Opinion: Elk Grove SOI a Ponzi Scheme?

November 4, 2013 | Submitted by Elk Grove GRASP

The approval of the Sphere of Influence application will pave the way for annexation. If LAFCo approves this application and the subsequent annexation occurs, the city will indeed have control of the planning for which LAFCo Commission will have no jurisdiction or power.

The SOI means the following for Elk Grove:

More traffic and more pollution

As the Elk Grove City citizen survey in 2011 indicated, residents of Elk Grove reported traffic as a major concern and problem. This problem will not be alleviated by expansion as many of our current roads are at capacity and Hwy 99 is congested.

Cars are the primary source for commuting and major pollution producers. Home

developers continue to advertise nearby 99, indicating jobs are not in town.

More expensive city services

Elk Grove School District continues to address its structural deficit. The school district would be required to provide schools, further straining the educational budget and programs.

The current police budget is 65% of our general budget. To maintain the same level of service residents count on and expect, the budget demand would increase.

Water rates would increase to meet the demand as local availability is depleted and water would come from outside our area.

Currently there is not enough money in the Roadway funds to maintain roads so leaders are looking to put a measure on the ballot to increase sales tax to cover road maintenance.

Developer’s delight and our blight

Developers have entered into purchase contracts with landowners in the sphere of influence area. Elk Grove City leaders have been responsive to home developer requests for rezones and general plan amendments creating the imbalance we currently struggle with for jobs to homes. As leaders focus their attention on southern expansion, the existing city infrastructure will continue to be neglected.

Lower property values

As more homes are built the shift in supply and demand will reduce the current home value. During the market crash many homes in the Elk Grove area were purchased by out-of-town investors increasing the rental market in town.

Elk Grove Ponzi Scheme?

UC Davis economists have said that this region relies on government and construction jobs. So when Elk Grove discusses bringing jobs, it is about construction jobs; more home building. More homes would continually need to be built to maintain those jobs. The city has collected fees from developers to construct neighborhood parks. The fees have been inadequate to complete parks as promised to current residents.

It was stated at a recent city meeting, now that new subdivisions are being built and fees collected, previous subdivision parks will now have funding to be built, but that is a borrowing-from-Peter-to-pay-Paul policy which only creates under funding of parks in a new subdivision. That is a classic Ponzi scheme.