2009-19 RESOLUTION NO. 2009-19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAND TERRACE, CALIFORNIA, FINDING A SEVERE
FISCAL HARDSHIP WILL EXIST IF ADDITIONAL LOCAL
PROPERTY TAX FUNDS ARE SEIZED AND ADDITIONAL
UNFUNDED MANDATES ARE ADOPTED BYTHE STATE OF
CALIFORNIA
WHEREAS, the current economic crisis has placed cities under incredible financial
pressure and caused city officials to reopen already adopted budgets to make painful cuts,
including layoffs and furloughs of city workers, decreasing maintenance and operations of
public facilities, and reductions in direct services to keep spending in line with declining
revenues; and
WHEREAS, since the early 1990s the state government of California has seized
over$10 billion of city property tax revenues statewide to fund the state budget even after
deducting public safety program payments to cities by the state; and
WHEREAS, in FY 2007-08 alone 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, the most significant impact of taking local property taxes has been to
reduce the quality of public safety services cities can provide since public safety comprises
the largest part of any city's general fund budget; and
WHEREAS, in 2004 the voters by an 84% vote margin adopted substantial
constitutional protections for local revenues, but the legislature can still "borrow" local
property taxes to fund the state budget; and
WHEREAS, on May 5 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 in local public safety
and other vital services; and
WHEREAS, in the past the Governor has called such "borrowing" proposals fiscally
irresponsible because the state will find it virtually impossible to repay and it would only
deepen the state's structural deficit, preventing the state from balancing its budget; and
WHEREAS,the Legislature is currently considering hundreds of bills, many of which
would impose new costs on local governments that can neither be afforded nor sustained
in this economic climate; and
- WHEREAS,state agencies are imposing,or considering,many regulations imposing
( unfunded mandates on local governments without regard to how local agencies will be able
r
to comply with these mandates while meeting their other responsibilities; and
WHEREAS, the combined effects of the seizure of the City's property taxes,
increasing unfunded state mandates, and the revenue losses due to the economic
downturn have placed the city's budget under serious fiscal pressure; and
WHEREAS, our city simply can not sustain the loss of any more property tax funds
or to be saddled with any more state mandates as they will only deepen the financial
challenge facing our city; and
WHEREAS, a number of the City's financial commitments arise from contracts,
including long term capital leases and debt obligations which support securities in the
public capital markets,that the City must honor in full unless modified by mutual agreement
of the parties.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Grand
Terrace has determined that the City will experience a severe fiscal hardship if the
recommendation of the Department of Finance to"borrow"$2 billion of local property taxes
is supported by the Governor and the Legislature; and
RESOLVED FURTHER, that the City Council strongly and unconditionally opposes
the May 5 proposal of the Department of Finance and any other state government
proposals to borrow or seize any additional local funds, including the property tax,
redevelopment tax increment, and the city's share of the Prop. 42 transportation sales tax;
and
RESOLVED FURTHER, that the City Council strongly urges the state legislature
and Governor 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 City Clerk shall send copies of this resolution to
the Governor, our state senator, our state assembly member and the League of California
Cities.
PASSED, APPROVED AND ADOPTED this 9th day of June, 2009.
Mayor of a City of Grand Terrace
ATTEST:
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( City Clerk of the City of Grand
Terrace
Resolution No. 2009-19
Pag q,2-,*3
I, BRENDA MESA, City Clerk of the City of Grand Terrace, do hereby certify that the
foregoing Resolution was introduced and adopted at a regular meeting of the City Council
of the City of Grand Terrace held on the 9th day of June, 2009, by the following vote:
AYES: Councilmembers Cortes, Miller and Stanckiewitz; Mayor Pro Tem Garcia
and Mayor Ferre
NOES: None
ABSENT: None
ABSTAIN: None
Brenda Mesa, City Clerk
Approved as to form:
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City Attorney ( f