R 3117
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RESOLUTION NO. 3 1 1 7
A ,RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE
SUPPORTING INTRODUCTION AND ADOPTION OF A VALIDATING ACT
IN RESPONSE TO THE STATE SUPRBME COURT DECISION IN
SANTA CLARA COUNTY LOCAL TRANSPORTATION AUTHORITY V. GUARDINO
WHEREAS, the State Supreme Court recently issued a decision
in the case of Santa Clara County Local Transportation. Authority
I v. Carl Guardino, the effect of which decision is to require voter
: approval for the imposition or increase of a general tax as set
L_J forth in Proposition '62 (Government Code Section 53273); and
WHEREAS, the Guardino decision reverses prior Court decisions
that previously found the voter": approval requirements. of
Proposition 62 were unconstitutional; and
, .
WHEREAS, in reliance on such prior Court decisions,' the City
Cauncil, of., the City of. Arroyo Grande. in 1.993 enacted. an increase
in the City's Transient Occupancy Tax and established a Utility
Users Tax, and the elected boards of many other local governments
in California increased or adopted general taxes without a public
referendum; and
WHEREAS, if the collection. of. new taxes or tax. increases
adopted by elected boards, subsequent to the effective date of
Propositio~ 62 and_prior to the. effective date of the-Guardino
decision, is prohibited and/or, if retroactive refund of tax
collecctions is mandated, then the City of Arroyo Grande and a l.arge
number of other local governments will experience severe financial
crises, neces.sitating major reductions in public safety and other
vital public services, negating contractual commitments, and, quite
possibly, leading to default on credit. obligations or, at the very
least, substantially reducing the credit-worthiness of local
governments.; and
WHEREAS, the FY 1995~96 financial loss to the City of Arroyo
Grande would be approximately $810,000 if collection of the City's
Transient Occupancy Tax increase and the Utility Users Tax were to
cease ,and a one-time loss of approximately $2.5 million would
occur if. a retroactive refund of the City's Transient Occupancy Tax
and the Utility Users Tax were mandated; and
WHEREAS, . extensive costs, fiscal uncertainty,. and a major
threat to public services are certain to arise from retrospective'
application. of the. Guardino decis.ion and from the. confusion that
will result if clear and timely policy direction is not forthcoming
from the State in the aftermath of the announcement of the Guardino
decision,' thereby decimating services provided through the City
General Fund.
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RESOLUTION NO. 3117
PAGE 2
NOW, THEREFORE, BE IT RESOLVED by the City of ArroyoG~ande
as follow$:
1. State Senator Jack O'Connell and State Assembly Member
Tom Bordonaro are urged actively to support the
introduction and passage of a validating act requiring
that the Guardino decision only be applied prospectively; I
and : I
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2 . Such validating act be introduced and adopted in January
1996 as soon as'possible after the Legislature returns
to session; and
3. The City Clerk is directed to forward this reso~ution to
Senator Jack O'Connell and Assembly Member Bordonaro at
the earliest possible date after its adoption and to
distribute copies hereof to the San Luis Obispo County
Board of Supervisors and to the Mayors and Council
Members of the other six Cities in San Luis Obispo County
urging their support for introduction and passage of a
validating act by the State Legislature.
On motion pf Council Member Lady ,
seconded by Council Member Souza , and on the
following cal~ vote, to wit:
Ayes: Council Members Lady, Souza, Fuller, and Mayor Dougall
Noes: None
Absent: Council Member Brandy
the foregoing reso~ution was passed and adopted. this 9 th, day of !
,
1996. . --
January,
'fl~a. ~ ,
ATTEST:
NANCY A. AVIS, CITY CLERK
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RBSOLUT.ION ON. 3117
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, APPROVED AS TO FORM:
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i
L~
APPROVED AS TO CONTENT:
''RDLx.trL HL~
ROBERT L. HUNT, CITY MANAGER
OFFICIAL CERTIFICATION
I, NANCY A. DAVIS, 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 foregoing Resolution No. 3117
is a true, full and correct copy of said Resolution passed and
adopted at a regular meeting of said Council on the 9th day of
January, 1996.
WITNESS my hand and the Seal of the city of Arroyo Grande
affixed this 16th day of January, 1996.
a.
NANCY A. ~VIS, CITY CLERK
CITY OF ARROYO GRANDE
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