05 Staff Report - Protection of Local Government RevenuersFROM:
DEBRA J. FIGONE, TOWN MANAGER
NAGER
DA TE:
SEPTEMBER 13, 2004
rO:
MAYOR AND TOWN COUNCIL
L
Reformatted: 5/30/02
COUNCIL AGENDA REPORT
S UBJECT:
ADOPT RESOLi JTIO
OF LOCAL COVE N SUPPORT
REVENUES OpOSITI
A: PROTECTION
RECOMMENDATION:
TION:
Proposition
Gatos as an official supporter in
lgandauthorizin
g
BAC campaign materials (attachment 1)
Adopt a resolution supportingcampaignthe to list the Town of
KGROUND:
Los
Proposition 1q: Protection
Purpose o fpro of Local Government
Poop P Since t t 1 protect local ovent Revenue
government. 1981, theis on the Nov
State has t services from the continual t ember 2, 200
g v Town sf Los Gatos. This rev taken a taking of local taxes ballot. The
street and revenue would approximately $15.5
Park maintenance have otherwise million in local taxes the State
and other local services. supported public �eS from
Prop 1q has been n'ices. safety services m the
counties Placed on the ballot after ,library
deliberatiorisebeeal districts, the ftermonthsofne
Governor and gotiations betty
the State Legislature as pan
representatives of cities,
DISCUSSION: Part of the
State budget
What Proposition lA Does
The official ballot language for Prop
"Ensures local
safeguarding Property tax and 1 A reads:
g finding for sales tax revenues
public safety, health, libraries remain with local
PREPARED ° Parks, and other local services.
thereby
RED g y:
PAMELA JACOBS Provisions
ASSISTANT �� ce�L
N: �MGR\PJacobsl TOWN -tom
Council Reportsl9-20_p4 Prop 1A.wpd
MAAGER
Reviewed by:
Assistant Town M
Commu Manager rr�:_..Town Attorney
pity Development
Revised: y iClerk
9/10/04 3:12 p Finance
MEETING DATE, 09/20/94
ITEM NO. AT
PAGE PROPOSITION 1 A: PROTECTION OF
2 G
MAYOR AND TOWN COUNCIL
SOLUTION SUPPORTING SUBJECT: ADOPT RESOLUTION
OVERNMENT REVENUES
LOCAL
(September 13, 2004) thirds of the Legislature
can only be suspended if the Gove
rnor declares a fiscal necessity and two-
concurs:, Prop 1 A:
In addition
the Governor
o the restrictions noted in the ballot language,ited to the declaration btwo-third vote
ro wires a
year period, and red amount not to
on future State takes is i
teny be capped at an
Provides that the restriction
limited to twice in awould before another
emergency, aid, with interest,
of a fiscal emeTg local revenue taken
of the State Legislature. Any would need to be rep
exceed S% of local property taxes and
could be taken• the cost of programs and servTov;d`e
amount governments for If the State fails tos p
rovide• s mandate must
Requiresdte the State to reimburse local
O ecial districtsprovide.
local programs, the State.
counties and p s, the by
mandates cities, al governments for state-mandated
and benefits mandated
reimbursement XCept for specified employee rig for the ongoing
be suspend fiscal years in return approximately
the next two two-year take is app
of local revenue. In Los Gatos, this two-.
• Takes _.dditional local revenue for
constitutional protects
$476,000 each year.
Need for Proposition 65 avers and
Replaces supporting the Local Taxpayers
government revenue
Proposition 1 A Rep adopted a resolution supp TOtect local g laced this
Council adop was to p
2004. the Town the purpose of which ent officials p
of local governor in gathering over
In February. protection Act of 2004, p coalition played a part ear, a 65 prompted the
Public Safety Earlier this y of Prop
Los GatosT�edq residents p
from State takeaways. Anumber of L qualifying which resulted in Prop 1 A.
this measure for the ballot. he qualives, support
Proposition on the ballot (Prop 6 local and state representatives,
the local services they 65, since
natures to qualify prop
I rcDp on is negotiations between local tax dollars and1 A and opposing
Governor to initiate neg roach to protecting w supporting Prop lace.
stronger approach 65 are no o will be put in p
Prop 1 A is a proponents of Prop over 50 /o
AU of the official receiving the greatest support
orily the propositionState, the
to the ment
CONCLUSION: California Redevelop
continued redistribution
f local revenuenient 2 for a
ent from the of Counties,see Attach
government State Association and many others ( approximately
To protect local i California Associationtthe
League of California, Special Districts A the State has takCil adopt g Prop 1 A. Since 1981, mended that the
California SP supporting It is recommended Ue to State takes.
Association. supporters) are supp
partial list of su Town revenue to fund State services.
f prevent the further erosion of local revenue $15.5 million o support of Prop 1 A to p
resolution in supp
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION SUPPORTING PROPOSITION 1A: PROTECTION OF
LOCAL GOVERNMENT REVENUES
(September 13, 2004)
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
It is anticipated that the adoption of a resolution supporting Prop 1 A would not have a negative fiscal
impact on the Town or its residents. Prop 1 A does not raise taxes, reduce funding for schools or any
other state programs or services, or increase funding to local government.
If Prop 1 A is approved, the Town will have constitutional protection that prevents any future taking
of additional revenue beyond the two-year taking contained in the measure. The Town is utilizing
one-time funding from reserves to offset the two-year loss of revenue.
If Prop IA failed, cities, counties and special districts would have no protection against future State
revenue takes.
Attachments:
1. Resolution Supporting Proposition 1A: Protection of Local Government Revenue
2. Proposition 1 A: Partial List of Supporters
Distribution:
Yes on IA Californians to Protect Local Taxpayers and Public Safety; 1121 L Street, Suite 803,
Sacramento, CA 95814
PROPOSITION 1A
Partial list of supporters
Fire and Emergency Services
California Fire Chiefs Association
California Professional Firefighters
California State Firefighters' Association
Law Enforcement
California Police Chiefs Association
California State Sheriffs' Association
Peace Officers Research Association of California
Statewide Local Government Orgs.
California Special Districts Association
California State Association of Counties
League of California Cities
California Association of Sanitation Agencies
California Public Parking Association
California Redevelopment Association
Regional Council of Rural Counties
Water
Association of California Water Agencies
Elsinore Valley Municipal Water District
Olivenhain Municipal Water District
Rancho California Water District
Health Care Organizations
California Association of Public Hospitals and Health Systems
Health Officers Association of California
Senior Groups
California Senior Action Network
Business Organizations
California Business Properties Association
California Retailers Association
N:1MGR\Admin WorkFiles\cnclrpts\Proposition 1ASupporters.wpd
•
ATTACHMENT 2
1