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HomeMy WebLinkAbout22540 - RESOLUTIONS - 7/1/2009 CITY COUNCIL RESOLUTION NO. 22540 COMMUNITY REDEVELOPMENT AGENCY RESOLUTION NO. 1390 A JOINT RESOLUTION OF THE CITY COUNCIL AND COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE CITY ATTORNEY/AGENCY LEGAL COUNSEL TO COOPERATE WITH THE CALIFORNIA REDEVELOPMENT ASSOCIATION, THE LEAGUE OF CALIFORNIA CITIES, AND OTHER CITIES AND COUNTIES IN LITIGATION CHALLENGING THE CONSTITUTIONALITY OF ANY SEIZURE BY STATE GOVERNMENT OF REDEVELOPMENT FUNDS. The City Council of the City of Palm Springs finds: A. The current economic crisis has placed cities under incredible financial pressure and caused them to make painful budget 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. B. Since the early 1990s the state government has seized $1.04 billion of redevelopment tax increment statewide, and the Governor and Legislature are now considering seizing $350 million each year for three years, beginning in fiscal year 2008-09; and C. On April 30, 2009, in the case of CRA v. Genest, the Sacramento Superior Court found similar efforts by the State to seize redevelopment tax increment for the state general fund to be in direct violation of Article XVI, Section 16 of the State Constitution, added by the voters in 1952 as Proposition 18, which requires that tax increment be used exclusively for the benefit of redevelopment project areas. NOW, THEREFORE, BE IT RESOLVED: SECTION 1. The City Council and the Community Redevelopment Agency of the City of Palm Springs hereby directs the City Attorney/Agency Legal Counsel to take all necessary steps to cooperate with the California Redevelopment Association, the League of California Cities, other cities, counties and redevelopment agencies in supporting litigation against the state of California if the Legislature enacts and the Governor signs into law legislation that unconstitutionally diverts redevelopment tax increment. SECTION 2. The City Manager/Redevelopment Agency Executive Director shall send this resolution to the Governor and each of the City's state legislators, informing them in the clearest of terms of the City's adamant resolve to oppose any effort to frustrate the will of the electorate as expressed in Article XVI; Section 16 of the City Council Resolution No. 22540 CRA Resolution No. 1390 Page 2 California Constitution concerning the proper use and allocation of redevelopment tax increment; and SECTION 3. A copy of this Resolution shall be sent by the City Manager/Redevelopment Agency Executive Director to the California Redevelopment Association, the League of California Cities, and other community groups whose members are affected by this proposal to divert redevelopment funds from vital local projects. ADOPTED THIS 1ST DAY OF JULY, 2009. David H. Ready City Manager/Executive Director ATTEST: mes Thompson City Clerk/Assistant Secretary CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk/Assistant Secretary of the City of Palm Springs/Community Redevelopment Agency, hereby certify that Resolution No. 22540/1390 is a full, true and correct copy, and was duly adopted at an adjourned regular meeting of the City Council/Community Redevelopment Agency of the City of Palm Springs on July 1, 2009, by the following vote: AYES: Council/Agency Member Foat, Council/Agency Member Hutcheson, Council/Agency Member Weigel, and Mayor Pro Tem/Vice Chair Mills. NOES: None. ABSENT: Mayor/Chair Pougnet. ABSTAIN: None. ?ity Thompson �� �1Zerk/Assistant Secretary,/ _ City of Palm Springs, California