$15,000 new home tax credit
Last evening the United States Senate unanimously passed a bipartisan amendment, offered by REALTORŪ Champions, Senators Johnny Isakson (R-GA) and Joe Lieberman (ID-CT) to the Economic Stimulus Bill creating a $15,000 tax credit to individuals who purchase a home in the next year. Specifically, the Isakson-Lieberman amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid. The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principle residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment. While the final details of the Stimulus Bill are still being debated, this amendment represents a tremendous step forward in NAR's efforts to stabilize housing markets around the nation. Because of the efforts of REALTORSŪ, we expect the final Economic Stimulus Bill will contain several major housing provisions. We will continue to update you as the bill progresses through the legislative process.
National Green Economic Recovery Program
The Center for American Progress and the Political Economy Research Institute at the University of Massachusetts Amherst, in a September 2008 study, found that a national green economic recovery program investing $100 billion over 10 years in six infrastructure areas would create 2 million new jobs. The investments would include retrofitting existing buildings to improve energy efficiency and investing in wind power, solar power and next-generation biofuels.
Gift Clause
All municipalities may be impacted by a December 23rd ruling by the state Court of Appeals that declared incentives reimbursed to a developer for building improvements that would be built anyways and do not add public infrastructure outside the development, to be unconstitutional. Essentially, the courts feel this situation violates a portion of the Arizona Constitution commonly referred to as the “Gift Clause” and governments may not give away taxpayer money to private entities. This ruling has the potential to invalidate most, if not all, current and future EDAs in the State of Arizona.
Beat Back Buffelgrass
Beat Back Buffelgrass is a coordinated effort by PAG to raise awareness and pull as much of the invasive species as possible. The grass has spread so widely in southern Arizona that the Sonoran Desert is at risk, said Dennis Dickerson, PAG's environmental planning coordinator. "This invasive weed will, if left unchecked, destroy the desert," Dickerson said. Buffelgrass is an African native imported to the United States in the 1930s as cattle forage. It has grown out of control in the Sonoran Desert, choking out native plants and raising the risk of fire in areas that have little defense against flames. Last year's effort drew more than 200 volunteers who pulled out more than 4,000 plants in several spots across the metro area. The second annual Beat Back Buffelgrass day will be held on Saturday, February 7, 2009. The Tucson Association of REALTORS is calling for volunteers who would like to participate in this great event. Hundreds of Tucson citizens will join forces and together help remove Buffelgrass. If you would like to volunteer or learn more about Beat Back Buffelgrass please contact Teresa Olson at
teresa@tucsonrealtors.org. To learn more about Buffelgrass you can watch an informative video featuring our very own Rick Hodges at
www.buffelgrass.org.
City of Tucson News
Mayor Walkup’s State of the City Address
Last Friday Mayor Bob Walkup gave
his 2009 State of the City Address. He gave a very honest
account of where the City is fiscally and the struggles
that Tucsonans are facing. He acknowledged that there we
going to be cuts to city departments and quoted President
Obama’s inaugural address by saying “Those positions that
are performing and create jobs will stay and those that
are not are likely to be cut”. The Mayor went on to say
that main focus of City government this year should be in
creating jobs.
Impact Fee
On the heels of the State of the
City, Council Member Rodney Glassman wrote a memo to the
Mayor and Council proposing a one year moratorium of all
impact fees (except public safety) for both residential
and commercial buildings. He plans to make a motion this
Tuesday the 10th at Mayor and Council study session which
begins at 2pm.
Tucson Water Plan
Because of a $15.4 Million shortfall
this year because of a decline in water sales the City is
looking to make some budget adjustments. One idea that is
creating a lot of controversy is to reduce the amount of
CAP water to be purchased by 50,000 acre feet. 50,000 acre
feet translate to enough water for 150,000 homes for a
year. Though this would save the city $5.4 million this
year there is some question if this is even possible and
if doing this would have some effect on our annual CAP
allocation.
Parking Reduction
During the process of over hauling
the Certificate of Occupancy (CofO) a stakeholders group
was formed that advised City Developmental Services that
parking requirements are at the heart of much of the CofO
issue as well as the reason for many unused buildings
throughout the City. The City responded with an aggressive
first step that would reduce parking requirements to 3 for
every 1000 square feet as well as allow business owners to
work with the City to use existing buildings for business
even if they don’t meet current parking requirements. Last
night this proposal went before the City Planning
Commission and was met with heavy resistance. They voted
to continue the conversation for at least 60 days and
asked Developmental Services to meet with neighborhoods
and other groups.
Rainwater Harvesting
Become a docent for the rainwater harvesting demonstration site at The Nature Conservancy in Tucson. The class includes in-depth information about all aspects of water harvesting in addition to training on how to lead tours. The price is only $15 for 27 hours of training. The training course will be a 9 weeks course to be held on Wednesday afternoons, 2-5 p.m., starting March 4 and ending April 29, 2009, at 1510 E Ft Lowell. Contact Dorothy Boone, 547-3437,
dboone@tnc.org
to reserve your space.
Pima County
News
Waste Water Fees
Pima County Waste Water is looking to have a considerable rate hike in the next year. They are looking to raise rates on average by about 50% in order to raise funds for needed capital improvements and keep up with the cost of service. They will also be looking for a bond to be put on the ballot this year’s ballot to fund anywhere from $500,000,000 to $750,000,000 also for capital improvements.
Marana News
Water Rate Increase
The Town of Marana will hold a Public Hearing on Tuesday, February 24 to continue discussing the possibility of a water rate increase. The Town is considering changing Marana Water to an enterprise fund which would potentially increase the rates. The Public Hearing will begin at 7:00 p.m. at the Municipal Complex, 11555 W. Civic Center Drive.
Town of Marana Financial Analysis and Update
The Town Council received a presentation on Tuesday evening detailing the analysis of the Town’s finances for FY 2008. In summary (from the Mayor and Council Materials), “General revenues of governmental activities of $38.8 million decreased by $10.8 million or 21.7 percent from the previous year. Of this decrease, $2.1 million is attributable to the reclassification of Highway User Revenue Fees revenue from a general revenue classification to the program revenue classification of operating grants and contributions for fiscal year 2007-08. An additional $4.8 million is due to the reclassification of intergovernmental revenues to program revenues for operating or capital grants and contributions, as applicable. The remaining portion of the decrease is primarily due to reduced sales tax revenue collections in fiscal year 2007-08 from the year earlier as a result of the slowing economy. Almost all of this reduction was experienced in the contracting sales tax classification which the Town utilizes for one-time expenses in the budgetary process.
Program revenues of $22.8 million increased by $9.4 million or 70.0 percent from the previous year. This increase is largely due to an $8.7 million increase in capital grants and contributions received due to increased activity in projects funded by outside agencies combined with the reclassification of intergovernmental revenues described above from general revenues to capital grants and contributions. Approximately $2.5 million of the increase in operating grants and contributions is due to the reclassification of Highway User Revenue Fees described above combined with other increases in operating grants. These increases are offset by a decrease in charges for services revenues of $2.4 million due to decreased residential building permits, building planning and review fees, engineering fees, etc. These decreases are due to the economic slow down and reduced building activity.”
Council Candidate Forum
The 3rd of a 4 part series of Marana Town Council Candidate forums will be on Wednesday, February 11, from 6:30-8:30 p.m. at Rattlesnake Ridge Elementary at 8500 N. Continental Loop Dr.
Twin Peaks Interchange Bid
The Twin Peaks Interchange bid opening is scheduled for mid-February. Dove Mountain Blvd. will tie into a newly aligned Camino de Manana and this connection will be completed at the same time as the Interchange’s completion.
Right of way and Public Easement/ Tortolita Mountain Park
Marana Town Council tabled the issue of whether the town should abandon a right of way and public easement through an upscale development near Tortolita Mountain Park. According to the Wednesday announcement on the three-phase plan: Phase I regards history and background. Town staff will research public and private access issues raised at the meeting and review public policy decisions regarding use of and access to the Tortolita Mountain Park, which is in Pima County's jurisdiction. Phase II will consist of public outreach and communication, including interacting with stakeholders — residents and the developer — to determine what options the town can pursue with Pima and Pinal counties regarding access to the park. Phase III involves developing and presenting recommendations to the Town Council for consideration. No timetable has been set to get all three phases finished, but staff is beginning immediately.
