Report to Mayor and City Council
Tuesday, June 21, 2016
Discussion
SUBJECT:
Title
METRO'S PROPOSED TRANSPORATATION SALES TAX MEASURE (CITY COUNCIL)
Body
I. SUMMARY
METRO is considering a 1/2 cent increase in local sales taxes to fund Transportation improvements. The City of Carson had previously supported the proposed measure. METRO staff has released changes to the funding plan which requires reconsideration of the City of Carson's prior support of the measure. The METRO Board will consider the expenditure plan on June 23rd and could schedule the tax measure for the November ballot.
II. RECOMMENDATION
Recommendation
The City Council should discuss the lack of funding for local street maintenance programs and other issues with the proposed tax measure and give direction to staff.
Body
III. ALTERNATIVES
The City Council could continue to support the proposed measure or take an action to oppose the measure.
IV. BACKGROUND
The voters have previously approved three local sales tax "overrides" to fund transportation projects. Each of these tax measure added 1/2 cent to the local sales tax to fund various transportation projects. The revenues are distributed by METRO based on voter approved allocations in these prior measures.
The voter approved tax distribution formula for the three prior sales tax measures was based on a "per capita" distribution of funds. This funding formula favors the City of Los Angeles, who has 40% of the region's population and is receiving 50% of the funds.
Currently Carson's population comprises 0.9189% of the County's total population. Carson generates significant sales tax revenues to the measure - over $36 million annually. The City receives combined sales tax revenue from METRO of $4.2 million (based on 2015 sales tax and population data).
History
Proposition A was the first sales tax measure approved by the region's voters in 1980. It allocated 25% of all of the collected sales tax funds to the citie...
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