CC Resolution 11059
JOINT RESOLUTION NO. 11059 and RDA 2009-6
BEING A JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY
OF THE CITY OF CAMPBELL AUTHORIZING THE CITY ATTORNEY/REDEVELOPMENT
AGENCY GENERAL COUNSEL TO COOPERATE WITH THE LEAGUE OF CALIFORNIA
CITIES, THE CALIFORNIA REDEVELOPMENT ASSOCIATION, AND OTHER CALIFORNIA
CITIES AND COUNTIES IN LITIGATION CHALLENGING THE CONSTITUTIONALITY OF
ANY SEIZURE BY STATE GOVERNMENT OF THE CITY'S STREET MAINTENANCE AND
REDEVELOPMENT FUNDS
WHEREAS, the current economic crisis has placed California cities under incredible financial
pressure and caused them to make painful budget cuts, 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 1990's, 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 1990's, 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 eRA v. Genest, the Sacramento Superior Court
found similar efforts by the State to seize redevelopment tax increment for the state general
fund to be in direct violation of Article XVI, 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 streets, 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 repair, and more; and
WHEREAS, cities and counties maintain 81 % of the state road network while the state directly
maintains just 8%, and according to a recent statewide needs assessment1 on a scale of zero
(failed) to 100 (excellent), the statewide average pavement condition index (PCI) is 68, or "at
risk."
1 California Statewide Local Streets and Roads Needs Assessment, Nichols Consulting Engineers, Chtd. (2008),
sponsored by the League of California Cities, California State Association of Counties and County Engineers Association
of California.
WHEREAS, in both Proposition 5 in 1974 and Proposition 2 in 1998 the voters of our state
overwhelmingly imposed restrictions on the state'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 and the will of the voters.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY BOARD OF THE CITY OF CAMPBELL opposes all efforts of
the State to take local funds and hereby directs the City Attorney/Redevelopment Agency
General Counsel to cooperate with the League of California Cities, California Redevelopment
Association, other cities, counties and redevelopment agencies in supporting 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 lax Account (HUlA), also known as the "gas tax," to fund the state general
fund; and
RESOLVED FURTHER, that the City Manager/Redevelopment Agency Executive Director shall
send this Resolution with an accompanying letter from the Mayor/Redevelopment Agency Chair
to the Governor and each of the City's state legislators, informing them 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/Redevelopment Agency Executive Director to the League of California Cities, the
California Redevelopment Association, and the local Chamber of Commerce.
PASSED AND ADOPTED this 7th day of July, 2009 by the following roll call vote:
AYES: Council/Agency Members: Furtado, Baker, Low, Kennedy
NOES: Council/Agency Members: None
ABSENT: Council/Agency Members:
Kotowski
APPROVED:
ATTEST:
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Anne Bybee, City Clerk