HomeMy WebLinkAbout22483 - RESOLUTIONS - 5/13/2009 RESOLUTION NO. 22483
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, DECLARING THE CITY OF
PALM SPRINGS IS EXPERIENCING A SEVERE FISCAL
HARDSHIP DUE TO THE STATE'S SEIZURE OF LOCAL
PROPERTY TAX FUNDS AND THE CONTINUED
ADOPTION OF UNFUNDED MANDATES BY THE STATE
OF CALIFORNIA.
WHEREAS, the current economic crisis has placed cities under incredible financial
pressure and caused city officials to reopen already adopted budgets 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 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 $896 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 safety services cities can provide since public safety
comprises the 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,
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 Legislature is currently considering hundreds of bills, many of which
would impose new costs on local governments that can neither be afforded nor
sustained in this economic climate; and
Resolution No. 22483
Page 2
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 THAT THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS has determined that 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; and
RESOLVED FURTHER, that 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
RESOLVED FURTHER, 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.
RESOLVED FURTHER, 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.
ADOPTED this 13th day of May, 2009.
2,�
David H. Ready, Cit
- ATTEST:
es Thompson, City Clerk
Resolution No. 22483
Page 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 22483 is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs the 13th day of May, 2009, by the
following vote:
AYES: Councilmember Foat, Councilmember Hutcheson, Councilmember
Weigel, Mayor Pro Tern Mills, and Mayor Pougnet.
NOES: None.
ABSENT: None.
ABSTAIN: None.
mes Thompson, City Clerk
City of Palm Springs, California a5 t -