HomeMy WebLinkAboutRES NO 014-10
RESOLUTION NO. O 14- 10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BAKERSFIELD DECLARING A SEVERE FISCAL HARDSHIP.
WHEREAS, the current economic crisis has placed cities under incredible
financial pressure and caused city officials throughout the State 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, in light of these circumstances, the City of Bakersfield has been
instituting budget reductions measures on a continual basis, The adopted 2008-
09 City Budget included 60 frozen positions and 5 displacements. Further mid-
year budget cuts resulted in the elimination of 106 vacant positions; and
WHEREAS, the adopted 2009-10 City Budget included a reduction of 141
positions and $15.8 million from the General Fund compared to FY 2008-09; and
WHEREAS, the Bakersfield City Council adopted Resolution No. 059-09 on
May 12, 2009 declaring that if the State of California "borrowed" $2 billion in
local property tax funds from local governments that the City of Bakersfield
would experience a severe fiscal hardship; and
WHEREAS, the State of California did include a borrowing of local property
taxes in their FY 2009-10 budget, capturing $6.7 million in revenue from the City
of Bakersfield's General Fund; and
WHEREAS, due to the continued financial downturn in the national and
regional economy, the City has experienced unprecedented declines in sales
tax revenues, including significant declines in eleven of the last twelve quarters,
as compared to the same quarter of the previous year; and
WHEREAS, due to recent investment losses by the Public Employees
Retirement System (PERS), the City's PERS rates are gradually increasing,
(beginning in FY 2011-12) and reaching an estimated annual increase of $7,5
million in FY 2013-14, which will continue for the next thirty years; and
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WHEREAS, the City of Bakersfield currently faces an approximate General
Fund deficit of: $8.7 million for the 2010-11 fiscal year, and $14 million for the
2011-12 fiscal year, and
WHEREAS, on January 27, 2010, the Bakersfield City Council adopted mid-
year budget adjustments for the FY 2009-10 budget which included significant
reductions in Property Tax, Sales Tax, and permit fee revenue estimates, as well
as an $8.07 million reduction in General Fund Appropriations; and
WHEREAS, the State of California is considering multiple revisions to the
State budget which may result in further reductions in City revenues; 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 continued serious
fiscal pressure; and
WHEREAS, the Bakersfield City Council and City Staff have instituted
various austerity measures including severe controls on hiring and multiple
financial expenditure and operating cuts; and
WHEREAS, immediate and comprehensive action to reduce current
spending must be taken to ensure, to the maximum extent possible, that the
essential services of the City are not jeopardized.
NOW, INCORPORATING ALL OF THE ABOVE RECITALS HEREIN, THEREFORE, BE
IT RESOLVED by the Council of the City of Bakersfield as follows:
1. The City is in a state of severe fiscal hardship;
2. The above recitals are true and correct; and
3. This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting this
resolution.
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HEREBY CERTIFY that the foregoing Resolution was passed and
adopted by the Council of the City of Bakersfield at a regular meeting thereof
held on FEB 17 201a , by the following vote:
AYES: COUNCILMEMBER: CARSON, BENHAM, WEIR, HANSON, SULLIVAN, SCRIVNER
COUNCILMEMBER:
COUNCILMEMBER:
ABSENT: COUNCILMEMBER:
ROBERTA GAFFORD, C
CITY CLERK and Ex Officio Clerk of the
Council of the City of Bakersfield
APPROVED: FEB 17 2010
By , 9 at
HARVEY L. HALL
Mayor
APPROVED as to form:
VIRGINIA GENNARO
City Attorney
By:
IN A. CRUMLEY
Associate City Attorney
JAC Asc
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