2009/05/26 City Council Resolution 2009-55RESOLUTION NO. 2009-55
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
FINDING A SEVERE FISCAL HARDSHIP WILL EXIST IF ADDITIONAL LOCAL 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, reductions in maintenance and operations of public facilities, as well as 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 FY2007/08 alone the state seized $895 million in city property taxes statewide to fund
the state budget after deducting public safety program payments and plus an additional $350 million in
local redevelopment funds in FY2008/09; 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 to 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 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 of Rohnert Park'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, BE IT RESOLVED, that the City Council of the City of Rohnert Park has
determined that the city will experience a sever 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; and
RESOLVED FURTHER, that the City Council of the City of Rohnert Park 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; and
RESOLVED FURTHER, that the City Council of the City of Rohnert Park 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 copies of this resolution shall be sent to the Governor, our state
senator(s), our state assembly member(s) and the League of California Cities.
DULY AND REGULARLY ADOPTED this 26th da, o� f May 2009.
ATTEST:;
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Clerk
City of Rohnert Park
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Mayor Arnie eze
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BELFORTE: AYE CALLINAN: AYE MACKENZIE: AYE STAFFORD: AYE BREEZE: AYE
AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0)