HomeMy WebLinkAboutCC Reso No 2008-082
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RESOLUTION NO.
2008-82
A JOINT RESOLUTION OF THE CITY COUNCIL AND
REDEVELOPMENT AGENCY OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, OPPOSING FISCALLY
IRRESPONSIBLE STATE BUDGET DECISIONS THAT
WOULD "BORROW" LOCAL GOVERNMENT,
REDEVELOPMENT AND TRANSPORTATION FUNDS
WHEREAS, on July 1, 2008, the State Legislature missed its
Constitutional budget deadline; and
WHEREAS, both the Governor and the Legislative Budget Conference
Committee have recommended balanced budgets without resorting to "loans" or
seizures of local government property tax, redevelopment tax increment and
transportation sales tax funds; and
WHEREAS, in 1952 the voters of California approved n 1952 the voters
approved Article XVI, Section 16 of the California Constitution, providing for tax
increment financing for community revitalization-not balancing the state budget, and
the voters never authorized the legislature to take or "borrow" community
redevelopment funds for state programs; and
WHEREAS, in 2004 by an 84% margin of approval the voters of California
approved Proposition 1A and sent a loud and unambiguous message to state leaders
that they should stop the destructive and irresponsible practice of taking local
government funds to finance the state budget and paper over the state deficit; and
WHEREAS, in 2006 by a 77% margin of approval the voters of California
also approved Proposition 1A, providing similar protections to transportation funding for
state and local transportation projects, including important street maintenance and
public transit programs; and
WHEREAS, redevelopment investments act as a significant driver in the
California economy. Cutting funding for redevelopment makes no sense during a time of
economic downturn. In a typical year redevelopment investments in California generate
about $32 billion in total economic activity, nearly $1.6 billion in state and local taxes,
and support 310,000 jobs, mostly in construction.
WHEREAS, both ballot measures allow the Governor to declare a "severe
state of fiscal hardship" and "borrow" these funds if they are repaid in three years with
interest, but the Governor believes it would be irresponsible to "borrow" such funds
because it would deepen the state's structural deficit and cripple local government and
transportation services; and
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WHEREAS, refusal by the Legislature to carryout its constitutional
obligation to compromise on a balanced budget is not a "severe state of fiscal hardship"
and would not justify reductions in critical local services, community revitalization
programs and infrastructure maintenance at a time when cities are struggling to balance
their own budgets during this economic down turn; and
WHEREAS, "takes" of redevelopment funds are against the law Article
XVI, Section 16 of the California Constitution specifies that redevelopment tax
increment must go to redevelopment agencies.
WHEREAS, city and redevelopment investments in infrastructure,
affordable housing and basic public safety and other community services will create
needed jobs and speed our economic recovery; and
WHEREAS, the Legislature should balance the state budget with state
revenues and respect the overwhelming support of voters for not using local property
taxes, redevelopment tax increment and transportation sales tax funds to fund the day-
to-day operating cost of state programs; and
WHEREAS, it would be the height of fiscal irresponsibility to paper over
the state structural deficit with more borrowing, and Californians deserve state leaders
who will tell them honestly what needs to be done to produce a balanced budget; and
WHEREAS, it is time for the State of California to cut up its local
government credit cards and deal with the budget deficit in a straightforward way.
Balance the state budget with state funds.
NOW, THEREFORE, BE IT RESOLVED, that the City and
Redevelopment Agency of Lake Elsinore hereby opposes any and all efforts by state
government to "borrow" or seize local tax funds, redevelopment tax increment and
transportation sales tax funds by the state government to finance state operations. Such
a move would be fiscally irresponsible for the state and hamper effective local services
and infrastructure investments.
BE IT FURTHER RESOLVED, that the City Manager is hereby directed to
send this resolution and communicate this Council's strong and unswerving opposition
on this matter to our Legislators and the Governor along with an expression of our
continued appreciation for the Governor's and any supportive legislators' steadfast
opposition to further borrowing or seizure of these funds.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council and Redevelopment Agency of the City of Lake Elsinore, California, on this 26th
day of August 2008.
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IVIAN M. MUNSON
CITY CLERK I AGENCY SECRETARY
LEIBOLD
Y I AGENCY COUNSEL
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF LAKE ELSINORE
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I, VIVIAN M. MUNSON", City Clerk of the City of Lake Elsinore, California, hereby
certify that Resolution No. L008-82 was adopted by the City Council and
Redevelopment Agency of the City of Lake Elsinore at a regular meeting held on the
26th day of August 2008, and that the same was adopted by the following vote:
AYES: Mayor Daryl Hickman, Mayor Pro Tern Genie Kelley,
Councilmembers Thomas Buckley, Robert E. Magee and
Robert Schiffner
NOES: None
ABSTAIN: None
ABSENT: None
CLL__
VIVIAN M. MUNSON
CITY CLERK