HomeMy WebLinkAbout2009-05-12 - RESOLUTIONS - STATE BUDGET LOCAL FUNDS (2)RESOLUTION 09-26
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA
OPPOSING ANY PROPOSAL OF THE GOVERNOR OF THE STATE OF CALIFORNIA OR
THE CALIFORNIA LEGISLATURE TO
TAKE, BORROW OR OTHERWISE CONVEY
LOCAL GOVERNMENT FUNDS TO THE STATE OF CALIFORNIA
WHEREAS, the current economic crisis has placed cities under incredible financial
pressure and caused city officials to reopen already adopted budgets to make painful 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, since the early 1990s the state government of California has seized over
$8.6 billion of city property tax revenues statewide to fund the state budget even after deducting
public safety program payments to cities by the state; and
WHEREAS, in FY 2007-08 alone the state seized $895 million in city property taxes
statewide to fund the state budget after deducting public safety program payments and an
additional $350 million in local redevelopment funds were seized in FY 2008-09; and
WHEREAS, the most significant impact of taking local property taxes has been to
reduce the quality of public safety services cities can provide since public safety comprises the
largest part of any city's general fund budget; and
WHEREAS, in 2004 the voters by an 84% vote margin adopted substantial constitutional
protections for local revenues, but the legislature can still "borrow" local property taxes to fund
the state budget; and
WHEREAS, on May 5 the Department of Finance announced it had proposed to the
Governor that the state "borrow" over $2 billion in local property taxes from cities, counties and
special districts to balance the state budget, causing deeper cuts in local public safety and other
vital services; and
WHEREAS, in the past the Governor has called such "borrowing" proposals fiscally
irresponsible because the state will find it virtually impossible to repay and it would only deepen
the state's structural deficit, preventing the state from balancing its budget; and
WHEREAS, the Legislature is currently considering hundreds bills, many of which
would impose new costs on local governments that can neither be afforded nor sustained in this
economic climate; and
WHEREAS, state agencies are imposing, or considering, many regulations imposing
unfunded mandates on local governments without regard to how local agencies will be able
comply with these mandates while meeting their other responsibilities; and
WHEREAS, the combined effects of the seizure of the City's property taxes, increasing
unfunded state mandates, and the revenue losses due to the economic downturn have placed the
City's budget under serious fiscal pressure; and
WHEREAS, the City of Santa Clarita simply can not sustain the loss of any more
property tax funds or to be saddled with any more state mandates as they will only deepen the
financial challenge facing our city; and
WHEREAS, a number of the City's financial commitments arise from contracts,
including long term capital leases and debt obligations which support securities in the public
capital markets, that the City must honor in full unless modified by mutual agreement of the
parties.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY
OF SANTA CLARITA has determined that the City will experience a severe fiscal hardship if
the recommendation of the Department of Finance to "borrow" $2 billion of local property taxes
is supported by the Governor and the Legislature; and
RESOLVED FURTHER, that the City Council strongly and unconditionally opposes the
May 5 proposal of the Department of Finance and any other state government proposals to
borrow or seize any additional local funds, including the property tax, redevelopment tax
increment, and the city's share of the Prop. 42 transportation sales tax; and
RESOLVED FURTHER, that the City Council strongly urges the California Legislature.
and Governor to suspend the enactment of any new mandates on local governments until such
time as the economy has recovered and urges the state to provide complete funding for all
existing and any new mandates.
RESOLVED FURTHER, that the City Clerk shall send copies of this resolution to the
Governor, members of Santa Clarita's State Legislative delegation and the League of California
Cities.
PASSED, APPROVED, AND ADOPTED th
ATTEST:
CITY CLERK
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, MMC, City Clerk of the City of Santa Clarita, so 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 12th day of May 2009, by the following vote:
AYES: Weste, McLean, Ender, Kellar, Ferry
NOES: None
ABSENT: None
CITY CLERK
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