Unincorporated areas of Sacramento County lack robust revenue, report reveals
As Sacramento County grows economically, its unincorporated ares are lacking persistent revenue, as revealed in a report presented to the Board of Supervisors Wednesday afternoon.
HR&A Advisors, a real estate consulting firm that conducted research on the county, showed that unincorporated areas are short of “tradable sectors,” which means the region does not bring consistent wealth back into the community through selling goods and services.
HR&A Advisors collected data on the economic development of Sacramento County with an emphasis on its unincorporated areas. About 600,000 people live in unincorporated parts of the county, according to previous Bee reporting.
Unincorporated regions include Carmichael, Rio Linda, Fair Oaks and North Highlands. Data from HR&A discovered that four in 10 residents live in unincorporated parts of Sacramento, but few actually work there. Judith Taylor, a partner at the firm, said the report focused on “equitable economic development” for the region overall.
“When I think about the equitable piece, I’m focused on ensuring that existing residents and existing businesses get to benefit from those increases in the economy,” Taylor said. “(So they) can benefit in addition to new residents and new businesses who are coming in.”
Among the recommendations HR&A Advisors provided, they advised the county to empower local businesses and entrepreneurs to “actualize their aspirations,” the county resolution states. The plan suggested looking at the region’s retail corridors at the county level to create a “a vibrant sense of place and a robust business ecosystem.”
HR&A’s report revealed that Sacramento County has grown quickly because of an increase in government and health care jobs. These two industries provide 40% of county jobs, HR&A stated.
Supervisor Rosario Rodriguez, who is also the owner of Sutter Street Taqueria in Folsom, said she can speak firsthand to the difficulties of running a business in Sacramento County. She said, overall, “it’s tough to do business in California.”
“Everybody wants a piece of the pie, and it seems like you’re just always in debt, or you owe somebody,” Rodriguez said. “Even understanding that part of running a business is supporting small businesses and ensuring that communities understand that if you want to keep your small businesses, you’ve got to support them.”
Small businesses in the survey of the report said they need more support to sustain themselves, as well as improved awareness of what services already exist in the county. To improve this, HR&A Advisors recommended the county strengthen communication between these businesses and host community meetings with the Office of Economic Development.
Multiple board members expressed a need to not function “in a vacuum” economically. Supervisor Pat Hume said Sacramento County needs to become more recognizable as a region for economic opportunity.
Supervisor Patrick Kennedy said the board hands are often “tied” especially in “economically depressed areas” with poor infrastructure when businesses seek help. He said while he did not want to “denigrate and downplay” the work researchers did, economic incentives are becoming harder to come by.
Taylor said the county should create a tool kit and that building incentives is “definitely one of the most important things that needs to get done.”
After the board approved the resolution, they will adopt a plan to improve its economy to be more sustainable and diverse. This includes being able to operate more efficiently in unincorporated areas, making more revenue and connecting businesses with county resources.
