Resolution 1992-23
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RESOLUTION NO. 92 - 23
RESOLUTION OF THE (DUNCIL OF THE CITY OF GILROY OPPOSING ASSEMBLY BILL 3214 AND THE
GOVERNOR'S PROPOSAL TO SHIFT PROPERTY TAX REVENUES AWAY FROM THE ENTERPRISE
ACTIVITIES OF SPECIAL DISTRICTS
WHEREAS, the Santa Clara Valley Water District is a special district
established by the California Legislature to provide flood control protection and
an adequate water supply for the approximate 1.5 million residents of Santa Clara
County; and
WHEREAS, for over 30 years the District has used real property taxes in
conjunction with user charges as a revenue source to fund the costs of providing
the benefits of an adequate 10cal and imported water supply for all properties in
the County, including the District's share of the costs of the State Water Project;
and
WHEREAS, the District's credit rating and outstanding indebtedness is
based upon an expected continuation of all revenue sources; and
WHEREAS, the District's credit rating and outstanding indebtedness is
based upon an expected continuation of all revenue sources; and
WHEREAS, the provisions of Assembly Bill 3214 and the Governor's budget
proposal, on the one hand, will precipitously deprive the enterprise activities of
special districts of the continued revenue from local property taxes, and, on the
other, will fail to improve funding for the local school districts of Santa Clara
County.
NOW, THEREFORE, the Council of the City of Gilroy does resolve as
follows:
1. The City Council of the City of Giroy opposes Assembly Bill 3214,
the Governor's Budget Proposal, and all attempts to amend the
provisions of law currently dividing the one percent real
property tax provided by California Constitution Article XIIIA
and the California Revenue and Taxation Code, for the following
reasons:
a. As the District's entire financial plan anticipates the
not less than $8 million dollars budgeted for property tax
revenues (and the one percent override which produces an
additional amount to pay the amounts due under the State
Water Project water service contract), the increased water
rates necessary to produce that amount of money amounts to
a doubling of the amount paid in property taxes by the
citizens of Santa Clara County.
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RESOLUTION NO. 92 - 23
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b. The minimum increaseof $40 per acre-foot in the water user
charges of the District will have an adverse impact on the
economy of the Santa Clara Valley, an economy that is
already struggling under the impact of a sustained
recession. Water rates in this County have already seen a
marked increase due to the impacts of the State's drought
and continuing water supply shortages. Several other
funding proposals pending before the Legislature threaten
ever higher water rates, taxes and fees withut a cohesive
integrated approach to water supply and water quality
funding at the State level.
c. The shift from a county-wide ad valorem property tax to
water rates to pay for the State's continuing budget
shortfalls will amount to a regressive tax on the citizens
of Santa Clara County, placing a higher burden for the
benefits of water supply on thOSe citizens least able to
bear the increase, while ignoring the direct property
benefits enjoyed and enhanced land values bestowed by a
water supply program that brings essential water supplies
to the County in normal years.
PASSED AND ADOPTED this 6th day of April, 1992, by the following vote:
AYES:
co UNCILMEMBERS: GILROY, HALE, KLOECKER, NELSON, ROWLI SON, VALDEZ
and GAGE.
COUNCILMEMBERS: None
NOES:
ABSENT: COUNCILMEMBERS: None
APPROVED:
_~LO:-~_
Mayor -~
AU"" ~bvi& ~
~W"M ~
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RESOLUTION NO. 92 - 23
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 92-23 is an original
resolution, duly adopted by the Council of the City of Gilroy at a regular
meeting of said Council held on the 6th day of April , 19~~,
at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
Official Seal of the City of Gilroy this 7th day of April
19 92.
(Seal)