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Resolution 07372CIAN OF ALAMEDA REMMIUJITiAl NO. 7372 OPPOSING STATE INIIIARIVE PROPOSAL COMMONLY KNOWN AS "WATSON AMENDMENT% WHEREAS a proposed. state constitutional amendment, commonly called the 'Watson Rmendment' has qualified for submission to the electorate at the November state general election. This amendment would establish an arbitrary property tax lixitation for the toted levy of all taxing agencies of one per cent ( l%) of market value for 'property-related' 11(0 /0' and_ would eliminate property taxes for "people-relatedf services; and WHEREAS, the City of Elameda has demonstrated its (0' 60 g fiscal responsibility in the admdnistration of property taxation and other municipal taxation, and recognikee the need for real- istic and effective property tax reform; this City Council iB convinced, however, for the reasons hereinafter set forth, that the proposed constitutional amendment is not a proper or effective means toward such reform; and WHEREAS, the proposed amendment would cut property tax revenue by an amount estimated to be at iRast 58%; it providGs no revenue to replace this loss, estimated to total 2.5 billion dollars at. present rates . The proposed amendment would not provide tax relief, but would provide only a shift En the tax burden from local tw state 6'0-11 The state could meet this burden only by increasing the sales tax (to an amount estimated at 12% in:stoat; of the existing 5%) or the iyasane tax (to an amount estimated to be triple the tax as it now exists following last year's ihnreases); and. WHEREAS, the bondlhg provisions included within the proposed amendment would preclude most governmental agencies from incurring any further isng term indebtedness where property txx revenues would be needed to meet debt service requirements. Completion of existimg projects would be jeopard- ixed. Municipal bonding experts have given the opinion that adoption of the amendment would create 3' 01(0 in the municipal bonding field; and WHEREAS, the proposed amendment would encourage cities to rely more heotdky on nuisance type consumer taxes. This type of tax increase would hit the homeowner, businessman and fatmwr most heavily- -- the very- people tax limitations are supposed to assist, The only alternative to such taxes is a decrease • service by. the City- to ite citizens; and WHEREAS, the proposed amendment would constitute a severe blow to local home rids through the transfer of' control of essential service from the Emnicipality to the state. It would effectively remove from the taxpayer his control. over local budgets and service programs; ann WHEREAS, the proposed amendment Egoleads the pubiic into believing there will be a tax decrease, when, in fact, a massive: tax shift, 0- 10 massive state tak increases, would result, OW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 10 *0 that it is the con- tdction of thds City Council that the initiative proposal knowh as the "Watson AnEndment" is, for the reasons hereinabove set, forth, an irresponsible and unreasonable measure; that aaid initiative dses not, propose a means of accomplishing true property- tax relief or workable reform of the state- local tax structure; and that the result of said initiatiNe, if' adopted, would be to hamper seriousMy local government, stifle irral home Extis and create fiscal. uncertainty for and throughout the 'to1 ad BE IT MnRIMER RESOLVED that a copy of this resolution be forwarded to the Governor of the State of California, all legislators representing the County of Alameda, the Board of Supervisors of Alameda County, the Alameda Chemiber of Conneire, and te all other organizations in the City of Alameda interested in the 1' 1'L" of effective local_ government, with a request that they expend all available effort in working for the defeat of said /: 01' in the November state general election. I, the undersigned, hereby certify that the foregoing Resolutisn was duly and regularly introduced and 01 10' by the Council of the City of Alameda. in regular meeting assembled on the 3rd day of September, 1BCS, by the following vote, to wit: AYES: Councilmen Fors, Ix* .0roix, Jr., Levy and President McCall, (E). NOES: None. AI:STAINING: Councilman Isaacs, (1). ASSENT: None. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of said Gity this 4th day of September, 1.*-38. SHIRLEY H. TEENIER CGty Ciprk of the City of Alameda. I hereby certify LhaY the foregoing is a full, thado and correct cwpy of' 'Mity of' AlanEda Resolution. No. 7372, OPPOSING STATE INITIATIVE PROPOSAL CfMONLY KNOWN AS 'WATSON AbEldlTaN1d," introduced and a by the Council on the 3rd day of September, 1968. . / dosk/E-m ity Cierkm thd City- of Afameda