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2010/02/23 City Council Resolution 2010-18RESOLUTION NO. 2010-18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK FINDING AND DECLARING THAT AN EMERGENCY EXISTS THAT REQUIRES ASKING THE VOTERS TO APPROVE AN ESSENTIAL SERVICES TEMPORARY FUNDING MEASURE RECITALS WHEREAS, the declining economy and Sacramento money grabs have taken a significant toll on the City's ability to continue providing essential services to Rohnert Park residents that protect the public peace, health, safety, and welfare of the community; WHEREAS, Sacramento politicians have already taken millions of dollars from Rohnert Park, are threatening to take more, and these cuts present a significant fiscal challenge to our City; WHEREAS, the City has demonstrated good fiscal stewardship by implementing over $4.8 million in cuts in 2009 and has slashed its budget by cutting service positions, including public safety officers, negotiating salary reductions with all staff members, and implementing cost savings and efficiencies by consolidating services and eliminating unnecessary overhead; WHEREAS, all City employees have taken negotiated reductions in salary, with reductions ranging from 3.85 % to 9 %; WHEREAS, the City has reduced the use of consultants and outside contractors, making the City more self - sufficient on its existing in -house resources; WHEREAS, the Public Works and Community Services Departments have implemented cost saving measures such as eliminating 6 full time and 5 part time positions while doing all landscape maintenance within the City, instead of contracting with an outside firm; WHEREAS, the property tax revenue projection for fiscal year 2009 -10 is 10 %, or $321,500, lower than the budget for 2008 -09 based on actual receipts in the prior year and the County Assessor's Office latest valuation; WHEREAS, sales tax receipts for the prior fiscal year were approximately $6.2 million, which is approximately $890,000 below budget; WHEREAS, the City's most significant revenue sources, property and sales taxes, continue to fall during this recession; WHEREAS, in 2009, the City implemented a series of cost - saving measures to help address the serious financial condition, resulting in a $4.8 million (13 %) reduction in the General Fund operating budget; WHEREAS, in response to the severe decrease in revenue, the following authorized positions were either frozen or removed from the City's 2009 -10 budget: 12882090 80078/0012 • Director of Community Development • Senior Planner • Human Resources Manager • Police Commander • (3) Public Safety Sergeants • (6) Public Safety Officers • (4) Community Services Officers • Evidence Specialist • (3.75) Secretaries • (1) Public Safety Dispatcher • Community Resources Specialist • Building Official • (2) Recreation Supervisors • (2) Recreation Secretaries • Managing Director of the Performing Arts Center WHEREAS, despite the budget cuts made by the City, and the significant reduction in the number of City service providers and employees, the City still faces a severe budget deficit of close to $6 million annually with only $6 million left in emergency reserves; WHEREAS, the City projects that its operating reserves will be depleted by March of 2011 should current economic trends continue; and WHEREAS, the significant cost saving measures the City has employed in recent years to address the ongoing budget crisis will not be sufficient to avoid significant service disruptions which would have a negative impact upon the public peace, health, safety and welfare of the community. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that the foregoing Recitals are true and correct and are hereby adopted by the City Council. Based on those Recitals, the Council unanimously finds and declares as follows: 1. The City is experiencing an existing and immediate funding crisis, which is the result of factors largely outside of its control, including national economic trends, rapid increases in the cost of employee retirement and health insurance benefits, decreases in revenue from existing taxes and fees, increases in charges by the County of Sonoma, and unpredictable State takeaways of local revenue. 2. The City has taken significant steps to reduce its operational costs including: cutting service positions, including public safety officers, negotiating salary reductions with all staff members, and implementing cost saving and efficiencies by consolidating services and eliminating unnecessary overhead. 3. Because of changes in State law, particularly the approval of Propositions 62 and 218, the City has very few means available for increasing General Fund revenue. 1288209v1 80078/0012 4. Absent a new source of General Fund revenue, the City's ability to maintain staff and service levels is uncertain. The City faces a severe budget deficit of approximately $6 million annually, which absent new General Fund revenue, can only be met by decreasing public safety and other essential City services. 5. Unless staff and service levels are at least partially restored, public facilities and property will not be properly maintained, public safety standards will degrade, crime and violence will increase, the community will not have adequate and safe recreational opportunities, businesses and families will be discouraged from moving to, or remaining in, Rohnert Park, and the health, safety, and welfare of the residents of Rohnert Park will be endangered. 6. Because of that threat to the public health, safety, and welfare, an emergency exists in the City, as the term "emergency" is used in Article XIIIC section 2(b) of the California Constitution. The City must immediately address that emergency by ensuring that the City has the resources necessary to preserve the public health, safety, and welfare. Fiscal emergency. 7. The identified emergency necessitates that the City Council submit an essential City services temporary funding measure in the form of a five year, one -half cent transactions (sales) and use tax, to the voters of Rohnert Park at the June 8, 2010 election, even though such an election would not be consolidated with a general election for a member of the Council. 8. Article XIIIC, section 2(b) of the California Constitution permits the City, in an emergency situation declared by a unanimous vote of the Council, to seek voter approval for a general tax at an election that is not consolidated with an election for a member of the Council. DULY AND REGULARLY ADOPTED this 23rd day of February, 2010 by the following roll call vote: AYES: Five (5) Council Members Belforte, Breeze, Callinan, Mackenzie and NOES: None (0) Mayor Stafford ABSENT: None (0) ABSTAIN: 12882090 80078/0012 (0) CITY OF ROHNERT PARK Mayor