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HomeMy WebLinkAboutReso 89-09 Seize Tax by StateRESOLUTION NO. 89- 09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN RESOLUTION OBJECTING TO SEIZURE BY THE STATE OF CALIFORNIA OF HIGHWAY USERS TAX ACCOUNT FUNDS ALLOCABLE TO THE CITY OF DUBLIN AND AUTHORIZING THE CITY ATTORNEY TO MONITOR POTENTIAL LITIGATION TO CHALLENGE ANY SUCH SEIZURE WHEREAS, the current economic crisis has placed cities under incredible financial pressure and caused many cities 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; and WHEREAS, since the early 1990s the state government of California (State) has seized over $10 billion of city property tax revenues statewide, now 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, in his proposed Fiscal Year (FY) 2009-2010 budget, the Governor has proposed transferring $1 billion of local gas taxes and weight fees to the State general fund to balance the State budget, and over $700 million in local gas taxes permanently in future years, immediately jeopardizing the ability of the City of Dublin to maintain the City's streets, bridges, traffic signals, streetlights, sidewalks and related traffic safety facilities for the use of the motoring public; and WHEREAS, the City of Dublin has received an average of $772,900 from the Highway Users Tax Account (which consists of gas tax monies) over the last five fiscal years; and WHEREAS, the loss of almost all of the City's gas tax funds will compromise the City's ability to perform critical traffic safety related street maintenance, including, but not limited to, patching, resurfacing, street lighting/traffic signal maintenance, payment of electricity costs for street lights and signals, bridge maintenance and repair, and sidewalk and curb ramp maintenance and repair; and WHEREAS, in both Proposition 5 in 1974 and Proposition 2 in 1998 the voters of the State imposed restriction on the State's ability to reallocate gas tax monies from the Highway Users Tax Account, and any effort to permanently divert the local share of the gas tax would violate the will of the voters; and WHEREAS, cities and counties maintain 81 % of the State road network while the State directly maintains just 8%; and WHEREAS, ongoing street maintenance is a significant public safety concern; and WHEREAS, according to a recent Statewide needs assessment (California Statewide Local Streets and Roads Needs Assessment, Nichols Consulting Engineers, Chtd. 2008), sponsored by the League of California Cities, California State Association of Counties and County Engineers Association of California), on a scale of zero (failed) to 100 (excellent), the Statewide average pavement condition index (PCI) is 68, or "at risk," and local streets and roads will fall to "poor" condition (Score of 48) by the Year 2033 based on existing funding levels available to cities and counties. Page 1 of 2 NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Dublin does hereby express its willingness to cooperate with the League of California Cities, other cities and counties in opposing legislation that diverts the City's share of funding from the Highway Users Tax Account (HUTA), also known as the "gas tax," to the State general fund. BE IT FURTHER RESOLVED that the City Council authorizes the City Attorney to monitor possible litigation to challenge such legislation and to keep the City Council informed regarding such litigation. BE IT FURTHER RESOLVED that the City Clerk shall send this Resolution with an accompanying letter from the Mayor to the Governor and each legislator, informing them of the City's resolve to oppose any effort to frustrate the will of the electorate as expressed in Proposition 5 (1974) and Proposition 8 (1998) concerning the proper use and allocation of the gas tax. BE IT FURTHER RESOLVED that a copy of this Resolution shall be sent by the City Clerk to the League of California Cities, the Dublin Chamber of Commerce, and other community groups whose members are affected by this proposal to affect conditions on the streets of the City for pedestrians, bicyclists and motonsts. PASSED, APPROVED AND ADOPTED this 23rd day of June, 2009, by the following vote: AYES: Councilmembers Biddle, Hart, Hildenbrand, Scholz, and Mayor Sbranti NOES: None ABSENT: None ABSTAIN: None / ~v Mayor ATTEST: City Clerk Reso No. 89-09, Adopted 6-23-09-09, Item 5.1 Page 2 of 2