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HomeMy WebLinkAboutReso 2009-052 - Additional Property Taxes ,. . . 'l\i RESOLUTION NO. 2009 - 52 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING DECLARING THAT A SEVERE FISCAL HARDSHIP WILL EXIST IF ADDITIONAL PROPERTY TAX FUNDS ARE SEIZED BY THE STATE OF CALIFORNIA AND ADDITIONAL UNFUNDED MANDATES ARE ADOPTED BY 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 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 percent 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, 2009, the California 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 of 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 to comply with these mandates while meeting their other responsibilities; and ,-Q 1 ~ ." . . .., WHEREAS, the combined effects of the seizure of property taxes, increasing unfunded State mandates, and the revenue losses due to the economic downturn have placed the City of Redding's budget under serious fiscal pressure; and WHEREAS, the City of Redding simply cannot sustain the loss of any more property tax funds or be saddled with any more State mandates as they will only deepen the financial challenge facing the City of Redding. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Redding has determined that the City will experience a severe fiscal hardship if the recommendation of the California Department of Finance to "borrow" $2 billion of local property taxes is supported by the Governor and the Legislature; and BE IT FURTHER RESOLVED, that the City Council strongly and unconditionally opposes the May 5,2009, proposal of the California Department of Finance and any other State proposals to borrow or seize any additional local funds, including property tax revenue, redevelopment tax increment, and the City's share of the Proposition 42 transportation sales tax revenue; and BE IT FURTHER RESOLVED, that the City Council strongly urges the Legislature and the 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; and BE IT FURTHER RESOLVED, that the City Clerk is hereby directed to send copies of this resolution to Governor Arnold Schwarzenegger, State Senator Sam Aanestad, Assembly Member Jim Nielsen, and the League of California Cities. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 19th day of May, 2009, and was duly adopted at said meeting by the following vote: AYES: NOES: ABSENT: ABSTAIN: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Dickerson, Jones, McArthur, Stegall, and Bosetti None None None l2u~~ RICK BOSETTI, Mayor ~ f", ATTEST: ::. ~..,." ..; _,.-'-;';,~: ) ~~r'.:' . . ,I;,. ~ :......:; ,,", ~ .~-:;~ , CONNIESfRO " _:;-.. - " '. / APPROVED AS TO FORM: ~ ' ~~~7 RICHARD A. DUVERNAY, C' Attorney r <'<_ S.. "'.... .,' - ~ - 0 .