2 - Local Taxpayer, Public Safety, and Transportation Protection Act of 2010IoW ~ o,~ _ MEETING DATE: 3-1-2010
- - ITEM NO:
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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.
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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
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