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SARATOGA CITY COUNCIL
MEETING DATE: March 17, 2010 AGENDA ITEM:
DEPARTMENT: City Manager’s Office CITY MANAGER: Dave Anderson
PREPARED BY: Barbara Powell DIRECTOR:
Assistant City Manager
SUBJECT: Adoption of Resolution in Support of the Local Taxpayer, Public Safety and
Transportation Protection Act of 2010
RECOMMENDED ACTION:
Accept report and adopt attached Resolution.
BACKGROUND:
In 2004, California voters overwhelmingly passed Proposition 1A, which affirmed that local
property and sales tax revenue should remain with local governments rather than being
appropriated by State government to cover its operating expenses. Unfortunately, loopholes in
Proposition 1A have enabled the State to continue “diverting” or “borrowing” from local
governments in an effort to address State budgetary shortfalls.
In September 2009, many City officials attended the League’s annual conference, at which
delegates unanimously voted to support the League of California Cities’ sponsorship of a ballot
measure for the November 2010 election, which would tighten protections for City and
transportation-related revenues. The State Attorney General has given the ballot measure a title
and summary, and signatures are currently being gathered to place it on the ballot.
This fiscal year, the State borrowed $2 billion in local property taxes, seized billions in
redevelopment agency funds and took $697 million in transit funds. Saratoga lost $674,777 in
property tax revenues diverted by the State, which was re-secured via a loan and subsequent sale
of bonds by the California Statewide Communities Development Authority. Future takeaways
are anticipated given the State’s ongoing fiscal crisis and current loopholes with Proposition 1A.
DISCUSSION:
The Local Taxpayer, Public Safety and Transportation Act ballot measure would:
• Prohibit the State from taking, borrowing or redirecting local taxpayer funds dedicated
to public safety, emergency response and other vital local government services (including
redevelopment). The measure would close loopholes to prevent the taking of local
taxpayer funds currently dedicated to cities, counties and special districts. It would also
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revoke the State’s authority to borrow local government property tax funds or divert local
redevelopment funds.
• Protect vital, dedicated transportation and public transit funds from State raids. The
measure would prevent State borrowing, taking or redirecting of the State sales tax on
gasoline (Proposition 42) and Highway User Tax on gasoline (HUTA funds) that are
dedicated to transportation maintenance and improvements. It would also prevent the
State from redirecting or taking public transit funds.
By adopting the attached Resolution, the City Council would:
• Formally endorse the Local Taxpayer, Public Safety and Transportation Protection Act of
2010, a proposed constitutional amendment; and
• Authorize the listing of the CITY OF SARATOGA in support of the Local Taxpayer,
Public Safety and Transportation Protection Act of 2010 and instruct staff to fax a copy of
this resolution to campaign offices at 916.442.3510.
FISCAL IMPACTS:
There are no direct financial impacts to the City of Saratoga related to adoption of the attached
Resolution.
CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS:
The attached Resolution would not be adopted by the City Council.
ALTERNATIVE ACTION (S):
The City Council may take a position different than staff’s recommendation, or take no position
on this issue.
FOLLOW UP ACTION (S):
Implement Council direction.
ADVERTISING, NOTICING AND PUBLIC CONTACT:
Nothing additional.
ATTACHMENTS:
Resolution
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RESOLUTION NO. ________
RESOLUTION IN SUPPORT OF THE LOCAL TAXPAYER, PUBLIC SAFETY AND
TRANSPORTATION PROTECTION ACT OF 2010
WHEREAS, California voters have repeatedly and overwhelmingly passed separate
ballot measures to stop State raids of local government funds, and to dedicate the taxes on
gasoline to fund local and state transportation improvement projects; and
WHEREAS, these local government funds are critical to provide the police and fire,
emergency response, parks, libraries, and other vital local services that residents rely upon every
day, and gas tax funds are vital to maintain and improve local streets and roads, to make road
safety improvements, relieve traffic congestion, and provide mass transit; and
WHEREAS, despite the fact that voters have repeatedly passed measures to prevent the
State from taking these revenues dedicated to funding local government services and
transportation improvement projects, the State Legislature has seized and borrowed billions of
dollars in local government and transportation funds in the past few years; and
WHEREAS, this year’s borrowing and raids of local government, redevelopment and
transit funds, as well as previous, ongoing raids of local government and transportation funds
have lead to severe consequences, such as layoffs of police, fire and paramedic first responders,
fire station closures, stalled economic development, healthcare cutbacks, delays in road safety
improvements, public transit fare increases and cutbacks in public transit services; and
WHEREAS, State politicians in Sacramento have continued to ignore the will of the
voters, and current law provides no penalties when state politicians take or borrow these locally-
dedicated funds; and
WHEREAS, a coalition of local government, transportation and transit advocates
recently filed a constitutional amendment with the California Attorney General, called the Local
Taxpayer, Public Safety, and Transportation Protection Act of 2010, for potential placement on
California’s November 2010 statewide ballot; and
WHEREAS, approval of this ballot initiative would close loopholes and change the
constitution to further prevent State politicians in Sacramento from seizing, diverting, shifting,
borrowing, transferring, suspending or otherwise taking or interfering with tax revenues
dedicated to funding local government services, including redevelopment, or dedicated to
transportation improvement projects and mass transit.
NOW, THEREFORE, BE IT RESOLVED, that the CITY COUNCIL of the CITY OF
SARATOGA formally endorses the Local Taxpayer, Public Safety and Transportation Protection
Act of 2010, a proposed constitutional amendment.
BE IT FURTHER RESOLVED, that the CITY COUNCIL hereby authorizes the listing
of the CITY OF SARATOGA in support of the Local Taxpayer, Public Safety and
Transportation Protection Act of 2010 and instructs staff to fax a copy of this resolution to
campaign offices at 916.442.3510.
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PASSED AND ADOPTED by the Saratoga City Council at a regular meeting held on
the 17th day of March 2010 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
Kathleen M. King, Mayor
ATTEST:
___________________________________
Ann Sullivan, City Clerk