CC Resolution No. 05-073
RESOLUTION NO. 05-073
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
SUPPORTING ABl590 (LIEBER AND COHN) REGARDING PROPERTY TAX
REVENUE ALLOCATIONS FOR SPECIAL DISTRICTS-SANTA CLARA
VALLEY WATER DISTRICT
WHEREAS, as part of the adoption of the 2004-05 State budget, an agreement was
negotiated to shift $1.3 billion in property tax revenue to the State budget each year for two
years; and
WHEREAS, passage of Proposition lA, the resulting legislation, required Special
Districts to contribute $350 million per year as their share of the agreement, but taxed dual-
purpose special districts at a higher rate than single-purpose districts; and
WHEREAS, as a result of the legislation, the Santa Clara Valley Water District, a dual-
purpose special district, reports a loss of $51 million in property tax revenues over the next two
years; and
WHEREAS, AB 1590 has been introduced in the legislature to require that dual-purpose
agencies be treated the same as single-purpose agencies, resulting in a reduction in the tax loss to
the District of approximately $18.3 million in 2005-06, which will be used to restore the flood
protection services that would otherwise have been lost.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Cupertino
hereby declares its support of AB 1590 (Lieber and Cohn) regarding Property Tax Revenue
Allocations for Special Districts-Santa Clara Valley Water District.
BE IT FURTHER RESOLVED that the City Council requests that the League of
California Cities consider a "watch" position on the bill to ensure that the basic intent is main-
tained throughout the legislative process before its final enactment.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 3m day of May 2005, by the following vote:
Vote
Members of the Citv Council
AYES:
NOES:
ABSENT:
ABSTAIN:
Kwok, Lowenthal, Sandoval, Wang, James
None
None
None