CC Resolution No. 09-111 State Seizure of Street Maintenance & Redevelopment FundsRESOLUTIOI`T N0.09-111
A JOINT RESOLUTION OF THE CITY A,ND REDEVELOPMENT AGENCY OF
CUPERTINO AUTHORIZING THE CITY A'CTORNEY/REDEVELOPMENT AGENCY
GENERAL COUNSEL TO COOPERATE ~JVITH THE LEAGUE OF CALIFORNIA
CITIES, THE CALIFORNIA REDEVELOPMENT ASSOCIATION, OTHER CITIES
AND COUNTIES IN LITIGATION CHALLENGING THE CONSTITUTIONALITY OF
ANY SEIZURE BY STATE GOVERr1MENT OF THE CITY'S STREET
MAINTENANCE AND REDEVELOPMENT FUNDS
WHEREAS, the current economic crisis h.as placed cities under incredible financial
pressure and caused them to make painful budget ;,uts, 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 city 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 re~3evelopment tax increment for the state
general fund to be in direct violation of Article X~~I, 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 street:;, 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 perform 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 rf:pair, and more; and
WHEREAS, cities and counties maintain 31% of the state road network while the state
directly maintains just 8%, and according to a recent statewide needs assessment) on a scale of
Resolution No. 09-111
zero (failed) to 100 (excellent), the statewide aver;~ge pavement condition index (PCI) is 68, or
"at risk."
WHEREAS, in both Proposition 5 in 1971~ and Proposition 2 in 1998 the voters of our
state overwhelmingly imposed restrictions on the ;Mate'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 rind the will of the voters.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL AND
THE REDEVELOPMENT AGENCY BOARD OF THE CITY OF CUPERTINO 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 suf~porting litigation against the state of California
if the legislature enacts and the governor signs into law legislation that unconstitutionally diverts
the 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 m~inager/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.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this
7`n day of July 2009, by the following vote:
Vote
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Members of the City Council
Mahoney, Sandoval, Santoro, Wang, Wong
None
None
None
City Clerk
APPROV~D:
~i/~~
.,- ~
Mayor, City of Cupertino