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HomeMy WebLinkAboutReso 2009-121RESOLUTION NO. 2009-121 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FINDING A SEVERE FISCAL HARDSHIP WILL EXIST IF ADDITIONAL LOCAL PROPERTY TAX AND IN-LIEU 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 Califomia has seized over $8.6 billion of city property tax and in-lieu tax revenues statewide to fund the state budget even after deducting public safety program repayments to cities by the state; and WHEREAS, in Fiscal Yeaz 2007-2008 alone the state seized $895 million in city property taxes and in-lieu 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 Fiscal Yeaz 2008-2009; and WHEREAS, the most significant impact of taking local property taxes and in-lieu taxes has been on 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, the taking of local property taxes and in-lieu taxes by the state has also impacted the City's ability to provide recreation, librazy, public works maintenance, and other public services; 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 and in- lieu 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 and in- lieu 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, the impact of the state's "borrowing" on the City of Chula Vista would be approximately $43 million; 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 Resolution No. 2009-121 Page 2 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 aze imposing, or considering, many regulations imposing unfunded mandates on local governments without regazd to how local agencies will be able to comply with these mandates while meeting their other responsibilities; and WHEREAS, the combined effects of the seizure of the City's property taxes and in-lieu 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 cannot sustain the loss of any more property tax or in-lieu tax funds or 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 azise from contracts, including long term capital leases and debt obligations which support securities in the public capital mazkets, 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 Chula Vista does hereby adopt a resolution finding that a severe fiscal hardship will exist if the recommendation of the California Department of Finance to "borrow" $2 billion of local property taxes and in-lieu taxes is implemented by the Government and the Legislature. 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 government proposals to borrow or seize any additional local funds, including property tax, redevelopment tax increment, in-lieu property taxes, and the city's shaze of the Proposition 42 transportation sales tax. BE IT FURTHER RESOLVED 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. BE IT FURTHER RESOLVED 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. Approved as to form by Bart C. Miesfe~ City Attorne Presented by Resolution No. 2009-121 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 12th day of May 2009 by the following vote: AYES: Councilmembers: Bensoussan, Castaneda, McCann, Ramirez, and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None Cheryl Cox, ay r ATTEST: d1c Dorma R. Norri , CMC, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2009-121 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 12th day of May 2009. Executed this 12th day of May 2009. ~~~~ Donna R s, CMC, City Clerk