R 4124RESOLUTION N0.4124
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE OPPOSING FISCALLY IRRESPONSIBLE 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 and the Legislative Budget Conference Committee
have recommended balanced budgets without resorting to "loans" or seizures of local
government property tax, redevelopment tax increment and transportation sales tax funds;
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" local community redevelopment funds for State programs; and
WHEREAS, in 2004 by an 84% margin of approval the voters of California approved
Proposition 1A 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 1A, this time 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
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
RESOLUTION NO. 4124
PAGE 2
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 cutup its local government credit
cards and deal with the budget deficit in a straightforward and responsible way. Balance
the State budget with State funds.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Arroyo
Grande 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.
BE IT FURTHER RESOLVED, that the Mayor is hereby directed to send this
Resolution and communicate the Council's strong opposition on this matter to our State
Legislators and the Governor along with an expression of the City's continued appreciation
for the Governor's and any supportive legislators' steadfast opposition to further borrowing
or seizure of these local government funds.
On motion of Council Member Fellows, seconded by Council Member Guthrie, and on the
following roll call vote, to wit:
AYES: Council Members Fellows, Guthrie, Costello, and Mayor Ferrara
NOES: None
ABSENT: Council Member Arnold
the foregoing Resolution was passed and adopted this 26~h day of August 2008.
RESOLUTION NO. y12y
PAGE 3
TONY FE ,MAYOR
ATTEST:
~~~
KELLY W T RE, CITY CLERK
APPROVED AS TO CONTENT:
STEV N ADAMS, CITY MANAGER
APPROVED AS TO FORM:
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TI THY J. EL, CI Y ATTORNEY
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 4124 is a true, full, and correct copy of said Resolution passed and
adopted at a regular meeting of the City Council/Redevelopment Agency of the City of
Arroyo Grande on the 26"' day of August 2008.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 27`h day of
August 2008.
KELLY W~TMC~RE, CITY CLERK