HomeMy WebLinkAboutResolution 2010-062 N.C.S. 05/04/2010Resolution No. 2010-062 N.C.S.
of the City of Petaluma, California
FINDING A SEVERE FISCAL HARDSHIP WILL EXIST F>EZOM DEFERRAL
OF THE CITY OF PETALUMA'S SHARE OF
HIGHWAY USER TAX ACCOUNT (HUTA) FUNDS
WHEREAS, the current economic crisis has placed the City of Petaluma under extreme
financial pressure and caused the City to make severe budget cuts, including layoffs and furlough
of City workers, decreased 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 government of California has seized over
$10 billion of city property tax revenues statewide, amounting to over $900 million each year, to
fund the state budget, even after deducting public safety program payments to cities by the State;
and,
WHEREAS, on March 4, 2010, the Governor signed ABX8 5 (Budget Committee),
Chapter 1, Statutes of 2010, which establishes a cash management plan that defers various
appropriations to state universities, county social services programs, and other programs,
including local HUTA funds during FY 2010-2011; and,
WHEREAS, HUTA revenues, not exceeding $50 million monthly, will be deferred from
cities and counties for ten months, from July 2010 through March 2011, with repayment no later
than May 2, 2011; and,
WHEREAS, this deferral will immediately jeopardize the ability of the City of Petaluma
to maintain its streets, bridges, traffic signals, streetlights, sidewalks and related traffic safety
facilities for the use of the public; and,
WHEREAS, the loss of almost all of the City's gas tax funds will seriously compromise
the City's ability to perform critical traffic safety-related street maintenance, including, but not
limited to, drastically curtailing patching, resurfacing, street lighting and traffic signal
maintenance, bridge maintenance and repair, sidewalk and curb ramp maintenance and repair,
and more; and,
WHEREAS, the City will be forced to eliminate part or all of its street maintenance
operations and will be forced to cut back in other areas to use City general funds for basic street
repair and maintenance; and,
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Petaluma has hereby determined:
l . The City will experience a severe fiscal hardship if the HUTA funds., in an amount
projected at $1,367,602, are deferred.
Resolution No. 2010-062 N.C.S. Page 1
2. That the City Council strongly objects to the HUTA deferral, and any other State
proposals to borrow or seize any additional local funds, including property tax and the
redevelopment tax increment.
3. That the City Council strongly urges the Governor to suspend the enactment of any new
mandates on local governments, unless the State provides complete funding for all
existing and new mandates.
4. That the City Clerk shall send copies of this Resolution to the Governor, our State
Senators, our State Assembly members and the League of California Cities.
Under the power and authority conferred upon this Council by the Charter of said City.
RH:FERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the
Council of the City of Petaluma at a Regular adjourned meeting on the 4`~ day of
Ma}~. 2010, by the following vote:
AYES: Barrett, Vice Mayor Glass, Harris, I lealy, Renee, Mayor "forliatt
NOES: None
ABSENT: Rabbitt
ABSTAIN: None
~.,.
ATTEST:
City Clerk
City
Resolution No. 2010-062 N.C.S. Page 2