2009-054 - Additional City Property Tax Funds Are Seized And Additional Unfunded Mandates Ate Adopted By The State Of CaliforniaRESOLUTION 2009 -054
A RESOLUTION 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, since the early 1990s the State of California has seized over $8.6 billion
of city property tax revenues to fund the state budget even after deducting public safety
program payments to cities by the State; and
WHEREAS, in 2004 the voters by
constitutional protections for local revenues,
property taxes to fund the state budget; and
an 84 % vote margin adopted substantial
but the legislature can still "borrow" local
WHEREAS, in FY 2007/08, 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, on May 5, 2009, 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, causing deeper cuts to vital services;
and
WHEREAS, the proposal to borrow local government property tax would cost the
Town of Los Gatos an estimated $1 million; and
WHEREAS, the borrowing of $1 million from the_ Town of Los Gatos coupled with
the current economic crisis would create a serious fiscal hardship, jeopardizing vital services to
the community; and
WHEREAS, the State Legislature and other state agencies are considering imposing
new costs and unfunded mandates. on local governments that can neither be afforded nor
sustained in this economic climate; and
WHEREAS, a majority of city financial commitments come from contracts, including
long term capital leases and debt obligations which support securities in the public capital
markets, that cities must honor unless modified by mutual agreement of the parties.
NOW, THEREFORE, BE IT RESOLVED THAT THE LOS GATOS TOWN
COUNCIL has determined that it will experience a fiscal hardship if the Governor and State
Legislature vote to accept the recommendation of the Department of Finance to "borrow" $2
billion in local property taxes statewide; and
RESOLVED FURTHER, that the Town Council strongly opposes the May 5, 2009
Department of Finance proposal to borrow or seize any additional local funds, including the
property tax, redevelopment tax increment, and the Town's share of the Proposition 42
Transportation Sales Tax; and
RESOLVED FURTHER, that the Town Council strongly urges the Governor and the
State legislature 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.
RESOLVED FURTHER, that the Clerk Administrator shall send copies of this
resolution to the Governor, State Senator(s), State Assembly Member(s) and the League of
California Cities,
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos held on the 18th day of May, 2009 by the following vote:
COUNCIL:
AYES: Diane McNutt, Joe Pirzynski, Steve Rice, Barbara Spector, and Mayor Mike
Wasserman
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
i
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
r
\GLF -Rk OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
TOWN OF LOS GATOS
CLERK DEPARTMENT CMC CENTER
408-354-6834 — (Fax) 354-8431 110 E. MAIN Smu
P.O. Box 949
Los GATos CA 95031
May 22, 2009
RE: RESOLUTION 2009 -054 - 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.
Dear Legislators, The League of California Cities and the Governor's Office:
Included is a copy of Resolution 2009 -054 adopted by the Town of Los Gatos Town
Council on May 18, 2009, 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.
Please feel free to contact the Clerk Department if you have any questions at 408 -354-
6834 or by e -mail to irose@los ag tosca.gov
,--Sincerely,
Jackie ose
lr Administrator
Town of Los Gatos
__... INCORPORATED AUGUST 10, 1887 � a