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Home My WebLink About2009 026 CC RESO2009 026 CC RESOHÄ—@¸—3äXþRESOLUTION NO. 2009-026 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK AUTHORIZING THE CITY ATTORNEY TO COOPERATE WITH THE LEAGUE OF CALIFORNIA CITIES, OTHER CITIES AND COUNTIES IN LITIGATION CHALLENGING THE CONSTITUTIONALITY OF ANY SEIZURE BY STATE GOVERNMENT OF THE CITY'S STREET MAINTENANCE AND REDEVELOPMENT FUNDS WHEREAS, the current economic crisis has placed cities under incredible financial pressure and caused them 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 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, since the early 1990s the state government also has seized $ 1.04 billion of redevelopment tax increment statewide, and the Governor and Legislature are now considering seizing $350 million each year for three years, beginning in the current fiscal year; and WHEREAS, on April 30, 2009, in the case of CRA v. Genest, the Sacramento Superior Court found similar efforts by the State to seize redevelopment tax increment for the state general fund to be in direct violation of Article XVI, Section 16 of the State Constitution, added by the voters in 1952 as Proposition 18, which requires that tax increment be used exclusively for the benefit of redevelopment project areas; and WHEREAS, in his proposed FY 2009-10 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 to maintain the City's streets, bridges, traffic signals, streetlights, sidewalks and related traffic safety facilities for the use of the motoring public; and BIB] 40073-U01 2009-U02 026-U02 CC-U02 RESO-U02 LI3-U03 FO8417-U03 FO122560-U03 DO124823-U03 C6-U03 RESO-U03 7/29/2009-U04 ROBIN-U04 2009 026 CC RESOHÄ—@¸—3äXþResolution No. 2009-026 Page 2 WHEREAS, if the Governor's proposal proceeds, then the City anticipates the following direct loss to its General Fund: Projected 2009/2010 Gas Tax Revenues for the City of Baldwin Park Streets & Highway Code Sections 2105 2106 2107 2107.5 Total $442,665 $262,363 $589,909 $7,500 $1,302,438 WHEREAS, the loss of almost all of cities' gas tax funds will seriously compromise cities' ability to perform critical traffic safety related street maintenance, possibly including, but not limited to, drastically curtailing patching, resurfacing, street lighting/traffic signal maintenance, payment of electricity costs for street lights and signals, bridge maintenance and repair, sidewalk and curb ramp maintenance and repair, and more; and WHEREAS, cities and counties maintain 81% of the State road network while the State directly maintains just 8%, and according to a recent statewide needs assessment' on a scale of zero failed) to 100 excellent), the statewide average pavement condition index PCI) is 68, or at risk." WHEREAS, in both Proposition 5 in 1974 and Proposition 2 in 1998 the voters of our state overwhelmingly imposed restrictions on the state's ability to do what the Governor has proposed and the Legislature is considering, and any effort to permanently divert the local share of the gas tax would violate the state constitution and the will of the voters. NOW, THEREFORE, the CITY COUNCIL of the CITY of BALDWIN PARK HEREBY RESOLVES, as follows: SECTION 1. The City Attorney is hereby directed to take all necessary steps to cooperate with the League of California Cities, California Redevelopment Association, other cities, counties and redevelopment agencies in supporting litigation against the state of California if the Legislature enacts and the governor signs into law legislation that unconstitutionally diverts the redevelopment tax increment and the City's share of funding from the Highway Users Tax Account HUTA), also known as the gas tax," to fund the state general fund; provided, that before adding the City as a plaintiff/petitioner and the 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. BIB] 40073-U01 2009-U02 026-U02 CC-U02 RESO-U02 LI3-U03 FO8417-U03 FO122560-U03 DO124823-U03 C6-U03 RESO-U03 7/29/2009-U04 ROBIN-U04 2009 026 CC RESOHÄ—@¸—3äXþResolution No. 2009-026 Page 3 City make any expenditure for any litigation the Chief Executive Officer and City Attorney shall receive express direction from a majority of the City Council; and SECTION 2. The Chief Executive Officer or Deputy City Clerk is hereby directed to send this resolution with an accompanying letter from the Mayor to the Governor and each of the City's State legislators, informing them in the clearest of terms of the City's adamant resolve to oppose any effort to frustrate the will of the electorate as expressed in Proposition 18 1952), Proposition 5 1974) and Proposition 2 1998) concerning the proper use and allocation of the redevelopment tax increment and the gas tax; and SECTION 3. A copy of this Resolution shall be sent by the Deputy City Clerk to the League of California Cities, the California Redevelopment Association, the local chamber of commerce, and other community groups whose members are affected by this proposal to divert funds from vital local services and projects. PASSED AND ADOPTED this 17th day o" ne BIB] 40073-U01 2009-U02 026-U02 CC-U02 RESO-U02 LI3-U03 FO8417-U03 FO122560-U03 DO124823-U03 C6-U03 RESO-U03 7/29/2009-U04 ROBIN-U04 2009 026 CC RESOHÄ—@¸—3äXþResolution No. 2009-026 Page 4 ATTEST: STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss. CITY OF BALDWIN PARK I, LAURA M. NIETO, Deputy City Clerk of the City of Baldwin Park, do hereby certify that the foregoing resolution was duly and regularly approved and adopted by the City Council of the City of Baldwin Park at a regular meeting of the City Council held on June 17, 2009 by the following vote: AYES: COUNCIL MEMBERS: Anthony J. Bejarano, Marlen Garcia, Ricardo Pacheco, Mayor Pro Tern Monica Garcia and Mayor Manuel Lozano NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE ABSTAIN: COUNCIL MEMBERS: NONE AURA M. NIETO, CMC DEPUTY CITY CLERK BIB] 40073-U01 2009-U02 026-U02 CC-U02 RESO-U02 LI3-U03 FO8417-U03 FO122560-U03 DO124823-U03 C6-U03 RESO-U03 7/29/2009-U04 ROBIN-U04