HomeMy WebLinkAbout1993-04-06; City Council; 12137; SUPPORT FOR PROPOSAL TO ESTABISH TRUST FUND FOR YOUTH PROGRAMSr . ".
CyY OF CARLSBAD - AGEWA BILL . ., "j ,' I I-
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CITY MGI DEPT. CM
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DEPT. Ht TITLE:
RECOMMENDED ACTION:
SUPPORT FOR PROPOSAL TO ESTABLISH
TRUST FUND FOR YOUTH PROGRAMS
Adopt Resolution No. 9 3 - 3 & supporting a proposal to establish a trust fund for youth p and aufiok@ hg M;ryor to submit letters of support for the proposal,
ITEM EXPLANATION
In November 1988, voters of San Diego County authorized a one-half cent sales tax increase w.
to be used for the construction and operation of new jails. The California Supreme Court ruled
tax increase was illegal because it was passed by less than the two-thirds majority of voters req
new taxes by Proposition 13. The State has announced it would refund that one-half cent portio^
taxes paid by those who submit receipts to stores where the tax was paid. Under this prog
estimated that the State would be able to keep nearly $75 million in funds not eligible for the re
to the statute of limitations on tax refunds and about $50 don in interest earned since the t:
collected. The State plan has not been implemented due to litigation.
A plan has been proposed which would require that money not refunded to tax payers, along
interest, be placed in a trust fund for the purpose of financing youth programs in San Diego C
is anticipated that between $150 and $200 million will be available for such a fund because ma:
will not apply for a refund. Secure investment of money in the trust fund would generate apprc
$15 million a year. (Assuming 10% interest on $150 million.)
Establishing such a trust fund will allow the funds to be used on programs designet
underprivileged youth in the County off of the streets and steer them away from crime. It is h
programs will prevent the need to continue constructing the new jails which the proposed tax w built. Otherwise, money collected for that purpose, and not refunded, will most likely be us(
the State out of its budget deficit and San Diego County, where the sales taxes were paid, wil
anything from the millions of dollars removed from the area's economy. Staff recommends th;
authorize the Mayor to send letters of support for establishment of such a trust fund to memk
State Legislature and local government representatives.
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FISCAL IMPACX
None
EXHIBIT
1. Resolution No. 93 - 3 k , supporting a proposal to establish a trust fund for youth progr;
Diego County and authorizing the Mayor to submit letters of support for the proposal.
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RESOLUTION NO. 9 3 - 7 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD SUPPORTING A PROPOSAL TO ESTABLISH
A TRUST FUND FOR YOUTH PROGRAMS AND AUTHONZING
THE MAYOR TO SUBMIT LETTERS OF SUPPORT FOR THE PROPOSAL.
WHEREAS, County of San Diego voters approved a one-half cent increase in sales taxes
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6 jail construction in the November 1988 election; and
7 WHEREAS, the California Supreme Court ruled that money collected under the tax n
8 refunded as Proposition 13 requires a two-thirds vote for new taxes; and
9 WHEREAS, there is a need for funding for youth programs in San Diego to help you1
lo Ib life of crime; and
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WHEREAS, the operation of such programs may reduce the need for new jails; and
1 WHEREAS, a proposal has been made to establish a trust fund for the purpose of o 13
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ou& programs in sari Diego County with money not refunded to those who paid said tax:
NOW, THEREFORE, BE IT RESOLVED by the city COUnCil of the city of Cabbad, c
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1. That the above recitations are true and correct.
I 2. That the City Council of the City of Carlsbad supports said proposal to estab1
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3. That the Mayor is authorized to submit letters of support for said proposal to rn
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of the State Legislature and local government representatives.
5 the 6th day of APRIL ,1993 by the following vote, to wit:
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PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council
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NOES: None a
AYES: Council Members Stanton, Kulchin, Nygaard, Finnila
9 I/ ABSENT: Council Member Lewis
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14 ALETHA L. RAUTEN
ATTEST:
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