HomeMy WebLinkAboutResolution 2009-068 N.C.S. 05/18/2009Resolution No. 2009-068 N.C.S.
of the City of Petaluma, California
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 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 1990s the State 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, services across the spectrum of city functions have been reduced as a
consequence from the levels at which they should otherwise be funded, but the most significant
impact of taking local property taxes has been to reduce the quality of public safety services as
public safety comprises the largest part of a 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 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, which will cause deeper cuts in local public safety
and other vital services; and,
WHERIEAS, 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 budget deficit; and,
WHEREAS, the Legislature is currently considering many bills 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 city
budgets under serious pressure; and,
Resolution No. 2009-068 N.C.S. Page 1
WHEREAS, Petaluma has reduced its General Fund budget in 2008-09 nearly seven (7)
million dollars from 2007-08 levels, and is currently seeking to close an additional budget gap of
over four (4) million dollars for 2009-10; and,
WHEREAS, to achieve these reductions Petaluma has curtailed services below levels
acceptable to the Public and in the process has laid off or eliminated in excess of 40 permanent
positions; and,
WHEREAS, it is unacceptable that Petaluma 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.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE
CITY OF PETALUMA has determined 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, the City Council strongly opposes the May 5 proposal
of the Department of Finance and any other State proposals to borrow or seize any additional
local funds, including the property tax, redevelopment tax increment, and Cities' share of the
Proposition 42 transportation sales tax.
BE IT FURTHER RESOLVED, 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.
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.
Under the power and authority conferred upon this Council by the Charter oi'said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the /'Ap~iroi~ed as to
Council of the City of Petaluma at a Regular meeting on the 18`~ day of May, 2009, 11( J fog
by the following vote:
AYES: Vice Mayor Barrett, Harris, Healy, Rabbitt, Renee, Mayor Torliatt
NOES: None
ABSENT: None
ABSTAIN: Glass
ATTEST:
City Clerk
City
Resolution No. 2009-068 N.C.S. Yage 2