HomeMy WebLinkAboutReso 42-2009RESOLUTION NO. 42-2009
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION FINDING A SEVERE FISCAL HARDSHIP
WILL EXIST IF ADDITIONAL CITY PROPERTY TAX FUNDS
ARE SEIZED AND ADDITIONAL UNFUNDED MANDATES
ARE ADOPTED BY THE STATE OF CALIFORNIA
WHEREAS, the current economic crisis has placed cities under incredible financial
pressure and caused city officials to reopen already adopted budgets to make painful cuts,
including layoffs and furloughs of city workers, decreasing maintenance and operations of public
facilities, and reductions in direct services 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 FY 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 FY 2008-09; and
WHEREAS, the most significant impact of taking local property taxes has been to reduce
the quality of public safety services cities can provide since public safety comprises the largest
part of any city's general fund budget; 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, 2009, 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, many regulations imposing
unfunded mandates on local governments without regard to how local agencies will be able
comply with these mandates while meeting their other responsibilities; and
WHEREAS, the combined effects of the seizure of the City's property taxes, increasing
unfunded state mandates, and the revenue losses due to the economic downturn have placed the
City's budget under serious fiscal prE;ssure; and
WHEREAS, our City simply can not sustain the loss of any more property tax funds or to
be saddled with any more state mandates as they will only deepen the financial challenge facing
our City; and
WHEREAS, a number of the City's financial commitments arise from contracts,
including labor contracts with fire, police, and other municipal workers, that the City must honor
in full.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY
OF SOUTH SAN FRANCISCO has determined that the City will experience a severe fiscal
hardship if the recommendation of the State Department of Finance to "borrow" $2 billion of
local property taxes is supported by the Governor and the Legislature; and
RESOLVED FURTHER, that the City Council strongly and unconditionally opposes the
May 5, 2009 proposal of the Department of Finance and any other state government proposals to
borrow or seize any additional local funds, including the property tax, redevelopment tax
increment, and the City's share of the Prop. 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.
RESOLVED FURTHER, that the City Council hereby directs the City Clerk to send
copies of this resolution to the Governor, our state senator(s), our state assembly member(s) and
the League of California Cities.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the City Council of the City of Soutll San Francisco at a regular meeting held on the 27th day of
May, 2009 by the following vote:
AYES: Councilmembers Pedro Gonzalez, Richard A. Garbarino, and Kevin Mullin,
Vice Mayor Mark Addiego and Moor Karyl Matsumoto
NOES: None
ABSTAIN: None
ABSENT: None
ATTEST: U~-~
Deputy City Clerk