HomeMy WebLinkAboutAB 506 (Oppose)Steve Tye
Mayor
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May 12, 2011
TIITIrI U M
21825 Copley Drive - Diamond Bar, CA 91765-4178
Honorable Bob Wieckowski
State Assembly, 20t' District
State Capitol, Room 4162
Sacramento, CA 95814
Fax: (916) 319-2120
(909) 839-7000 - Fax (909) 861-3117
www.CityofDiamondBar.com
Dear Assembly Member Wieckowski:
The City Council of Diamond Bar respectfully opposes AB 506, which places
additional obstacles upon local government seeking bankruptcy protection.
The City of Diamond Bar has since incorporation implemented fiscally sound
budgets, and has valued the responsibility with which to manage its own fiscal
affairs. 'Since the adoption of Chapter 9 of the state Bankruptcy Code in 1949,
only two cities have petitioned for its use. Rather than declare bankruptcy, most
cities have had to make difficult decisions such as reducing service levels,
scaling back projects, or changing workforce levels to maintain a balanced
budget.
State intervention, and the use of a State Commission that is neither neutral nor
working towards the best interests of local government and our residents is not
the solution. The best way to ensure that local municipalities remain financially
solvent is for the state to stop taking funding specifically allocated for local
government.
For these reasons, the City of Diamond Bar is opposed to AB 506.
Sincerely,
Steve Tye
Mayor, City of Diamond Bar
CC: Curt Hagman, Assembly Member -60th District
City Council
League of California Cities
Joe A. Gonsalves & Son