HomeMy WebLinkAboutReso - CC - 053-2009RESOLUTION NO. 53-2009
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF BURLINGAME FINDING
A SEVERE FISCAL HARDSHIP WILL EXIST
IF THE STATE OF CALIFORNIA SEIZES
ADDITIONAL CITY PROPERTY TAX FUNDS AND
ADOPTS ADDITIONAL UNFUNDED MANDATES
WHEREAS, the current economic crisis has placed cities under incredible
financial pressure and caused city officials to reopen already adopted budgets to make
painful cuts, including layoffs and furloughs of city workers, decreased maintenance and
operations of public facilities, and reductions of direct services in order to balance
expenditures with declining revenues; and
WHEREAS, since the early 1990s the State of California has seized over $8.6
billion of city property -tax revenues statewide to fund the state budget even after
deducting state public -safety -program payments to cities; and
WHEREAS, in FY 2007-08 alone the State of California seized $895 million in
city property taxes statewide to fund the state budget after deducting public -safety -
program payments and in FY 2008-09, the State of California seized an additional $350
million in local redevelopment funds; and
WHEREAS, the most significant impact of the State's seizure of local property
taxes has been to reduce the quality of public -safety services which cities can provide
because public -safety expenditures comprise the largest part of any city's general fund
budget; and
WHEREAS, in 2004, by an 84% vote margin, the voters of California adopted
substantial constitutional protections for local government revenues, but the legislature
can still "borrow" local property taxes to fund the state budget; and
WHEREAS, on May 5, 2009, the California Department of Finance announced it
had proposed to the Governor that the State "borrow" over $2 billion in local property
taxes from cities, counties and special districts to balance the state budget, and whereas
such "borrowing" would result in deeper cuts to local public safety and other vital
services; and
WHEREAS, in the past the Governor has called such "borrowing" proposals
fiscally irresponsible because the State will find it virtually impossible to repay said
"loans" and such "borrowing" will only deepen the State's structural deficit, preventing
the State from balancing its budget; and
WHEREAS, the Legislature is currently considering hundreds of bills, many of
which would impose new costs on local governments that can neither be afforded nor
sustained in this economic climate; and
WHEREAS, state agencies are adopting, or considering, many regulations
imposing unfunded mandates on local governments without regard to how local agencies
will be able comply with these mandates while meeting their other responsibilities; and
WHEREAS, the combined effects of seizing the City's property taxes,
increasing unfunded state mandates, and the City's revenue losses on account of the
economic downturn, have placed the City's budget under serious fiscal pressure; and
WHEREAS, the City of Burlingame simply cannot sustain the loss of any more
property tax funds and cannot endure the imposition of any more state mandates because
they will only deepen the financial challenge facing Burlingame; and
WHEREAS, a number of the City's financial commitments arise from contracts,
including long term capital leases and debt obligations which support securities in the
public capital markets, that the City must honor in full unless modified by mutual
agreement of the parties; and
WHEREAS, the State of California's seizure of over $1 million of
Burlingame's property taxes is in addition to an existing loss of over $4 million in other
City revenues which has necessitated closure of 20 percent of our fire stations, reduction
of police officers, reduction of library hours and materials, layoff of park and recreation
employees, and significant increases in fees.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
BURLINGAME DOES HEREBY RESOLVE AS FOLLOWS:
1. The Burlingame City Council finds that the City of Burlingame will
experience a severe fiscal hardship if the recommendation of the California Department
of Finance to "borrow" $2 billion of local property taxes is supported and acted upon by
the Governor and the Legislature; and
2. The Burlingame City Council strongly and unconditionally opposes the
May 5, 2009 proposal of the California Department of Finance and any other State of
California proposals to borrow or seize any additional local funds, including the property
tax, redevelopment tax increment, and the City's share of the Prop. 42 transportation
sales tax; and
3. The City Council strongly urges the California Legislature and the
Governor to suspend the enactment of any new mandates on local governments until such
time as the economy has recovered and further, the City Council urges the State to
provide complete funding for all existing and any new mandates; and
4. The City Council directs the City Clerk to send copies of this Resolution
to the Governor, our State senator(s), our State assembly member(s) and the League of
California Cities.
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Ann I eighr , ayor
I, Mary Ellen Kearney, Clerk of the City of Burlingame, hereby certify that the
foregoing Resolution was duly and regularly introduced and adopted at a regular meeting
of the Burlingame City Council on Monday, the 1st day of June, 2009 by the following
vote, to wit:
AYES: Councilmembers: DEAL, KEIGHRAN, NAGEL, BAYLOCK, O'MAHONY
NOES: Councilmembers: NONE
ABSENT: Councilmembers: NONE
Mary Ell Kearney, Crty Clerk/