CC Resolution 2008-053RESOLUTION NO. 2008-053
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA
QUINTA, CALIFORNIA, OPPOSING STATE BUDGET
DECISIONS THAT WOULD "BORROW" LOCAL GOVERNMENT,
REDEVELOPMENT AND TRANSPORTATION FUNDS
WHEREAS, on July 1, 2008 the State Legislature missed its Constitutional
budget deadline; and
WHEREAS, both the Governor
Committee have recommended balanced
seizures of local government property
transportation sales tax funds; and
and the Legislative Budget Conference
budgets without resorting to "loans" or
tax, redevelopment tax increment and
WHEREAS, in 1952 the voters of California approved Article XVI, Section 16
of the California Constitution, providing for tax increment financing for community
revitalization-not balancing the state budget, and the voters never authorized the
legislature to take or "borrow" community redevelopment funds for state programs;
and
WHEREAS, in 2004 by an 84% margin of approval the voters of California
approved Proposition 1 A and sent a loud and unambiguous message to state
leaders that they should stop the destructive and irresponsible practice of taking
local government funds to finance the state budget and paper over the state
deficit; and
WHEREAS, in 2006 by a 77% margin of approval the voters of California
also approved Proposition 1 A, providing similar protections to transportation
funding for state and local transportation projects, including important street
maintenance and public transit programs; and
WHEREAS, both ballot measures allow the Governor to declare a "severe
state of fiscal hardship" and "borrow" these funds if they are repaid in three years
with interest, but the Governor believes it would be irresponsible to "borrow" such
funds because it would deepen the state's structural deficit and cripple local
government and transportation services; and
WHEREAS, refusal by the Legislature to carryout its constitutional obligation
to compromise on a balanced budget is not a "severe state of fiscal hardship" and
would not justify reductions in critical local services, community revitalization
programs and infrastructure maintenance at a time when cities are struggling to
balance their own budgets during this economic down turn; and
Resolution No. 2008-053
Opposing State Budget Decisions that would
"Borrow" Local Government, Redevelopment and Transportation Funds
Adopted: August 5, 2008
Page 2
WHEREAS, city investments in infrastructure, affordable housing and basic
public safety and other community services will create needed jobs and speed our
economic recovery; and
WHEREAS, the Legislature should balance the state budget with state
revenues and respect the overwhelming support of voters for not using local
property taxes, redevelopment tax increment and transportation sales tax funds to
fund the day-to-day operating cost of state programs; and
WHEREAS, it would be the height of fiscal irresponsibility to paper over the
state structural deficit with more borrowing, and Californians deserve state leaders
who will tell them honestly what needs to be done to produce a balanced budget;
and
WHEREAS, it is time for the state of California to cut up its local government
credit cards and deal with the budget deficit in a straightforward way. Balance the
state budget with state funds; and
WHEREAS, taking funds from the La Quinta Redevelopment Agency woufd
impair the Agency's ability to purchase land for future affordable workforce
housing projects and to complete the State-mandated number of affordable units
which includes the funding to purchase land and provide funding for construction
and assistance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA QUINTA
HEREBY RESOLVES, AS FOLLOWS:
Section 1. The City Council hereby opposes any and all efforts by state
government to "borrow" or seize local tax funds, redevelopment tax increment and
transportation sales tax funds by the state government to finance state operations.
Such a move would be fiscally irresponsible for the state and hamper effective local
services and infrastructure investments.
Section 2. The City Manager is hereby directed to send this resolution and
communicate this Council's strong and unswerving opposition on this matter to our
Legislators and the Governor along with an expression of our continued
appreciation for the Governor's and any supportive legislators' steadfast opposition
to further borrowing or seizure of these funds.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the La Quinta
City Council held this 5`h day of August, 2008, by the following vote to wit:
Resolution No. 2008-053
Opposing State Budget Decisions that would
"Borrow" Local Government, Redevelopment and Transportation Funds
Adopted: August 5, 2008
Page 3
AYES: Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
DON ADOL H, M r
City of La Quinta, California
ATTEST:.
ti~ERONICA J. ~NTECENO, CHIC, City Clerk
City of La Q l ta, California
(SEAL)
City of La Quinta, Cal
APROVED AS TO FORM: