HomeMy WebLinkAboutAgenda Report - September 18, 1996 (77)CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Letter to Governor re: AB 2797 - Education Revenue Augmentation Fund
MEETING DATE: Wednesday September 18, 1996
PREPARED BY: Kirk J. Evans, Assistant to the City Manager
RECOMMENDED ACTION: That City Council by motion action authorize Mayor Warner to send a letter
to the Governor re: AB 2797 - Education Revenue Augmentation Fund.
BACKGROUND INFORMATION: In 1993-94, the State of California reduced appropriations drawn
from its revenue sources and provided to schools. To make up the
difference, the Education Revenue Augmentation Fund was created.
Revenues were obtained by shifting City, County and Special District
property tax revenues into the fund. To date, the City of Lodi has contributed $3,450,860.
The economic climate in Califomia has improved relative to a few years ago. It is now felt the State has
sufficient funding to begin restoring its support for schools back to traditional levels. AB 2797 allows
cities to retain growth in property tax revenues transferred to the Education Revenue Augmentation Fund
beginning in 1997-98. The amount of revenue transferred would be capped for each local agency at the
amount transferred in 1996-97, Savings to cities in California from this cap on the amount of property tax
transferred would be about $30 million in 1997-98. Savings in future years would depend on the growth
in assessed value.
FUNDING: N/A - the purpose of this action is to hopefully add revenue to the City's general fund.
APPROVED:
Assistant to the City Manager
H. Dixon Flynn — dity Manager
CITY COUNCIL
DAVID P. WARNER, Mayor
PHILLIP A. PENNINO
Mayor Pro Tempore
RAY G. DAVENPORT
STEPHEN J. MANN
JACK A. SIEGLOCK
September 19, 1996
CITY OF LODI
The Honorable Pete Wilson
Governor
State Capitol, First Floor
Sacramento, CA 95814
Dear Governor Wilson:
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(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 and residents of the City of Lodi, I urge your support and signature of
AB 2797 (Aguiar), recently passed by both the Senate and Assembly.
By signing AB 2797, you will begin restoring a portion of the $3,450,860 lost by the City of Lodi
since 1992. This will help restore public services vital to the residents of this community.
California's local governments provide hundreds of vital services and programs that have been
cutback or eliminated due to the loss of property tax revenues. Cities throughout the state must
have an adequate revenue base to provide essential services to their communities.
This measure begins the return of property tax lost in the early 1990s. It will go a long way to help
state and local government become partners rather than adversaries. The message from the citizens
of California is very clear -- they want their government institutions to work together and not at
cross-purposes. AB 2792 is a step in this direction.
I respectfully request your signature of AB 2797. Thank you very much.
Sincerely,
David P. Warner
Mayor
09109/96 C:\KJEWORK\REPORTILEGISLAT'MAYORSIG.DOC