HomeMy WebLinkAboutRES NO 059-09
RESOLUTION 0 5 9 0 9
A RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD
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 the Department of Finance announced it had proposed tQ-
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
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WHEREAS, state agencies are imposing, or considering, many regulations
imposing unfunded mandates on local governments without regard to how local
agencies will be able to 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, by the Council of the City of
Bakersfield that the City Council 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; 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.
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I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the City
Council of the City of Bakersfield at a regular meeting thereof held on MAY 2 0 2009 by
the following vote:
AYES COUNCILMEMBER CARSON, BENHAM, WEIR COUCH, HANSON, SULLIVAN, SCRIVNER
S: COUNCILMEMBER non
ABSTAIN: COUNCILMEMBER Y10T1 -
ABSENT: COUNCILMEMBER r onZ
CITY CLERK and EX OFF IO of the
Council of the City of Bak sfield
APPROVED MAY 2 0 200
HARVEY L. HAL
MAYOR of the City of Bakersfield
APPROVED AS TO FORM:
VIRGINIA GENNARO
City Attorney
By:
IRGINIA GENNARO
City Attorney
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