HomeMy Public PortalAbout2009.128 (07-07-09)RESOLUTION NO. 2009.128
A JOINT RESOLUTION OF THE CITY AND REDEVELOPMENT AGENCY OF
THE CITY OF LYNWOOD AUTHORIZING THE CITY
ATTORNEY/REDEVELOPMENT AGENCY GENERAL COUNSEL TO
COOPERATE WITH THE LEAGUE OF CALIFORNIA .CITIES, THE
CALIFORNIA REDEVELOPMENT ASSOCIATION, OTHER CITIES AND
COUNTIES IN LITIGATION CHALLENGING THE CONSTITUTIONALITY OF
ANY SEIZURE BY STATE GOVERNMENT OF THE CITY'S STREET,
MAINTENANCE AND REDEVELOPMENT FUNDS
WHEREAS, the current economic crisis has placed cities under incredible
financial pressure and caused them to make painful budget 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 $10 billion of cities' property tax revenues statewide, now amounting
to over $900 million each year to fund the State budget even after deducting
public safety program payments to cities by the State; and
WHEREAS, since the early 1990s the State government also has seized
$1.04 billion of redevelopment tax increment statewide, and the' Governor and
Legislature are now considering seizing $350 million each year for three years,
beginning in the current fiscal year; and
WHEREAS, on April 30, 2009, in the case of CRA v. Genest, the
Sacramento Superior Court found similar efforts by the State to seize
redevelopment tax increment for the State general fund to be in direct violation of
Article XVI, Section 16 of the State Constitution, added by the voters in 1952 as
Proposition 18, which requires that tax increment be used exclusively for the
benefit of redevelopment project areas; and
WHEREAS, in his proposed FY 2009-10 budget the Governor has
proposed transferring $1 billion of local gas taxes and weight fees to the State
general fund to balance the State budget, and over $700 million in local gas
taxes permanently in future years, immediately jeopardizing the ability of the City
to maintain the City's streets, bridges, traffic signals, streetlights, sidewalks and
related traffic safety facilities for the use of the motoring public; and
WHEREAS, the loss of almost all of cities' gas tax funds will seriously
compromise cities' ability to pertorm critical traffic safety related street
maintenance, possibly including, but not limited to, drastically curtailing patching,
resurfacing, street lighting/traffic signal maintenance, payment of electricity costs
for street lights and signals, bridge maintenance and repair, sidewalk and curb
ramp maintenance and repair, and more; and
WHEREAS, cities and counties maintain 81% of the State road network
while the state directly maintains just 8%, and according to a recent statewide
needs assessment' on a scale of zero (failed) to 100 (excellent), the statewide
average pavement condition index (PCI) is 68, or "at risk."
WHEREAS, in both Proposition 5 in 1974 and Proposition 2 in 1998 the
voters of our state overwhelmingly imposed restrictions on the State's ability to
do what the Governor has proposed and the Legislature is considering, and any
effort to permanently divert the local share of the gas tax would violate the state
constitution and the will of the voters.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL
AND THE REDEVELOPMENT AGENCY BOARD OF THE CITY OF LYNWOOD
hereby directs the City Attorney/Redevelopment Agency General. Counsel to take
all necessary steps to cooperate with the League of California Cities, California
Redevelopment Association, other cities, counties and redevelopment agencies
in supporting litigation against the State of California if the Legislature enacts and
the Governor signs into law legislation that unconstitutionally diverts
redevelopment tax increment and the City's share of funding. from the Highway
Users Tax Account (HUTA), also known as the "gas tax," to fund the State
general fund; and
RESOLVED FURTHER, that the City Manager/Agency Executive Director
or Clerk shall send this resolution with an accompanying letter from the
Mayor/Agency chair to the Governor and each of the City's State Legislators,
informing them in the clearest of terms of the City's adamant resolve to oppose
any effort to frustrate the will of the electorate as expressed in Proposition 18
(1952), Proposition 5 (1974) and Proposition 2 (1998) concerning the proper use
and allocation of the redevelopment tax increment and the gas tax; and
RESOLVED FURTHER, that a copy of this Resolution shall be sent by the
City Manager/Agency Executive Director or Clerk to the League of California
Cities, the California Redevelopment Association, the local chamber of
commerce, and other community groups whose members are affected by this
proposal to divert funds from vital local services and projects.
~ California Statewide Local Streets and Roads Needs Assessment, Nichols Consulting Engineers, Chtd.
(2008), sponsored by the League of California Cities, California State Association of Counties and County
Engineers Association of California.
PASSED, APPROVED and ADOPTED-this 7`h day of July 2009.
~11~2'Cc~ ~~y~l~-~
Maria T. Santillan
Mayor
ATTEST:
,---
Maria Quinonez
City Clerk
oger aley
City Manager
APPROVED AS TO FORM:
Fred Galante
City Attorney
APPROVED AS TO CONTENT:'
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 ado~ted by the City Council of the City
of Lynwood at a regular meeting held on the 7` day of July, 2009.
AYES:
NOES:
ABSENT:
ABSTAIN
COUNCIL MEMBERS FLORES, MORTON, RODRIGUEZ,
CASTRO, AND SANTILLAN
NONE
NONE'
NONE
. ~ ~.
Maria Quinonez, City 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. 2009.128 on file in my office and that said
Resolution was adopted on the date and by the vote therein stated. Dated this
7`n day of July, 2009.
s i
Maria Quinonez, City Clerk