HomeMy WebLinkAboutCC RESO 2004 - 4RESOLUTION NO. 2004 — 4
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
SUPPORTING A STATEWIDE BALLOT INITIATIVE
TO REQUIRE VOTER APPROVAL BEFORE
STATE GOVERNMENT MAY TAKE
LOCAL TAX FUNDS
WHEREAS, state government annually seizes over $800 million in city property
tax funds (ERAF) statewide including an estimated $300,000 this fiscal year from National City,
costing cities over $6.9 billion in lost revenues over the past 12 years and seriously reducing
resources available for local public safety and other services; and
WHEREAS, the State of California has systematically raided some $31,000,000
from the citizens of National City since 1981, as shown in the attached Exhibit "A"; and
WHEREAS, in adopting the state budget this year, the Legislature and Governor
appropriated local vehicle license fee backfill and redevelopment property tax funds that are
needed to finance critical city services such as public safety, parks, street maintenance, housing
and economic development; and
WHEREAS, the State of California has declared its intention to appropriate some
$2,500,000 in local vehicle license fee monies from the City of National City this fiscal year,
representing a funding cut of some 74%, the magnitude of which translates into the equivalent
of 28 National City police officers; and
WHEREAS, the deficit financing plan in the state budget depends on a local
property and sales tax swap that leaves city services vulnerable if the state's economic
condition fails to improve; and
WHEREAS, the adopted state budget assumes an ongoing structural budget
deficit of at least $8 billion, putting city resources and services at risk in future years to
additional state revenue raids; and
WHEREAS, it is abundantly clear that state leaders will continue to use local tax
funds to balance the state budget unless the voters limit the power of the Legislature and
Governor to do so; and
WHEREAS, the voters of California are the best judges of whether local tax
funds should be diverted, confiscated, shifted or otherwise taken to finance an ever-expanding
state government; and
WHEREAS, the General Assembly of Voting Delegates of the League of
California Cities at its September 10, 2003 meeting voted to sponsor a statewide ballot initiative
to empower the voters to limit the ability of state government to confiscate local tax funds to
fund state government; and
WHEREAS, the League has requested that cities offer support for a November
2004 ballot initiative that will allow voters to decide whether state government may appropriate
local tax funds to fund state government operations and responsibilities.
Resolution No. 2004 — 4
January 20, 2004
Page 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby expresses its strong support for a statewide ballot initiative to allow voters
to decide whether local tax funds may be taken, confiscated, shifted, diverted or otherwise used
to fund state government operations and responsibilities.
BE IT FURTHER RESOLVED that the City Council and staff are authorized to
provide impartial informational materials on the initiative as may be lawfully provided by the
city's representatives. No public funds shall be used to campaign for or against the initiative.
BE IT FURTHER RESOLVED that the residents of the City are encouraged to
become well informed on the initiative and its possible impacts on the critical local services on
which they rely.
BE IT FURTHER RESOLVED that the City Manager is hereby directed to send a
copy of this Resolution to the Executive Director of the League of California Cites.
PASSED and ADOPTED this 20`h day of January, 2004.
Nic Inzu-,'"ayor
ATTEST:
4
Mic ael R. Della, City Clerk
APPROVED AS TO FORM:
gOt.:
George H. Eiser, III
City Attorney
Exhibit "A"
STATE CONTINUING LOSSES
Liquor license fees
Highway carriers uniform business tax
Financial aid to local agencies
Business inventory property tax relief -reduction
Business inventory property tax relief -repeal
Cigarette tax shift to State
Booking fees
Property tax administration charges
Fines and forfeitures-50% reduction
Fines and forfeitures -shift to counties
Cigarette taxes-47% shift to State
Property tax -shift to State
Trailer coach in -lieu -shift to State
Cigarette tax -shift to State
Net property tax shift
Sub -total
STATE ONE-TIME LOSSES
Cut in VLF-1981-82
Cut in VLF-1982-83
Cut in VLF-1983-84
Supplemental subventions
TOTALS
ESTIMATED REVENUE LOSSES
DUE TO STATE BUDGET ACTIONS
1981 - 2004
Initial Continuing 1/2
Revenue Item AuthorizinFY Initial Year Annual Cumulative
g Legislation Effective CPI
Loss Loss Loss
SB102, Chapter 101, 1981
SBI02, Chapter 101, 1981
SB102, Chapter 101, 1981
AB 223, Chapter 323, 1983
SB 794, Chapter 447, 1984
SB 899, Chapter 467, 1990
SB 2557, Chapter 466, 1990
SB 2557, Chapter 466, 1990
AB 1297, Chapter 90, 1991
AB 1297, Chapter 90, 1991
SB 21, Chapter 331, 1991
SB 617 and SB 844, 1992
SB 617 and SB 844, 1992
SB 617 and SB 844, 1992
SB 1135 and AB 1519
SBI02, Chapter 101, 1981
SB 1326, Chapter 327, 1982
SB 223, Chapter 323, 1983
AB 160, Chapter 449, 1990
Notes:
Continuing and cumulative losses have been adjusted to reflect 2001 dollars using U.S. CPI.
Excludes revenue losses applicable to Redevelopment Agency.
Excludes additional shifts for FY 1993-94 estimated by Legislative Analyst as follows:
Property tax cut
One-time shift from Transportation Planning & Development Account
Extension of 1/2 cent Sales Tax
Net FY 1993-94 tax shift
Mloss4
81/82 272.4 $31,987 S60,230
81/82 272.4 $11,414 $21,490
81/82 272.4 $115,785 $218,010
83/84 298.4 $33,210 $57,080
84/85 311.1 S59,504 $98,100
90/91 400.9 $12,814 $16,390
90/91 400.9 $421,000 $538,620
90/91 400.9 $27,290 S34,910
91/92 413.0 $167,234 $207,690
91/92 413.0 $81,879 $101,680
91/92 413.0 $56,760 S70,490
92/93 425.2 S244,644 $295,100
92/93 425.2 $2,823 S3,410
92/93 425.2 $64,006 $77,210
93/94 425.2 $281,000 $338,960
81/82 272.4 S315,000
82/83 289.1 $478,000
83/84 298.4 S604,000
90/91 400.9 S68,000
$1,112,580
$397,000
$4,027,210
$991,950
$1,647,710
$209,670
$6,889,870
$446,580
S2,494,340
S1,221,240
$846,590
S3,306,590
S38,170
$865,110
$3,517,010
$2,139,370 $28,011,620
$646,489
$924,353
$1,131,615
$94,830
$2,139,370 S30,808,907
$328,000
(SI55,000)
($52,000)
$121,000
5/30/03