HomeMy WebLinkAboutAgenda Report - May 7, 1997 (72)0
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" CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Letter to Governor Wilson regarding Educational Revenue Augmentation Fund
MEETING DATE: May 7, 1997
PREPARED BY: Assistant to the City Manager
RECOMMENDED ACTION: That City Council approve the attached letter for the Mayor's signature
and submission to the Governor.
BACKGROUND INFORMATION: The attached letter requests the Governor's support for AB 95, SB 880,
AB 1, and ACA 4. If passed, these bills will arrest the growth of
Educational Revenue Augmentation Fund transfers at current fiscal
year levels. Then, with the passage of time, these transfers will be
incrementally diminished until they disappear altogether. When these bills accomplish these desired
objectives the fiscal benefit to the City of Lodi will exceed $1.1 million per year. This represents almost
five percent of the 1996-97 general fund budget. The League of California Cities commented that,
City services were reduced to assist the state general fund during the recession. The
recession is over. It is time to make the difficult choices and set local government finances
and services straight.
The League reports the Assembly Local Government Committee approved AB 95 on April 2, and the
Senate Local Government Committee passed SB 880 on April 16, by unanimous vote, with no opposition
present and complete bipartisan support. It is commendable that AB 95 requires the reduction in the
amount of the shift to have no impact on K-12 schools and community colleges.
Staff recommends that City Council approve the attached letter for submission to the Governor.
FUNDING: N/A
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APPROVED:
H. Dixon Flynn -- City Nfanager
CITY COUNCIL
PHILLIP A. PENNINO, Mayor
JACK A. SIEGLOCK
Mayor Pro Tempore
TH LAND
orEPHEN J. MANN
DAVID P. WARNER
May 7, 1997
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
The Honorable Pete Wilson
Governor
State of California
State Capitol
Sacramento, CA 95814
Dear Governor Wilson:
(209) 333-6700
FAX (209) 333-6807
H. DIXON FLYNN
City Manager
JENNIFER M. PERRIN
City Clerk
RANDALL A. HAYS
City Attorney
On behalf of the City Council of the City of Lodi, I urge your support of AB 95 (Sweeney),
SB 880 (Craven), and AB 1 and ACA 4 (Aguiar).
Every year more than $3.4 billion in property taxes is diverted from California local
governments through the Educational Revenue Augmentation Fund (ERAF). In addition,
cities, counties, and special districts lose any property tax growth that accrues over time.
The annual fiscal impact on the City of Lodi is more than $1.1 million!
These ERAF transfers have had several negative effects on local communities.
Proposition 172 and COPS funding have helped maintain public safety. However, billions
of dollars are still being drained from infrastructure provision and maintenance, libraries,
parks, economic development programs, crime prevention, and other essential local
services that help maintain strong neighborhoods and healthy local economies. In
addition, ERAF transfers have reduced incentives for many cities and counties to approve
new housing and economic development projects. These problems have been
exacerbated by local revenue limitations imposed by Proposition 218.
AB 1 (Aguiar), SB 880 (Craven) and ACA 1 (Aguiar) attempt to address these issues
through two components: freezing the growth of ERAF transfers at 1996-97 levels, and
reducing annual transfers by a schedule of unspecified percentages until the shift reaches
zero. AB 95 (Sweeney) also contains these provisions, and may soon be amended to
provide state income tax revenue to local governments as a means to encourage jobs
development and jobs/housing balance.
These measures are supported by a broad coalition of business, labor, local government,
and development interests. Coalition members include the California Chamber of
Commerce, the California Building Industry Association, the California Association of
Realtors, the Service Employees International Union, the California Independent Public
Employees Union, the League of California Cities, the California State Association of
Counties, and the California Special Districts Association.
On behalf of the City of Lodi, I respectfully urge your support for AB 95 (Sweeney), SB
880 (Craven), and AB 1 and ACA 4 (Aguiar). Thank you for considering this extremely
important issue.
Sincerely,
Phillip A. Pennino,
Mayor
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CITY COUNCIL
PHILLIP A. PENNINO, Mayor
JACK A. SIEGLOCK
Mayor Pro Tempore
KEITH LAND
STEPHEN J. MANN
DAVID P. WARNER
May 7, 1997
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209)333-6700
FAX (209) 333-6807
The Honorable Pete Wilson
Governor
State of California
State Capitol
Sacramento, CA 95814
Dear Governor Wilson:
H. DIXON FLYNN
City Manager
JENNIFER M. PERRIN
City Clerk
RANDALL A. HAYS
City Attorney
On behalf of the City Council of the City of Lodi, I urge your support of AB 95 (Sweeney),
SB 880 (Craven), and AB 1 and ACA 4 (Aguiar).
Every year more than $3.4 billion in property taxes is diverted from California local
governments through the Educational Revenue Augmentation Fund (ERAF). In addition,
cities, counties, and special districts lose any property tax growth that accrues over time.
The annual fiscal impact on the City of Lodi is more than $1.1 million!
These ERAF transfers have had several negative effects on local communities.
Proposition 172 and COPS funding have helped maintain public safety. However, billions
of dollars are still being drained from infrastructure provision and maintenance, libraries,
parks, economic development programs, crime prevention, and other essential local
services that help maintain strong neighborhoods and healthy local economies. In
addition, ERAF transfers have reduced incentives for many cities and counties to approve
new housing and economic development projects. These problems have been
exacerbated by local revenue limitations imposed by Proposition 218.
AB 1 (Aguiar), SB 880 (Craven) and ACA 1 (Aguiar) attempt to address these issues
through two components: freezing the growth of ERAF transfers at 1996-97 levels, and
reducing annual transfers by a schedule of unspecified percentages until the shift reaches
zero. AB 95 (Sweeney) also contains these provisions, and may soon be amended to
provide state income tax revenue to local governments as a means to encourage jobs
development and jobs/housing balance.
These measures are supported by a broad coalition of business, labor, local government,
and development interests. Coalition members include the California Chamber of
Commerce, the California Building Industry Association, the California Association of
Realtors, the Service Employees International Union, the California Independent Public
Employees Union, the League of California Cities, the California State Association of
Counties, and the California Special Districts Association.
On behalf of the City of Lodi, I respectfully urge your support for AB 95 (Sweeney), SB
880 (Craven), and AB 1 and ACA 4 (Aguiar). Thank you for considering this extremely
important issue.
Sincerely,
Phillip A. Pennino,
Mayor
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