CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: Letter of Support for the California Cities $1.6 Billion State Budget Priorities Meeting Date: June 14, 2022
RECOMMENDATION:
The City Council will consider approving a Letter of Support for the 2022-23 State Budget request to invest $1.6 billion dollars towards the vitality of cities.
BACKGROUND:
On May 13, Governor Newsom released his May Revise which included an inflation relief plan and spending priorities on education and the environment. Missing from the unprecedented $300 billion budget – with an estimated $97.5 billion surplus – is a permanent on-going funding source for housing programs to address the state’s housing crisis, as well as other city-related priorities.
As lawmakers continue budget negotiations to pass a final balanced budget before the June 15 constitutional deadline, Cal Cities (the League of California Cities, which City of Commerce is a member of), is calling on lawmakers to use the state’s historic surplus to allocate $1.6 billion for programs that achieve shared city and state goals for housing and climate resiliency, as well as reimburse cities for unfunded, state-mandated programs. $500 million for the creation of the Housing and Economic Development Program: The elimination of redevelopment agencies in 2011 stripped local governments of the most powerful and successful tool to revitalize urban cores, help jumpstart the construction of affordable housing, and support economic development activities. The loss of this tool also hinders local officials’ ability to help advance the state’s bold climate policy objectives, including minimizing vehicle miles traveled and reducing greenhouse gas emissions. This is why establishing the Housing and Economic Development Program is crucial to achieving our housing supply and climate action goals.
Cal Cities urge the Governor and lawmakers to allocate $500 million to create a state-local partnership to help finance housing projects, incentivize development, and kick start real progress toward housing production goals. This program would encourage partnerships between state and local agencies by providing matching funds to cities that adopt local tax increment financing tools to support affordable housing, upgrade essential infrastructure, and spur economic development. $933.5 million for local governments for costs owed for state-mandated programs: According to data obtained from the State Controller’s Office, as of October 2021, the state owes cities, counties, and special districts $933.5 million, including estimated accrued interest, in mandated costs incurred since 2004 through fiscal year 2019-20. $180 million for organic waste recycling: The Department of Resources Recycling and Recovery’s (CalRecycle) Organic Waste Reduction Regulations (SB 1383), adopted in November 2020, require local governments to reduce landfill disposal of organic waste 75% by 2025 and to increase edible food waste recovery 20%. Compliance obligations for local governments began in early 2022 and local governments continue to develop a comprehensive suite of local collection, enforcement, and funding programs. The 2021 Budget Act included $60 million to create the SB 1383 local assistance grant program, however, additional funding is greatly needed.
ALTERNATIVES:
1. Approve as to form as outlined by staff herein.
2. Provide alternative direction.
3. Not approve the motion to approve the grant agreement.
FISCAL IMPACT:
Preparation of the Support Letter can be carried out with no fiscal impact on the City of Commerce.
RELATIONSHIP TO STRATEGIC GOALS:
This agenda item relates to the 2016 Strategic Plan:
Community Quality of Life
Guiding Principle #5
Foster environmentally conscious initiatives and continue to identify and develop City codes that support a clean, well-maintained, sustainable community.
Respectfully submitted: Edgar P. Cisneros, City Manager Prepared by: Lena Shumway, Director of Administrative Services and City Clerk Approved as to form: Noel Tapia, City Attorney
ATTACHMENTS:
Draft Support Letter