HomeMy Public PortalAbout2009.093 (06-02-09)RESOLUTION NO. 2009.093
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD DECLARING
THE CITY'S STATE OF SEVERE FISCAL HARDSHIP DUE TO THE STATE'S
SEIZURE OF LOCAL PROPERTY TAX FUNDS 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 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 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 pressure; and
WHEREAS, our City simply cannot 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 long term capital leases and debt obligations which support securities in the
public capital markets, that the City must honor in full unless modified by mutual
agreement of the parties.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES
HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS:
Section 1. That the City of Lynwood will experience a severe fiscal hardship if
the recommendation of the Department of Finance to "borrow" $2 billion of local
property taxes is supported by the Governor and the Legislature.
Section 2. That the City of Lynwood strongly and unconditionally opposes the
May 5 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.
Section 3. That the City of Lynwood 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.
Section 4. That the City Clerk shall send copies of this resolution to Governor
Arnold Schwarzenegger, Senator Alan Lowenthal, Assembly Member Hector De La
Torre and the League of California Cities.
PASSED, APPROVED AND ADOPTED this 2"d day of June , 2009.
Maria T. Santillan, Mayor
ATTEST:
r
Maria Quinonez, Ci y Clerk
APPROVED AS TO FORM:
Fred Galante, City Attorne
APPROVED AS TO CONTENT:
Roger ale~r, City Manager
STATE OF CALIFORNIA )
SS.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the
foregoing Resolution was passed and adopted by the City Council of the City of
Lynwood at a regular meeting held on the 2"d day of June, 2009.
AYES: COUNCIL MEMBERS FLORES, MORTON, RODRIGUEZ, CASTRO,
AND SANTILLAN
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
. ~ ,r~
Maria Ouinonez; Crfy Clerk // ~
STATE OF CALIFORNIA )
SS.
COUNTY OF LOS ANGELES )
I, the undersigned City Clerk of the City of Lynwood, and the Clerk of the City
Council of said City, do hereby certify that the above foregoing is a full, true and correct
copy of Resolution No. 2009.093 on file in my office and that said Resolution was
adopted on the date and by the vote therein stated. Dated this 2"d day of June, 2009.
i ~~~ ~,(~
Maria Quinonez, City Clerk