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HomeMy WebLinkAboutCC AG PKT 2010-03-22 #EAGENDA STAFF REPORT DATE: March 22, 2010 TO: Honorable Mayor and City Council THRU David N. Carmany, City Manager FROM: Jill R. Ingram, Assistant to the City Manager SUBJECT: CONSIDERATION OF RESOLUTION IN SUPPORT OF THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010 SUMMARY OF REQUEST: That the City Council consider the adoption of Resolution No. 5973, A Resolution of the City Council of the City of Seal Beach, California, In Support of the Local Taxpayer, Public Safety and Transportation Protection Act of 2010. BACKGROUND: A coalition of local government, transportation, and public transit advocates recently filed a constitutional amendment with the California Attorney General, known as the Local Taxpayer, Public Safety and Transportation Protection Act of 2010, for potential placement on the California November 2010 statewide ballot. Approval of this ballot initiative would close loopholes and change the constitution to further prevent State politicians in Sacramento seizing, diverting, shifting, borrowing, transferring, suspending or otherwise taking or interfering with tax revenues dedicated to funding local government services, including redevelopment, or dedicated to transportation improvement projects and mass transit. The Local Taxpayer, Public Safety and Transportation Protect Act is designed to: J Prohibit the State from taking, borrowing or redirecting local taxpayer funds dedicated to public safety, emergency response and other vital local government services The measure would close loopholes to prevent the taking of local taxpayer funds currently dedicated to cities, counties, special districts, and redevelopment agencies. It would also revoke the State's authority to borrow local government property tax funds. Agenda Item E Page 2 J Protect vital, dedicated transportation and public transit funds from state raids The measure would prevent State borrowing, taking or redirecting of the state sales tax on gasoline (Prop 42 funds) and Highway User Tax on gasoline (HUTA) funds that are dedicated to transportation maintenance and improvements. It would also prevent the State from redirecting or taking public transit funds. J Protect local taxpayers by keeping more of our local tax dollars local where there's more accountability to voters, and by ensuring once. and for all that our gas taxes go to fund road improvements. The measure also reduces pressure for local tax and fee increases that become necessary when the State redirects local funds. J Reform state government and enhance fiscal accountability This measure is a key step in reforming California's broken budget system by restoring more local control and accountability. It also stops the irresponsible practice of the State borrowing special funds that have to be repaid with interest, which only puts our State further in debt. This year's borrowing and raids of local government, redevelopment and transit funds, as well as previous, ongoing raids of local government and transportation funds have lead to severe consequences statewide, including layoffs of police, fire and paramedic first responders, fire station closures, stalled economic development, healthcare cutbacks, delays in road safety improvements, public transit fare increases and cutbacks in public transit services. For example, the Orange County Transportation Authority (OCTA) recently announced that beginning March 14 th , it would reduce bus service by approximately 8 percent in response to state budget cuts, sales tax drop, and declining ridership. The OCTA Board voted last November to eliminate 150,000 annual hours of bus service through a combination of eliminating routes, reducing bus frequency, restructuring routes, and reducing trips. While the service reductions will save the OCTA approximately $13 million, it faces a budget shortfall this year of more than $30 million. Since 2007, OCTA has experienced an estimated loss of $145 million in state transit funding, and since September 2008, they have reduced 20 percent of bus service, equating to 383,000 revenue vehicle hours, to bring service in line with available revenue. Therefore, this is just another local example illustrating that the ballot measure is desperately needed to protect taxpayers and the vital local government and transportation services that support our quality of life and economy. Filing the ballot measure with the California Attorney General's Office is just the first step of a significant time and labor intensive process, including qualifying the ballot measure for the November 2010 ballot, and subsequently securing voter approval. The League of California Cities is assisting the Californians to Protect Local Taxpayers and Vital Services in securing the required one million signatures in order to qualify the measure for the November 2010 ballot. To Page 3 assist in this endeavor, the League is requesting that city councils adopt the attached resolution in support of the Local Taxpayer, Public Safety and Transportation Protect Act, which will also assist in the signature gathering endeavor. Californians to Protect Local Taxpayers and Vital Services, which is a coalition of taxpayers, public safety, local government, transportation, business and labor, with major funding from the League of California Cities and the California Alliance for Jobs — Rebuild California Committee, need to collect more than 1.1 million signatures to ensure it meets the required 694,354 valid signatures to qualify the constitutional amendment for the statewide ballot. Tony Cardenas, Public Affairs Regional Manager to the Orange County Division, League of California Cities, will be present at the March 22 City Council meeting to address any questions about the Local Taxpayer, Public Safety and Transportation Protection Act of 2010, signature gathering process, and efforts of the League of California Cities in this endeavor. FISCAL IMPACT: There is no financial impact for the adoption of a resolution in support of the Local Taxpayer, Public Safety and Transportation Protection Act of 2010. However, the State recently passed a budget that borrows and takes approximately $5 billion in city, county, transit, redevelopment and special district funds statewide this year. That, along with previous, ongoing raids and borrowing, is continuing to jeopardize public safety, emergency response, transportation, transit, and other vital local services. RECOMMENDATION: That the City Council consider the adoption of Resolution No. 5973, A Resolution of the City Council of the City of Seal Beach, California, In Support of the Local Taxpayer, Public Safety and Transportation Protection Act of 2010. SUBMITTED BY: NOTED AND APPROVED: Jill L gram istant to the City Yanager David N. Ca any City Manager Attachments: A. Resolution No. 5973 B. Ballot Measure Fact Sheet RESOLUTION NUMBER 5973 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, IN SUPPORT OF THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010 WHEREAS, California voters have repeatedly and overwhelmingly passed separate ballot measures to stop State raids of local government funds, and to dedicate the taxes on gasoline to fund local and state transportation improvement projects; and WHEREAS, these local government funds are critical to provide the police . and fire, emergency response, parks, libraries, and other vital local services that residents rely upon every day, and gas tax funds are vital to maintain and improve local streets and roads, to make road safety improvements, relieve traffic congestion, and provide mass transit; and WHEREAS, despite the fact that voters have repeatedly passed measures to prevent the State from taking these revenues dedicated to funding local government services and transportation improvement projects, the State Legislature has seized and borrowed billions of dollars in local government and transportation funds in the past few years; and WHEREAS, this year's borrowing and raids of local government, redevelopment and transit funds, as well as previous, ongoing raids of local government and transportation funds have lead to severe consequences, such as layoffs of police, fire and paramedic first responders, fire station closures, stalled economic development, healthcare cutbacks, delays in road safety improvements, public transit fare increases and cutbacks in public transit services; and WHEREAS, State politicians in Sacramento have continued to ignore the will of the voters, and current law provides no penalties when state politicians take or borrow these locally- dedicated funds; and WHEREAS, a coalition of local government, transportation and transit advocates recently filed a constitutional amendment with the California Attorney General, called the Local Taxpayer, Public Safety, and Transportation Protection Act of 2010, for potential placement on California's November 2010 statewide ballot; and WHEREAS, approval of this ballot initiative would close loopholes and change the constitution to further prevent State politicians in Sacramento from seizing, diverting, shifting, borrowing, transferring, suspending or otherwise taking or interfering with tax revenues dedicated to funding local government services, including redevelopment, or dedicated to transportation improvement projects and mass transit. THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE and formally endorse the Local Taxpayer, Public Safety and Transportation Protection Act of 2010, a proposed constitutional amendment. BE IT FURTHER RESOLVED THAT THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY authorize the listing of the Seal Beach City Council in support of the Local Taxpayer, Public Safety and Transportation Protection Act of 2010 and instruct staff to fax a copy of this resolution to campaign offices at (916) 442 -3510. Resolution Number 5973 PASSED, APPROVED and ADOPTED by the City Council of the City of Seal Beach at a regular meeting held on the 22nd day of March , 2010 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 5973 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 22nd day of March -1 2010. City Clerk rl= Callifomians to ,;, YES to Protect Local Taxpayers and Funding PROTECT LOCAL ® for Public Safety, Transportation & Other Vital Taxpayers & VIW Services Local Services from State Raids www.savelocalservices.com THE PROBLEM: STATE RAIDS AND BORROWING ARE JEOPARDIZING PUBLIC SAFETY, EMERGENCY RESPONSE, TRANSPORTATION, TRANSIT AND OTHER VITAL LOCAL SERVICES. California voters have overwhelmingly passed separate ballot measures to dedicate local funding sources to essential local services and to prevent the State from shifting or raiding local government, transit and transportation funds. Despite this, the State recently passed a budget that borrows and takes approximately $5 billion in city, county, transit redevelopment and special district funds this year This year's raids and previous, ongoing state raids and borrowing are jeopardizing the services Californians need most: • Police, Are and emergency 911 services have been cut. • Healthcare services for children, seniors and the disabled are being slashed. X Road repairand maintenance, congestion reliefand safety improvements are constantly at risk. X Public transit like buses, commuter rail and shuttles are being slashed and fares are being raised. X Parks and libraries are closing, and other local government services critical to protect our neighborhoods and improve our quality of life are shutting down. X Vital community economic development and job creation projects are being shut down. State raids of local funds are fiscally irresponsible. The fiscally irresponsible practice of borrowing local taxpayer and transportation funds makes our budget problems worse down the line because local government and transportation funds have to be repaid, with interest. Additionally, many of the outright raids are ultimately rejected by the courts, creating even larger state budget deficits down the line. THE SOLUTION: PROHIBIT THE STATE FROM RAIDING LOCAL GOVERNMENT, TRANSIT AND TRANSPORTATION FUNDS. The Local Taxpayer, Public Safety and Transportation Protection Act, scheduled for the November 2010 statewide ballot, would: ✓ Prohibit the State from taking, borrowing or redirecting local taxpayer funds dedicated to public safely,, emergency response and other vital local government services The measure would .close loopholes to prevent the taking of local taxpayer funds currently dedicated to cities, counties, special districts and redevelopment agencies. It would also revoke the State's authority to borrow local government property tax funds. ✓ Protect vital, dedicated transportation and public transit funds from state raids The measure would prevent State borrowing, taking or redirecting of the state sales tax on gasoline (Prop 42 funds) and Highway User Tax on gasoline (HUTA) funds that are dedicated to transportation maintenance and improvements. It would also prevent the State from redirecting or taking public transit funds. ✓ Protect local taxpayers by keeping more of our local tax dollars local where there's more accountability to voters, and by ensuring once and for all that our gas taxes go to fund road improvements. The measure also reduces pressure for local tax and fee increases that become necessary when the State redirects local funds. ✓ Reform state government and enhance fiscal accountability_ This measure is a key step in reforming California's broken budget system by restoring more local control and accountability. It also stops the irresponsible practice of the State borrowing special funds that have to be repaid with interest, which only puts our State further in debt. Paid for by Californians to Protect Local Taxpayers and Vital Services, a coalition of taxpayers, public safety, local government, transportation, business and labor, with major funding from the League of California Cities (non - public funds) 1121 L Street, #803 — Sacramento, CA 95814