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.
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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