HomeMy WebLinkAboutReso 64-09 Severe Fiscal HardshipRESOLUTION NO. 64-09
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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, 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 $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 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, 2009, 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
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
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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 DUBLIN 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, 2009 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; and
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.
PASSED, APPROVED AND ADOPTED this 19t" day of May, 2009 by the following vote:
AYES: Councilmembers Biddle, Hart, Hildenbrand, Scholz, and Mayor Sbranti
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
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Mayor
Reso No. 64-09, Adopted 5-19-09, Item 8.2 Page 2 of 2