CC Resolution 2011-010RESOLUTION NO. 2011 - 010
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, IN OPPOSITION TO THE
STATE BUDGET PROPOSAL TO ABOLISH
REDEVELOPMENT AGENCIES IN CALIFORNIA
WHEREAS, as part of its fiscal year 2011 -12 State budget proposal, the
Governor has proposed permanently abolishing California's more than 400 local
redevelopment agencies; and
WHEREAS, this proposal represents more of the same misguided and illegal
State budget raids of local government funds that voters have repeatedly sought to
end, most recently in November 2010 when an overwhelming 61 % of voters
elected to stop State raids of local government funds, including redevelopment
funds; and
WHEREAS, this proposal will bring very little financial benefit to the State.
According to the State Controller's Office, redevelopment agencies have more than
$87 billion in bond and other contractual obligations that legally must be repaid
before revenues are available to any other purpose. In fact, according to the State
Department of Finance's own budget documents, there will be zero State savings
in future years from shutting down redevelopment; and
WHEREAS, this proposal will destroy local economic development, including
hundreds of thousands of jobs and billions of dollars in local economic activity
throughout California. In fact, in La Quinta, California, abolishing redevelopment
will destroy many public works and housing projects, including: major roadway
construction and reconstruction throughout the City; storm drain improvements in
several major roadways; construction of a fire station in the southeast section of
the City; improvements, expansion, and upgrades to City facilities; new public
facilities (fire station, parks); major infrastructure projects that will facilitate
commercial development; bridge improvements; and single and multi - family
affordable housing projects. These projects are proposed to generate over 2,300
construction - related jobs, generate millions of dollars in local economic activity,
including over $14 million in State and local revenues, and facilitate further
economic and community development; and
WHEREAS, it is important to remember that four major items must be taken
into consideration when analyzing the fiscal impact of the Governors proposal to
eliminate the La Quinta Redevelopment Agency on June 30, 2011: 1) the City was
incorporated after passage of Proposition 13 and as a result the amount of property
taxes that are received from the County of Riverside are less than cities that were
incorporated before Proposition 13; 2) 80% of the cities boundaries are in the La
Quinta Redevelopment Agency so this proposal has a significant impact on the City
Resolution No. 2011 -010
Opposition to State Proposal to Permanently Abolish RDAs
Adopted: February 1, 2011
Page 2
and over 10% of the City is in the Riverside County's Thermal Redevelopment
Agency so less than 5% of the City boundaries are not in a Redevelopment
Agency; 3) the local taxpayers will not see their property taxes reduced; and 4) the
proposal will take away the tax increment property tax revenues that is generated
in this community for much needed capital and housing projects, that will directly
benefit the residents and visitors of this community.; and
WHEREAS, the Governors proposal would take $1.7 billion in property tax
increment generated State -wide in FY 2011/2012 and use it for State purposes. A
similar take of $2 billion in FY 2008/2009 resulted in the La Quinta Redevelopment
Agency making a $23.5 million payment to the State of California. Funding goes
toward repaying the debt service, pass through payments to other governmental
entities such as the Desert Sands Unified School District, Coachella Valley Unified
School District, Desert Community College District, and the Riverside County
Superintendent of Schools, and housing commitments which provides for
affordable housing projects within our community for those who would otherwise
not afford to live in La Quinta. Additionally, it is projected that this proposal would
result in another $20 million take; and
WHEREAS, the City recognizes that this represents one of the toughest state
budget proposals in history. The City has reduced its workforce and implemented
other cost cutting measures over the past two fiscal years to maintain a balanced
budget. More than $4 million in General Fund expenditure reductions were made
consisting of reductions in all departments to balance the budgets in FY 2009-
2010. Staff will be presenting an all funds mid -year analysis of FY 2010/2011
revenues and expenditures at the February 15, 2011 meeting to the City Council
and the Redevelopment Agency. Cities and counties throughout the State of
California need to send a strong message that taking local funding - particularly
funding that creates such a great number of jobs and fuels economic growth is not
the way for the state to solve its fiscal problems and will only make the cities' and
state's economic situation worse.; and
WHEREAS, throughout California, redevelopment activities support 304,000
jobs annually, including 170,600 construction jobs, contribute over $40 billion
annually to California's economy in the generation of goods and services, and
generates more than $2 billion in state and local taxes in a typical year; and
WHEREAS, eliminating redevelopment will take away one of the few tools
local governments have to comply with state requirements to plan for more
compact urban development supported by transit- oriented development, housing,
jobs and infrastructure; and
WHEREAS, eliminating redevelopment will destroy the development of
affordable housing in California. Redevelopment agencies are the second largest
Resolution No. 2011 -010
Opposition to State Proposal to Permanently Abolish RDAs
Adopted: February 1, 2011
Page 3
funder of affordable housing, behind only the federal government, responsible for
over 98,000 units of affordable housing since 1993; and
WHEREAS, shutting down redevelopment agencies is a violation of multiple
State and Federal constitutional provisions.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La
Quinta, California as follows: La Quinta formally opposes the Administration's
proposal to abolish redevelopment in California.
THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City
of La Quinta, California as follows: La Quinta authorizes its council and city staff
to communicate its opposition to this proposal to the Governor, the Legislature,
business groups, and citizens.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta
City Council, held on this 1" day of February 2011, by the following vote:
AYES: Council Members Evans, Franklin, Henderson, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
DON ADOL H, Ma r
City of La Quinta, California
ATTEST:
VERONICA J. MON ECINO, CM , Cit Cler U
City of La Quinta, California
(CITY SEAL)
Resolution No. 2011 -010
Opposition to State Proposal to Permanently Abolish RDAs
Adopted: February 1, 2011
Page 4
APPROVED AS TO FORM:
KATHERINE J N, City Attorney
City of La Quint , California
:A