HomeMy WebLinkAbout2010-02-23; City Council; 20137; Council Resolution in Support of Local Taxpayer Public Safety and Transportation Protection Act of 2010CITY OF CARLSBAD - AGENDA BILL 13
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COUNCIL RESOLUTION IN SUPPORT OF THE
LOCAL TAXPAYER, PUBLIC SAFETY AND
TRANSPORTATION PROTECTION ACT OF
2010
DEPT. DIRECTOR /£j
CITY ATTORNEY /f^1
CITY MANAGER IA/-^
RECOMMENDED ACTION:
To adopt Resolution No. 2010-038 supporting the ballot initiative to protect local taxpayer,
public safety, and transportation funding that belongs to the City of Carlsbad from seizer or
borrowing by the State of California.
ITEM EXPLANATION:
Local governments including the City of Carlsbad are entitled to and receive dedicated taxpayer
dollars and funds for local public safety, transportation, redevelopment and other vital local
services. The State of California has attempted numerous times in the past to seize or borrow
billions of dollars of these local funds to address their State budget deficits. To combat this
action voters have taken steps to protect local funds including the local government revenue
protection measure in 2004 (Prop 1A) and the transportation revenue protection measure in
2006 (Prop 1A). Despite these measures the State has continued to find loopholes in these
protections and has again acted to raid local government revenues. In 2009/10 the state
borrowed approximately $5 Billion dollars in local funds to attempt to address State budget
deficits. This included borrowing over $4,500,000 in Property Tax revenue funds this fiscal year
from the City of Carlsbad. Fortunately an agreement was worked out that allowed the City to
receive alternative funds to replace this loss with the understanding that the State will repay the
loan in three years. However these constant attacks on local funds from the State leads to
revenue uncertainty and puts local services in jeopardy.
A ballot initiative has been proposed to close the loopholes that exist to prevent any further
seizure or borrowing of local funds by the State. This initiative will provide protection to local
taxpayers and protect vital local services and revenues. The City Council resolves that they
support this initiative to have the State leave all manner of local property tax, redevelopment tax
increment, transit, public safety, and transportation funds intact.
FISCAL IMPACT:
The State has taken local property tax revenue from the City in the past and borrowed a total of
$4,500,000 from the City of Carlsbad in 2009/10. It is unknown the amount of funds that could
be taken in the future if this initiative is not passed.
EXHIBITS:
1. Resolution No.2010-038supporting the ballot initiative to protect local taxpayer, public safety,
and transportation funding.
2. Attorney General of California's title and summary of the chief purpose and points of the
proposed measure.
DEPARTMENT CONTACT: Rob Houston 760-434-2958 rob.houston@carlsbadca.gov
FOR CITY CLERKS USE ONL Y. /
COUNCIL ACTION: APPROVED >cf
DENIED CP
CONTINUED D
WITHDRAWN D
AMENDED D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
D
D
D
D
1 RESOLUTION NO. 2010-038
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, IN SUPPORT OF THE LOCAL
3 TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION
4 PROTECTION ACT OF 2010
5
5 WHEREAS, California voters have repeatedly and overwhelmingly passed
7 separate ballot measures to stop State raids of local government funds, and to dedicate
8 the taxes on gasoline to fund local and state transportation improvement projects; and
9 WHEREAS, these local government funds are critical to provide the police and
lO fire, emergency response, parks, libraries, and other vital local services that residents
H rely upon every day, and gas tax funds are vital to maintain and improve local streets
12 and roads, to make road safety improvements, relieve traffic congestion, and provide
13 mass transit; and
14 WHEREAS, despite the fact that voters have repeatedly passed measures to
15 prevent the State from taking these revenues dedicated to funding local government
15 services and transportation improvement projects, the State Legislature has seized and
17 borrowed billions of dollars in local government and transportation funds in the past few
18 years; and
19 WHEREAS, this year's borrowing and raids of local government, redevelopment
20 and transit funds, as well as previous, ongoing raids of local government and
21 transportation funds have lead to severe consequences, such as layoffs of police, fire
22 and paramedic first responders, fire station closures, stalled economic development,
23 healthcare cutbacks, delays in road safety improvements, public transit fare increases
24 and cutbacks in public transit services; and
25 WHEREAS, State politicians in Sacramento have continued to ignore the will of
26 the voters, and current law provides no penalties when state politicians take or borrow
27 these locally-dedicated funds; and
28
1
WHEREAS, a coalition of local government, transportation and transit advocates
2 recently filed a constitutional amendment with the California Attorney General, called
3 the Local Taxpayer, Public Safety, and Transportation Protection Act of 2010, for
4
potential placement on California's November 2010 statewide ballot; and
5
WHEREAS, approval of this ballot initiative would close loopholes and change
6
the constitution to further prevent State politicians in Sacramento from seizing, diverting,
7
shifting, borrowing, transferring, suspending or otherwise taking or interfering with tax
8
revenues dedicated to funding local government services, including redevelopment, or
9
dedicated to transportation improvement projects and mass transit.
10 "
11 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
13
, 4 1. That the City of Carlsbad formally endorses the Local Taxpayer, Public Safety
and Transportation Protection Act of 2010, a proposed constitutional
amendment, as outlined in the Attorney General of California title and
, _ summary shown in Exhibit 2.
! <-, 2. That we hereby authorize the listing of the City of Carlsbad in support of thelo
Local Taxpayer, Public Safety and Transportation Protection Act of 2010 and
instruct staff to fax a copy of this resolution to campaign offices at
21 916.442.3510.
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26 "
27 //
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 23rd day of February, 2010, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
ATTEST:
LORRAINE MM/VOOD, City ClehV
/(SEAtf
Date: December 16, 2009
Initiative 09-0063 (Amdt. #1-NS.)
The Attorney General of California has prepared the following title and summary of the chief
purpose and points of the proposed measure:
PROHIBITS THE STATE FROM TAKING FUNDS USED FOR TRANSPORTATION
OR LOCAL GOVERNMENT PROJECTS AND SERVICES. INITIATIVE
CONSTITUTIONAL AMENDMENT. Prohibits the State from shifting, taking, borrowing, or
restricting the use of tax revenues dedicated by law to fund local government services,
community redevelopment projects, or transportation projects and services. Prohibits the State
from delaying the distribution of tax revenues for these purposes even when the Governor deems
it necessary due to a severe state fiscal hardship. Summary of estimate by Legislative Analyst
and Director of Finance of fiscal impact on state and local government: Significant constraints
on state authority over city, county, special district, and redevelopment agency funds. As a
result, higher and more stable local resources, potentially affecting billions of dollars in some
years. Commensurate reductions in state resources, resulting in major decreases in state
spending and/or increases in state revenues. (09-0063.)
The Threat to
Local Governments in
California
Presentation to the
Carlsbad City Council
February 23, 2010
Catherine Hill
Regional Public Affairs Manager
League of California Cities
2 Source: CaliforniaCityFinance.com computations from data from California State Controller (revenues). Does not include data from the following cities that failed to report: Beaumont, Gustine City, Loyalton, San Diego, Taft, and Tulelake.
Utility Fees
25%
Fees
15%
Not
Restricted
37%
Other
5%
Federal
4%
State
4%
Investments
& Rents 2%Fines &
Licenses 1%
Taxes
5%
Assessments
2%
Property Tax
12%
Sales Tax
8%
Utility User Tax
4%
Other Tax
8%
Other
5%
California City Revenues
Individual cities vary
3
Discretionary Revenues and Spending
Typical Full Service City
Source: CaliforniaCItyFinance.com computations from State Controller reports
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Revenues Expenditures
Property Tax
Sales and Use Tax Police
Fire
ParksUtility User Tax
Libraries
Other
Street & Roads
Planning
Franchises
Hotel Tax
Other
Business License
4
California voters have overwhelmingly voted to stop state raids of local government and transportation revenues:
roposition 42 (2002): 69% approval. Dedicated state sales tax on gas to transportation and transit improvements.
roposition 1A (2004): 84% approval. Prohibits state from taking local government revenues.
roposition 1A (2006): 77% approval. Prohibits state from using state sales tax on gas for non-transportation purposes.
The Voters Have Spoken
5
Dysfunctional State Budget Process
is Broken
t's not simply the national recession that's the dreambuster. It's also the state's inability to
govern itself. What ought to be done cannot be done in a state so out of control that its
deficit, now $26 billion, grows every day by an estimated $25 million and its governor,
Arnold Schwarzenegger, jokes that his finance director has been placed on a "suicide watch."
-U.S. News and World Report, July 27, 2009
ere California a corporation, rather than a state, its officers would be playing
tiddlywinks with Bernie Madoff in the federal slammer, having engaged in years of hide-the-
pea accounting tricks, under-the-table loans and other gimmicks to cover up the
state's perpetual operating
deficits
they will attempt to cover the gap largely with raids on local government funds,bookkeeping
tricks such as shifting a month of the 2009-10 state payroll into the 2010-11 fiscal year,
overly optimistic revenue estimates and wishful-thinking spending
reductions
6
And threats to Local Government
Services continue …
In the 2009-10 fiscal year,
the Legislature passed a state budget that:
orrows approximately $2 billion in property taxes from local governments.
akes $2.05 billion in local redevelopment funds, despite a
recent Superior Court ruling that says these types of raids
are unconstitutional.
hifts $910 million in transit funding away from local transit
agencies.
7
Revenue Instability Hurts
Basic Services to the Public
With few revenue options and the
threat of state raids, city councils have few
options to balance their budgets
uts to law enforcement and fire protection.
oad maintenance and infrastructure delays.
losures and reduced hours for libraries, parks and other
community facilities.
8
A Local Government Solution:
The Local Taxpayers, Public Safety and Transportation Protection Act
Headed for the November 2010 Ballot
9
Protecting Local Taxpayers and Vital Services
42 funds
(HUTA)
(such as Parcel, UUT, TOT)
The Local Taxpayers, Public Safety and Transportation Protection Act would protect:
10
Protecting Local Taxpayers and Vital Services
–Repeals actions taken by the Legislature between October 2009 and November 2010 that violate measure’s provisions
Major Step Towards State Budget Reform
The Local Taxpayers, Public Safety and Transportation Protection Act would:
11
San Diego County Contact
For information or to request petitions contact:
Catherine Hill
League of California Cities
(619) 295-8282
chill@cacities.org
or
www.savelocalservices.com