HomeMy WebLinkAbout2009-124
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RESOLUTION NO, 2009-124
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO FINDING A SEVERE FISCAL HARDSHIP WILL EXIST IF
ADDITIONAL LOCAL PROPERTY TAX FUNDS ARE SEIZED AND ADDITIONAL
UNFUNDED MANDATES ARE ADOPTED BY THE STATE OF CALIFORNIA
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
WHEREAS, the current economic crisis has placed cities under incredible financial
pressure and caused the city of San Bernardino and other cities to make painful cuts, including
layoffs and pay reductions 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 govcrnment of California has scized ovcr
$8.6 billion of city property tax rcvenues 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 safcty services cities can provide since public safety comprises thc
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, countics
and special districts to balance the state budget, causing deeper cuts in local public safety and
othcr vital services; and
WHEREAS, in the past the Governor has called such "borrowing" proposals fiscally
irresponsible bccause the state will find it virtually impossible to repay and it would only
deepen the state's structural deJicit, preventing the state from balancing its budget; and
WHEREAS, the Legislature is currently considcring hundreds bills, many of which
would impose new costs on local governments that can neither be afforded nor sustained in this
economic climate; and
2009-124
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A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO FINDING A SEVERE FISCAL HARDSHIP WILL EXIST IF
ADDITIONAL LOCAL PROPERTY TAX FUNDS ARE SEIZED AND ADDITIONAL
UNFUNDED MANDATES ARE ADOPTED BY THE STATE OF CALIFORNIA
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'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 BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City of San Bernardino 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. For that reason, the Mayor and
Common Council strongly and unconditionally oppose 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.
SECTION 2. The City 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.
SECTION 3. 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.
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2009-124
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A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO FINDING A SEVERE FISCAL HARDSHIP WILL EXIST IF
ADDITIONAL LOCAL PROPERTY TAX FUNDS ARE SEIZED AND ADDITIONAL
UNFUNDED MANDATES ARE ADOPTED BY THE STATE OF CALIFORNIA
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and Common Council of the City of San Bernardino at a j oint regular meeting thereof:
held on the lSth day of May
Council Members: AYES
ESTRADA x
BAXTER x
BRINKER x
SHORETT ~
KELLEY x
JOHNSON x
MCCAMMACK
,2009, by the following vote, to wit:
NAYS
ABSTAIN ABSENT
x
~~I &tuJe
City . ierk
The foregoing resolution is hereby approved this .;(.O'tlt-- day of May
2009.
tri 1. Morris, Mayor
City of San Bernardino
Approved as to form:
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