HomeMy WebLinkAbout2009-06-23 - RESOLUTIONS - LITIGATION SEIZURE GAS TAX (2)RESOLUTION NO. 09-63
A JOINT RESOLUTION OF THE CITY COUNCIL AND
REDEVELOPMENT AGENCY OF SANTA CLARITA AUTHORIZING
THE CITY ATTORNEY/REDEVELOPMENT AGENCY GENERAL COUNSEL
TO COOPERATE WITH THE LEAGUE OF CALIFORNIA CITIES, THE CALIFORNIA
REDEVELOPMENT ASSOCIATION, OTHER CITIES AND COUNTIES IN LITIGATION
CHALLENGING THE CONSTITUTIONALITY OF ANY SEIZURE BY STATE
GOVERNMENT OF HUTA OR GAS TAX AND REDEVELOPMENT FUNDS
WHEREAS, the current economic crisis has placed cities under incredible financial
pressure and caused them to make painful budget cuts, including layoffs and furloughs of city
workers, decreasing maintenance and operations of public facilities, and reductions in direct
services to keep spending in line with declining revenues; and
WHEREAS, the City of Santa Clarita has gone through an extensive process to reduce
costs, postpone capital projects, freeze vacant positions and reduce services to balance the City's
budget; and
WHEREAS, any proposal by the State of California to borrow or take funds from the
City of Santa Clarita, and other cities alike, would require cities to further reduce services vital to
the community; and
WHEREAS, since the early 1990s the state government of California has seized over
$10 billion of city property tax revenues statewide, now amounting to over $900 million each
year to fund the state budget even after deducting public safety program payments to cities by the
state; and
WHEREAS, since the early 1990s the state government also has seized $1.04 billion of
redevelopment tax increment statewide, and the Governor and Legislature are now considering
seizing $350 million each year for three years, beginning in the current fiscal year; and
WHEREAS, on April 30, 2009, in the case of CRA v. Genest, the Sacramento Superior
Court found similar efforts by the State to seize redevelopment tax increment for the state
general fund to be in direct violation of Article XVI, Section 16 of the State Constitution, added
by the voters in 1952 as Proposition 18, which requires that tax increment be used exclusively
for the benefit of redevelopment project areas; and
WHEREAS, in his proposed FY 2009-10 budget the Governor has proposed transferring
$1 billion of local gas taxes (HUTA) and weight fees to the state general fund to balance the state
budget, and over $700 million in local gas taxes permanently in future years, immediately
Jeopardizing the ability of the City of Santa Clarita to maintain the City's streets, bridges, traffic
signals, streetlights, sidewalks and related traffic safety facilities for the use of the motoring
public; and
WHEREAS, the loss of almost all of cities' HUTA funds will seriously compromise
cities' ability to perform critical traffic safety related street maintenance, possibly including, but
not limited to, drastically curtailing patching, resurfacing, street lighting/traffic signal
maintenance, payment of electricity costs for street lights and signals, bridge maintenance and
repair, sidewalk and curb ramp maintenance and repair, and more; and
WHEREAS, cities and counties maintain 81% of the state road network while the state
directly maintains just 8%, and according to a recent statewide needs assessment on a scale of
zero (failed) to 100 (excellent), the statewide average pavement condition index (PCI) is 68, or
"at risk."
WHEREAS, in both Proposition 5 in 1974 and Proposition 2 in 1998 the voters of our
state overwhelmingly imposed restrictions on the state's ability to do what the Governor has
proposed and the Legislature is considering, and any effort to permanently divert the local share
of the gas tax would violate the state constitution and the will of the voters.
NOW, THEREFORE, the City Council and the Redevelopment Agency Board of the
City of Santa Clarita does hereby resolve:
SECTION 1. The Santa Clarita City Council and Redevelopment Agency Board will
oppose all proposals by the State of California that recommends borrowing or taking funds from
cities and counties to balance the State of California's fiscal crisis; and
SECTION 2. The City Attorney/Redevelopment Agency General Counsel take all
necessary steps to cooperate with the League of California Cities, California Redevelopment
Association, other cities, counties and redevelopment agencies in supporting litigation against
the state of California if the legislature enacts and the governor signs into law legislation that
unconstitutionally diverts the redevelopment tax increment and the City's share of funding from
the Highway Users Tax Account (HUTA), also known as the "gas tax," to fund the state general
fund; and
SECTION 3. The city manager/agency executive director or clerk shall send this
resolution with an accompanying letter from the mayor/agency chair to the Governor and each of
the City's state legislators, informing them in the clearest of terms of the City's adamant resolve
to oppose any effort to frustrate the will of the electorate as expressed in Proposition 18 (1952),
Proposition 5 (1974) and Proposition 2 (1998) concerning the proper use and allocation of the
redevelopment tax increment and the gas tax; and
SECTION 4. That a copy of this Resolution shall be sent by the city manager/agency
executive director or clerk to the League of California Cities, the California Redevelopment
Association, the local chamber of commerce, and other community groups whose members are
affected by this proposal to divert funds from vital local services and projects.
SECTION 5. The City Clerk shall certify to the adoption of this Resolution.
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PASSED, APPROVED AND ADOPTED this 23rd day of June 200 .
MA OR
ATTEST:
CITY CLERK-, A
STATE OF CALII~ ORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, MMC, City Clerk of the City of Santa Clarita, do hereby certify
that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita
at a regular meeting thereof, held on the 23rd day of June, 2009, by the following vote:
AYES: COUNCILMEMBERS: Ender, Kellar, Weste, McLean, Ferry
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
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CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL RESOLUTION
I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certi-,y than thi's is a true
and correct copy of the original Resolution No. 09-63, adopted by the City' Council of the City of
Santa Clarita, California on June 23, 2009, which is now on file in my office. —
Witness my hand and seal of the City of Santa Clarita, California, this day of
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Sharon L. Dawson, MMC
City Clerk
By
Susan Caputo, CMC
Deputy City Clerk
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