HomeMy WebLinkAboutCity Council - 2009-37 RESOLUTION NO. 2009-37
A JOINT RESOLUTION OF THE CITY AND REDEVELOPMENT AGENCY
OF HUNTINGTON BEACH AUTHORIZING THE CITY
ATTORNEY/REDEVELOPMENT AGENCY GENERAL COUNSEL TO
COOPERATE WITH THE LEAGUE OF CALIFORNIA CITIES, THE
CALIFORNIA REDEVELOPMENT ASSOCIATION, OTHER CITIES AND
COUNTIES IN LITIGATION CHALLENGING THE CONSTITUTIONALITY
OF ANY SEIZURE BY STATE GOVERNMENT OF THE CITY'S STREET
MAINTENANCE AND REDEVELOPMENT FUNDS
WHEREAS, the current economic crisis has placed cities under incredible financial
pressure and caused them to make painful budget cuts, including layoffs and furloughs of city
workers, decreasing maintenance and operations of public facilities, and reductions in direct
services to keep spending in line with declining revenues; and
Since the early 1990s the state government of California has seized over $10 billion of
city property tax revenues statewide, now amounting to over$900 million each year to fund the
state budget even after deducting public safety program payments to cities by the state; and
Since the early 1990s the state government also has seized $1.04 billion of redevelopment
tax increment statewide, and the Governor and Legislature are now considering seizing $350
million each year for three years, beginning in the current fiscal year; and
On April 30, 2009, in the case of CRA v. Genest,the Sacramento Superior Court found
similar efforts by the State to seize redevelopment tax increment for the state general fund to be
in direct violation of Article XVI, Section 16 of the State Constitution, added by the voters in
1952 as Proposition 18, which requires that tax increment be used exclusively for the benefit of
redevelopment project areas; and
In his proposed FY 2009-10 budget the Governor has proposed transferring $1 billion of
local gas taxes and weight fees to the state general fund to balance the state budget, and over
$700 million in local gas taxes permanently in future years, immediately jeopardizing the ability
of the City to maintain the City's streets, bridges,traffic signals, streetlights, sidewalks and
related traffic safety facilities for the use of the motoring public; and
The loss of almost all of cities' gas tax funds will seriously compromise cities' ability to
perform critical traffic safety related street maintenance, possibly including, but not limited to,
drastically curtailing patching, resurfacing, street lighting/traffic signal maintenance,payment of
electricity costs for street lights and signals, bridge maintenance and repair, sidewalk and curb
ramp maintenance and repair, and more; and
09-2144/35623 1
Resolution No. 2009-37
Cities and counties maintain 81% of the state road network while the state directly
maintains just 8% and according to a recent statewide needs assessment) on a scale of zero
(failed) to 100 (excellent),the statewide average pavement condition index (PCI) is 68, or"at
risk;" and
In both Proposition 5 in 1974 and Proposition 2 in 1998 the voters of our state
overwhelmingly imposed restrictions on the state's ability to do what the Governor has proposed
and the Legislature is considering, and any effort to permanently diver the local share of the gas
tax would violate the state constitution and the will of the voters.
NOW, THEREFORE, the City Council and the Redevelopment Agency Board of
Directors of the City of Huntington Beach do hereby resolve as follows:
1. The City Attorney/Redevelopment Agency General Counsel is directed to take all
necessary steps to cooperate with the League of California Cities, California Redevelopment
Association, other cities, counties and redevelopment agencies in supporting litigation against
the state of California if the legislature enacts and the governor signs into law legislation that
unconstitutionally diverts the redevelopment tax increment and the City's share of funding from
the Highway Users Tax Account (HUTA), also known as the "gas tax,"to fund the state general
fund; and
2. The City Administrator/Agency Executive Director shall send this resolution with
an accompanying letter from the mayor/agency chair to the Governor and each of the city's state
legislators, informing them in the clearest of terms of the City's adamant resolve to oppose any
effort to frustrate the will of the electorate as expressed in Proposition 18 (1952),Proposition 5
(1974) and Proposition 2 (1998) concerning the proper use and allocation of the redevelopment
tax increment and the gas tax; and
' California Statewide Local Streets and Roads Needs Assessment,Nichols Consulting Engineers,Chtd.(2008),
sponsored by the League of California Cities,California State Association of Counties and County Engineers
Association of California.
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Resolution No. 2009-37
3. A copy of this Resolution shall be sent by the City Administrator/Agency
Executive Director to the League of California Cities, the California Redevelopment
Association, the local chamber of commerce, and other community groups whose members are
affected by this proposal to divert funds from vital local services and projects.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 6th day of July , 20 09
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Way /Chairman
REVIEWS APPROVED: APPROVED AS TO FORM:
City A i s ator/ Ci y Atto ey gency Gen a ounsel
Execu ve Director
INITIATED A D APPROVED:
grect?r&Mcono Develorv(t/
epu y Executive i c or
09-2144/35623 3
Res. No. 2009-37
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a regular meeting thereof held on July 6, 2009 by the following vote:
AYES: Carchio, Dwyer, Bohr, Coerper, Hansen
NOES: None
ABSENT: Green, Hardy
ABSTAIN: None
J- ity Clerk and ex-offi io Clerk of the
City Council of the City of
Huntington Beach, California