Use
Redevelopment Funds for Water Cleanup
Cities and counties throughout California face the daunting
task of cleaning up urban runoff. The water flowing into
our gutters, culverts, storm drains and urban rivers picks
up oil, trash, waste and various man-made debris. Then,
it is all deposited along our coastline. We swim in it.
We make sandcastles with it.
The ultimate bill of the clean-up can only be estimated.
In Orange County alone, federal and state clean-water mandates
will cost us $89 million this year alone. Where will the
money come from?
City and County general funds are stretched to pay for
public safety and burgeoning pension costs. Transportation
funds have hardly kept up with growing congestion and pothole
proliferation. Flood control and sanitation fees cannot
be stretched to cover the costs of cleaning up our water.
Some have proposed new taxes, fees and property assessments
and new bonds, all requiring voter approval. Before considering
adding to the already heavy tax and debt burden, however,
we should look at existing sources of available revenue.
California’s redevelopment agencies are sitting on
a growing pool of property tax revenue that could be used
to help clean up the environment. Originally created by
cities and counties to combat “urban blight,”
redevelopment agencies have typically used public funds
to subsidize auto malls, big box retailers, shopping centers
and pro sports stadiums. In Orange County alone, $30 million
in public funds have been given to Costco in the past 20
years.
It is time to restore these funds to serve the real public
need of clean water and address the blight of coastal pollution.
Statewide, California’s 381 redevelopment agencies
divert over $2.8 billion annually, accounting for over 10%
of all local property tax revenues. Here in Orange County,
our 24 local redevelopment agencies took in $231 million
in Fiscal Year 2002-03. While $145 million is committed
for bond payment obligations, $64 million remains available
to be put to immediate use.
By law, redevelopment funds cannot be used for police or
fire protection. They cannot be used for public health or
operation of our courts. They cannot be used to pay teachers
or librarians. So, any agency funds used for water quality
would not be at the expense of ongoing local government
operations. This $2.8 billion statewide can only be used
to alleviate urban blight.
Currently, cities are making greater use of redevelopment
funds to address urban runoff pollution. Last year, Anaheim
used $187,000 in agency funds, totaling 3% of its water
quality budget. Cities need to be aware that, under current
law, their redevelopment funds are available for water quality
infrastructure improvements.
Reforms in state law, however, are needed to make greater
use of these funds. Currently, redevelopment money can only
be used for capital projects. State law should be changed
to free these funds for salaries and maintenance, as well.
Enhanced street sweeping, cleaning the storm drains, and
processing all incur ongoing operational costs. Another
needed reform is to allow the use of these funds city and
countywide, outside the borders of specific redevelopment
areas.
A mandatory set-aside could also be created for water quality.
Currently, redevelopment agencies must spend 20% of all
funds for housing. A similar set-aside could be established
for water quality. For economies of scale, these funds could
be pooled regionally under a governance structure created
to clean up our water. Such a regional body is currently
under consideration, with the County of Orange taking the
lead.
Public funds should be spent for public projects, not private
developments. Commercial development is the responsibility
of private enterprise. Cleaning up our water, however, is
a public task and a core public responsibility.
For too long, redevelopment agencies have been cash cows
for auto dealers, hotel developers, NFL team owners and
big box retailers. Let them now turn their attention to
cleaning up our environment. |
