TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Andy Sywak, Economic Vitality Manager
SUBJECT:Title
Metro’s Half-Cent Sales Tax (Measure M) (Economic Vitality Manager Sywak).
RECEIVE REPORT, PROVIDE DIRECTION
Line
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Recommended Action
RECOMMENDATION:
Receive report and provide direction.
FISCAL IMPLICATIONS:
Voter approval of the measure (two-thirds needed to pass) would result in a half-cent increase in 2017 that would increase to a one-cent increase in 2039 when the Measure R sales tax expires.
BACKGROUND:
Council requested a report on this item at the Aug. 16, 2016 meeting including the letter of opposition to the measure submitted by the COG. Backed by the Los Angeles County Metropolitan Transportation Authority (Metro), Measure M would create a new half-cent sales tax starting in 2017 to fund multiplatform transportation projects across LA County (See Attachment 1 - Metro Measure M Information Guide).
On July 1, 2016, the South Bay Council of Governments voted to oppose the sales tax measure for reasons that the regional share of the sales tax was insufficient and that South Bay transportation projects will not receive enough attention (See Attachment 2 - SBCOG Letter to Metro - July 1, 2016). Note: The City of Manhattan Beach abstained because the Council had not taken an official position. The COG submitted an additional letter to Metro on Aug. 29, 2016 after Los Angeles Mayor Garcetti met with the COG Board about this issue (See Attachment 3 - SBCOG Letter to Metro - Aug. 29, 2016).
DISCUSSION:
Metro identifies five new major projects that provide value to the South Bay as part of its new plan: (a) Green line extension from Redondo Beach to Crenshaw Blvd. in Torrance; (b) I-405/I-110 Interchange HOV Connect Ramps and Interchange Improvements; (c) I-105 Express Lane from I-405 to I-605; (d) I-110 Express Lane Extension South to to I-405/I-110 Interchange; (e) I-405 South Bay Curve Improvements.
• Under the Expenditure Plan for Measure M, 17% of the sales tax generated from Measure M is allocated to cities in LA County based on their population. Metro estimates that Manhattan Beach would receive $508,074 in FY 2018 based on this allocation (See Attachment 4 - Local Return by Subregion).
• Unlike past transportation sales tax measures (Prop. A, C & R), cities can choose to allocate up to one third of the Measure M funds it receives on stormwater expenditures.
• Although none of the improvements mentioned by Metro are in Manhattan Beach proper, almost a third of all employed residents work in the City of Los Angeles and many would benefit from improved freeway interchanges.
• The sales tax would generate $860 million a year in 2017 dollars and add 465,690 jobs across the region which would have an indirect impact upon the Manhattan Beach economy
PUBLIC OUTREACH/INTEREST:
Not applicable at this time.
LEGAL REVIEW
Not required.
Attachment/Attachments:
1. Metro Measure M Information Guide
2. SBCOG Letter to Metro - July 1, 2016
3. SBCOG Letter to Metro - Aug. 29, 2016
4. Local Return Allocation by Subregion