HomeMy WebLinkAboutCC RESO 2009-124RESOLUTION NO. 2009 — 124
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
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, 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 1990's the state government of California has seized
over $8.6 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, 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 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 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 of National City's budget under serious fiscal pressure; and
Resolution No. 2009 — 124
June 2, 2009
Page 2
WHEREAS, National City simply can not sustain the loss of any more property
tax funds or 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
National City 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.
BE IT FURTHER RESOLVED 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.
BE IT FURTHER RESOLVED 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 new mandates.
BE IT FURTHER RESOLVED that the City Clerk shall send copies of this
resolution to the Governor, our State senator(s), our State assembly member(s) and the League
of California Cities.
PASSED and ADOPTED this 2nd day of June, 2
n Morrison, Mayor
ATTEST:
ael R. Dalla,'City Clerk
APPROVED AS TO FORM:
George H.'Eiser, Ill
City Attorney
Passed and adopted by the Council of the City of National City, California, on June 2,
2009 by the following vote, to -wit:
Ayes: Councilmembers Parra, Sotelo-Solis, Van Deventer, Zarate.
Nays: None.
Absent: Councilmember Morrison.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
City lerk of the City of National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2009-124 of the City of National City, California, passed and adopted
by the Council of said City on June 2, 2009.
City Clerk of the City of National City, California
By:
Deputy