HomeMy WebLinkAbout2009-05-19; City Council; Resolution 2009-118Exhibit 1
1 RESOLUTION NO. 2009-118
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, OPPOSING STATE SEIZURE
3 OF LOCAL TAX FUNDS AND CONTINUED ADOPTION OF
4 UNFUNDED MANDATES
5 WHEREAS, the current economic crisis has placed cities under incredible
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financial pressure and caused city officials to reopen already adopted budgets to layoff
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city workers, slash programs, and reduce services to keep spending in line with8
9 declining revenues; and
!0 WHEREAS, since the early 1990s the state government of California has seized
11 over $8.6 billion of city property tax revenues statewide to fund the state budget even
12 after deducting public safety program payments to cities by the state; and
13 WHEREAS, in FY 2007-08 alone the state seized $895 million in city property
14 taxes statewide to fund the state budget after deducting public safety program
15 payments; and
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WHEREAS, the most significant impact of taking local property taxes has been to
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reduce the quality of public safety services cities can provide since public safety
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comprises the largest part of any city's general fund budget; and
2Q WHEREAS, in 2004 the voters by an 84% vote margin adopted substantial
21 constitutional protections for local revenues, but the legislature can still "borrow" local
22 property taxes to fund the state budget; and
23 WHEREAS, on May 5 the Department of Finance announced it had proposed to
the Governor that the state "borrow" over $2 billion in local property taxes from cities,
25 counties and special districts to balance the state budget, causing deeper cuts in local
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public safety and other vital services; and
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1 WHEREAS, in the past the Governor has called such "borrowing" proposals
2 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
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WHEREAS, the Legislature is currently considering hundreds of bills, many of
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which would impose new costs on local governments that can neither be afforded nor
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sustained in this economic climate; and8
WHEREAS, state agencies are imposing, or considering, hundreds of regulations
imposing unfunded mandates on local governments without regard to how local
11 agencies will be able comply with these mandates while meeting their other
12 responsibilities; and
WHEREAS, the City Council finds that our city simply cannot sustain the loss of
14 any more property tax funds or to be saddled with any more state mandates as they will
only deepen the financial challenge facing our city.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
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Carlsbad, California, as follows:
20 1 - That the above recitations are true and correct.
21 2. That the seizure of City funds places a financial hardship upon the City of
22 Carlsbad.
23 3. That the City of Carlsbad opposes the state government's ongoing seizure
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of city property tax funds.
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1 4. That the state legislature and agencies must stop adopting unfunded
2 mandates without any consideration for the economic hardships such
mandates impose on cities and their residents; and
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5. That the City Council strongly and unconditionally opposes the May 5
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proposal of the Department of Finance and any other state government
proposals to borrow or seize any additional local funds, including the
9 property tax, redevelopment tax increment, and the city's share of the
10 Prop. 42 transportation sales tax; and
11 6. That the City Council strongly urges the state legislature and Governor to
12 suspend the enactment of any new mandates on local governments until
13 such time as the economy has recovered and urges the state to provide
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complete funding for all existing and any new mandates.
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7. That the City Clerk shall send copies of this resolution to the Governor16
Arnold Schwarzenegger, our state senator Mark Wyland, our state
lg assembly Martin Garrick and the League of California Cities.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 19th day of May, 2009, by the following vote to wit:
AYES: Council Members Lewis, Hall, Packard and Blackburn.
NOES: None.
ABSENT: Council Member Kulchin.
JLAUDE'A LEWIS, Mayor
ATTEST:
.ORRAINE M. WOOD, City Clerk
(SEAL)