HomeMy WebLinkAbout09-090 - Resolutions RESOLUTION NO. 09-090
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA FINDING A SEVERE FISCAL
HARDSHIP WILL EXIST IF ADDITIONAL CITY PROPERTY TAX
FUNDS ARE SEIZED AND ADDITIONAL UNFUNDED
MANDATES ARE ADOPTED BY THE STATE OF CALIFORNIA
WHEREAS, the current economic crisis has placed cities under incredible
financial pressure and caused city officials to reopen already adopted budgets to make
painful cuts, including layoffs and furloughs of city workers, decreasing maintenance
and operations of public facilities, and reductions in direct services to keep spending in
line with declining revenues; and
WHEREAS, since the early 1990s the state government of California has
seized over $8.6 billion of city property tax revenues statewide to fund the state budget
even after deducting public safety program payments to cities by the state, and in FY
2007-08 alone, the state seized $895 million in city property taxes statewide to fund the
state budget after deducting public safety program payments and an additional $350
million in local redevelopment funds were seized in FY 2008-09; and
WHEREAS, the most significant impact of taking local property taxes has
been to reduce the quality of public safety services cities can provide, since public
safety comprises the largest part of any city's general fund budget; and
WHEREAS, even though in 2004 the voters, by an 84% margin, adopted
substantial constitutional protections for local revenues, the Legislature can still "borrow"
local property taxes to fund the state budget, thus 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, counties and special districts to balance the state
budget, which would cause deeper cuts in local public safety and other vital services;
and
WHEREAS, in the past the Governor has called such "borrowing"
proposals fiscally irresponsible because the state will find it virtually impossible to repay
such obligations and it would only deepen the state's structural deficit, preventing the
state from balancing its budget in the future; and
WHEREAS, the Legislature is currently considering hundreds of bills,
many of which would impose new costs on local governments that can neither be
afforded nor sustained in this economic climate, and state agencies are imposing, or
considering, many regulations that would impose unfunded mandates on local
governments without regard to how local agencies will be able comply with these
mandates while meeting their other responsibilities; and
Resolution No. 09-090
Page 2 of 3
WHEREAS, the combined effects of the seizure of the City's property
taxes, additional unfunded state mandates, and the revenue losses due to the economic
downturn have placed the City of Rancho Cucamonga's budget under serious fiscal
pressure, and our City simply can not sustain the loss of 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; and
WHEREAS, a number of the City's financial commitments arise from
contracts, including long term capital leases and debt obligations which support
securities in the public capital markets, that the City must honor in full unless modified
by mutual agreement of the parties.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City
of Rancho Cucamonga has determined that the City will experience a severe fiscal
hardship if the recommendation of the Department of Finance to "borrow" $2 billion of
local property taxes is supported by the Governor and the Legislature; and
BE IT RESOLVED FURTHER, that the City Council strongly and
unconditionally opposes the May 5 proposal of the Department of Finance and any
other state government proposals to borrow or seize additional local funds, including the
property tax, redevelopment tax increment, and the city's share of the Prop. 42
transportation sales tax; and
BE IT RESOLVED FURTHER, that the City Council strongly urges the
State Legislature and Governor to suspend the enactment of any new mandates on
local governments until such time as the economy has recovered and urges the state to
provide complete funding for all existing and any new mandates.
IN WITNESS WHEREOF, the City Council of the City of Rancho
Cucamonga, California, have hereunto set their hand and caused the seal of the City of
Rancho Cucamonga to be affixed this 20th day of May, 2009.
Please see the following page
for formal adoption,certification and signatures
Resolution No. 09-090
Page 3 of 3
PASSED, APPROVED, AND ADOPTED this 201" day of May 2009.
AYES: Gutierrez, Kurth, Michael, Spagnolo, Williams
NOES: None
ABSENT: None
ABSTAINED: None
Y
Donald J. Ku h, , Mayor
ATTEST:
l a Janie C. Reynolds, City Clerk
I, JANICE C. REYNOLDS, CITY CLERK of the City of Rancho Cucamonga,
California, do hereby certify that the foregoing Resolution was duly passed, approved and
adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting
of said City Council held on the 20`h day of May 2009.
Executed this 21" day of May 2009, at Rancho Cucamonga, California.
Iw Janice (�. Reynoldsr, City Clerk