Council To Discuss Sales Tax Plan & RTA Next Deal

Council To Discuss Sales Tax Plan & RTA Next Deal. As summer draws to a close, the Tucson City Council is gearing up to tackle two significant issues that will shape the city’s future. The first question on the agenda is whether to proceed with a half-cent sales tax election in March. The second is whether to continue funding as a member of the Regional Transportation Authority (RTA) for the next 20 years. Both topics are set for discussion in the upcoming Tuesday afternoon study session.

The Sales Tax Plan: Complementing The RTA Next Deal

City Manager Tim Thomure has clarified that the sales tax plan is designed to complement, not replace, the RTA Next plan. This marks a shift from previous City Council discussions, which expressed strong skepticism about remaining part of the RTA. In fact, the Council had previously seemed poised to leave the multi-jurisdictional taxing body, with no council members showing eagerness to stay.

Earlier this year, the Council considered a sales tax election but had no clear plan for allocating the funds, leading to its withdrawal. Now, the sales tax plan has been revived with a clear purpose: to allocate 65% of tax revenues to public safety and 35% to social services, including gap financing for affordable housing projects.

Breakdown Of The Sales Tax Allocation

The proposed sales tax plan provides a detailed breakdown of how the funds will be used:

• Homelessness and Housing: 17.5% of the revenue will be allocated to combating homelessness and improving housing options in Tucson.
• Neighborhood and Community Resilience: 16.75% will go toward community investments in areas prone to gun violence, addressing issues closely related to crime.
• Public Safety Staffing: 22.75% will be dedicated to hiring more commissioned police officers, community service officers, and professional investigators.
• Technology Investments: 12.25% of the revenue will be used for technological advancements in police and fire departments.
• Capital Investment for First Responders: 30.75% will be allocated to purchasing essential equipment, such as police cruisers, to support the aging fleet.

This allocation reflects a balanced approach that integrates community investment with a strong police presence to prevent crime.

Addressing Housing Needs Through Public And Private Partnerships

The Tucson City Council’s approach to housing emphasizes the importance of gap financing to support private developers in building affordable housing. By providing loans to developers, the city can require that housing units be sold at affordable prices while the loan is being repaid. This strategy encourages the private sector to play a significant role in addressing Tucson’s housing shortage.

The city is also investing over $50 million to refurbish Tucson House, which includes 358 units. However, public funding alone is not enough to meet the city’s growing demand for affordable housing. Encouraging private sector involvement is essential to creating the tens of thousands of rental units needed to lower housing costs.

The Role Of The Regional Transportation Authority (RTA)

The 2006 voter-approved 20-year half-cent RTA sales tax is set to expire soon. The Tucson City Council is now considering whether to extend this tax for another 20 years. While the RTA Next plan aims to continue funding road and transit improvements, the City Council has expressed concerns about the allocation of funds.

Tucson currently generates about two-thirds of the RTA’s sales tax revenue but receives just over 50% of the funds. This discrepancy has fueled dissatisfaction among council members. A compromise proposed by Retired Gen. Ted Maxwell suggests that if the RTA collects additional revenue, Tucson’s share would increase to 55%, aligning with its share of Pima County’s population.

Potential Impacts Of The RTA Next Plan

The RTA Next plan’s revenue model anticipates economic challenges over the next 20 years, which could impact the funding available for transportation projects. Despite these concerns, the plan emphasizes a community-wide approach that benefits the entire region.

However, the RTA Board has yet to approve the compromise, leaving the City Council with the option to proceed with its sales tax plan independently. If the Council moves forward with the RTA Next plan, the sales tax revenue could be used to address pressing issues such as traffic, crime, housing, and homelessness.

Fire Code Updates And Medical Workforce Training

In addition to the sales tax and RTA discussions, the Tucson City Council will vote on updates to the city Fire Code, which include new regulations for mid-rise buildings, commercial kitchens, and fire alarms. The Council will also consider a $6.3 million match of federal funds to maintain medical training programs, addressing the shortage of medical workers in Tucson.

Local Economic Developments: Sahuarita New Lease

The Sahuarita Town Council is also making significant decisions, including leasing space to a Southern California 3D printing company, ATAG Inc. The company plans to hire 20 full-time workers, with a payroll ranging from $1.5 million to $2.1 million. The town will offer a 10-year lease with incentives, including rent abatement and reimbursement for improvements.

Conclusion

The Tucson City Council’s upcoming decisions will have far-reaching implications for the city’s future. By balancing public safety, housing, and transportation needs with economic development, the Council aims to create a thriving community. The proposed sales tax plan and the RTA Next deal represent critical steps in addressing Tucson’s most pressing challenges, ensuring that the city remains a vibrant and safe place for all residents.