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LWV League of Women Voters of California Education Fund
Smart Voter
San Diego County, CA November 4, 2008 Election
Proposition C
Amends The Charter To Designate The Use Of Lease Revenue From Mission Bay Park
City of San Diego
Majority Approval Required

Pass: 300569 / 66.94% Yes votes ...... 148423 / 33.06% No votes

See Also: Index of all Propositions
Results as of Jan 24 10:40am
Information shown below: Summary | Fiscal Impact | Impartial Analysis | Arguments |

Shall the City Charter be amended requiring that annual lease revenue generated in Mission Bay Park exceeding $23 million initially and decreasing to $20 million after 5 years be appropriated 75% for capital improvements in Mission Bay Park and 25% for capital improvements in Chollas Lake, Balboa, Mission Trails, Otay River Valley, Presidio and San Diego River Parks; open space parks; coastal beaches and contiguous coastal parks; and future regional parks?

Summary:
Shall the City Charter be amended to require that annual lease revenue generated in Mission Bay Park exceeding $23 million initially and decreasing to $20 million after 5 years be appropriated 75% for capital improvements in Mission Bay Park and 25% for capital improvements in Chollas Lake, Balboa, Mission Trails, Otay River Valley, Presidio, and San Diego River Parks; open space areas; coastal beaches and contiguous coastal parks; and future regional parks for 30 years?

Fiscal Impact:

  • Beginning in fiscal year 2010 and continuing through fiscal year 2014, all Mission Bay lease revenues in excess of $23 million will be split 25% to the San Diego Regional Parks Improvement Fund and 75% to the Mission Bay Park Improvement Fund.

  • Beginning in fiscal year 2015 and each year thereafter, all Mission Bay lease revenues in excess of $20 million will be split 25% between the San Diego Regional Parks Improvement Fund and 75% to the Mission Bay Park Improvement Fund.

  • Based on projections of revenue for future years, beginning in fiscal year 2010 annual General Fund revenues of $2.8 million will be redirected to the San Diego Regional Parks Improvement Fund and Mission Bay Park Improvement Fund. This will grow each year based upon the growth in overall Mission Bay lease revenues.

  • Beginning in fiscal year 2015, an additional $3 million will be redirected to the San Diego Regional Parks Improvement Fund and the Mission Bay Park Improvement Fund.

Allocation of Mission Bay Lease Revenues
(in millions)
Fiscal
Year
2010
2011
2012
2013
2014
2015 		San Diego Regional
Parks Improvement Fund
$2.5
$2.5
$2.5
$2.6
$2.9
$3.9 		Mission Bay Park
Improvement Fund
$5.3
$6.2
$7.1
$8.0
$8.7
$11.7 		Redirected from
General Fund
$2.8
$3.7
$4.6
$5.6
$6.6
$10.6
The General Fund is the City's main operating fund that pays for basic City services such as public safety, parks, library services, and refuse collection.

Impartial Analysis from the City Attorney
The San Diego Municipal Code, section 22.0229, requires excess revenue from the lease of city-owned property within Mission Bay to be spent on capital improvements within Mission Bay and on capital improvements, planning, deferred maintenance, and land acquisitions for certain Regional Parks: Balboa Park, Mission Trails Regional Park, Otay River Valley Park, San Diego River Park, Multiple Species Conservation Program open space areas, coastal beaches and contiguous coastal parks. Excess lease revenue is defined as that annual revenue which exceeds $20 million. Excess lease revenue does not include Transient Occupancy Tax, sales tax, property tax, or any other revenue. There is a $5 million annual limit on the allocation; apportioned $2.5 million to the Mission Bay Fund and $2.5 million to the Regional Park Fund. However, the Municipal Code also allows the City Manager to request that the City Council suspend the requirements of this section, should anticipated revenues be insufficient to maintain City services. The requirements of section 22.0229 terminate June 30, 2012.

The proposed Charter amendment would be in effect from July 1, 2009 until June 30, 2039. The amendment establishes a different sum for the excess lease revenues for the first five years: excess lease revenue is defined as annual revenue which exceeds $23 million beginning in July 1, 2009 and ending June 30, 2014. Starting July 1, 2014, excess lease revenue is again set at $20 million. The proposed Charter amendment also changes the apportionment of the excess lease revenue: 75% of the excess lease revenue shall be deposited into a Mission Bay Improvement Fund and 25% of the excess lease revenue shall be deposited into a San Diego Regional Parks Improvement Fund.

The funds in the Mission Bay Improvement Fund shall first be spent on specific priority projects. Upon the completion of those projects, the funds shall be used for capital improvements within the defined Mission Bay Improvement Zone as recommended by the Mission Bay Improvement Fund Oversight Committee and approved by City Council.

The excess lease revenue deposited into the San Diego Regional Parks Improvement Fund shall be spent for capital improvements in Chollas Lake Park, Balboa Park, Mission Trails Regional Park, Otay River Valley Park, Presidio Park, San Diego River Park, open space parks, coastal beaches and contiguous coastal parks, and future parks serving regional residents and/or visitor populations as may later be determined by ordinance of the City Council. The amendment no longer allows the funds to be spent on planning, deferred maintenance, and land acquisitions. The improvements shall be recommended by the San Diego Regional Parks Improvement Fund Oversight Committee and approved by the City Council.

If this proposition is approved, Municipal Code 22.0229 will be repealed. The Mission Bay Park Committee shall initially be designated by the City Council to serve as the Mission Bay Park Improvement Fund Oversight Committee. The Park and Recreation Board shall initially be designated by the City Council to serve as the San Diego Regional Parks Improvement Fund Oversight Committee.

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Arguments For Proposition C
MISSION BAY REVENUE SHOULD BENEFIT MISSION BAY PARK.
Mission Bay Park is a recreational and environmental asset for all San Diegans. The Park protects wildlife, provides for dozens of leisure activities and attracts tourists to strengthen our economy.

Unlike other parks, Mission Bay generates millions of dollars for the City through leases with hotels, Sea World, and other businesses. This money was originally used to pay for Mission Bay Park. Over time, it has been siphoned away to pay for other things.

FACT: Only 8% of Mission Bay lease revenue is spent improving Mission Bay; 92% is used elsewhere - mostly for "general" city expenses.

IMPROVE MISSION BAY WITHOUT USING TAX DOLLARS.
Proposition C increases the amount of lease revenue spent annually on projects to improve Mission Bay Park to approximately $4.4 million. This amount will increase as lease revenues increase. No tax dollars are used. No new taxes are needed.

Priority projects include:

  • Expand wetlands and improve water quality.
  • Restore water channels for boater safety.
  • Complete bicycle and pedestrian paths and bridges.
  • Increase wildlife preserves and delicate habitats.
  • Improve security by installing sustainable energy lighting.

BUDGET REFORM AND INDEPENDENT OVERSIGHT
Proposition C is a smart reform to keep the money generated by Mission Bay in Mission Bay. It is a charter amendment that CAN'T be waived by politicians, and it creates an independent oversight committee ensuring funds are spent only for park improvements.

MORE MONEY FOR OTHER REGIONAL PARKS
Prop C also allocates $2.5 million annually for improvements at Balboa, Mission Trails, Presidio, San Diego River, Otay River Valley, and Chollas Lake Parks and open space areas. After five years, this amount increases as lease revenues increase.

VOTE "YES" ON C TO SAVE MISSION BAY.


(Titles of signers for identification purposes only; does not imply endorsement by any group)

COUNCILMEMBER KEVIN FAULCONER
Chair, Audit Committee

BOB OTTILIE
Past Chair, Mission Bay Park committee

COUNCILMEMBER DONNA FRYE
Chair, Natural Resources and Culture Committee

WILBUR SMITH
Chair, San Diego Park and Recreation Board

JERRY SANDERS
Mayor of San Diego

(No arguments against Proposition C were submitted)

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