of crucial funding. Any reduction in state-collected, locally shared revenues can have an erosive result in terms of meeting basic local needs. A cut in transportation funds, as a major source of state-shared revenues, can cause delays in timely repairs and maintenance of roadways,. increasing costs to local governments and taxpayers in the long run. PRESENT STATUS: Transportation funding remains a critical issue to the Town of Marana, which has experienced major population growth and urbanization. For fiscal year 08/09, the Town expected an increase of 12% in collected HURF funds over the previous year to $2,311,533. However, HURF revenues are down significantly for fiscal year 08-09 due, in part, to changes in consumer miles driven. HURF funding to Arizona cities. and towns is presently in danger. For example, one proposal current being considered by the state legislature would divert $106 million in HURF funding away from municipalities to pay for state Department of Public Safety (DPS) personnel and operating costs. LTAF II distributions vary from year to year, dependent on the revenue generated by the multi-state lottery game. The Governor's Budget management Plan, released in October 2008, has recommended the LATF II program be suspended in order to address the state's current fiscal crisis. SPECIFIC REQUEST: The Town of Marana supports legislation and/or administrative actions that protect existing state-shared transportation revenues and seek out new sources of transportation funding to assure adequate local community services and infrastructure. Creation of aSub-Geographic-Based Sales Tax to Improve Major Transportation Corridors BACKGROUND: The Interstate 10 (I-10) is a critical part of Southern Arizona's economy and transportation system. As a major highway vital for the movement of goods throughout the country, as well as the gateway into Pima County for visitors, the poor appearance of the route has long been a concern for regional coordinating bodies. Because of this problem, the Town of Marana expends general fund dollars for the regular landscaping and cleanup of its section of the freeway. Recently, the Pima Association of Governments (PAG) and other entities such as Tucson Regional Economic Opportunities (TREO), Inc., identified the I-10 as a key to the region's economic success and called for increased beautification efforts to aid in economic development. PRESENT STATUS: The Town would like the ability to create a source of funding and the authority to adopt a financing plan to address I-10 aesthetics. Currently, the Town can only adopt certain tax laws for specific activities. The ability to adopt asub-geographic- based sales tax that would increase the Town's sales tax and maintain the percentage the State receives in sales tax revenues is not presently among allowable taxing activities. This taxing system is unlike a tax increment finance plan which takes a percentage of the state's portion of sales tax revenues. The sub-geographic-based sales tax would effectively set differential tax rates in areas within a certain distance of the I-10 corridor within the Town limits. The ability to add a 0.5% sales tax within the designated area would create funds that would be specifically dedicated to the clean-up and development of I-10. SPECIFIC REQUEST: The Town of Marana urges the state legislature to create enabling legislation to allow sub-geographic-based sales taxes. This legislation would create a sales tax increase in a specific region along the I-10 and would not cut into state sales tax revenues. Revenues from this tax would be dedicated to specifically improve and maintain this area, including infrastructure additions and improvements and artistic enhancements that improve the quality of life and economic development efforts. Support the CAGRD Request to Amend Bonding Authority and Approve a Membership Fee BACKGROUND: Acquisition and development of water resources for the purpose Central Arizona Groundwater Replenishment District obligations is an obligation of the CARGD staff. In late 2008 the Board of Directors requested staff to evaluate the option of issuing revenue bonds and payment options for these bonds so the acquisitions of new supplies could be undertaken as soon as possible. CARGD staff members met with Arizona stakeholders to discuss revenue bonding and fee options. During this process the development of a membership fee was developed. The membership fee would be assessed to all member lands and member service areas regardless of volume of excess groundwater used by the member. PRESENT STATUS: The proposed legislation increases the maximum aggregate outstanding principle on bonds issued by CAWCD from $250 million to $500 million. It authorizes the collection of membership fees to be used for the acquisition of water rights and development of infrastructure, including bond debt service. The proposed legislative language specifies the membership fee will be divided between member lands and member service areas based on CAGRD's projected replenishment obligations for each member type: a. For member lands -from the current Plan of Operation based on the projected build-out obligation for all member lands projected to be enrolled through the 10 year plan period. b. For member. service areas -based on the total of the maximum replenishment obligation identified by ADWR in each member service area's Designation of Assured Water Supply (unless a member can demonstrate a lower volume) SPECIFIC REQUEST: Tl~e Town. of Marana urges the State Legislature to approve the CAWCDJCARGD request to amend the bonding authority and adopt a member fee for the acquisition and development of water resources. Such a vote supports the overall. need for Arizona to acquire new water rights and equitably splits the financial responsibility between all parties who have joined the CAGRD. Collection of Assured Water Supply (AWS) .Credits for the Recharge of Storm-Water BACKGROUND: Arizona Revised Statutes (ARS) Title 45 currently does not allow for storm water to be detained and stored within an Active Management Area (AMA). The flow of water may be slowed, but cannot be "permanently" detained. As such, entities also are not permitted to earn credit toward their assured water supply for water that is recharged through storm water retention basins. Many cities, towns, and counties currently require that any developer responsible for a large project include aretention/detention basin that will handle the run off that is created as a result of the nonporous nature of that development. These basins are intended to capture the water that would have otherwise naturally percolated had the land not been disturbed. These basins serve the same function as a constructed recharge facility except that the volume of water that enters these facilities is not measured. It is possible for municipalities to measure the amount of water captured and recharged by these basins, in essence making them equal to a constructed recharge facility. PRESENT STATUS: Currently, ARS Title 45 does not allow for the entity (municipality, water provider, etc.) to earn assured water supply (AWS) credits for storm water recharged using the process described above. SPECIFIC REQUEST: The Town of Marana requests that the state legislature amend the Arizona Revised Statutes Title 45, which would allow governments to collect storm water that is generated on private land within their jurisdiction, and to then recharge such water for credit toward their Assured Water Supply. Support of Alternative Energy Source Requirements for Future Growth BACKGROUND: Although Arizona is a state that has long been known for its abundance of sunshine, efforts to maximize utilization of solar energy have never taken hold. In 2006, the Arizona Corporation Commission (ACC) released its Renewable Energy Standard Portfolio, which calls for an increased emphasis through 2025 on maximizing Arizona's renewable energy sources, including solar energy, as the State's population continues to grow at a dramatic rate. A section of the Renewable Energy Standard Portfolio, known as the Renewable Energy Standard and Tariff Rules, identifies additional technologies and resources as eligible renewable resources and gradually increases the required portfolio percentage of renewable energy resources for affected. utilities from 1.25% up to 15% by 2025. In addition to solar energy, the mandate also creates provisions for the use of wind, geothermal, and biomass as alternative energy sources. PRESENT STATUS: For 2008, the ACC's Renewable Energy Standard and Tariff Rules mandate that affected utilities satisfy an Annual Renewable Energy Requirement in the amount of 1.75% of the retail kilowatt hours (kWh) sold during the calendar year. In her 2008 State of the State Address, Arizona Governor Janet Napolitano voiced support for the ACC's renewable energy requirement schedule as well as increasing Arizona's opportunities to utilize alternative energy sources, such as solar energy, for new development. SPECIFIC REQUEST: The Town of Marana supports the Arizona Corporation Commission's Renewable Energy Standard Portfolio and encourages the State to continue to research, authorize, and fund programs which seek to reduce Arizona's reliance on non-renewable energy sources for future growth. Authorization of a Pima County Sports and Taurism Authority to Support Spring Training Retention and Expansion BACKGROUND: Major League Baseball has had a presence in the Tucson Metropolitan Area since 1947, when the Cleveland Indians relocated their training efforts to the region. The Colorado Rockies replaced. the Indians in 1993 at Hi Corbett Field. in Tucson, and in 1998 the Arizona Diamondbacks and Chicago VG~hite Sox commenced their training activities at Tucson Electric Park in unincorporated Pima County. In Novera~ber 2008, the Chicago White Sox organization severed its current contract with Puna County for spring training and selected Glendale, Arizona. as its future home. The reason behind the team's announcement was the poor quality of athletic facilities in Pima County and the small number of teams located in the region. The Glendale stadium is currently being constructed by the City of Glendale with partial reimbursement by the Maricopa County Sports and Tourism Authority, which assesses acounty-wide tax to support both major league and minor league sports activities. The White Sox contract formally ended with Pima County accepting a $5 million buyout from the team.. Since the November 2008 announcement, both the Rockies and Diamondbacks organizations have publicly announced plans to exercise clauses in their respective contracts which allow them to cancel their contracts with the City ofTucson and Pirna County should the number of teams in the region ever fall. below three. These teams have also cited. poor facilities as the primary reason. behind their desire to leave Southern. Arizona. The economic impact of losing spring training baseball in Southern. Arizona has been estimated at up to $30 million annually. PRESENT STATUS: In late 2007, following rumors that the Southern Arizona spring training teams were considering severing their contracts with local governments, leaders from around. the region began to develop a plan of action. In early 2008, Pima County approved the formation of an interim Sports and Tourism Authority whose primary objective `~=as to persuade the Arizona State Legislature to grant Pima County the authority to form a permanent, tax assessing Authority, similar to that of Maricopa County. In order far the Authority to become effective, Pima County would have to use the Legislature's authorization to put to a vote of the people a new .taxing authority, which would then add a small sales tax county-u-ide to fund sports facilities. Ho«=ever, this authorization bill was never considered by the Legislature during the 2008 session. Also in 2008, Town of Marana officials met with the management of the Colorado Rockies organization to discuss a possible spring training facility in lVlarana, While the team was interested in various locations in M. arana, it was determined that without a permanent taxing source such as a Sports and Tourism Authority; financing such a facility tivould be near impossible. SPECIFIC REQti.EST: The Totian of Marano urges the State Legislature to approve a bill authorizing Pima County to put to a vote of the people the creation of a permanent, tax assessing Sports and Tourism Authority. Such a vote would allow Pima County voters to decide for themselves the importance of spring training baseball and the economic development opportunities associated with professional sports team facilities.