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HomeMy WebLinkAbout1993-09-20; Parks & Recreation Commission; 993-12; AB 2007PARKS & RECREATION COMMISSION - AGENDA BILL TITLE: AB 2007 (INFO)06 RECOMMENDED ACTION: Accept and file staff update. ITEM EXPLANATION; Over the past six months, the Parks and Recreation Directors from cities and other park jurisdictions throughout San Diego County, have been meeting to discuss and share information and ideas relative to benefiting the field of Parks, Recreation and Leisure Services in San Diego County. As a result of those meetings, information was presented during a meeting held on September 9,1993. During that meeting, it was revealed that an initiative is well underway which would establish the formation of a San Diego County Regional Park and Open Space District as a regional funding mechanism to provide funds for park acquisition, development, and operations to all jurisdictions within the County (Exhibit 1). Assembly Bill 2007 (Alpert) (Exhibit 2), as we understand, is currently awaiting the Governor's signature which would authorize a vote of the people in San Diego County to assess a fee in order to provide for regionally significant park acquisition, development, and operations. In essence, the initiative would create a county-wide assessment district to benefit parks and open space. Although this information is new to our department and the procedure for implementation of this proposed assembly bill is somewhat controversial, the San Diego Association of Governments (SANDAG), of which the City of Carlsbad is a member, has submitted a recommendation relative to AB 2007 (Exhibit 3). The SANDAG Executive Committee referred AB 2007 to SANDAG's Open Space Citizens' Advisory Committee. The Citizens' Committee recommends support of the bill as a 'tool" and that it be amended to require consistency with the Open Space Element of the Regional Growth Management Strategy. Pursuant to the Citizens' Committee recommendation, the Executive Committee has made recommendations relative to amending AB 2007 (Exhibit 3, Pg. 2). Specifically, those recommendations are: Require SANDAG, serving as the Regional Growth Management Review Board, to determine consistency between the district's plans and the open space element of the Regional Growth Management Strategy, and reimburse it for its costs. 069 Page 2 Limit administrative costs from 1 % to 3%, depending on the amount of district revenues to be derived from the measure. Authorize agencies such as the San Dieguito River Park JPA to receive project funds under the act. At the conclusion of the September 9, 1993 county park director's meeting, each city has been asked by the County Director (Bob Copper) to submit projects for funding under AB 2007. Because the City has not taken an official position of support of AB 2007 at this time, staff will only submit a list of conceptual projects noting that they require appropriate approvals from the Manager's office, Parks and Recreation Commission, and the City Council. Examples of projects that fit the preliminary criteria and that .would benefit Carlsbad residents are: The open space and city-wide trail system, Poinsettia Community Park Phase II or III, Hosp Grove/Buena Vista Lagoon improvements, and various park restoration projects. EXHIBITS: 1. Letter from Director of San Diego County Parks and Recreation 2. Proposed Assembly Bill 2007 (Alpert) 3. Memo: SANDAG-Regional Open Space Technical Advisory Committee 070 Olountg of Jian JB ROBERT R COPPER DIRECTOR <6.9i 69A-3030 DEPARTMENT OF PARKS AND RECREATION S2O1 RUFFIN ROAO SUITE P. SAN DIEGO. CALIFORNIA 92123-1699 August 19, 1993 Dear Colleagues: This is a follow-up to the letter you received from David Wigginton regarding the next County Director's meeting. On August 5, 1993 I met with you to discuss the potential formation of a San Diego County Regional Park and Open Space District as a regional funding mechanism to provide funds for park acquisition, development and operations to all jurisdictions in the County. At that meeting you expressed interest in meeting with the representatives who successfully ran the Proposition A campaign in Los Angeles County. Proposition A created an Open Space and Park District and identified $540 million of parks projects for the next twenty-two years. We have arranged for Esther Feldman, Special Projects Director from the Mountains, Recreation and Conservation Authority (MRCA) to attend the September 9th meeting of the County Directors to answer questions and acquaint you with their success. This meeting will provide an opportunity to begin to assess our park and recreation needs in the San Diego region. Please come •prepared to share your park and recreation needs and your top priority projects. This will be a rough draft but it will help us begin to focus on what will be on the ballot. I have enclosed an agenda for the meeting. I look forward to working with you to develop a measure that will provide capital and operations funding and that will guarantee our communities and our citizens the stable delivery of park services for many years to come. See you on September 9th! „-••—"s t ,.-""-> /Sincerely^ - y. ROBERT R. COPPER, Director Parks & Recreation Department RRC:jp Enclosure EXHIBIT 1 071 AGENDA COUNTY PARK AND RECREATION DIRECTORS MEETING September 9, 1993 1:30 - 3:30 p.m. 5201 Ruffin Road Social Services Training Room C FUNDING FOR OUR PARK, RECREATION AND OPEN SPACE NEEDS I. Proposition A, L.A. County Briefing by Esther Feldman on success of $540 million ballot measure in Los Angeles County to fund park, recreation and open space lands II. Funding Options A. State-wide Bond Measures B. County Funds C. City Funds D. Regional Park and Open Space District III. Identification of Needs in San Diego County A. Ball Fields B. Playgrounds C. Community Parks D. Open Space E. Rehabilitation Project F. Trails G. Operations and Maintenance IV. Potential Support A. Civic Groups B. Homeowners Associations C. Sports and Athletics D. Recreation Councils E. City Councils F. Other V. Potential Opposition Organizations VI. Next Steps 072 In bill text, brackets have special meaning: [A> <A] contains added text, and [D> <D] contains deleted text. Enrolled ASSEMBLY BILL No. 2007 Passed the Assembly September 3, 1993 Chief Clerk of the Assembly Passed the Senate August 31, 1993 Secretary of the Senate This bill was received by the Governor this day of , 1992, at o'clock M. Private Secretary of the Governor CHAPTER Alpert An act to add Sections 5506.3, 5538.3, and 5539.3 to the Public Resources Code, relating to regional park or open-space districts. LEGISLATIVE COUNSEL'S DIGEST AB 2007, Alpert. Regional park or open-space districts: San Diego County. Under existing law, a regional park district, regional park and open-space district, or regional open-space district may generally only be formed upon presentation of a petition, among other things, signed by at least 5,000 residents, to the board of supervisors of the county containing the largest area within the proposed district. Upon receipt of the petition, the board of supervisors is required to hold a hearing, pass a resolution approving or denying the petition, and call an election, if the petition is approved, to approve or disapprove formation of the district and to elect district directors. Existing law authorizes the board of directors of a district to levy assessments. This bill would permit proceedings for the formation of a regional park and open-space district or a regional open-space district in San Diego County to be initiated by resolution of the county board of supervisors adopted after a noticed hearing. The bill would specify the contents of the resolution, including a requirement to call an election, as prescribed. The bill would prescribe related powers and duties of the regional district, if formed, including requirements applicable to any assessment levied by the district. The bill would make related legislative findings and declarations. The people of the State of California do enact as follows: SECTION 1. Section 5506.3 is added to the Public Resources Code, to read: 5506.3. (a) (1) The Legislature hereby finds and declares that the population of San Diego County continues to grow at an increasing rate, and already the county is far behind other urban areas in the state in providing adequate park, recreational, and open-space facilities for its residents. Formation of a regional district with boundaries coterminous with those of San Diego County is critical to help address the growing and unmet park and recreational needs in San Diego County. (2) Proceedings for the formation of a regional park and open-space district or a regional open-space district with boundaries coterminous with those of San Diego County may be initiated by resolution of the Board of Supervisors of the County of San Diego after a hearing noticed in accordance with Section 6064 of the Government Code, in lieu of the petition and proceedings related to the petition specified in this article. (b) As used in this section and Sections 5538.3 and 5539.3: (1) "Regional district" means a district formed pursuant to this section that contains all of the territory within San Diego County, including all incorporated cities. (2) "Capital outlay project" means the acquisition or improvement of real property, but, for purposes of subdivision (c) includes the servicing of bonds issued pursuant to Section 5539.3. (c) The resolution specified in subdivision (a) shall do all of the following: (1) Name the proposed regional district and state the reasons for forming it. (2) Specify that the Board of Supervisors of the County of San Diego shall act, ex officio, as the governing body of the regional district. The provisions of this article pertaining to district directors do not apply, and all powers and authority of the regional district shall be vested in the board of supervisors in its capacity as the governing body of the regional district. (3) Describe the territory to be included in the regional district. (4) Describe the methods by which the regional district will be financed. (5) (A) Specify that all revenue generated by the regional district, including the proceeds from the issuance of any bonds, shall be allocated among all affected public agencies within the territory of the district, for expenditure consistent with the purposes of this article, to adequately address the needs specified in subdivision (a) of Section 5539.3. 074 (B) For the purposes of this paragraph, "all affected public agencies" means the County of San Diego, all incorporated cities within the county, and any joint powers authority or agency established for the purpose of acquiring land for park, recreational, open-space, and conservation purposes. (6) (A) Call and give notice of an election to be held in the proposed regional district for the purpose of determining whether the regional district shall be formed. (B) Notwithstanding Section 5518, the County Counsel of the County of San Diego shall prepare the language in the ballot label. The proposition shall specify the matters set forth in the resolution, except for subparagraph (A). The analysis and review of the measure shall be carried out pursuant to Section 3781 of the Elections Code. (7) State that, in the first 20 years after the date that an assessment is levied pursuant to Section 5539.3, a minimum of 80 percent of all proceeds of assessments levied by the regional district shall be used for capital outlay projects. (8) Include an expenditure plan consisting of a list of capital outlay projects, including acquisition areas, and a general description of proposed outlays for operation and maintenance to be funded, over a 20-year period from the date on which the assessment is first levied, with proceeds of assessments levied by the regional district. (9) State the proposed rate and method of apportionment to be used in levying annual assessments for all categories of property. (10) Include any other matters determined to be necessary by the board of supervisors. (d) (1) The formation of the regional district is not subject to Section 5517.1 or to the Cortese-Knox Local Government Reorganization Act of 1985 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code). (2) The regional district shall be formed if a majority of voters voting on the proposition vote in favor of formation of the regional district. (e) (1) No proceeds from any bonds issued pursuant to Section 5539.3 shall be expended for operation and maintenance. Bond proceeds may be expended to pay all costs incidental to the preparation and issuance of the bonds. (2) The regional district may use the proceeds from the levy of assessments for the operation and maintenance of capital outlay projects. (f) The San Diego Association of Governments, serving as the Regional Planning and Growth Management Review Board, should review the expenditure plan for consistency with the open-space element of the Regional Growth Management Strategy. SEC. 2. Section 5538.3 is added to the Public Resources Code, to read: 075 5538.3. The officers and employees of the County of San Diego may act, ex officio, as officers and employees of the regional district formed pursuant to Section 5506.3 and may discharge the authority and responsibility specified in this article. The County of San Diego may provide the services and facilities needed to carry out the functions of the regional district. The proceeds of assessments levied pursuant to Section 5539.3 may be expended to reimburse the county for the actual costs of those services and facilities. SEC. 3. Section 5539.3 is added to the Public Resources Code, to read: 5539.3. (a) (1) The Legislature hereby finds and declares that the land acquisition, improvements, and services provided by the regional district formed pursuant to Section 5506.3 will specifically benefit the properties assessed and the persons paying the assessments authorized in this section in at least the following respects: (A) Enhanced recreational opportunities and expanded access to recreational facilities for all residents throughout the regional district. (B) Improved quality of life for all communities in the regional district by protecting, restoring, and improving the regional district's irreplaceable park, wildlife, open-space, and beach lands. (C) Preservation of canyons, foothills, and mountains and development of public access to these lands throughout the regional district. (D) Protection of the diverse historical, cultural, and archaeological values of the territory of the regional district. (E) Increased economic activity and expanded employment opportunities within the regional district. (F) Increased property values, resulting from the benefits specified in this subdivision. (G) Provision of benefits to all properties within the regional district, including positive impacts on air and water quality, capacity of roads, transportation and other public infrastructure systems, schools, and public utilities. (2) The Legislature further finds and declares all of the following: (A) The expansion, restoration, and improvement of park, recreational, beach, and open-space lands throughout the regional district benefits all residents in the regional district. (B) Protection, restoration, and improvement of the lands within the regional district are vital to the quality of life for all residents in the regional district. (C) Increased park and recreational opportunities in the densely populated and heavily urbanized areas of the regional district are vital to the health and well-being of all residents in the regional district, and providing those opportunities is a high priority. (D) Portions of parcels of land that are in commercial agricultural use do not benefit from park or open-space lands, facilities, or services funded pursuant to this section. (b) In addition to the authority conferred in Section 5539.5, to the extent not inconsistent with this section, all provisions of the Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code), are applicable to the regional district, except as follows: (1) Article 2 (commencing with Section 22605) of Chapter 2 of Part 2 of Division 15 of the Streets and Highways Code does not apply. (2) No changes shall be made pursuant to Chapter 3 (commencing with Section 22620) of Part 2 of Division 15 of the Streets and Highways Code or Section 5572 of this code with respect to the rate and method of apportionment of assessments, the use of proceeds of assessments, the use of proceeds of bonds, and the territory included within the district, except that the governing body may correct errors in assessments, rule on appeals of assessments against particular parcels, and annually adjust the assessments levied against particular parcels of real property to reflect changes in the uses of those parcels. (3) No changes shall be made to the rate and method of apportionment of any assessment approved by the voters and levied pursuant to this section. (4) In addition to the items required by Section 22567 of the Streets and Highways Code, the regional district's annual report shall include all of the following: (A) Changes in the total number of parcels assessed and changes in the number of parcels with respect to use code. (B) The amount of revenue expected to be received by the regional district in the next fiscal year. (C) The proposed allocation of funds for operation and maintenance for the next fiscal year. (D) The expenditure of funds in the current fiscal year. (5) Any notice required pursuant to the Landscaping and Lighting Act of 1972, Section 54954.6 of the Government Code, or Section 5511 shall be published pursuant to Section 6064 of the Government Code. (6) (A) (i) The governing body shall not levy any assessment unless a proposition authorizing the regional district to levy the assessment is first approved by a majority of the voters voting on the proposition. The proposition shall include the matters specified in subdivision (c) of Section 5506.3, except for paragraph (6). The election held pursuant to this paragraph shall satisfy the requirement for any election that may be required under Section 22525.5 of the Streets and Highways Code. (ii) No additional assessment shall be levied pursuant to this section, including any assessment for time periods beyond those specified in paragraphs (7) and (8) of subdivision (c) of Section 5506.3, unless a proposition, including the provisions specified in paragraphs (5), (8), and (9) of subdivision (c) of Section 5506.3, is approved by a majority of the voters in the regional district voting on the proposition. (B) Notwithstanding Section 5518, the County Counsel of the County of San Diego shall prepare the language in the ballot label. The analysis and review of the measure shall be carried out pursuant to Section 3781 of the Elections Code. (C) The Board of Supervisors of San Diego County may consolidate a proposition submitted to the voters pursuant to this paragraph into a single ballot measure with the proposition whether to form the regional district submitted pursuant to paragraph (6) of subdivision (c) of Section 5506.3. (D) Notwithstanding any other provision of the Landscaping and Lighting Act of 1972, any assessment proposed pursuant to that act shall be deemed levied upon approval of a majority of the voters voting on the proposition. (7) (A) All proceeds of assess :s levied or bonds issued by the regional district shall be allocate: in accordance with paragraphs (5) and (8) of subdivision (c) of Section 5506.3. (B) Any future expenditure plan shall include a division of funds between expenditures for capital outlay projects and expenditures for operation and maintenance, a list of proposed capital outlay projects, and a description of areas proposed for acquisition. No expenditure plan shall contain any provision that may impair the payment of debt service on bonds or other evidence of indebtedness previously issued pursuant to this section. Any assessment levied pursuant to this section may include an annual amount to pay the costs of operation and maintenance and may be collected in annual installments. (c) Prior to the election required by paragraph (6) of subdivision (b), the Board of Supervisors of San Diego County may undertake proceedings on behalf of the proposed regional district in accordance with Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code to create an assessment district with the same boundaries as the proposed regional district. Hearings required pursuant to Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code may be consolidated with those required pursuant to this article. Those proceedings shall be deemed to be the proceedings required by Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code. (d) (1) The governing body shall exempt from assessment any uninhabited parcel that is substantially used in agriculture and any parcel enforceably restricted as open-space land during the time that the parcel is so used or restricted, if the governing body determines that the parcel will not benefit from the expenditure of the proceeds of assessments. (2) For purposes of this subdivision, lands that are enforceably restricted as open-space lands include, but are not limited to, lands restricted under contract pursuant to the Williamson Act (Chapter 7 (commencing with Section 51200) of Part 1 of Division 1 of Title 5 of the Government Code) and lands restricted pursuant to a conservation easement. (e) Notwithstanding any other provision in the acts specified in Section 5539.5 and in subdivision (b), the net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each lot or parcel from the improvements. (f) The regional district shall not levy assessments beyond the last maturity date of any bonds issued pursuant to Section 5539.3 nor longer than 30 years from the date on which the assessment is first levied. (g) The regional district shall not levy an assessment within a city or within the unincorporated territory of the county if the city or the county has adopted an ordinance limiting rents, which ordinance applies to real property other than mobilehome parks, unless one of the following applies: (1) Under the ordinance, the owner of the real property is permitted to increase directly without filing requirements, the rent rate owed by a tenant under an existing lease in an amount not less than that tenant's proportional share of one-half of the increased assessment applied to the real property. (2) An amount not less than a tenant's proportional share of one-half of the increased assessment applied to the real property is added to an annual general adjustment to the rental rate owed by that tenant. SEC. 4. The Legislature hereby declares that this measure is intended to provide an additional mechanism to fund park, open-space, and recreational projects and programs in San Diego County. This measure is not intended to affect or otherwise limit the ability of any public agency to exercise any authority that the public agency may otherwise have under existing law. SEC. 5. If any provision of this act or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. Approved , 1992 Governor END OF REPORT 079 09/10/93 City of Carlsbad Page 1 4953 CA AB 2007 AUTHOR: Alpert TITLE: Regional park/open-space districts: San Diego Co. INTRODUCED: 03/05/93 LAST AMEND: 08/26/93 LOCATION: To enrollment SUMMARY: Permits proceedings for the formation of a regional park and open-space district or a regional open-space district in San Diego County to be initiated by resolution of the county board of supervisors adopted after a noticed hearing. Specifies the contents of the resolution, including a requirement to call an election. STATUS: 09/03/93 In ASSEMBLY, amendments. ASSEMBLY concurred in SENATE To enrollment. END OF REPORT 080 CONCURRENCE IN SENATE AMENDMENTS AB 2007 (Alpert) - As Amended: August 26, 1993 ASSEMBLY VOTE 50-23 ( June 9, 1993 )SENATE VOTE 24-7 ( August 31, 1993 Original Committee Reference: L. GOV. DIGEST Existing law authorizes regional park, park and open space, and open space districts to purchase, hold, and use real property to carry out certain purposes. Proceedings are initiated by submitting a petition with at least 5,000 signatures to the county board of supervisors, with exceptions for certain counties. As passed by the Assembly, this bill establishes procedures for the formation and operation of a regional park and open space district in San Diego County which: 1) Authorized the county board of supervisors to initiate formation of the district by resolution after a noticed public hearing, rather than by petition. The resolution must contain certain information (eq., methods to finance the district, expenditure plan, rate and method of apportionment). District formation would be subject to approval by a majority of the 5 voters, and the district would be governed by the board of supervisors. 2) Provided that the district territory Is coterminous with the county, and district formation would not be-subject to the Cortese-Knox Local Government Reorganization Act of 1985. 3) Allowed county officers and employees to act as ex-officio officers and employees of the district. The county may provide services and facilities, and assessment proceeds may be used to reimburse the county for actual costs of these services and facilities. 4) Prohibited the district from levying assessments under the Landscaping and Lighting Act of 1972 unless a majority of the voters approve an authorizing proposition. The assessed amount may be apportioned by a formula which fairly distributes it among till lots or parcels in proportion to the benefits. The district may only make changes to correct errors in assessments and annually adjust the assessments to reflect changes in use. Uninhabited, agricultural, and open space land may be exempt from the assessment. .5) Prohibited bond proceeds from being used for any operations or maintenance, and at least 80% of assessment proceeds must be used for capital outlay projects. Bond proceeds must be allocated to all affected agencies in the district and cannot be expended for operation and maintenance. 6) Allowed the board to consolidate the formation and assessment propositions. The county counsel must prepare the ballot language, setting forth certain matters, as well as the analysis and review in accordance with Elections Code procedures. 081 The Senate amendments: 1) Specify that the San Diego Association of Governments should review the expenditure plan for consistency with the regional open space element. 2) Specify that portions of parcels in commercial agricultural use do not benefit from the funded park lands, facilities, or services. 3) Clarify definitions, terms, notice, and election procedures. 4) Prohibit the district from levying an assessment in a city or in unincorporated territory where an ordinance limits rents (other than for mobilehome parks) unless the owner is permitted by the ordinance to increase the tenant's rent by 50% of the increased assessment. FISCAL EFFECT No known fiscal effect. COMMENTS According to The Trust for Public Land, this bill is needed because: a) population growth is increasing the need for park and open space facilities; b) facilities are needed to provide youth with positive alternatives to drugs, gangs, and juvenile delinquency; c) conflicts with endangered species can be avoided if funds are provided soon to set aside needed habitat areas and reduce development project construction delays; and d) the Legislature's ability to help fund park projects has decreased 91% over the past five years. -•- Current law sets procedures for creating a regional park district, and certain counties have provisions which differ from the standard procedures. Formation by the board of supervisors is allowed in Los Angeles, Marin, Napa, Riverside, San Bernardino, and Sonoma counties. The respective boards of supervisors serve as the governing bodies, The Landscaping and Lighting Act of 1972 is also available to the Los Angeles,-Riverside, and San Bernardino county districts. Assessments under this Act, as with other assessment acts, are levied without voter approval. Nevertheless, assessments in these three districts, as well as the assessment proposed in this bill, must be approved by a majority of the voters. All notices must be published once a week for four successive weeks in a newspaper of general circulation. This bill is patterned after procedures provided for the Los Angeles County regional park district enacted by SB 659 (Hill) Chapter 823, Statutes of 1991, and for Sacramento County provided under SB 730 (Johnston). Proposition A, the Los Angeles County Safe Neighborhood Park Act, earmarked .$540 million for various park projects and was approved by 64% of the county voters. Randy Pestor 445-6034 END OF REPORT July 9, 1993 San Diego ASSOCIATION OF GOVERNMENTS Suite 800. First Interstate Plaza 401 8 Street San Diego. California 92101 (619)595-5300 Fax (619)595-5305 TO: FROM: Regional Open Space Technical Advisory Committee Ruth Potter SUBJECT: AB 2007, Proposed Amendments AB 2007 (Alpert) has passed the Assembly and will be heard in the Senate Local Government 'Committee on July 14, 1993. ." - • ;- \ The Citizens Advisory Committee for Open Space reviewed the bill at its meeting on June 28th. While the Committee members believed that the legislation could be useful in carrying out the .Region's Open Space Element, they suggested that changes be made to include SANDAG review of projects to ensure consistency with the Regional Growth Management Strategy and the Open Space Element. The SANDAG Executive Committee, meeting on July 9, 1993, will consider proposed amendments (see attached Executive Committee report). Members of the TAG should inform Planning Directors, Parks and Recreation Directors and City Managers (CAO) of the bill (attached) and the amendments proposed. 083 EXHIBIT 3 MEMBER AGENCIES; Cities of Carlsbad. Cnula Vlsia, Coronado. Del Mar. El Caion, Encinitas. Escondldo. Imperial Beach. La Mesa. Lemon Grove, Nntionnl City. Ocaanside, Poway. San Olego. San Marcos, Santee. Solana Beach. Vista and County of San Diego. ADVISORY/LIAISON MEMBERS: California Department of Transportation, U.S. Department of Defense and Tl|uana/8a|a California. Item "a" (3) July 9, 1993 LEGISLATIVE UPDATE: 3. AB 2007 (ALPERT): SAN DIEGO COUNTY REGIONAL PARK AND OPEN SPACE DISTRICT Introduction AB 2007 would allow the formation of a regional park and open space district if approved by a majority of the area's voters. In June, the Executive Committee referred the bill to SANDAG's Open Space Citizens Advisory Committee. The Citizens Committee recommends support of the bill as "a tool", and that it be amended to require consistency with the Open Space Element of the Regional Growth Management Strategy. Therefore, it is my RECOMMENDATION that the Executive Committee, subject to ratification by the Board of Directors, propose amendments to AB 2007 that would: • require SANDAG, serving as the Regional Growth Management Review Board, to determine consistency between the district's plans and the open space element of the Regional Growth Management Strategy, and reimburse it for its costs; • limit administrative costs from 1% to 3%, depending on the amount of district revenues to be derived from the measure. • authorize agencies such as the San Dieguito River Park JPA to receive project funds under the act. ENNETH E. 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KJb "»^ 2 ?nBsli*s^?l|a «« ax « 5<x- _Q fli <-i ~n ni U «J .C.£ -C-S^ ^ *^ ^4 g*c •BoSist3cafl.?ov--s'=«uS ]S| .J°1^5^|l S*&!JJ2 |f x-SilSSI-all^llls^Sil-isl«^l§5«£tS5S§.-a<=^|2el-s.^^'£??=^s 2 * ss5l*lfll«Ssi85ll«^si!!88ir*s8.s'-g s c-2-21 o 1 sl-al ss^lss^-cl£ gg-aa- g•£§§-§ gas.--a5^ss«5-Se,5 S&g'&aa ^Ss TAXES New Taxes: Di< A cool-headed look at the fine print About 110 million Americans will file individual tax returns next spring. On 108 million of them, .r^ taxes will take a smaller bite than they did this year. That's right: smaller. Iiilinitesimally, to be sure, but small- er nonetheless. That's true despite what's been decried as the biggest tax hike in the history of the world—a plan so bad that every single Republican in the House and Senate voted against it not once, but twice; a law so distasteful ~ that many of the Democrats who voted "aye" made sure everyone knew they were gagging as ihey did so. hut take a look at reality. Consider a couple v\uh $125,000 in taxable in- come. 1 heir 1992 tax bill was $31,501; in 1993 the tax on the same income will be $31,279.'! hat's $222 l<"\s. How about a single person with $5()7000 of taxable income? In 1992, she owed $11,212. "Hie 1993 billoiSl 1,127—$85 less.,. ^ The fact is, more than 98% .of "V . ""aren't affected by the higher income-tax"3 T*rates, which reach.back.to the hist of _^ f the year. Our tax bills,jvj,U go down 'bit, orvtb.e,same.income,*because tax*- brackets are indexed for inflation. * Actually, more taxpayers will benefit from retroactive tax breaks than get burned by retroactive tax hikes. Benefi- ciaries include two million self-em- ployed taxpayers who are due refunds from the IKS, as well as a coterie of the much-vilified rich who are being reim- bursed lor luxury taxes they paid on jewelry, furs and yachts. 1 he dark side of the new law has been so overemphasized, says Tom Ochsenschlager, a certified public ac- countant and tax attorney, that the vast majority of taxpayers will be pleasantly surprised next spring. "Apparently, they're fully expecting that when they're sitting at the kitchen table on April lf>, they're going to have another $2,000 or $3,000 to pay," says Ochsen- schlager, of (Irani Thornton's Washing- Xi '. '. ..V •;-'•;••»•'*•'•.•• '. 'mvfrthatithe:damage ^^^p^^^^a^lyisfer^:^ n nrTOlEU mi HIPUNGER'S PERSONAL FINANCE MAGAZINE ton, D.C., of- fice. "Instead, they're going to find they have the usual refund, or just a little bit to pay." We're not playing I'ollyanna here. The new law aims to collect almost $250 billion in new taxes over the next five years, and you're sure to be nicked. Also, Congress's latest handiwork adds some confusion to everyone's life. But so many axes have been ground on this issue that the specifics have been lost in a shower of sparks. 090 PAY UP AT THE PUMP The one part of the law that hits every- one—the additional 4.3 cents-a-gallon gasoline tax—takes effect October I. There's not a lot you can do about it, except to cut back on driving and to buy a car that gets better mileage next time you're in the market. According to d You Get Hit? not be as bad as you've heard, by Kevin McCormally t . I ' * •fffi&ttfr'•&!** ; $<* figures worked up by Congress, the tax will tost drivers al>out $28 a year, rang- ing from an average of $18 a year in Washington, D.C. (hmmmm, the home ol 'Congress), to $38 a year in Wyoming. On (lie bright side, even with the in- crease, gas costs less than it did ten years >. When Congress okayed the in- crease in August, for example, unleaded g-as was be- ing pumped in Kansas City, Mo., for 84 cents a gallon (the national average was about $1.11). Here's the national aver- age price in recent years, according to the American Automobile Association: VEAN PRKJI VKAM PR KB 1992 $!.!-» 1985 $1.21 1991 1.11 1983 1.23 1990 1.20 1980 1.25 LASSOING THE AFFLUENT More than hall of the new income taxes—$1 \5 billion over five years—will come from higher levies on six- and seven-figure incomes. Last year, ihe top rate was 31%. Now it's as high as 39.6%. Here are the new rates, which are retroactive to January I.'ihe income figures are lor laxahle income—income alter adjustments, exemptions aruT cluctions. The rates apply to the amounts within each income range. SINGLES Up 10 $22.100 $'22.100 10 $53,500 S315(lO to $115,000 $115,000 in $250,000 Over $'250,000 MARRIEDS FILING JOINTLY Up lo $36.900 $36.900 to $89. 150 $H'J. 150 to $1-10,000 $1-10,000 lo $'250,000 Over $250,000 HEADS OF HOUSEHOLD Up u> $29,600 $29.«H).io $76,400 $76.400 10 $127, 500 $127 .500 to $250,000 Over $250.000 15% 28 31 36 ^ *>• 15% 28 31 36 39.6 15% 28 31 36 39.6 The 39.6% bracket that kicks in at $250,000 is due to the so-called 10% millionaire's surtax (no one said you had to know math to get into Con- gress). If your taxable income falls IMI- low $115^011 on a single return or. I on a |omt return, your rates won t change at all. Congress also ratcheted up the rate for the alternative minimum tax (AMT)—which kicks in if you do too good a job of holding down your regu- lar lax. Last year, the AM T rate was a Hal 24%. Now it's 2t>% on the first $175,01)0 of income and 28% on amounts. Generally, the AMT appli only to wealthy taxpayers who have substantial iteini/.eu deduction* or who exercise incentive stock options. liven death now carries a higher price lag for the well-to-do. Congress NEW TAXES restored the 53% and 55% estate tax brackets, which had expired at the be- ginning of the year. The 53% bracket starts when an estate's value passes $2.5 million; 55% kicks in at $3 million. In another strike at the affluent, law- makers made permanent a couple of tax hikes that were supposed to disap- pear within a few years: the rule that squeezes the tax-saving power of item- i/.ed deductions when adjusted gross in- come exceeds $ 108,450 (ACT is income"" Before ycnTsubTract exemptions ancTdeductions); and the ^phaseout of exemption al- lowances for yourself and your dependents, which starts when AC I hits $108,450 for singles and $162,700 for couples. Tak- "ing away tax breaks has the same effect as raising the tax rate. Starting next year, an- other tax hike will hit six-fig- ure incomes. High earners will pay the medicare tax (1.45% for employees and 2.9% for self-em- ployeds) on all of their earnings. For 1993, the tax stops at $135,000. To salve its conscience for am- bushing top earners retroactively, Congress decided to let them pay the extra taxes over three years. If your bill for 1993 is bigger than it would have been without the new law, you should pay one-third of the extra tax next April 15, the second third in 1995 and the final installment in 1996. Don't expect any help from the IRS in figuring how much of this year's tax is due to the new law. An IRS official told Ochsenschlager that it's too complicat- ed to put on a form. (If you're hit by the AMT, you don't get the interest-free installment plan option.) DODGIMG TMB BULUTS. If you're in the good news/bad news position of earn- ing enough to be hit by these tax hikes, tax planning promises to be much more rewarding than in the past. you're in the 39.6% bracket. "I here'll be another run on municipal bonds," says Jeff Saccacio, Coopers and I.y- brand's director lor financial planning for Southern California. Ray Woi seek, chief economist for A.G. Edwards, in St. Louis, doubts that the increased de- mand will lead to lower yields. • Medicare Uix tiuuietiver. If you're self- employed and will make more than $135,000 this year, consider pulling some of next year's earnings into 1993. ,«i I Capital gams^. the top raie.fo£,long-icrjn.capitaLgain»r the profits from assets owned more ' year. That means the IRS can claim just $280 of a $1,000 profit from a stock sale, 29% less than the $396 it can grab from $1,000 of interest income. • Annuities and cash-value insurance. In- vestments that grow tax-deferred have added luster as tax rates rise. • Municipal bonds. Higher rates make tax-free yields more valuable. A 4.75% tax-exempt bond is worth as much as a 6.88% taxable yield when you're in the 31 % bracket. But it's worth 7.86% if That could save you 2.9%, since the medicare levy stops at $135,000 this year but is unlimited in the future. SQUEEZING SENIORS The tax hike lor social security recipi- ents isn't effective until next year. For 1993, the same rules apply as belore: those with "provisional" incomes over $25,000 (on a single return) or $32,000 (on a joint return) can be taxed on up to 50% of their benefits. Provisional in- come is AGI plus any tax-free interest plus 50% of social security benefits. Un- der these rules 9.2 million ol 41 million beneficiaries pay tax on part of their benefits. Starting next year, convoluted new rules arrive that can make up to 85% of benefits liable to taxation. - -., Note this, though: If your income , falb below the $25.000 or the $32,000, threshold, your benefits remain tax- free.-^lf you are currently not taxed on your benefits, nothing is going to change," says Evelyn Morton, legislative representative lor the American Associ- ation of Retired Persons. And it your provisional income is less than $34,000 on a single return or $44,000 on a joint return, no more than half your benefits can be taxed. Only when income—including tax-free interest and 50% (not 85%) of benefits—exceeds those thresholds can more than 50% be taxed. 'I hat hits about 5.4 million beneficiaries. I tie IRS is supposed to devise a work sheet to determine what portion ol (heir bene- fits—up (o 85%—to include in taxable income. (An early version bad 1C) steps.) Fortunately, the IRS lias more (ban a year to devise a simplified work sheet. DODGING THB BULLETS. Since tax-tree interest is included in the formula, shifting to mu- nicipal bonds will do little to limit how much of your benefits fall prey to the IRS. However, re- thinking when you re- ceive income from an IRA withdrawal, tor ex- ample, or from a sale of stock can help. If the maximum 50% of your benefits will be taxed this year, it might make • sense to take some ex- tra income belore year's end—if reducing next year's income will reduce the amount of social security that will be taxed. Saccacio ol Coopers and Lybrand notes that the change gives higher-in- come retirees more incentive to move away from'fixed-income investments, the interest from which is included in the social security taxing formula as it is earned, and toward equities, the appre- ciation of which doesn't show up until you sell the stock or fund shares. LETTING UP ON LUXURY If you spent a lot at Tillany since the first of the year, you've probably already been notified that you have a tax re- fund coming. The jeweler started send- ing out the notices as soon .as Congress repealed the 10% luxury tax on jewelry costing more than $10,000. Also re- pealed retroactive to January I: the 10% tax on furs costing over $10,000, boats over $100,000 and airplanes over $250,000. II you paid a luxury tax on any of these items this year, you deserve your money back. The Nm> York Tinifs found a New Yorker who has $190.000 coming, the lax he paid on an emerald and diamond necklace lor his wife. Whether or not you're contacted by the retailer, that's whom you should see tor your refund—not the IRS. Although Congress couldn't bring it- self to abolish the 10% tax on tars cost- ing more than $30,000. the lawmakers tried to oiler a little leliel by indexing 46 OCTOIEH 1*tl KIPUIVCER'S PERSONAL FINANCE MAOA2INE NEW TAXES the nigger price lor inlliition. Uuliinu- nately, they gooled. 'I lie threshold was supposed to rise to $32,000 starting Au- gust 10, but the way the law is written, (he higher level won'i go into elleci un- til IK'x( yc;ir. II (loom ess gets around to fixing (he snafu, lolks who pay the (ax could get a $200 refund. REFUNDS FORSELF-EMPLOYEDS More than two million sell-employed taxpayers may deserve refunds for tax- es they overpaid last year. These checks come courtesy ol (he restoration, retroactive to July 1. 1992, ol the law al- lowing self-employed persons to deduct 25% of the cost of their health insur- ance. If the loss of that provision curbed your 1992 write-olls, claim the extra amount now on an amended return. Another retroactively revived break—the right of employees to get up to $5,250 of non-job-relaicd education- al benefits tax-free—will also put money in thousands of taxpayers' pockets. If you reported and paid tax on the value of such assistance you received dining the hitler hall of l<><)2, you overpaid your tax. You miglu not have to lile an amended return to get your money back. Congress told the IRS to devise a simpler method, (.'.heck with your bene- fits oil ice or local IRS ollice lor details. GOOD NEWS/BAD NEWS FOR BUSINESSES To encourage investments in new ma- chines and equipment, the law hikes to $17,500 the value ol such assets that can be expensed each year. Expensing lets you write oil the lull value ol new equipment right away, rather than tak- ing depreciation deductions over sever- al years. The old limit was $10,000. The increase applies starting this year. Smiting next year, Congress takes another swipe at expense-account liv- ing, limiting to 509? the tMillion ol busi- ness-meal and entertaining costs that ran IK; deducted. Next yrar will end the deductions lor < luh dues (80% ol which can be deductible this year) and the chance to-write oil costs lor a spouse who travels with you on business, unless the spouse is your employee. DODGING THE BULLETS. I'OI the lest of this year, you can deduct HO'/i of the cost of business meals and entertain- ment. Buying tickets lor events early- next year (the Super Bowl, peihaps) and prepaying part ol next year's club dues can lock in the higher write-oll. MOVING IN ONMOVING EXPENSES The law takes a big bite out of moving- expense deductions. But it also opens IQ! NEW TAXES he door lo those who do not itemize deductions to claim these write-olls. Starting next year, you'll no longer be able to deduct the following: the cost 6fpre-rnove househunting trips, costs ' ••associated with selling your old home I and buying a new one. icmpoiaiy liv- ug expense's at (he new location and he COM ol any meaN asstx iatc-cl with the nove. Basically/the deduction will be limited to the cosuof getting yourself, your family and your household goods to the new location. As alwavs. the move must be con- lected with taking a job or stalling a business at a new location. *1 hrough the end of this year, the new job has to be at least 35 miles farther from your old home than your old job was. Stalling in 1991. it has to be at least 50 miles. If your employer pa\s for the move, vou'll no longer have to count the leim- nursement as income and then deduct expenses to ollsel it: You can just ignore the whole tiling on vour tax forms. But il your emplover nays expenses that are no longer deductible—most will, says 'loin I'eillcT, exec utixr \ice-picsiclenl ol Ruiir.heimcr. a business consulting lii in—the extra amount will be consid- ered taxable income. - Beginning in 1994, the moving-ex- pense write-oirbecomes an adjustment to income, meaning it's available whether or not von ilcmi/.e cleclnc tions. 'I hat could be- a leal help for students moving to lake their first jobs. CRACKING DOWN ON RETIREMENT PLANS The law limits how mm h compensation can be taken into account when figur- ing an employ IT'S retirement benelils. and stalling next year the ceiling comes down from S'J'.tf.SM) to $150.000. l-ted Rumack of Buck Consultants, a firm that helps companies devise employee lienc'lit plans, suggests that the cap could trickle down to lestiirt benefits lor anyone making mote than $o.r>,000. MUCH, MUCH MORE "1 he new law is packed with other pio- visions thai may ailed you and jour tax planning, most ol them ellective next year. Among the items we'll co\er in lii- ture issues are relief from the passive- loss rules for certain real estate iu- "vcstors, a longer depreciation period "lor nonresidential real estate, a special' , capital-gains bieak Ibr investing in risky small businesses, changes in the estimat- ed tax rules, tougher substantiation rules for chaiitahle-contiibution deduc- tions and an inc.tease to 'JS'.T in the amount that will be withheld lioni bonuses. (D i RESEARCH REPORTER: KATIE YOUNG