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Resolution 1984-68 . . ~ RESOLUTION NO. 84 - 68 RESOLUTION OF THE COUNCIL OF THE CITY OF GILROY IN OPPOSITION TO PROPOSITION 36. WHEREAS, the Jarvis IV Initiative Constitutional Amendment which will appear on the November ballot as Proposition 36 would lead to de facto minority rule by requiring a two-thirds vote for many important local government decisions; and ~~iEREAS, Proposition 36, by further restricting local govern- ments' revenue-raising authority beyond the requirements imposed by Propositions 13 and 4, would seriously weaken the concept of "Home Rule" by making local agencies more dependent upon the State for their financial stability; and vlliEREAS, Proposition 36 will further reduce the ability of local government to plan for and finance public services and capital improvements needed to sustain development and accommodate economic growth; and \~HEREAS, the passage of Proposition 36 will widen the dispari- ties between the taxation of properties with similar market values; and WHEREAS, while the supporters of Proposition 36 claim it will reduce taxes, it will actually increase property taxes for nearly all taxpayers who have purchased properties since 1978, including approximately 50% of the homeowners in California; and vJEEREAS, one widely applauded result of Proposition 13 has been to relieve general taxpayers of the burden of paying for services which could be charged directly to the service user through fees, this trend will be reversed, returning part of the financial burden for fee-supported services to general taxpayers if Proposition 36 is enacted; and w~EREAS, the passage of Proposition 36 will cost local school districts some $750 million In 1985-86, thereby serviously jeopardi- zing the urgently needed improvements in primary and secondary public RESOLUTION NO. 84 - 68 -1- " !... '. .. .- ... .. -'~ ",. education in California; and WHEREAS, many of the provisions of Proposition 36 are confus- ing and ambiguous and will require further clarification, either by future ballot measures, state legislation and/or court interpretation; and vJI:-IEREAS, the passage of Proposition 36 will cost the City of Gilroy an estimated $1.2 million. This loss of funds would restrict future expansion and construction, Hnd i.A;'ithout maj OT :cevisions the City reserves will soon be depleted. On August 31, 1984 we anticipated the following loss to June 30, 1985: General Fund: Property Tax refund Sewer refunds Water refunds $192,500. 243,250. 237,459. $673,209. 142,000. 142,192. 13,767. 24,885. Water Fund: Sewer Fund: Public Safety Fees: Sewer Construction Fees: Depreciation Funds: 249,139. $1,245,192. NOW, THEREFORE ,BE IT RESOLVED, by the adoption of this resolution, the City of Gilroy opposes Proposition 36, the Jarvis IV Initiative Constitutional Amendment. PASSED AND ADOPTED this 1st day of October, 1984, by the follow- ing vote: NOES: COUNCIL MEMBERS: ALBERT", CAGE, KLOECKER, MUSSALLEM, PATE, VALDEZ and HUGHAN. COUNCIL }ffiHBERS: None AYES: ABSENT: COUNCIL ME}ffiERS: None APPROVED: RESOLUTION NO. 84 - 68 -2-