LOS ANGELES – San Diego's Regional Transportation Agency is fighting to counter opposition from environmental groups to a tax measure for November's ballot that would raise $18 billion for the region's transportation projects.
San Diego Mayor Faulconer has sided with environmental groups and come out against the tax measure, while Councilman Todd Gloria and other politicians in attendance at a press conference last week support the plan.
The measure, which would raise sales taxes by 0.5% in San Diego County, would also pay for a land management program to help reduce wildfire risk by removing invasive plants, which fuel devastating fires. The current sales and use tax rate is 8% throughout San Diego County, with the exception of Vista and El Cajon, where it is 8.50%, La Mesa at 8.75% and National City at 9%.
According to SANDAG, the plan provides more than $10 billion for projects that would preserve the environment and cut gas emissions, protect open space and create biking and walking paths.
An estimated $18 billion would be raised over 40 years from the increase in the sales tax.
Faulconer withheld his support at SANDAG's April meeting, concurring with environmental leaders who say the transportation plan favors highways over public transportation, which would prevent the city from reaching the goals laid out in the city's Climate Action Plan passed last year.
Faulconer, who wasn't in attendance at the press conference, couldn't be reached for comment. The mayor is one of 21 SANDAG board members. Every city in the county has one elected official on the board, except the city of San Diego and the county, which both have two.
Gloria, who also sits on the SANDAG board, said in a previous statement that voting against this plan means turning down $7.5 billion for transit, $2 billion to repair San Diego's neighborhoods, and over $500 million for bike projects. "San Diegans want these improvements and leaders should take action to get them done," Gloria said.
Using similar dollars from its current TransNet tax, SANDAG has leveraged $3.3 billion to $10 billion in the last 25 years, according to Gloria's spokeswoman.
Gloria was joined by Solano Beach Councilmember Lesa Heebner, chair of the SANDAG Regional Planning Committee and three South County mayors who also sit on the board: Chula Vista Mayor Mary Salas, National City Mayor Ron Morrison, and Imperial Beach Mayor Serge Dedina.
"This is a practical way to enhance our communities and reach our environmental goals, including meeting and exceeding our state mandated greenhouse gas reduction targets," Morrison said. "With this approach, we can truly make a difference in the relative short term – with major benefits starting immediately and continuing to come online over the next 10 to 15 years."
More than 14% of the money raised through the sales tax would go to highways, managed lanes on highways and high occupancy lanes. Almost 42% would go to public transit, and 3% would go to walking and biking projects. Another 30% would be given as grants to cities for local infrastructure projects.
SANDAG's ballot measure is meant to fund the regional transportation plan the agency's board passed over environmentalists' objections in October.
The Climate Action Plan calls for cutting the number of San Diegans who commute by car from 87% to 50% by 2035.
SANDAG plans to issue $350 million in sales tax revenue bonds to support fast-tracked projects.
SANDAG has a $200 billion plan that extends to 2050 outlining regional road, rail and bus route improvements while giving cities control of billions of dollars to spend on local transit projects.
Projects that would be funded through the bond sale were identified in July 2015 through the TransNet Early Action Program, which accelerates priority projects that can be completed in 10 years. EAP includes projects on routes 5, 15, 52, 76, 805, and the Mid-Coast Light Rail Project.
SANDAG has exhausted the proceeds from the $350 million bond sale of 2014 and may be drawing on its commercial paper to finance project costs until the proceeds from the 2016 financing are received, according to an April 8 report from financial advisor Public Financial Management.
PFM said part of the proceeds from the bond sale would be used to take out a portion of the outstanding commercial paper.
The EAP program is a partnership between SANDAG and the California Department of Transportation, Metropolitan Transit System, and North County Transit District to accelerate a variety of high-priority, TransNet-funded transportation improvements. TransNet is a half-cent sales tax that voters approved in 1988 and then extended 40 years in 2004 to pay for the regional transportation projects.
The finance team for the bonds has already been selected. Citi is bookrunner. Public Finance Management is the financial advisor. Orrick Herrington & Sutcliffe is bond counsel. Norton Rose Fulbright is the financial advisor.
The financial team hopes to price the tax-exempt, long-term, fixed-rate bonds in mid-July.
