HomeMy WebLinkAboutResolution - 3264 STATE OF CALIFORNIA ) RESOLUTION NO. 3264
COUNTY OF RIVERSIDE) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY OF SAN JACINTO FINDING
THAT A SEVERE FISCAL HARDSHIP WILL EXIST IF
ADDITIONAL CITY PROPERTY TAX FUNDS ARE SEIZED 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 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, 2009, 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 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 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, our city 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 SAN JACINTO 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 state
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, our state senator(s), our state assembly member(s)
and the League of California Cities.
PASSED, APPROVED AND ADOPTED, this 21st day of May, 2009, by
the following vote:
Ayes: Ayres, Di Memmo, Mansperger, Potts, Stubblefield
Nays: None
Absent: None
Abstain: None
City of San Jacinto
G�ltr. �..
Q?yv1 0' u1k
by Dale Stubble Id Ma or
ATTEST:
Barry lellan, City Clerk