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HomeMy WebLinkAbout2009-06-23; City Council; 19876; Challenging constitutionality of state seizuresCITY OF CARLSBAD - AGENDA BILL 13 AB# 19,876 MTG. 06/23/09 DEPT. CM/CA COUNCIL RESOLUTION AUTHORIZING THE CITY ATTORNEY TO JOIN IN CHALLENGING THE CONSTITUTIONALITY OF ANY SEIZURE BY THE STATE OF STREET MAINTENANCE FUNDS DEPT. HEAD W CITY ATTY. ^£. CITY MGR. \^ RECOMMENDED ACTION: Adopt Resolution No2009-166 declaring that the City will experience fiscal hardship if the State seizes local gas tax and that the City Attorney is hereby authorized to join with the League of California Cities, and other cities and counties challenging the constitutionality of any seizure by the State of street maintenance funds. ITEM EXPLANATION: On Thursday, June 11, 2009, the Joint Budget Conference Committee approved the seizure of almost $1 billion in city and county motor vehicle, or gas, tax funds to help close the State's budget deficit. The proposal was approved on a party line vote with democrats voting AYE and republicans voting NO. On Friday, June 12, 2009, the League of California Cities released a legal opinion by a prominent Sacramento law firm that concludes that the proposed seizure is unconstitutional. The opinion points out that in 1974 and 1998, voters imposed restrictions on the State's ability to use gas taxes for debt service on bonds and to divert local gas taxes for the State's General Fund; precisely what has been proposed by State leaders. Loss of gas tax funds will seriously compromise cities and counties ability to perform critical safety related street maintenance, such as street patching and resurfacing, street sweeping, street light and traffic signal maintenance, bridge maintenance and repair, and sidewalk and curb ramp maintenance and repair. FISCAL IMPACT: One of the proposals that the State of California may be pursuing is to permanently take 75% of the local gas tax revenues. If the State takes 75% of the City of Carlsbad's gas tax revenues, it is estimated the loss will total $1,300,000 in Fiscal Year 2009-10 and $1,200,000 in Fiscal Year 2010-11. This loss would delay and potentially cancel critical capital transportation projects. EXHIBITS: 1. Resolution No. 2009-166 DEPARTMENT CONTACT: Rob Houston, 760-434-2958, Rob.Houston@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED nilann CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D EXHIBIT 1 1 RESOLUTION NO2009-166 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY 3 ATTORNEY TO JOIN WITH THE LEAGUE OF 4 CALIFORNIA CITIES AND OTHER CITIES AND COUNTIES CHALLENGING THE CONSTITUTIONALITY 5 OF ANY SEIZURE BY THE STATE OF THE CITY'S STREET MAINTENANCE FUNDS 6 WHEREAS, the current economic crisis has placed cities and counties under 7 extraordinary financial pressure and caused them to make painful budget cuts, including8 g layoffs and furloughs of city employees, decreasing maintenance and operations of 10 public facilities, and reductions in direct services to keep spending in line with declining 11 revenues; and 12 WHEREAS, since the early 1990's the State government of California has seized 13 over $10 billion of city property tax revenues statewide, now amounting to over $900 14 million each year, to fund the State budget even after deducting public safety program 15 payments to cities; and 16 WHEREAS, in the proposed Fiscal Year 2009-10 budget the Governor has 17 proposed transferring $1 billion of local gas taxes and weight fees to the State's general 18 fund to balance the State budget, and over $700 million in local gas taxes permanently 20 in future years, which will immediately jeopardize the ability of the City to maintain the 21 City's streets, bridges, traffic signals, streetlights, sidewalks and related traffic safety 22 facilities used by the public; and 23 WHEREAS, the loss of almost all the City's gas tax funds will seriously compromise the City's ability to perform critical traffic safety related street maintenance; 25 and 26 WHEREAS, cities and counties maintain 81% of the State road network while the 27 State directly maintains just 8%; and 28 1 WHEREAS, that the lack of critical safety related street maintenance will most 2 likely trigger an increase in liability damage awards as basic street maintenance is not funded and traffic accidents, injuries and deaths increase; and 4 WHEREAS, ongoing street maintenance is a significant public safety procedure 5 and a city's failure to maintain it has a direct correlation to traffic accidents, injuries and 6 deaths; and 7 WHEREAS, in both Proposition 5 in 1974 and Proposition 2 in 1998 the voters of o o our State overwhelmingly imposed restrictions on the State's ability to do what the 10 Governor has proposed, and any effort to permanently divert local share of gas tax 11 would violate the State Constitution and the will of the voters. 12 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 13 Carlsbad, California, as follows: 14 1. That the above recitations are true and correct. 15 2. That the City Attorney is hereby directed to take all necessary steps to 16 cooperate with the League of California Cities, and other cities and counties in 18 supporting litigation against the State of California if the legislature enacts and the 19 Governor signs into law, legislation that unconstitutionally diverts the City's share of 20 funding from the Highway Users Tax Account (HUTA), also known as the "gas tax" to 21 fund the State General Fund. 22 3. The City Attorney shall send this Resolution with an accompanying letter 23 from the Mayor to the Governor and each legislator, informing them of the City's 24 adamant resolve to oppose any effort to frustrate the will of the electorate as expressed 25 in Proposition 5 (1974) and Proposition 2 (1998) concerning the proper use and 26 allocation of the gas tax. 28 1 4. That a copy of this Resolution shall be sent by the City Attorney to the League of California Cities, the local Chamber of Commerce, and other community 3 2 groups whose members are affected by this proposal to create unsafe conditions on the 4 streets of our City for pedestrians, bicyclists and motorists. 5 6 7 8 " 9 10 // 11 // 12 // 13 // 14 // 15 16 17 18 " 19 " 20 // 21 // 22 // 23 „ 24 // 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 23rd day of June 2009, by the following vote to wit: AYES: NOES: ABSENT: Council Members Lewis, Kulchin, Hall, Packard, Blackburn None None ATTEST: LORRAfNE MUAO2TD, <£jty Clerk Karen R. Kundtz, Assistant City Clerk (SEAL)