CC Resolution No. 05-093
RESOLUTION 05-093
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF CUPERTINO AUTHORIZING AN EFFORT TO
RESTORE TAX EQUITY ALLOCATION FORMULA TO 100%
WHEREAS, Proposition 13 limited property taxes to I % of assessed valuation.
AB8 was passed a few years later implementing Prop 13, and stipulated that the agencies
that shared in a tax rate area before Prop 13 would continue to share at the same
percentage; and
WHEREAS, Tax Equity Allocation (TEA) legislation was passed in the late
1980's to provide relief for smaller cities, which historically taxed their citizens at a lower
rate. These cities were called "low/no tax cities". In Santa Clara County, low/no tax
cities are: Saratoga, Cupertino, Los Altos Hills and Monte Sereno; and
WHEREAS, when this legislation was first enacted, it guaranteed all cities in
California 7% of the I % property tax, and was tied to county trial court funding. Each
county was given the option of participating in the trial court funding program, with the
requirement that the TEA Program for low/no tax cities be implemented. In Santa Clara
County the amount of revenues the County received trom trial court funding did not
offset the amount it lost transferring TEA revenues to the cities; and
WHEREAS, Senator Vasconcellos representing much of Santa Clara County,
authored an amendment limiting the four low/no tax cities in Santa Clara to 55% of what
other low/no tax cities in the state received. The four low/no tax cities in Santa Clara
County are the only cities in the state affected by this legislation; and
WHEREAS, since that time, trial court funding to the counties has increased
many times, offsetting any losses to the County. Furthermore, trial court funding is no
longer tied to the TEA pass-through requirement; and
WHEREAS, because of the increased financial stress our cities are under, we
have an obligation to our citizens to recover the full TEA allocation to fund local city
programs an services; and
NOW, THEREFORE, BE IT RESOLVED, that the City Council ofthe City of Cupertino
authorizes an effort to recover 100% of the Tax Equity Allocation formula.
BE IT FURTHER RESOLVED, that cooperation with the three other affected cities is
necessary to effect this change.
BE IT FURTHER RESOLVED that the City Council of the City of Cupertino encourages
the cities of Saratoga, Los Altos Hills and Monte Sereno to participate in an effort to
restore the Tax Equity Allocation formula to 100%.
Resolution No. 05-093
2
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 7th day of June 2005, by the following vote:
Vote
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Members of the City Council
Kwok, Lowenthal, Sandoval, Wang, James
None
None
None
¿~m~~
City Clerk