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City manager warns state bills could limit local zoning; highlights potential earnings-tax proposal
Summary
The city manager updated the El Dorado commission on pending state legislation, including Senate Bill 418, which would allow many residential types by right statewide and streamline approvals, and House Bill 2385, which would permit a local earnings tax on nonresidents up to 1% pending voter approval.
During the city manager’s report, the manager briefed the commission on two pieces of legislation at the state level and discussed potential local implications.
On Senate Bill 418, the manager said the bill would make townhomes, duplexes and accessory dwelling units residential by right and add expedited residential processes statewide. "For example, making residential, which would include, townhomes, duplexes, accessory dwelling units by right," the manager said, noting that such a blanket approach could undercut local zoning protections. He cautioned that while streamlining approvals may help housing production, a statewide one-size-fits-all approach could conflict with individual cities’ planning and marketing efforts.
He also described House Bill 2385, which the manager said would allow municipalities to place an earnings tax of up to 1% on nonresidents who work in the city, subject to a local vote. "If this would pass, then the city commission could put it on the ballot. The residents of El Dorado could vote on it," he said, adding that the revenue would be used for general government purposes and potentially to reduce the mill levy.
The manager said city leadership had recent meetings with legislators and industry representatives for information gathering and noted that the legislature’s agenda changes daily. He urged caution in assuming uniform benefits from statewide changes and emphasized continued monitoring and potential outreach.
Next steps: the manager flagged committee hearings and encouraged commissioners to follow committee testimony; he noted a local legislative coffee will be held the coming Saturday to discuss legislative items with elected representatives.
