HomeMy WebLinkAbout2009-042 RESOLUTION NO. 2009-042
am RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADER09 CALIFORNIA, OPPOSING PROPOSALS BY THE STATE
TO BORROW AND/OR TAKE ADDITIONAL LOCAL FUNDING
POTENTIALLY RESULTING IN THE NEED TO DECLARE A LOCAL
FISCAL HARDSHIP FOR THE CITY
WHEREAS, the Governor's office has informed local government representatives of a
proposal under consideration by the State of California to borrow local property tax revenues to
address State budget deficits if voters do not approve Propositions lA through IE at the May 19,
2009, Statewide Special Election; and,
WHEREAS, voters of California approved Proposition lA in 2004 by an 84% margin,
which sent a clear message to the Governor and State Legislature to stop the irresponsible,
damaging and unfair practice of taking local government funds to finance the State budget; and,
WHEREAS, Proposition lA prohibits the State Legislature from reducing the share of
property tax revenues going to the cities, county and special districts in any county and shifting
those revenues to the schools or any other non-local government function, but allows borrowing of
not more than 8% of the total amount of ad valorem property tax revenues for a three-year period;
and,
WHEREAS, The State Department of Finance has estimated this amount to equal $2.006
billion; and,
WHEREAS, it would be irresponsible to "borrow" such funds because it would deepen the
State's structural deficit and cripple local government and transportation services, a position
previously expressed by the Governor; and,
WHEREAS, as a result of the current economic recession, the City Council of the City of
Atascadero has recently approved preliminary budget strategies to address a projected budget
shortfall of nearly $4.5 million, that significantly impacts the City's ability to provide public safety,
infrastructure maintenance and other critical services to the community; and,
WHEREAS, any further diversion of property, sales, or other local government tax
revenues under the Proposition lA loan provisions will further impact the ability of the City, as well
as other local agencies throughout California, to fund Police, Fire and other critical services, and
therefore, will significantly impact the health, safety and welfare of our citizens; and,
WHEREAS, any such further diversion of local tax revenues has the potential to cause the
City of Atascadero and other cities and agencies throughout California to face unprecedented levels
of financial hardship and possibly even insolvency; and,
WW WHEREAS, this condition has been brought about by the amount of budget reductions that
the City and other local agencies have previously experienced as a result of prior unfunded State
City of Atascadero
Resolution No. 2009-042
Page 2 of 2
mandates and revenue diversions imposed by the Governor and Legislature, as well as the current
economic downturn.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Atascadero hereby opposes any and all efforts by State government to "borrow" or seize local
tax funds to finance State operations. Such a move would be fiscally irresponsible for the State,
would threaten to create a local fiscal hardship for cities and other agencies throughout
California, and would strongly impact the ability to provide adequate public safety, infrastructure
maintenance, and other critical local services.
On motion by Council Member Beraud and seconded by Council Member Fonzi, the
foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES: Council Members Clay,Fonzi, Kelley, O'Malley and Mayor Beraud
NOES: None
ABSENT: None
ADOPTED: May 12, 2009
CITY OF ATASCADERO
By: Al
41lehnBeraud,Mayor
ATTEST:
(444t+L
Marcia McClure Torgerson, C.M.C.,
City Clerk
APPR VED AS TO FORM:
Brian A. Pierik, City Attorney
am