2 - Local Taxpayer, Public Safety, and Transportation Protection Act of 2010

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IoW ~ 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