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Resolution 143380 j 0 CITY OF ALAMEDA RESOLUTION 14.3 3 8 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALAMEDA OPPOSING FISCALLY IRRESPONSIBLE STATE TAKEAWAYS OF LOCAL REVENUES 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, 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 1990s the State of California has seized over $8.0 billion of city property tax revenues statewide to fund its budget even after deducting public safety program payments to cities by the State; and WHEREAS, in FY 2007 -08 alone, the State seized $895 million in city property taxes statewide to fund its budget after deducting public safety program payments, while an additional $350 million in local redevelopment funds were seized in FY 2008-09; and WHEREAS, the most significant impact of taking local property taxes has been to reduce the quality of public safety services cities can provide since public safety comprises the largest part of any city's General Fund budget; and WHEREAS, in 2004 the voters by an 84% vote margin adopted substantial constitutional protections for local revenues, but the Legislature can still "borrow" local property taxes to fund the state budget; and WHEREAS, on May 5, the 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, causing deeper cuts in 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 the local agencies, which will only deepen the State's structural deficit, preventing it 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 they can 111 afford, especially in this economic climate; and WHEREAS, state agencies are imposing, or considering, regulations that will impose 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 the seizure of the City's property taxes, increasing unfunded state mandates, and the revenue losses due to the economic downturn will necessitate additional, difficult budget reductions in order to ensure that the City continues to live within its means; 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. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Alameda strongly and unconditionally opposes the May 5 proposal of the p Department of Finance and any other 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 BE IT FURTHER RESOLVED, that the City Council strongly urges the Legislature and the Governor to suspend the enactment of any new mandates on local governments until such time as the economy has recovered and urges the State to provide complete funding for all existing and any new mandates. 2 1, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda during the Regular Meeting of the City Council on the 2nd day of June, 2009, by the following vote to wit: v � AYES: Councilmembers deHaan, Gilmore, Matarrese, Tam and Mayor Johnson - 5. NOES: None. ABSENT: None. ABSTENTIONS: None. IN WITNESS, WHEREOF, 1 have hereunto set my hand and affixed the official seal of said City this 3rd day of June, 2009. Lara Weisiger, City City of Alameda.