USP 115 San Diego Politics

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USP 115San Diego Politics Planning

• Lecture 3
• Institutions

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• NOTE HAD TALKED ABOUT DOING BAJA THIS WEEK

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San Diego Institutions
Institutions

• Regional Economic Change
• Demographic Change
• End of Suburbanization

Policy Outcomes
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A Focus on 4 Institutions

• Taxation and Revenues 
• Electoral Laws
• Policy Making in City Manager Form of Government
• Community Planning Groups

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A Focus on 4 Institutions

• Taxation and Revenues 
• Electoral Laws
• Policy Making in City Manager Form of Government
• Community Planning Groups and Fire Alarms

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Taxation Revenues

• What who gets taxed?
• How much (and relatively share of revenues)?
• Who has control over revenues?
• Who can impact amount collected?
• Who has control over rates?

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Property Tax

• Property Tax (25.8 of Citys General Fund)
• Tax on Real Property
• gt 98 of tax on real estate and improvements on
  property
• Collected by the State (through the county
  assessors office) and distributed by the state to
  cities, counties, and school districts.

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Property Tax

• Property Tax
• Pre-proposition 13
• Cities and Counties set rates
• Property value re-assessed on a regular basis
• Proposition 13
• Passed by the voters in 1978 (65)
• Limits property tax to 1 of assessed value
  interest on locally approved bonds,
• Property value can only rise a maximum of 2 if
  owner remains the same. Property re-assessed
  upon sale.
• Also increased difficulty of subsequently raising
  taxes

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Property Tax

• Proposition 13
• Property Tax declining in terms of PERCENTAGE of
  City Revenues
• Stability in ownership bad for City
• Business transfers particularly difficult

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Property Tax

• Proposition 13 (continued)
• State becomes funder of City Services
• Property tax distribution
• Educational Relief Augmentation Fund (ERAF)
• Vehicle License Fee
• Property Tax declining in terms of PERCENTAGE of
  City Revenues
• Stability in ownership bad for City
• Business transfers particularly difficult

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Property Tax

• What who gets taxed?
• Real Estate
• How much (and relatively share of revenues)?
• 1 of assessed value. Declining source of
  revenues
• Who has control over revenues?
• State as they determine distribution
• Who can impact amount?
• Who has control over rate?
• Private Individuals and Citizens. Cities cant
  raise rate (only state wide vote) and re-assessed
  only when when property is sold

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Property Tax Conclusions

• Development of Housing (and non-sales tax jobs)
  doesnt pay for most cities
• Proposition 13 results in dependent
  relationship between City and State. Revenues
  uncertain (State Raids)
• Particularly difficult to control amount of
  property tax raised after raw land developed

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Property Tax Political Implications

• Sprawl pays in short term
• Housing developers weaken in political influence
• High housing prices not necessarily a bad thing

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Sales Tax

• Sales Tax (17.8 of Citys General Fund)
• Tax on the sale of goods (not services)
• 7.75 in City of San Diego
• Distributed 1 to City .25 to county 5.5 to
  state .5 to public safety and .5 to
  transportation
• Sales tax distributed by where sale takes place
  not who makes purchase.

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Sales Tax

• Increases to Sales tax RATE must be approved by
  2/3 of the electorate
• But creation of Sales Tax Generators a function
  of Cities
• Leads to competition over location of major
  generators
• Auto Dealers
• Malls
• Mall Order Distributors

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Sales Tax

• What who gets taxed?
• Sale of real goods
• How much (and relatively share of revenues)?
• City gets 1 of the value of the good sold
• Who has control over revenues?
• State
• Who has control over amount?
• Citizens set rate but Cities can compete for the
  1

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Sales Tax Political Implications

• Sales tax Generators (particularly those that
  dont require services) attractive
• Retailers gain in political influence
• Value of increasing affluence in your community
  (i.e. more disposable income)

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Motor Vehicle License Fee (9 of Citys General
Fund)

• VLF
• 9 of Citys General Fund
• 2 of the current value of your auto
• Rate set by state
• Collected by the State
• Goes to cities and counties according to
  REGISTRATION

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Motor Vehicle License Fee

• INSERT BACKFILL SLIDE

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VLF

• What who gets taxed?
• Motor Vehicles
• How much (and relatively share of revenues)?
• 2/3 of current value. State Backfilled to 2
• Who has control over revenues?
• State
• Who has control over amount?
• State (and individuals if they register in
  another county).

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VLF Political Implications

• Sales tax Generators (particularly those that
  dont require services) attractive
• Retailers gain in political influence
• Value of increasing affluence in your community
  (i.e. more disposable income)

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Table Summary

• Summarize the above to show except for LOCATION
  of Sales not much in Citys control.

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Transient Occupancy Tax

• Comprises 7.8 of GENERAL FUND Budget
• (Note special promotions Projects off this
  book)
• Charged on rents for accommodations occupied
  less than 30 days (i.e. short term hotel stays)
• Current rate 10.5
• Collected by City according to where hotel room
  located
• Rate set by City
• Taxpayers Protection Act now requires 2/3 vote

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TOT

• What who gets taxed?
• Tourists
• How much (and relatively share of revenues)?
• 10.5 Growing source of Revenue
• Who has control over revenues?
• City
• Who can impact amount
• City. Approve more hotel rooms, stimulate
  tourism
• Who has control over rate?
• City Voters

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TOT Political Implications

• Taxing vacationers. Dont vote in San Diego.
• Hoteliers gain in political influence
• Encourages efforts to keep vacancy low and room
  rates high.

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A Focus on 4 Institutions

• Taxation and Revenues 
• Electoral Laws
• Policy Making in City Manager Form of Government
• Community Planning Groups

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Elections in City of San Diego

• Prior to November 1988
• Councilmembers and Mayor elected to 4 year terms
• 1992 initiative imposed term limits
• Candidates NOMINATED in their District (top 2
  vote getters in the primary)
• Finalists then ran city wide
• Districts 1,3,5,7, Mayor run same time as
  President
• District 2,4,6, 8 off year

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Elections in City of San Diego

• After Voter Initiative in 1988
• Councilmembers and Mayor elected to 4 year terms
• Candidates NOMINATED in their District (top 2
  vote getters in the primary)
• Finalists ALSO run in just Districts
• Mayor Runs City Wide

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Impact of New Rules

• Short Term Less expensive to run
• Possible to walk the district
• Neighborhood Name Recognition Key
• Focus on Local deliverables
• Key focus on community-level organizations and
  contacts

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District 1 Scott Peters District 2 Michael
Zucchet District 3 Toni Atkins District 4
Charles Lewis District 5 Brian
Maienschein District 6 Donna Frye District 7
Jim Maddaffer District 8 Ralph Inzunza
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A Focus on 4 Institutions

• Taxation and Revenues 
• Electoral Laws
• Policy Making in City Manager Form of Government
• Community Planning Groups

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City Manager vs. Strong Mayor

• City Manager form of Government
• City Council and Mayor as legislative body
• City Manager as chief administrative officer
• Progressive era reform
• Professional Cadre of City Staffers
• Avoid patronage

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Mayors Responsibilities

• Chair City Council Meetings
• Develops Council agenda
• Make Committee Assignments
• Appoint Citizens to panels (Council approves)
• Appoints city manager (with approval of Council)
• Make first response to City Managers proposed
  budget (informal)

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City Council (Mayor is a member)

• Makes legislative policy
• Restricted from direct contact to City Staff
  (except for inquiries)

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City Manager

• Power to Hire and Fire
• Constrained by civil service rules
• Proposes Budget
• Implements policy decisions of council

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Impacts

• San Diego Largest city in US with City Manager
  form of Government
• Mayor required to build consensus among council.
  Limited powers.
• City Managers focus on developing support from
  minimum of 5 members of the City Council.

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A Focus on 4 Institutions

• Taxation and Revenues 
• Electoral Laws
• Policy Making in City Manager Form of Government
• Community Planning Groups

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Community Planning Groups

• 42 Community Planning Groups in the City of San
  Diego
• Citizens typically volunteer/some elections
• Hear proposals on land use issues and then take
  advisory provisions
• Staffed by city planning staff
• Farm team for City Activists and Would-be
  councilmembers
• University City 2nd Tuesday of the Month (May
  13) 630 p.m. Wells Fargo meeting room at UTC
  (http//www.sannet.gov/community-meetings/calendar
  /cal.shtml)