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Home My WebLink About1990-06-26 - AGENDA REPORTS - SCA 2 SUPPORT BOND VOTE (2)r f • • AGENDA REPORT City Manager. Approval Item to be presented by: CONSENT CALENDAR Ken Pulskamp DATE: June 26, 1990 SUBJECT: SCA 2 (Leonard) Support DEPARTMENT: City BACKGROUND This item is on the Agenda to register the City of Santa Clarita's support for SCA 2. State Constitutional Amendment 2 provides an exception, to the normal two-thirds majority vote required for general obligation bonds. In order to qualify for the exemption the bonds .must: 1. Be.used for acquiring and improving real property for public purposes. 2. Not have a period,of indebtedness of more than 10 years. 3. Not require an increased property tax rate of more than five cents per $100.00 of assessed value. According to the League of California Cities and the California Taxpayers' Association the November 1989 ballot contained over 20 local general obligation bond measurers. Of the twenty, twelve were approved, eight failed. Of the eight that failed, only one failed to obtain at least a majority, but less than the two thirds vote requirement. Presently there. is a move by the Assembly Republican Caucus to remove cities and local agencies from SCA 2 - Support for this bill must be expressed to ensure that reference to local agencies and cities are included within the bill text. RECOMMENDATION That the City Council support SCA 2 and authorize staff to prepare letter of support. ATTACHMENTS SCA 2 7 CA, SCA 2 • 06/21/90 • Page 1 AMENDED IN ASSEMBLY MARCH 28, 1990 AMENDED IN ASSEMBLY MARCH 8, 1990 AMENDED IN SENATE APRIL 11, 1989 AMENDED IN SENATE MARCH 27, 1989 AMENDED IN SENATE FEBRUARY 16, 1989 AMENDED IN SENATE JANUARY 31, 1989 SENATE CONSTITUTIONAL AMENDMENT No. 2 amccmxasacamxxaaaaxxxaccxaeamamaxx=caa-a---------axxaas--_--aa-----aaa--___-___ Introduced by Senators Leonard, Campbell, Kopp, Presley, and Seymour (Coauthors: Assembly Members Bradley, Cortese, Eaves, Farr, Peace,.and Woodruff) December 5, 1988 acvaxxxaxaxammaaaamxcamxaviceamsaaccaxxxaccameaaxxsxcmxx=xxaaamaoasaaaecxxxasxax Senate Constitutional Amendment No. 2--A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 18 of Article XVI thereof, relating to local government. LEGISLATIVE COUNSEL'S DIGEST SCA 2, as amended, Leonard. Local government bonds. Article XIIIA of the California Constitution imposes a limit upon ad valorem taxes on real property -in each county of 1% of the full cash value of the property. Among others, an exception to this limit is provided for bonded indebtedness for the acquisition or improvement of real property on or after July 1, 1978, by 2/3 of the votes cast by the voters voting on the proposition. In addition, Section 18 of Article XVI prohibits counties, cities, towns, townships, school districts, and boards of education from incurring any indebtedness or liability which exceeds -in any year the income and revenue provided for that year without the approval of 2/3 of the qualified electors thereof voting at an election to be held for that purpose. Districts, other than school districts, are not now subject to this constitutional prohibition. A specified exception to this constitutional prohibition is provided for the adoption, by a majority of the qualified electors of the public entity, of any replacing puDlic scnool uuilaings aecerminea unaer Law ro oe structurally unsafe for school use. This measure would, notwithstanding these constitutional provisions, permit any of these public entities and any district authorized to incur any indebtedness to submit a proposition funded through an increase of the tax on real and personal property, for the purpose of acquiring or improving, or both acquiring and improving, real property for public purposes. This measure would require that the proposition submitted by the local entity include a period of bonded indebtedness of no more than 10 years and an increase in the property tax rate, effective only during the period of bonded indebtedness, of no more than 5 cents per $100 of assessed value of real and personal property within the jurisdiction of the public entity. This measure would provide that the proposition would be deemed adopted upon the assent of a majority of the qualified electors of the public entity submitting the proposition, as.defined, voting at an election held for that purpose. This measure would make various technical, nonsubstantive, and organizational changes to Section 18 of Article XVI. [ The measure would declare that its provisions would be applicable ] ( to and govern the vote requirements for propositions, as specified, ] [ voted upon on or after the day this measure is voted upon.] Vote: 2/3. Appropriation: no. Fiscal committee: no. State -mandated local program: no. Resolved by the Senate, the Assembly concurring, That the Legislature of the State of California at its 1989-90 Regular Session commencing on the fifth day of December 1988, two=thirds of the members elected to each of the two houses of the Legislature voting therefor, hereby proposes to the people of the State of California that the Constitution of the State be amended, as follows: That Section 18 of Article XVI thereof is amended to read: SEC. 18. (a) No county, city, town, township, board of education, or school district shall incur any indebtedness or liability in any manner or for any purpose exceeding in any year the income and revenue provided for the year, without the assent of two-thirds of the qualified electors thereof, voting at an election held for that purpose. (b) Notwithstanding any other provision of this section to the contrary, with respect to any public entity enumerated in subdivision (a) which is authorized to incur indebtedness for public school purposes, any proposition for the incurrence of indebtedness in the form of general obligation bonds for the purpose of repairing, reconstructing or replacing public school buildings determined, in the manner prescribed by law, to be structurally unsafe for school use, 3 A 2 • 06/21/90 . Page 3 shall be adopted upon the approval of a majority of the qualified electors of the public entity voting on the proposition at the election. (c)'Notwithstanding any provisions of Article XIIIA or any other provision of this section to the.contrary, a county, city, city and county, town, township, board of education, or district, including a school district authorized to incur any indebtedness; may submit to the voters a proposition, funded through an increase of the tax on real and personal property, for the purpose of acquiring or improving, or both acquiring and improving real property for public purposes, as follows - (1) The public entity submitting the proposition shall specify a bonded indebtedness of no more than 10 years in duration, and a property tax increase, effective only during the period of bonded indebtedness, of no more than five cents ($0.05) per one hundred dollars ($100) of assessed value of real and personal property within the jurisdiction of the public entity. (2) If the proposition receives the assent of a majority of the qualified electors of the public entity submitting the proposition, voting at an election held for that purpose, the proposition shall be deemed adopted. (d) Before or at the time of incurring any indebtedness pursuant to this section, provisions shall be made for the collection of an annual tax sufficient to pay the interest on the indebtedness as it falls due, and also provisions to constitute a sinking fund for the payment of the principal thereof, on or before maturity, which shall not exceed 40 years from the time of contracting for the indebtedness in the case of indebtedness incurred under subdivision (a) or (b), or 10 years in the case of indebtedness incurred under subdivision (c). (e) Notwithstanding any other provision of this section to the contrary, when two or more propositions for incurring any indebtedness or liability are submitted at the same election, the votes cast for and against each proposition -shall be counted separately, and when two-thirds or a -majority of the qualified electors, as the case may be, voting on any one of the propositions vote in favor thereof, the proposition shall be deemed adopted. (f) For purposes of this section, "proposition" means a single issue placed before the local electorate..as described on the ballot. Each proposition shall be subject to the terms and conditions of this section. (g) The amendments made to this section by Senate Constitutional ] Amendment 2 of the 1989-90 Regular session of the Legislature shall be] applicable to, and shall govern the vote requirements for, the ] adoption of any proposition to,which this section would otherwise ] apply but which is voted upon on or after the day that the amendments ] made to this section are voted upon.] END OF REPORT