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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: ~ Anne Bybee, City Clerk