Economic Development

Have you ever wondered what happens with the sales tax you pay at a retail counter or online? What can cities do with that money? Here are 10 things you should know — but may have been afraid to ask — about California’s sales and use tax.

Like many cities across the country, Santa Monica was devastated by the COVID-19 pandemic. The city faced a projected revenue shortfall of about $225 million due to hotel and business closures. In response, the city invested more than $5 million in 25 city programs to accelerate local recovery.

Located in the heart of Santa Ana’s La Artesia Pilar neighborhood is La Placita Cinco — an innovative and community-oriented urban hub. The city and developers worked closely with the community to transform the once-neglected neighborhood center, while keeping residents’ priorities top of mind.

New development projects increase demand on existing public infrastructure. To fund improvements, cities often impose development impact fees, which are governed by the Mitigation Fee Act. Recently, courts have interpreted this law in a more rigid manner, suggesting that any fees held unspent for more than five years must be refunded.

Tourism is spurring the recovery of lost jobs and revenue in many cities, particularly rural ones. However, those gains have not been felt equally, especially in large, urban communities. It is crucial that cities and other tourism stakeholders, regardless of their recovery level, have plans in place to help them navigate future uncertainties.

In March 2021, cities across the nation breathed a sigh of relief as an economic package that included $65 billion for municipalities finally made its way through Congress and was signed into law. The American Rescue Plan Act (ARPA) provided badly needed direct and flexible funds to cash-strapped cities on the front lines of the COVID-19 pandemic since March 2020.

The Institute for Local Government (ILG) launched a pilot program called BOOST, in partnership with the Strategic Growth Council, to help under-resourced communities build capacity to advance their climate, equity, and economic development goals. Through this program, ILG worked with 10 cities and two regions to develop projects and programs that promote more equitable, just, and economically-thriving communities. 

While communities across California and the country excitedly await the disbursement of badly needed relief funds from the American Rescue Plan Act and potential assistance from the president’s American Jobs Plan, one question is being asked over and over again — how do we make the most of these precious one-time investments?

The city of Glendale’s efforts to grow the tech industry including the creation of “knowledge sharing” or places where local talent could go to innovate, inspire, and meet one another, inspired the creation of its Glendale Ecosystem for Tech Startups initiative. This helped focus on attracting new businesses including high-end co-working space operators; developing a strategy to offer more mentorship, business development, and investment opportunities to local startups; and helping tech companies expand.