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2 - Local Taxpayer, Public Safety, and Transportation Protection Act of 2010IoW ~ o,~ _ MEETING DATE: 3-1-2010 - - ITEM NO: ~,,,,, ~ ~~~ . i `~~'"~° s COUNCIL AGENDA REPORT ~S GASH DATE: FEBRUARY 25, 2010 TO: MAYOR AND TOWN COUNCIL /~ FROM: GREG CARSON, TOWN MANAGER ~ ~~~' SUBJECT: ADOPT RESOLUTION 1N SUPPORT OF THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010 RECOMMENDATION: Adopt resolution in support of The Local Taxpayer, Public Safety and Transportation Protection Act of 2010. BACKGROUND: In 2004, California voters overwhelmingly passed Proposition lA which said local property and sales tax revenue is to remain with local governments rather than going to the State's treasury. However, there were loopholes that have allowed the State to continue its takeaways, "diverting" or "borrowing" from local governments to balance the State's own budgetary problems. More than 300 city officials and 200 county and school board- officials participated in a historic summit last summer on the need for state governance and fiscal reform. Summit participants selected "Local Revenue Protection" as the highest reform priority. Many city officials attended the League's annual conference last September 2009 in San Jose where voting delegates unanimously voted to support the League's co-sponsorship of a ballot measure for November 2010 to tighten protections of city and transportation revenues. The measure has been given a title and summary by the Attorney General and is currently in the signature gathering phase. This measure is needed given that the State came very close to taking $1 billion in local gas tax revenues and then actually borrowed $2 billion in local property taxes, seized billions in PREPARED BY: GREG CARSON Town Manager GL:pg N:\MGR\AdminWorkFiles\2010 Council Reports\3-1-10 Local Taxpayer, Public Safety and Transportation Act of 2010 TC Report.doc Reviewed by: Assistant Town Manager own Attorney Clerk Administrator 3~'inance Community Development PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ADOPT RESOLUTION 1N SUPPORT OF THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010 FEBRUARY 25, 2010 redevelopment agency funds and took $697 million of transit funds. Cumulatively with previous takeaways, Los Gatos has lost approximately $22.0 million in property tax and other tax revenue to the State since Fiscal Year 1979-80 and $3.5 million in total Redevelopment Agency takeaways including scheduled and prior State takeaways since Fiscal Year 1993. DISCUSSION: Last October 2009, a coalition, which includes the League of California Cities, local government, transportation and public transit leaders, filed a ballot measure initiative -the Local Taxpayer, Public Safety and Transpar-tation Act -with the California Attorney General's office. The coalition has been worl~ing to have this measure placed on the statewide ballot for November 2010. The measure, if passed by voters, would close loopholes and prevent the State from borrowing, raiding or otherwise redirecting local government (local taxes, property taxes, redevelopment), transportation (Highway User Tax Account [HUTA] and Proposition 42 funds) and public transit funds. Ballot Measure Details The ballot that was filed by the growing coalition worl~ing to protect local revenues and local services would: Prohibit the State from talcin~, borrowing or redirecting local taxpayer funds dedicated to-public safety, emergenc~ponse and other vital local ~oveimment services (including redevelopment The measure would close loopholes to prevent the taking of local taxpayer funds currently dedicated to cities, counties and special districts. It would also revoke the State's authority to borrow local government property tax funds or divert local redevelopment funds. Protect vital, dedicated transportation and public transit funds fiom State raids. The measure would prevent State borrowing, taking or redirecting of the State sales tax on gasoline (Proposition 42 fields) and Highway User Tax on gasoline (HUTA funds) that are dedicated to transportation maintenance and improvements. It would also prevent the State from redirecting or taking public transit fiords. Attaclunent: Resohrtion in support of the Local Taxpayer, Public Safety and Transportation Protection Act of 2010 RESOLUTION RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS IN SUPPORT OF THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010 WHEREAS, California voters have repeatedly and overwhelmingly passed separate ballot measures to stop State raids of local government funds, and to dedicate the taxes on gasoline to fund local and state transportation improvement projects; and WHEREAS, these local government funds are critical to provide the police and fire, emergency response, parks, libraries, and other vital local services that residents rely upon every day, and gas tax funds are vital to maintain and improve local streets and roads, to make road safety improvements, relieve traffic congestion, and provide mass transit; and WHEREAS, despite the fact that voters have repeatedly passed measures to prevent the State from taking these revenues dedicated to funding local government services and transportation improvement projects, the State Legislature has seized and bozTOwed billions of dollars in local government and transportation funds in the past few years; and WHEREAS, this year's borrowing and raids of local government, redevelopment and transit funds, as well as previous, ongoing raids of local government and transportation funds have lead to severe consequences, such as layoffs of police, fire and paramedic first responders, fire station closures, stalled economic development, healthcare cutbacks, delays in road safety improvements, public transit fare increases and cutbacks in public transit services; and WHEREAS, State politicians in Sacramento have continued to ignore the will of the voters, and current law provides no penalties when state politicians take or borrow these locally-dedicated funds; and WHEREAS, a coalition of local government, transportation and transit advocates recently filed a constitutional amendment with the California Attorney General, called the Local Taxpayer, Public Safety, and Transportation Protection Act of 2010, for potential placement on California's November 2010 statewide ballot; and WHEREAS, approval of this ballot initiative would close loopholes and change the constitution to further prevent State politicians in Sacramento from seizing, diverting, shifting, borrowing, transferring, suspending or otherwise taking or interfering with tax revenues dedicated to funding local government services, including redevelopment, or dedicated to transportation improvement projects and mass transit. THEREFORE, BE IT RESOLVED that the Town of Los Gatos formally endorses the Local Taxpayer, Public Safety and Transportation Protection Act of 2010, a proposed constitutional amendment. N:\MGRWdminWorkFiles\2010 Council Reports\3-1-10 Local Taxpayer, Public Safety and Transportation Act of2010.doc Page 1 of 2 BE IT FURTHER RESOLVED that we hereby authorize the listing of the Town of Los Gatos in support of the Local Taxpayer, Public Safety and Transportation Protection Act of 2010 and instruct staff to fax a copy of this resolution to campaign offices at 916.442.3510. PASSED AND ADOPTED at a meeting of the Town Council of the Town of Los Gatos, California, held on the day of _, 2010 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:~IVIGR\AdminWorkFiles~2010 Council Reports~3-1-10 Local Taxpayer, Public Safety and Transportation Act of 2010.doc Page 2 Of 2