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Home My WebLink About2009/12/08 Item 9 CITY cau NCI L AGENDA STATEMENT ~(~ CITY OF ~ (HULA VISTA DECEMBER 8, 2009, Item~ ITEM TITLE: RESOLUTION IN SUPPORT OF THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010 ClTYMANAGE~ CITY MANAGERV 4/5THS VOTE: YES D NO ~ SUBMITTED BY: REVIEWED BY: SUMMARY Over the last three fiscal years the City of Chula Vista has experienced significant reductions in revenues as a result of the downturn in the development market and the overall economy. As a result, the City has adjusted expenditures to bring them in line with reduced revenues. State take-aways and borrowings represent additional revenue reductions, requiring additional expenditure adjustments at the local level. The Local Taxpayer, Public Safety and Transportation Act of 2010 is a ballot initiative which may be placed on the November 2010 statewide ballot. If approved, the initiative would limit the state's ability to interfere with local revenues. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed actIvIty for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it involves only the allocation of funding; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. RECOMMENDATION Council approve the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION Over the last few years the City of Chula Vista has experienced a precipitous decline in revenues due to the slumping economy, housing crisis, and slowdown in development activity. The City of Chula Vista has made significant program and personnel reductions 9-1 DECEMBER 8, 2009, Item~ Page20f2 during this time, bringing expenditures in line with a lower revenue base. In January 2009, the City declared a fiscal emergency in response to a projected $20 million budget shortfall for fiscal year 2009-10. In June 2009 the City Council approved a balanced budget for fiscal year 2009-10 reflecting a 20% reduction in staffing compared to fiscal year 2006-07. On May 5, 2009, the California Department of Finance proposed that the state "borrow" $2 billion in local property taxes and in-lieu taxes from cities, counties, and special districts to balance the state budget. It is estimated that the proposed seizure would result in a $4.3 million reduction in revenues for the City of Chula Vista. This is equivalent to the cost of Chula Vista's entire library system or 35 police officers, 15% of the total police force. Any seizure of local tax funds or additional unfunded state mandates will create a severe fiscal hardship and further impact already declining service levels. In response to the California Department of Finance proposal, the Chula Vista City Council unanimously approved a resolution opposing this borrowing or any other seizure of local government funds. The state has moved forward with their proposed borrowing in the current fiscal year. Budget impacts will be mitigated through securitization of the borrowed funds. A coalition of local government, transportation and transit advocates recently filed a constitutional amendment with the California Attorney General, called the Local Taxpayer, Public Safety, and Transportation Protection Act of 2010. The ballot may be placed on California's November 2010 statewide ballot. If approved, the ballot initiative would close loopholes and change the constitution to further prevent State politicians in Sacramento from seizing, diverting, shifting, borrowing, transferring, suspending or otherwise taking or interfering with tax revenues dedicated to funding local government services, including redevelopment or funds dedicated to transportation improvement projects and mass transit. Approval of the resolution would result in the City Council's formal endorsement of the Local Taxpayer, Public Safety and Transportation Protection Act of2010. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by approving this resolution and has determined that it is not site specific and consequently the 500 foot rule found in the California Code of Regulations section 18704.2 (a)(l) is not applicable CURRENT YEAR FISCAL IMPACT No current year fiscal impact is anticipated as a result of this action. ONGOING FISCAL IMPACT No ongoing fiscal impact is anticipated as a result of this action. Prepared by: Maria Kachadoorian, Finance Director/Treasurer, Finance Department 9-2 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA IN SUPPORT OF THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010 WHEREAS, California voters have repeatedly and overwhelmingly passed separate ballot measures to stop State raids of local government funds, and to dedicate the taxes on gasoline to fund local and state transportation improvement projects; and WHEREAS, these local government funds are critical to provide the police and fire, emergency response, parks, libraries, and other vital local services that residents rely upon every day, and gas tax funds are vital to maintain and improve local streets and roads, to make road safety improvements, relieve traffic congestion, and provide mass transit; and WHEREAS, despite the fact that voters have repeatedly passed measures to prevent the State from taking these revenues dedicated to funding local government series and transportation improvement projects, the State Legislature has seized and borrowed billions of dollars in local government and transportation funds in the past few years; and WHEREAS, this year's borrowing and raids of local government, redevelopment and transit funds, as well as previous, ongoing raids of local government and transportation funds have led to severe consequences, such as non-voluntary work furloughs, decreased maintenance and operations of public facilities, stalled economic development, and delays in road safety and other public improvements; and WHEREAS, State politicians in Sacramento have continued to ignore the will of the voters, and current law provides no penalties when state politicians take or borrow these locally- dedicated funds; and WHEREAS, a coalition of local government, transportation and transit advocates recently filed a constitutional amendment with the California Attorney General, called the Local Taxpayer, Public Safety, and Transportation Protection Act 01'2010, for potential placement on California's November 2010 statewide ballot; and WHEREAS, approval of this ballot initiative would close loopholes and change the constitution to further prevent State politicians in Sacramento from seizing, diverting, shifting, borrowing, transferring, suspending or otherwise taking or interfering with tax revenues dedicated to funding local government services, including redevelopment, or dedicated to transportation improvement projects and mass transit; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby adopt a resolution formally endorsing the Local Taxpayer, Public Safety and Transportation Protection Act of 20 I o. 9-3 Resolution No. 2009- Page 2 BE IT FURTHER RESOLVED, that the City Council authorize the listing of the City of Chula Vista in support of the Local Taxpayer, Public Safety and Transportation Protection Act of 2010 and instruct staff to fax a copy of this resolution to campaign offices. Presented by Approved as to form by ~~. Bart Miesfeld D f' & ? '1 City Attorney James D. Sandoval City Manager 9-4