Loading...
HomeMy WebLinkAboutAgenda Report - May 20, 2009 E-124LAGENDA ITEM ewo CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution at the Request of the League of California Cities Declaring Fiscal Hardship Due to State's Ongoing Seizure of Local PropertyTax Funds for the Educational Revenue Augmentation Fund and its Continued Adoption of Unfunded Mandates MEETING DATE: May 20,2009 PREPARED BY: City Manager RECOMMENDED ACTION: Adopt resolution at the request of the League of California Cities declaring that the City of Lodi is experiencing a severe fiscal hardship due to the state's ongoing seizure of local property tax funds for the Educational Revenue Augmentation Fund and the continued adoption of unfunded mandates by the State of California. BACKGROUND INFORMATION: The League of California Cities has requested Lodi take a stand in opposition to the state's transfer of property tax. Due to the current economic crisis, the State Department of Finance has proposed to the Governor that the state "borrow" over $2 billion in local property taxes from cities, counties, and special districts to balance the state budget. It is recommended that Council adopt the attached resolution opposing this proposal and urging 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 urging the State to provide complete funding for all existing and any new mandates. FISCAL IMPACT: This proposal would take 8% of the City's property tax, including secured and unsecured propertytax, supplemental and unitarytax, Vehicle License Fee adjustment, and propertytax in lieu of sales tax via the triple flip. Pursuantto the attached worksheet from the League of California Cities, Lodi's share is $1,390,137. FUNDING AVAILABLE: N/A BK/JMP Attachment Blair Kin City Ma r APPROVED: BI Kin City Manager Estimated FY09-10 City & County Impacts of the State Dept of Finance Draft Proposed Local Property Tax Borrowing Under PropositionIA(2004) Note: Prop1A stipulates a maximum amount that may be borrowed statewide. It does not specify how that amount might be allocated. These figures assume an 8% per jurisdiction allocation as implied in the DOF proposal. See notesaa-e 15. Property Taxes Allocated - FY2008-09 estimated - Total Sec/Unsec Prop Tax in SalesTax Total Est. Impact City/County PropertyTax 1 --------------------------------------------------------- Lieu of VLF Z TripleFlip s 2008-09 at 8% D•COUNTY CARLSBAD 41,607,688 7,820,791 -----------•---------------------------------------------------------- 6,892,563 56,321,043 4,505,683 -------------------------------------------------------------------- CHULAVISTA 21,988,509 19,001,820 7,423,698 48,414,026 3,873,122 ------------------------------------------------------------------------------------------------------------------------------------------ CORONADO 18,248,732 2,175,595 619,712 21,044,039 1,683,523 ------------------------------------------------------------------------------------------------------------------------------------------ DEL MAR ---------------------------------------------------------------------------------------------------------------------- 3,676,418 385,806 400,416 4,462,640 357,011 -------------------- EL CAJON 7,315,300 ------------------------------------------------------------- 7,293,362 5,836,998 ---------------------------------------- 20,445,660 1,635,653 ------------------------------------- ENCINITAS 28,006,266 ------------------------------------------------------------------------------- 5,174,859 2,821,587 36,002,712 2,880,217 ---------------------------------------------------------- ESCONDIDO 17,625,005 11,285,853 533 ----- 36, 1 ----- ----- -- IMPERIAL BEACH 2,091,817 2,302,651 -------------------------- 208,623 -------------------------------------------- 4,603,090 368,247 --•----------------------------------------------------------------- LA MESA 6,112,756 4,610,603 ---------------------------------------------------------------------- 2,897,132 13,620,492 1,089,639 -------------------------------------------------------------------- LEMON GROVE 2,264,812 2,070.968 ------------ 1,104,426 ---------------------- 5,440,206 - ------ 435,216 ------ -- ----. --------------------------------------------------------------------------------- NATIONAL CITY 3,481,563 5,048,140 ------------------------------------------------------------------ 3,897,114 12,426,817 994,145 ---- -------------------------------------------------------------------- OCEANSIDE 35,515,662 14,669,727 4,488,719 54,674,109 4,373,929 ------------------------------------------------------------------------------------------------------------------------------------------ POWAY 8,680,011 ---------------- 3,806,958 ---------------------------------------------------------------------- 3,144,937 15,631,905 1,250,552 ---------------------------------------------------- SAN DIEGO ---------------------------------------- 293,185,640 106,054,809 ---------------------------------------------------------------------- 57,185,462 456,425,911 36,514,073 ---------------------------- SAN MARCOS 6,086,214 6,206,632 ---------------------------------------------------------------------- 3,982,200 16,275,046 1,302,004 -------------------------------------------------------------------- SANTEE 8,701,242 4,450,191 ---------------------------------------------------------------------- 2,091,862 15,243,295 1,219,464 -------------------------------------------------------------------- SOLANA BEACH 5,533,020 ---------------- 1,131,829 ---------------------------------------------------------------------- 737,173 7,402,021 592,162 ---------------------------------------------------- VISTA 10,825,381 -------------------------------------------------------------------------------------- 7,196,335 3,402,348 21,424,064 1,713,925 ---------------------------------------------------- County of SAN DIEGO ----- _-562,283,894 _-.-•---310,877,256 --------------- ----------------- ----------------------------------------------------- 879,366,783 -------_ 70.349,343--. I • COUNTY SAN FRANCISCO ------------------------------------------------------------------------------------------------- 951,574,357 - ------------------------- 61,821,670 ------ ---------------------------------------------------------------- 40,597,046 ------------- --- 1,053,993,072 -- - 84,319,446 •COUNTY SAN JOAQ ESCALON 1,351,351 531,486 216,609 2,099,446 167,956 ------------------------------------------------------------------------------------------------------------------------------------------ LATHROP ------------------------------------------------------------------------------------------------------------------------------- 3,991,558 1,388,218 590,518 5,970,294 477,624 --------- LODI 10,540,671 4,415,819 2,420,218 17,376,708 1,390,137 6,243,712 4,831,633 2,097,864 13,173,208 1,053,857 ----------------------------------------------------------------------------------------------------------------------------------------- RIPON 1,239,146 1,107,332 707,385 3,053,863 244,309 ----------------------------------------------------------------------------------------------------------------------------------------- STOCKTON - 37,254,232 22,307,523 10,275,983 ----------------------------------------- 69,837,739 5,587,019 --- --------------------------------------------------------------------------------------------- TRACY 14,726,664 5,969,170 3,178,349 23,874,183 1,909,935 ------------------------------------------------------------------------------------------------------------------------------------------ County of SAN JOAQUIN .------- 127.261.316-----._-- 68.927:057 ------- ---. 4,087_491- ------------------------------------- 200,275,864 16,022,069 SAN LUIS OBISPO COUNTY ARROYO GRANDE 4,075,524 1,249,592 858,302 6,183,418 494,673 ------------------------------------------------------------------------------------------------------------------------------------------ ATASCADERO 5,664,579 2,267,771 917,772 8,850,122 708,010 ------------------------------------------------------------------------------------------------------------------------------------------ EL PASO DE ROBLES 6,216,143 2,416,720 1,963,452 10,596,315 847,705 ----------------------------------------------------------------------------------------------------------------------------------------- GROVER BEACH 4,943,529 1,394,347 283,763 6,621,638 529,--- MORRO BAY - 2,652,951 ---------------------- 821,647 ------------------- 402,953 ---------------- 3,877,551 -------------------- 310,204 ----- ---- --------------------------------------------------- PISMO BEACH 3,315,914 726,412 561,0-- 4,603,356 368,--- SAN LUIS OBISPO ------------------------------------------------------------------------------------------------------------------------------------------ 9,338,533 3,466,716 3,472,294 16,277,542 1,302,203 County of SAN LUIS OBISPO -----------------------------------------------------------------•--------------------------------------------------------•--------------- 101,999,142 26,054,197 2,404,813 130,458,152 10,436,652 May 13,2009 rev8:3opm californiacityfinance.com 11 of 15 E12 Estimated FY09-10 City Impacts of the State Dept of Finance Draft Proposed Local Property Tax Borrowing Under PropositionlA(2004) Note: Prop 1 A stipulates a maximum amount that may be borrowed statewide. It does not specify how that amount might be allocated. These figures assume an 8% per jurisdiction allocation as implied in the DOF proposal. Seenotespape 15. City/County Property Taxes Allocated - FY2008-09 estimated Sec/Unsec Prou Tax in )ertyTax I Lieu of VLF 2 SalesTax Total Est. TripleFlip 3 2008-09 Total Impact at % CARLSBAD 39,151,430 7,820,791 6,892,563 53,864,785 4,309,183 CHULA VISTA 27,557,313 19,001,820 7,423,698 53,982,831 4,3 18,626 CORONADO 17,652,868 2,175,595 619,712 20,448,175 1,635,854 DEL MAR 3,592,877 385,806 400,416 4,379,099 350,328 EL CAJON 6,674,211 7,293,362 5,836,998 19,804,571 1,584,366 ENCINITAS ESCONDIDO 28,090,712 10,745,370 5,174,859 11,285,853 2,821,587 7,471,533 36,087,159 29,502,755 2,886,973 2,360,220 IMPERIAL BEACH 1,799,510 2,302,651 208,623 4,310,783 344,863 LA MESA 5,564,445 4,610,603 2,897,132 13,072,181 1,045,774 LEMON GROVE 2,065,969 2,070,968 1,104,426 5,241,363 419,309 NATIONALCITY 2,979,605 5,048,140 3,897,114 11,924,859 953,989 OCEANSIDE 33,957,839 14,669,727 4,488,719 53,116,285 4,249,303 POWAY 9,083,213 3,806,958 3,144,937 16,035,108 1,282,809 SAN DIEGO 280,878,405 106,054,809 57,185,462 444,118,676 35,529,494 SAN MARCOS 5,416,930 6,206,632 3,982,200 15,605,762 1,248,461 SANTEE 8,735,104 4,450.191 2,091,862 15,277,157 1,222,173 SOLANA BEACH 6,119,488 1,131,829 737,173 7,988,490 639,079 VISTA 10,225,407 7,196,335 3,402,348 20,824,090 1,665,927 COUNTY --------------------- SAN FRANCISCO 841,683,910 61,821,670 40,597,046 944,102,626 75,528,210 SAN JOAQUIN COUNTY ESCALON 963,924 531.486 216.609 1.712,020 136,962 LATHROP 3.505.190 1.388.218 590.518 5,483,926 438.714 LODI 8,392,071 4,415,819 2,420,218 15,228,108 1,218,249 MANTECA 5.484.844 4.831.633 2,097,864 12,414,341 993,147 RIPON 1,177,170 1,107,332 707.385 2,991,887 239,351 STOCKTON 32,406,097 22,307,523 10,275,983 64,989,603 5,199,168 TRACY 13,078,549 5,969,170 3,178,349 22,226,068 1,778,085 ARROYO GRANDE 3,719,726 1,249,592 858,302 5,827,620 466,210 ATASCADERO 4,886,017 2,267,771 917,772 8,071,560 645,125 EL PASO DE ROBLES 4,965,000 2,416,720 1,963,452 9,345,172 747,614 GROVER BEACH 2,220,797 1,394,347 283,763 3,898,907 311,913 MORRO BAY 2,486,291 821,647 402,953 3,710,891 296,871 PISMO BEACH 3,022,449 726,412 561,030 4,309,891 344,791 SAN LUIS OBISPO 8,647,029 3,466,716 3,472,294 15,586,038 1,246,883 ATHERTON 4,786,266 617,454 39,648 5,443,367 435,469 BELMONT 2,674,738 1,878,545 837,417 5,390,700 431,256 BRISBANE 1, 839,851 258,101 2,478,413 4,576,365 366,109 rev May 18,2009 8;00pm californiacityfinance.com 10 of 14 ANNIVERSARY CELEBRATING; 7UTNTYYEARS oFBUILDING EXCELLENCE OFFICERS Dudley McGee Kimball Hill Homes Mahesh Ranchhod American -USA Homes Jeremy White The Grupe Company John Looper Top Grade Construction Debbie Armstrong Old Republic Title Company Matt Arna iz H.D. Arnaiz Corporation Rod Attebery Neumiller & Beardslee Rey Chavez Kelly -Moore Paint Company Ryan Gerding Pulte Homes Cathy Chan Oak Valley Community Bank George Gibson FCB Homes Steve Heru m Herum Crabtree Brown Wayne LeBaron LeBaron Ranches Terry Miles Teichert Construction Carol Ornelas Visionary Home Builders, Inc Jim Panagopoulos A.G.Spanos Companies Denise Tschirky Matthews Homes Dennis Bennett Bennett Development Bill Filios AKF Development, LLC Mike Hakeem Hakeem, Ellis & Marengo Jeffrey Kirst Tokay Development Steve Moore Cal andev Development Zandra Morris Old Republic Title Company Toni Raymus Raymus Homes, Inc. Tony Souza Souza Realty & Development BUILDING INDUSTRYASSOCIATION OF THE DELTA May 20,2009 Mayor Larry Hansen City of Lodi 221 W. Pine St. Lodi, CA 95240 Re: Lodi City Council Agenda Item E-12 Mayor Hansen, The Building Industry Association of the Delta is a multi -county trade association representing 190 companies including hom ebuilders, trade contractors, architects, engineers, designers, suppliers and other industry professionals. As a community partner with the City of Lodi the BIA and its members offer their support to the City's declaration of severe fiscal hardship due to the state's seizure of local property tax funds and the continued adoption of unfunded mandates by the State of California. We stand in support of the City and ask the State of California to cease and desist from its confiscatory policies ofunder funding vital services provided by local governments and the ongoing raids of local revenues that are vitally needed for the public health, safety and welfare of California citizens. Sincerely, gC John Beckman Chief Executive Officer 509 WEST WEBER AVENUE, SUIM410 STOCKTON,CALIFORNIA 95203-37 67 (209) 235-7831 PH (209) 235-7837 FX E-12 RESOLUTION NO. 2009-67 A RESOLUTION OF THE LODI CITY COUNCIL DECLARING THAT THE CITY 1S EXPERIENCING A SEVERE FISCAL HARDSHIP DUE TO THE STATE'S ONGOING SEIZURE OF LOCAL PROPERTY TAX FUNDS FOR THE EDUCATIONAL REVENUE AUGMENTATION FUND AND THE CONTINUED ADOPTION OF UNFUNDED MANDATES BY THE STATE OF CALIFORNIA WHEREAS, the current economic crisis has placed cities under incredible financial pressure and caused city officials to reopen adopted budgets, furlough city workers, and reduce services and programs 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 fiscal year 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 fiscal year 2008-09; and WHEREAS, the Educational Revenue Augmentation Fund (ERAF) shift is $3,095,166 annually for Lodi; 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 to 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 WHEREAS, state agencies are imposing, or considering, hundreds of regulations imposing unfunded mandates on local governments without regard to how local agencies will be able to comply with these mandateswhile meeting their other responsibilities; and WHEREAS, the City of Lodi simply cannot sustain the loss of any more property tax funds or be saddled with any more state mandates as they will only deepen the financial challenge facing our city. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby declare that the City is experiencing a severe fiscal hardship due to the following factors: 1. The state government's ongoing seizure of city property tax funds since the early 1990s to fund the state budget and the $3,095,166 annual ERAF shift; and 2. The continued adoption of unfunded mandates by the state legislature and state agencies without any consideration for the economic hardships such mandates impose on cities and their residents. BE IT FURTHER RESOLVED 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 property tax and the City's share of Proposition 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, state senator, state assembly member, and the League of California Cities. Date: May 20, 2009 ---------------- ---------------- hereby certify that Resolution No. 2009-67 was passed and adopted by the Lodi City Council in a regular meeting held May 20, 2009, by the following vote: AYES: COUNCIL MEMBERS — Hitchcock, Johnson, Katzakian, Mounce, and Mayor Hansen NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS— None ABSTAIN: COUNCIL MEMBERS — None �NNIFERPERRIN Assistant City Clerk 2009-67 DECLARATION OF MAILING RESOLUTION DECLARING FISCAL HARDSHIP DUE TO THE STATE'S ONGOING SEIZURE OF LOCAL PROPERTYTAX FUNDS FOR THE EDUCATIONAL REVENUE AUGMENTATION FUND AND ITS CONTINUED ADOPTION OF UNFUNDED MANDATES On May 21, 2009, in the City of Lodi, San Joaquin County, California, I deposited in the United States mail, envelopes with first-class postage prepaid thereon, containing resolution declaring fiscal hardship due to the State's ongoing seizure of local property tax funds for the Educational Revenue Augmentation Fund and its continued adoption of unfunded mandates, attached hereto Marked Exhibit A. The mailing list for said matter is attached hereto, marked Exhibit B. There is a regular daily communication by mail between the City of Lodi, California, and the places to which said envelopes were addressed. I declare under penalty of perjury that the foregoing is true and correct. Executed on May 21, 2009, at Lodi, California. JENNIFER M. PERRIN, CMC ASSISTANT CITY CLERK Forms/decmail.doc ORDERED BY: RANDI JOHL CITY CLERK, CITY OF LODI MARIA BECERRA ADMINISTRATIVE CLERK CITY COUNCIL LARRY D. HANSEN, Mayor PHIL KATZAKIAN, Mayor Pro Tempore SUSAN HITCHCOCK BOBJOHNSON JOANNE MOUNCE To Interested Parties CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6702 / FAX (209) 333-6807 www.lodi.gov citvclerk(o)lodi.aov May 21,2009 BLAIR KING, City Manager RANDI JOHL, City Clerk D. STEPHEN SCHWABAUER City Attorney RE: RESOLUTION DECLARING FISCAL HARDSHIP DUE TO THE STATE'S ONGOING SEIZURE OF LOCAL PROPERTY TAX FUNDS FOR THE EDUCATIONAL REVENUE AUGMENTATION FUND AND ITS CONTINUED ADOPTION OF UNFUNDED MANDATES The Lodi City Council, at its meeting of May 20, 2009, adopted the enclosed resolution declaring that the City of Lodi is experiencing a severe fiscal hardship due to the State's ongoing seizure of local property tax funds for the Educational Revenue Augmentation Fund and the continued adoption of unfunded mandates by the State of California. Should you have any questions, please feel free to contact the City Clerk's Office. Sincerely, nl er Perrin ssistant ity Clerk JMP Enclosure followup/1Transmittal.doc RESOLUTION NO. 2009-67 A RESOLUTION OF THE LODI CITY COUNCIL DECLARING THAT THE CITY IS EXPERIENCINGA SEVERE FISCAL HARDSHIP DUE TO THE STATE'S ONGOING SEIZURE OF LOCAL PROPERTYTAX FUNDS FORTHE EDUCATIONAL REVENUE AUGMENTATION FUND AND THE CONTINUED ADOPTION OF UNFUNDED MANDATES BY THE STATE OF CALIFORNIA WHEREAS, the current economic crisis has placed cities under incredible financial pressure and caused city officials to reopen adopted budgets, furlough city workers, and reduce services and programs 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 propertytax revenues statewide to fund the state budget even after deducting public safety program payments to cities by the state; and WHEREAS, in fiscal year 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 fiscal year 2008-09; and WHEREAS, the Educational Revenue Augmentation Fund (ERAF) shift is $3,095,166 annually for Lodi; 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 to 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 WHEREAS, state agencies are imposing, or considering, hundreds of 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 City of Lodi simply cannot sustain the loss of any more property tax funds or be saddled with any more state mandates as they will only deepen the financial challenge facing our city, NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby declare that the City is experiencing a severe fiscal hardship due to the following factors: 1. The state government's ongoing seizure of city property tax funds since the early 1990s to fund the state budget and the $3,095,166 annual ERAF shift; and 2. The continued adoption of unfunded mandates by the state legislature and state agencies without any consideration for the economic hardships such mandates impose on cities and their residents. BE IT FURTHER RESOLVED 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 property tax and the City's share of Proposition42 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, state senator, state assembly member, and the League of California Cities. Date: May 20, 2009 ---------------- ---------------- I hereby certify that Resolution No. 2009-67 was passed and adopted by the Lodi City Council in a regular meeting held May 20, 2009, by the following vote: AYES: COUNCIL MEMBERS — Hitchcock, Johnson, Katzakian, Mounce, and Mayor Hansen NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS— None �JN�NIFERERRIN Assistant City Clerk 2009-67 Governor Arnold Schwarzenegger State Capitol Building Sacramento, Ca. 95814 State Senator Dave Cogdill State Capitol, Room 5097 Sacramento, CA 95814 Assembly Member Alyson Huber 218 W. Pine St. Lodi, Ca. 95240 League of California Cities 1400 K Street, Suite 400 Sacramento, CA 95814