HomeMy WebLinkAboutStaff Report 455-09TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: City Manager's Office
DATE: DECEMBER 7, 2009 CMR: 455:09
REPORT TYPE: CONSENT
SUBJECT: Adoption of a Resolution in Support of the Local Taxpayer, Public Safety
and Transportation Protection Act of 2010
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution supporting the League of
California Cities sponsored initiative entitled: Local Taxpayer, Public Safety and Transportation
Protection Act of2010.
BACKGROUND
In September this year, the League of California Cities proposed a ballot measure for the
November 2010 Election. In short, the measure seeks to protect local revenues from state
takeaways, a common occurrence given the on-going State budget crisis. The proposed measure
was unanimously supported by the League's General Assembly at the League's Annual
Conference.
The measure was submitted to the Attorney General in October 2009. In early December the
Attorney General is expected to provide the Title and Summary which will enable the collection
of more than one million signatures to qualify the measure for the November 2010 election.
The Local Taxpayer, Public Safety and Transportation Protection Act of2010 is the only
initiative sponsored by the League. Other groups have also proposed similar measures. The
League encourages cities to not take a formal position on other measures until they have been
reviewed and acted on early next year by the relevant League policy committees and the League
board of directors.
DISCUSSION
The Local Taxpayer, Public Safety and Transportation Act of2010 covers the following
prOVISlOns:
CMR: 455:09 Page 1 of3
• Protects Locally Imposed Taxes such as parcel, Utility User Tax, Transient Occupancy,
and sales taxes. The measure prevents the legislature from taking or directing how these
local taxes may be spent.
• Property Tax Borrowing. The measure repeals the state's authority to borrow local
property taxes.
• Reallocation of Property Tax or Vehicle License Fees. The measure prohibits the state's
ability to reallocate these revenues to payoff state mandates.
• Borrowing or Stealing Local Highway User Tax Act (HUT A). The measure provides the
same protection to any local highway user taxes and requires hearings and study before
state and local shares are changed.
• Borrowing or Stealing of Prop 42 Gas Tax. The measure also provides the same
protection as HUT A taxes.
• Borrowing or Stealing Public Transit Account (PTA) funds. The measure restricts the
use of PTA funds for transportation planning and mass transportation purposes only and
requires "Spillover" sales tax to be deposited in transit accounts.
• Redevelopment Agency (RDA) Funds. The measure prohibits taking, borrowing or
directing spending of RDA funds. This does not impact Palo Alto because its RDA does
not collect tax increment revenue.
• Enforcement. The measure provides a remedy requiring the State to re-pay funds taken
illegally if a court so finds.
RESOURCE IMPACT
This Resolution will have no fiscal impact to the City.
POLICY IMPLICATIONS
This recommendation is consistent with prior Council direction.
ENVIRONMENTAL REVIEW
Approval of this Resolution does not constitute a project requiring review under the California's
Environmental Quality Act (CEQA).
ATTACHMENT
Attachment A: Draft Resolution
CMR: 455:09 Page 2 of3
PREPARED BY:
CITY MANAGER APPROVAL:
CMR: 455:09
STEVE EMSLIE
Deputy City Manager
Page 3 of3
Not Yet Approved
Resolution No. ---
Resolution of the Council of the City of Palo Alto
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.
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Not Yet Approved
NOW, THEREFORE, the Council of the City of Palo Alto does hereby
RESOLVE as follows:
SECTION 1. The City Council formally endorses the Local Taxpayer,
Public Safety and Transportation Protection Act of 2010, a proposed constitutional
amendment.
SECTION 2. The City Council hereby authorizes the listing of its name
in support of the Local Taxpayer, Public Safety and Transportation Protection Act of
2010. Staff is hereby directed to fax a copy of this resolution to campaign offices at
916.442.3510.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
•
City Attorney
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