HomeMy WebLinkAboutResolutions - No. 2009-67RESOLUTION 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 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 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 al 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
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
Assistant City Clerk
2009-67