City of Goodyear - State Legislative Agenda

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2013 City of Goodyear State Legislative Agenda

Recommendation

This is a request for Mayor and Council to review and provide direction on the 2013 state and federal legislative agenda.

Executive Summary

After several years of unprecedented decline in economic activity within the state and across the
nation, last year the state realized a positive cash balance at year’s end that was $275m more than
expected. Furthermore, initial projections indicated positive growth in base revenues from FY13
through FY16. Even the housing market is now showing increases in the mean price of a home
in Phoenix-metro as available inventories shrink and foreclosures become an increasingly small
percentage of the overall market. That growth is further complemented by increased activity in
the area of new home construction as many communities across the state, including Goodyear,
see fairly significant increases in the issuance of permits for single family home construction.
However, the good news regarding revenue growth is tempered somewhat by the recent slowing
in the rate of growth along with the potential for rising demands on state budgetary outlays
(some of which are federal mandates). This coupled with the uncertainty created at the federal
level by the so-called “fiscal cliff”, will create a moving target when it comes to creating a
balanced state budget.

But in this context, often labeled the new normal, with reduced levels of growth and slow job
creation, revenue generation and the prioritization of the budgetary outlays becomes an
increasingly difficult decision making process. In some cases it will require reassessing
previously accepted modes of doing business. An example of this is the work performed by the
Transaction Privilege Simplification Task force, created by executive order of the Governor.
Recommendations made by the Task Force show the increasing levels of interdependence among
all levels of government and will have the potential to create significant changes in the overall
generation, collection and distribution of sales tax revenues that municipalities rely so heavily
upon to fund local programs and services. It will likely generate a significant number of bills
that staff will need to monitor closely.

Community Benefit

As the State Legislature works to balance the state’s budget and pass legislation to enhance
economic opportunities in the state that will sustain the current economic recovery, the federal
government will be wrestling with the fundamental issue of deficit reduction. This goal is made
all the more difficult by the fragility of the current recovery with the national economy
producing slower than expected growth. However, staff believes an opportunity exists to
fundamentally improve our region, create job growth and position the City of Goodyear to take
full advantage of any investment opportunities by understanding the changing political landscape
at the federal level while working simultaneously with other municipalities and the state on
issues such as taxation. To be sure these are large weighty issues that, by their very nature, will
require cooperation amongst all levels of government in order to create efficiencies and allow for
economic sustainability that will allow the City, the State and the nation to compete in an
increasingly global economy.

Defining our state and federal legislative agenda under guiding principles will allow the City to
have a stronger message at the Legislature and in Congress on the issues of greatest priority
while working to maintain municipal authority and support for shared interests with other cities
to the benefit of all our residents and stakeholders.

Purpose

In addition to the direction given to staff on specific issues, these principles will guide the Office
of Intergovernmental Programs on all other legislative matters that arise during session. The
Council approved agenda will define the City of Goodyear’s priorities and guide the City’s
lobbying activities at the Arizona State Legislature and in the United States Congress.

It is not expected that Goodyear will introduce legislation this session but will support and assist
in lobbying efforts on the issues set forth. Although the City’s legislative agenda is a flexible
document and may change based on activities at the Legislature and with Council direction, the
general concepts are provided here for your discussion and approval.

The Office of Intergovernmental Programs will provide updates on a regular basis throughout the
session in order to keep the Council informed of bills and amendments.

State Legislative Agenda

Discussion

The First Regular Session of the 51st Legislature will convene on Monday, January 14, 2013. In
order to prioritize and guide staff’s lobbying efforts during this session, we recommend that the
Mayor and Council endorse familiar, but critical, guiding principles as our highest priorities –
maintain fiscal sustainability by protecting shared revenues, opposing unfunded mandates,
preserving local authority and partnering with the legislature to enhance economic development
in our state. In addition any and all efforts to protect and enhance the mission of Luke Air Force
base remains a priority for our City.

Guiding Principles

*FISCAL SUSTAINABILITY

The City of Goodyear supports the preservation of state shared revenues including state
transaction privilege tax (sales) and urban revenue (income) tax revenues at the 15% distribution
level and opposes any reduction or cap. In addition, the city supports the full disbursement levels
of existing revenue streams including the Heritage fund, the Highway User Fund (HURF) and
the Vehicle License Tax (VLT). The City opposes attempts to redirect those funds away from
these accounts by the Legislature.

*LOCAL AUTHORITY

Cities and towns are created by the people living in communities in order to foster economic
activity and deliver services that protect public health, safety and the quality of life. The City
must continue its work to help foster the economy and create a healthy quality of life for the
community. The City supports the protection of local control and decision-making authority and
opposes any attempts to erode this control through preemptions or mandates.

*ECONOMIC DEVELOPMENT

The City of Goodyear relies on numerous tools to retain and attract economic development. The
City supports efforts to maintain and enhance the economic development mechanisms available
to create future economic sustainability, including tools for private sector growth and
revitalization. The City opposes any attempts to limit or prohibit Goodyear’s ability to execute
economic development projects.

*MILITARY PRESERVATION

The city recognizes that there needs to be ongoing efforts to sustain the long-term mission
viability of Luke Air Force Base (LAFB). Goodyear will continue to be involved in protecting
the mission of LAFB through local and regional community support activities as well as any
state or federal legislation that strengthens local efforts to protect the base from encroachment.
The City supports the retention of existing state statutes relating to military airports, and the
development of legislation that limits encroachment of all types, supports compatible land uses
around such facilities, and ensures the capability for future mission expansions.

Federal Legislative Agenda

Discussion

The First Session of the 113th Congress conveyed on Thursday, January 3rd, 2013. With the
Presidential election completed, both parties are introducing plans to reduce the federal deficit.
While brinksmanship and stalemate are nothing new in Washington, the stakes are high. With
the looming threat of the “fiscal cliff”, and its implications for local governments and overall
economic sustainability, the fallout from those decisions may have very real impacts on
municipalities and the state. It is therefore imperative that we let our position be known by
communicating our priorities with our congressional representatives so they can more fully
appreciate what those impacts may be. Again, the following are overarching principles that
focus on our highest priorities.
Guiding Principles

*MILITARY PRESERVATION

The City of Goodyear partners with the West Valley Cities, Phoenix and Maricopa County in an
effort to protect and enhance Luke Air Force Base. The West Valley Partners continue to have
representation through Hyjek & Fix, Inc., a Washington based consulting firm to protect the
mission of Luke AFB and advocate for follow-on joint missions for Luke AFB.

*TRANSPORTATION AND INFRASTRUCTURE

On July 6, 2012, President Obama signed into law P.L. 112-141, the Moving Ahead for Progress
in the 21st Century Act (MAP-21). MAP-21 provides needed funds and represents a milestone
for the U.S. economy. Our goal is to advocate for inclusion of multi-modal transportation and
infrastructure funding in the MAP-21 reauthorization that addresses current and future needs in
Goodyear.

*GRANTS

Staff recommends we continue to work with our departments to highlight priorities and seek
funding through grants where possible.