Ventura City Council Takes A Bold Step, Repeals Net Zero

Credit where credit is due. In mid-July 2024, the Ventura City Council took a bold step to stimulate economic vitality by voting unanimously to repeal the Net Zero fee.

What is Net Zero?

Net Zero was the city’s policy to ensure that new development does not increase the overall water demand on the local supply. Its purpose was to protect the city’s water supply and ensure sustainability for current and future residents. Net Zero has been the city’s policy since 2016.

Net Zero requires developers to offset their water usage through one of three methods: dedicating specific water rights, extraordinary conservation measures or paying a water resource net zero fee. Most developers opted for choice number three, which acted as a tax on development and inhibited economic growth.

The table shows how onerous the Net Zero fee was. It ranged from a low of $522 for erecting a school to $50,388 for a golf course or a park.

Politics Makes Strange Bedfellows

Councilmembers Doug Halter and Mike Johnson partnered to present the policy consideration to repeal the Net Zero fee. While the two Councilmembers didn’t always agree on prior matters, they joined together to do what they believed was in Ventura’s best interest regarding Net Zero.

They argued that the Net Zero fee discouraged business creation, expansion and housing development. It stifled economic growth, and the indirect costs likely outweigh

the revenue Net Zero provided to the Water Capital Improvement Projects fund.

Their argument was persuasive. All seven Councilmembers voted to repeal the fee.

Who Wins And Who Loses?

While it’s too early to tell what impact repealing Net Zero will have on economic vitality, it is possible to know who will benefit from the repeal in the short term.

Developers and taxpayers are winners. The City Council has opened the door to entice more construction in the city, which will, in turn, mean Ventura will receive more tax dollars.

Ventura Water and no growth proponents lose. The repeal of Net Zero means Ventura Water will receive less money into the Water Capital Improvement Projects fund. Ventura Water representatives attending the City Council meeting appeared upset by this prospect. Slow growth proponents will be troubled if repealing Net Zero results in the economic vitality and building the City Council seems to think it will.

Editors Comments

We see the repeal of Net Zero as a victory for Ventura in several ways. First, it removes a barrier to economic growth that kept Ventura’s economy moribund for eight years. Without Net Zero, Ventura may see some economic vitality it hasn’t seen in decades.

Second, we applaud two City Councilmembers working together to propose a bi-partisan policy consideration. Too often, the current City Council has degenerated into a fractured, squabbling body. Repealing Net Zero proves this group can work for the common good of Venturans.

Third, we welcome the City Council’s fresh perspective to invigorate the local economy. The Council used the one level it controls to stimulate the economy: reducing fees and regulations. Repealing Net Zero accomplishes both.

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