Emergency Community Facilities and Public Investment Act of 1972

Suppose we have the other witnesses whose names were called a few minutes ago also take a place at the witness table.

So, Mr. Mayor, we are delighted to have you, sir, and you may pro

ceed first.

STATEMENT OF HON. JOHN ROUSAKIS, MAYOR OF SAVANNAH, GA., ON BEHALF OF THE NATIONAL LEAGUE OF CITIES AND THE U.S. CONFERENCE OF MAYORS, ACCOMPANIED BY ARTHUR A. MENDONSA, CITY MANAGER, SAVANNAH, GA.; AND LARRY SNOWHITE, LEGISLATIVE COUNSEL, NATIONAL LEAGUE OF CITIES U.S. CONFERENCE OF MAYORS

Mr. ROUSAKIS. Thank you, Mr. Chairman. I am John Rousakis, mayor of Savannah, Ga., representing the National League of Cities and the U.S. Conference of Mayors. I have with me this morning Mr. Larry Snowhite, legislative counsel, National League of Cities and U.S. Conference of Mayors, on my right, and our city manager for Savannah, Ga., Mr. Arthur A. Mendonsa, on my left.

I would like to present now a statement that I would like to have made a part of the record.

The CHAIRMAN. If you would like to make it a part of the record-
Mr. ROUSAKIS. Yes, sir.

The CHAIRMAN. Without objection, so ordered.

Mr. ROUSAKIS. Mr. Chairman, members of the committee, my name is John Rousakis. I am the mayor of Savannah, Ga., and am here on behalf of my city, the National League of Cities, and the U.S. Conference of Mayors. The National League of Cities represents, directly, or through its affiliated State municipal leagues, approximately 15,000 incorporated municipalities in the Nation. The U.S. Conference of Mayors is the agency of elected chief executives of the Nation's major cities; it is composed of the mayors of all cities over 30,000, of which 750 are now eligible, most of whom are members. We appreciate this opportunity to testify in support of H.R. 13853, the Emergency Community Facilities and Public Investment Act of 1972.

H.R. 13853 would amend title VII of the Housing and Urban Development Act of 1965 to authorize the Secretary of HUD to make up to 100 percent grants to eligible communities for the construction. of basic public facilities. Five billion dollars would be authorized for such grants. These grants would be funded on a contractual authority basis, a major and welcome feature. Contract authority would provide cities with a more secure flow of funds than can be expected under annual appropriations and is necessary for the extended time involved in planning, financing, and funding the major capital projects eligible under this bill.

This is a necessary bill, because it would give cities a means for influencing urban growth. In the absence of a national growth policy, despite title VII of the Housing Act of 1970, cities must themselves step into the vacuum and use the tools available to shape their development.

The pollution problem started in Savannah, Ga., over 200 years ago. Today it is affecting our present and our future development, and although we hear expressions of national concern and State concern and the accompanying speeches to save our environment, we get limited material financial assistance and no State help in Georgia.

So working under Federal and State directives the local already overburdened taxpayer is carrying the lion's share to correct the problems of the past.

As indicated in a supplement to this statement, we do not ask that the Federal Government take over our problems and correct them with the requisite immense financial support because in local government we are not doing our share. We are, but can't go it alone anymore. Just recently we had 60-percent increases in water, and sewage rate, 150-percent increased beer tax, doubled parking fees. We have had a 20-percent increase in our property tax since January 1, 1972. Every revenue source available to our government in Savannah has been increased primarily to meet the requirements of amortizing our pollution abatement program. We are doing this with the diminishing tax base; like so many other cities, we have the same flight to and development of the suburbs, with the new construction, the new homes, the new apartment buildings, the new industries, all locating outside the limits of our city, and with limited tax resources. Our major revenue source is the property tax. The other sources are controlled by the State legislature, with no availability of income tax, local income tax, or local sales tax. So to meet these pressing financial needs of today we are placing on the remaining group of citizens in our central cities additional heavy taxes and these are the people that can least afford to pay these additional taxes. Now we too are concerned with the problems of unemployment and underemployment but more important we are concerned about providing an adequate quality of life for those citizens of the central city. Unless we receive help we will not be able to do this.

I can't as a mayor meet the call of our President when he asks for support in providing jobs for veterans, jobs for the handicapped, jobs for the disadvantaged. There are no jobs. I can't meet the call to provide better housing. We do not have the financial resources to provide better housing within the limits of our city or to improve the health and safety conditions of our citizens.

To cope with the overwhelming problem of solid waste disposal, the revenue gap between the goals that the administration sets and the financial resources that we have to meet these goals is enormous and again the supplement to the statement will show this revenue gap.

History will herald the 1960's and 1970's as years of magnificent accomplishment in space for this country but unless there is soon a major and massive effort to save and rebuild cities like Savannah, Ga., history will also record these years as the years our cities died. The prime determinants for growth patterns today are the location and quantity of sewer lines and waste treatment facilities. Without them, cities would stagnate. Uncontrolled-and by that we mean inadequate or sporadic funding the pattern of sprawl and nonrational growth will be perpetuated. An adequate and certain flow of funds as proposed in H.R. 13853 will give cities the means to influence-if not control-these key factors for urban growth.

To say that the Nation's cities need the $5 billion is to state the obvious, but we do and we hope for favorable action on this bill

The municipal needs, in the types of projects eligible for funding, are well documented. In the area of water pollution control and treatment, the National League of Cities and the U.S. Conference of Mayors conducted a survey of the waste treatment facility needs of 1,105 cities. Based on that survey, we projected a total national need

Suppose we have the other witnesses whose names were called a few minutes ago also take a place at the witness table.

So, Mr. Mayor, we are delighted to have you, sir, and you may proceed first.

I would like to present now a statement that I would like to have made a part of the record.

The CHAIRMAN. If you would like to make it a part of the record-
Mr. ROUSAKIS. Yes, sir.

The CHAIRMAN. Without objection, so ordered.

H.R. 13853 would amend title VII of the Housing and Urban Development Act of 1965 to authorize the Secretary of HUD to make up to 100 percent grants to eligible communities for the construction of basic public facilities. Five billion dollars would be authorized for such grants. These grants would be funded on a contractual authority basis, a major and welcome feature. Contract authority would provide cities with a more secure flow of funds than can be expected under annual appropriations and is necessary for the extended time involved in planning, financing, and funding the major capital projects eligible under this bill.

So working under Federal and State directives the local already overburdened taxpayer is carrying the lion's share to correct the problems of the past.

To say that the Nation's cities need the $5 billion is to state the obvious, but we do and we hope for favorable action on this bill

Our responses were broken down into:

Primary and secondary treatment _
Tertiary treatment _ _

Interceptor and storm sewer improvement

$9, 311, 987, 574

4, 100, 386, 533 8, 368, 738, 149

Our survey received responses that further broke down the third category, interceptor and storm sewer improvement, into various program categories. Identified needs for interceptors and treatment programs for storm water flows totalled $1,826,877,000, of which $542,377,000 was for interceptor needs, and $1,284,500,000 was for storm overflows treatment programs. For separation and improvement of storm sewer systems, identified needs totalled $1,772,125,000. The Bureau of Hygiene of HEW found, in a 1969 survey, that 900,000 persons were drinking potentially dangerous water, and 2 million persons were drinking inferior water safe, but with bad appearances, odor, or taste. This study covered only 9 regions of the country, with a total population of 18.2 million. In addition, 56% of the 969 water systems were physically deficient in some respect.

Similarly, the need for sewer facilities is also well documented. The Department of Commerce estimates that there are now 53 million people, about 26% of our population, that are not served by adequate sewer lines. The Environmental Protection Agency has estimated, based on somewhat older figures, that 43 million Americans are not served by any sewer lines.

The backlog in applications to HUD has been variously estimated to be between three and four billion dollars. The actual demand is undoubtedly much higher if these applications are included from communities which would have filed had the pipeline not been so backed up already.

Another quantifiable national need is for jobs. The April "Area Trends in Employment and Unemployment" published by the Department of Labor has almost 900 labor market areas experiencing substantial or persistent unemployment. As our table shows, the unemployment situation in the construction industry is even bleaker:

1971:

UNEMPLOYMENT IN THE CONSTRUCTION INDUSTRY-SEASONALLY ADJUSTED (IN PERCENTAGES)

October.
November.

December..

10.2

9.7

11.2

9.8

10.3

9.7

10.4

We might suggest that these unemployed construction workers would like to see more money going into construction of needed public facilities. Also the unemployed scientists and engineers, and the people coming home from Vietnam or coming out of high school or college, or sitting around in our nation's cities, would like to get jobs building or working at these facilities.

It is an accepted rule of thumb that an expenditure of $1 million for public facilities produces 100 onsite and offsite construction jobs, and 150 jobs in consumer industries, wholesale and retail trades. An infusion of $5 billion, as proposed in H.R. 13853, would therefore mean 500,000 construction jobs, and 750,000 additional jobs for our economy.

To make the delivery of those funds more effective, the National League of Cities and the U.S. Conference of Mayors would offer the following suggestions: In Section 709 (c), we recommend that units of general purpose local governments-cities, townships, counties-be designated as eligible for grants, rather than the vague "communities";

All facilities approved for funding should be consistent with applicable regional and local plans;

The bill should give clear direction to HUD that projects should not be restricted on the basis of population or dollar amounts of projects. One of

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