HomeMy WebLinkAboutAgenda Report - April 19, 2006 E-20AGENDA ITEM E'o ;D
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Adopt Resolution in Support of a Constitutional Amendment to Ensurethat
Proposition 42 Revenues are Used Exclusivelyfor State and Local Transportation
Projects, and that Revenues Previously Used to Offset Non -transportation
Purposes are Reimbursed
MEETING DATE: April 19,2006
PREPARED BY: Management Analyst, City Manager's Office
RECOMMENDED ACTION: Adopt resolution in support of a constitutional amendment to ensure
that Proposition 42 revenues are used exclusively for state and local
transportation projects, and that revenues previously used to offset
non -transportation purposes be reimbursed.
BACKGROUND INFORMATION: In 2002, 69 percent of voters approved Proposition 42, a Traffic
Congestion Relief Measure that dedicated the sales tax on gasoline
to transportation programs. Funds were to be allocated on a
40/40/20 split, with 40 percent available to cities and counties
for street and road maintenance; 40 percent to the State Transportation Improvement Projects; and 20
percent to transit systems. Proposition 42 allows these funds to be transferred to the state general fund
and appropriated for non -transportation purposes during times when the state is in fiscal difficulty. The
funds have been transferred to the state general fund in each of the last two fiscal years since
Proposition 42 passed, resulting in a diversion of $2.5 billion from local street improvement to the state's
general fund for non -transportation purposes.
As a result, a measure is being circulated to qualify a constitutional amendment for the November 2006
ballot that would ensure that future revenues raised by Proposition 42 are dedicated to state and local
transportation projects only. The measure also requires the state to reimburse the $2.5 billion in funds
previously spent on non -transportation expenses to be repaid in ten years. Ensuring that Proposition 42
revenues are used solely for transportation projects, along with the reimbursement of prior revenues, will
greatly assist the City of Lodi in meeting its street maintenance obligations to the benefits of its residents,
visitors, and businesses.
FISCAL IMPACT: Estimated Proposition 42 revenue for the City of Lodi for FY 05/06 is $252,000.
net L. Hamilton
Management Analyst
APPROVED: f-- 7
Bi g, City Manager
RESOLUTION NO. 2006-67
A RESOLUTION OF THE LODI CITY COUNCIL IN SUPPORT OF A
CONSTITUTIONALAMENDMENT TO ENSURE THAT PROPOSITION 42
REVENUESARE USED EXCLUSIVELY FOR STATE AND LOCAL
TRANSPORTATION PROJECTS AND THAT REVENUES PREVIOUSLY
USED TO OFFSET NON -TRANSPORTATION PURPOSES ARE REIMBURSED
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WHEREAS, the City of Lodi engages in periodic capital improvement assessments and planning
relating to the condition of its transportation infrastructure; and
WHEREAS, the City is concerned that it is not able to maintain its transportation infrastructure
consistentwith public works best practices because of limited funding availability; and
WHEREAS, constraints on the City's ability to fully fund local transportation infrastructure projects
adversely affect residents, visitors, and businesses within the City; and
WHEREAS, the City had anticipated receiving monies for this purpose as the result of Proposition
42, approved by the state's voters in March 2002, which dedicated the state sales tax paid on gasoline to
state and local transportation infrastructure projects and programs; and
WHEREAS, Proposition 42 contains a provision that allows the state to transfer the sales tax on
gasoline to non -transportation state purposes during times of fiscal need; and
WHEREAS, as a result, some $2.5 billion in Proposition 42 monies has been spent over the past
three years for non -transportation purposes; and
WHEREAS, a measure is being circulated to qualify a constitutional amendment for the
November 2006 ballot that would ensure that future revenues raised by Proposition 42 are dedicated to
state and local transportation projects only; and
WHEREAS, the measure also requires the state to reimburse the $2.5 billion in funds previously
spent on non -transportation expenses to be repaid in ten years; and
WHEREAS, ensuring that Proposition 42 revenues are used solely for transportation projects,
along with the reimbursement of prior revenues, will greatly assist the City of Lodi in meeting its street
maintenance obligations to the benefits of its residents, visitors, and businesses.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi hereby supports
a constitutional amendment to ensure that Proposition 42 revenues are used exclusively for state and
local transportation projects and that revenues previously used to offset non -transportation purposes be
reimbursed.
Dated: April 19,2006
I hereby certify that Resolution No. 2006-67 was passed and adopted by the City Council of the
City of Lodi in a regular meeting held April 19, 2006, by the following vote:
AYES: COUNCIL MEMBERS— Beckman, Hansen, Johnson, Mounce, and
MayorHitchcock
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
SUSAN J. BLACKST
City Clerk
2006-67