HomeMy WebLinkAboutRES 2009-26RESOLUTION 2009- 26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR
OPPOSING THE STATE OF CALIFORNIA'S PROPOSED DIVERSION OF
PROPERTY AND GAS TAX REVENUES FROM LOCAL GOVERNMENTS TO
BALANCE THE STATE BUDGET
A. RECITALS.
WHEREAS, the current economic crisis has placed cities across California under
incredible financial pressure, leading to the implementation of budget cuts across City
departments; and
WHEREAS, since the early 1990s 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, 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 "borrovA(' 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 combined effects of the seizure of the City's property taxes, increasing
unfunded state mandates, and the revenue losses due to the economic downturn may
result in additional budget reductions; and
WHEREAS, the City of Diamond Bar has maintained strong fiscal policy over its twenty
years of incorporation, keeping expenditures in line with revenues and maintaining a
significant General Fund reserve for use as a "rainy day fund"; and
WHEREAS, it is poor fiscal policy and inappropriate for the state to continue to raid the
coffers of responsible local governments to balance its own budget deficit.
2009-26
B. RESOLUTION.
NOW, THEREFORE, THE CITY COUNCIL FOR THE CITY OF DIAMOND BAR DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. 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
SECTION 2. 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; and
SECTION 3. That the City supports the League of California Cities' "Save Your City"
campaign, a coalition of agencies opposed to the proposed tax seizures; and
SECTION 4. That the City Clerk shall send copies of this resolution to the Governor,
Senator Huff, Assemblyman Hagman, and the League of California Cities.
PASSED, APPROVED AND ADOPTED THIS 16th DAY OF JUNE 2009.
Ron Everett, Mayor
I, Tommye Cribbins, City Clerk of the City of Diamond Bar, do hereby certify that the
foregoing Resolution was passed, adopted and approved at a regular meeting of the
City Council of the City of Diamond Bar held on 16th day of June, 2009, by the following
vote:
AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye,
MPT/Herrera, M/Everett
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAINED: COUNCIL MEMBERS: None
Tom ye Cribbins, City Clerk
City of Diamond Bar
2009-26