HomeMy WebLinkAbout09-49 - Litigation Challenging Constitutionality of Any Seizure by State of City's Street Maintenance FundsRESOLUTION NO. 09-49
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, AUTHORIZING THE
CITY ATTORNEY TO COOPERATE WITH THE LEAGUE
OF CALIFORNIA CITIES, OTHER CITIES AND
COUNTIES IN LITIGATION CHALLENGING THE
CONSTITUTIONALITY OF ANY SEIZURE BY STATE
GOVERNMENT OF THE CITY'S STREET
MAINTENANCE FUNDS AND REDEVELOPMENT
FUNDS.
THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES AS
FOLLOWS:
WHEREAS, the current economic crisis has placed 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 1990s 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 1990s 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 CRA 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 the cities' gas tax funds will seriously
compromise cities' ability to perform critical traffic safety related street maintenance,
t
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, some cities report to the League of California Cities that they will be
forced to eliminate part or all of their street maintenance operations, while others will
be forced to cut back in other areas (including public safety staffing levels) to use city
general funds for basic street repair and maintenance. Furthermore, cities expect that
liability damage awards will mount as basic maintenance is ignored due to lack of
funding and traffic accidents, injuries and deaths increase; and
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 any effort to permanently divert the local share of the gas
tax would violate the state Constitution and the will of the voters; and
WHEREAS, cities and counties maintain 81 % of the state road network while the
state directly maintains just 8%; and
WHEREAS, ongoing street maintenance is a significant public safety concern;
and
WHEREAS, according to a recent statewide needs assessment' on a scale of
zero (failed) to 100 (excellent), the statewide average pavement condition index (PCI)
is 68, or "at risk." Local streets and roads will fall to "poor" condition (Score of 48) by
2033 based on existing funding levels available to cities and counties.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Costa
Mesa, hereby directs the City Attorney to take all necessary steps to cooperate with the
League of California Cities, California Redevelopment Association, as well as 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 Tax Account (HUTA), also known as the "gas tax," to
fund the state general fund; and
BE IT FURTHER RESOLVED, that the City Manager or City Clerk shall send
this resolution with an accompanying letter from the Mayor to the Governor and each
legislator representing citizens of Costa Mesa, informing them in the clearest of terms of
the City's adamant resolve to oppose any effort to frustrate the will of the electorate as
expressed in Proposition 5 (1974) and Proposition 8 (1998) concerning the proper use
and allocation of the gas tax; and
' 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.
BE IT FURTHER RESOLVED, that a copy of this Resolution shall be sent by the
Ir City Manager or City Clerk to the League of California Cities, the California
Redevelopment Association, the local chamber of commerce, and other community
groups whose members are affected by this proposal to divert funds from vital local
services and projects.
PASSED AND ADOPTED this 7th day of July, 2009.
ATTEST:
�-" /D
- C: �' � -� � Juli olcik, City Clerk
11
Allan R. Mansoor, Mayor
APPROVED AS TO FORM:
ll
Kimberly HAlf Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 09-49 and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 7th day of July, 2009, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: MANSOOR, LEECE, BEVER, FOLEY, MONAHAN
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 8th day of July, 2009.
JU E FOLCI , CITY CLERK
(SEAL)