HomeMy WebLinkAboutCity Council - 2830 RESOLUTION NO. 2830
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH IN OPPOSITION
TO THE "WATSON AMENDMENT"
WHEREAS, the California voters will be asked at the
November 5 General Election to approve or disapprove an init-
iative amendment to the State Constitution, the so-called
Watson Amendment.
WHEREAS, the Watson Amendment is an irresponsible and
arbitrary tax limitation measure which is being strongly
opposed by the League of California, Cities, the California
Taxpayers Association, major labor unions, leading bond
attorneys, municipal financing experts, nd other reputable
groups and individuals.
WHEREAS, the Watson Amendment would limit the ability of
cities and other units of government to raise revenues from the
property ta,x, and it would completely halt, in many cases, any
further long-term borrowing.
WHEREAS, the Watson Amendment would cut property ta,x rev-
enue by at least 58% and shift this $2. 5 billion dollar burden
to the State . It is totally iresponsible because no ta,x
revenue is provided to replace the staggering revenue loss .
The state would have to increase sales ta,x from 5% to at least
12% or triple the income ta,x to provide replacement revenue.
It would be difficult to devise a measure more damaging to the
future of California or more of a. ta,x relief hoax, than this
affront to consumer and personal income tax payers .
WHEREAS, if the Watson Amendment passes and personal income
tax and/or sales taxes were increased, the problem of getting
the money from the state back to the local jurisdiction, in pro-
portion to need, would be a monumental one and most assuredly
a, costly one. The situation could be likened to the old story
of a, man giving himself a, transfusion from one arm to the other
and spilling half his blood in the process .
WHEREAS, the Watson Amendment will severely limit the ability
of cities and other public agencies to issue bonds in the future,
and the definition of the term "bonds" in the amendment is so
broad that it may include revenue bonds, assessment bonds, and
revenue-supported general obligation bonds, as well as general
obligation bonds which are tax-supported. As defined in the
amendment, "bonds" also include long term lease obligations and
possibly state and federal loans . Because distinctions between
types of bonds have not been made, an entity authorized to sell
tax-secured bonds and which has not done so may find that it
has no bonding capacity if the amendment becomes law.
WHEREAS, if the Watson Amendment becomes law, the excellent
credit of the City of Huntington Beach would be seriously
impaired. If any municipal bonds could be sold at all they
would most certainly be sold at excessive rates of interest, which
would mean even higher taxes for Huntington Beach property owners .
NOW, THEREFORE, BE IT RESOLVED by the Council of the City
of Huntington Beach, that:
2.
The Council of the City of Huntington Beach strongly
opposes the "Watson Amendment" which will appear as an init-
iative measure on the state ballot at the November 5 general
election, and recommends, encourages and exhorts all registered
voters of the City of Huntington Beach to cast their votes in
opposition to the Watson Amendment.
PASSED AND ADOPTED by theCity Council of the City of
Huntington Beach at a regular meeting thereof held on the 3rd
day of September, 1968.
/ RMayor pRd TEM
ATTEST:
City er
D AS
3•
Res. No.
1
2 STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss :
3 CITY OF HUNTINGTON BEACH )
4 I , PAUL C. JONES, the duly elected, qualified and
5 acting City Clerk of the City of Huntington Beach.; and ex-
6 officio Clerk of the City Council of said City, do hereby
7 certify that the whole number of members of the City Council
8 of the City of Huntington Beach is seven; that the foregoing
9 resolution was passed and adopted by the affirmative vote of
10 more than a majority of all the members of said City Council
11 at a regular meeting thereof held on the 3rd
12 day of September 1968 , by the following vote :
13
14 AYES: Councilmen:
15 Bartlett, McCracken, Kaufman, Matney, Green
16 NOES: Councilmen:
17 None
18
ABSENT: Councilmen:
19
Shipley, Caen
20
21
Ci y Clerk an -officio Clerk
22 of the City Council of the City
of Huntington Beach, California
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