Resolution 2004- 11
RESOLUTION NO. 2004-11
A RESOLUTION SUPPORTING A STATEWIDE BALLOT
INITIATIVE TO REQUIRE VOTER APPROVAL BEFORE
STATE GOVERNMENT MAY TAKE LOCAL TAX FUNDS
WHEREAS, state government annually seizes over $800 million in city property tax
funds (ERAF) statewide, costing cities over $6.9 billion in lost revenues over the past 12 years
and seriously reducing resources available for local public safety and other services; and
WHEREAS, in adopting the state budget this year the Legislature and Governor
appropriated local vehicle license fee backfill and redevelopment property tax funds that are
needed to finance critical city services such as public safety, parks, street maintenance, housing
and economic development; and
WHEREAS, the deficit financing plan in the state budget depends on a local property
and sales tax swap that leaves city services vulnerable if the state's economic condition fails to
improve; and
WHEREAS, the adopted state budget assumes an ongoing structural budget deficit of at
least $8 billion, putting city resources and services at risk in future years to additional state
revenue raids; and
WHEREAS, it is abundantly clear that state leaders will continue to use local tax funds
to balance the state budget unless the voters limit the power of the Legislature and Governor to
do so; and
WHEREAS, the voters of California are the best judges of whether local tax funds
should be diverted, confiscated, shifted or otherwise taken to finance an ever-expanding state
government; and
WHEREAS, the General Assembly of Voting Delegates of the League of California
Cities at its September 10 2003 meeting voted to sponsor a statewide ballot initiative to
empower the voters to limit the ability of state government to confiscate local tax funds to fund
state government; and
WHEREAS, the League has requested that cities offer support for a November 2004
ballot initiative that will allow voters to decide whether state government may appropriate local
tax funds to fund state government operations and responsibilities.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF Gilroy, that the City hereby expresses its strong support for a statewide ballot initiative to
allow voters to decide whether local tax funds may be taken, confiscated, shifted, diverted or
otherwise used to fund state government operations and responsibilities; and
RESOLUTION NO. 2004-11
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RESOLVED FURTHER, that the City Council and staff are authorized to provide
impartial informational materials on the initiative as may be lawfully provided by the city's
representatives. No public funds shall be used to campaign for or against the initiative; and
RESOLVED FURTHER, that the residents of the City are encouraged to become well
informed on the initiative and its possible impacts on the critical local services on which they
rely; and
RESOLVED FURTHER, that the City Clerk is hereby directed to send a copy to the
Executive Director of the League of California Cities.
PASSED AND ADOPTED this 17th day of February, 2004, by the following vote:
AYES: COUNCILMEMBERS: CORREA, DILLON, GARTMAN,
MORALES, VALIQUETTE, VELASCO, PINHEIRO
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
~
~MaYor
ATTEST:
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Rhonda Pellin, City Clerk
RESOLUTION NO. 2004-11
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I, RHONDA PELLIN, City Clerk ofthe City of Gilroy, do hereby certify that the attached
Resolution No. 2004-11 is an original resolution, or true and correct copy of a city resolution,
duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the
17th day of February, 2004, 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 9th day of March, 2004.
~.
_.~
City Cerk of the City of Gilroy
(Seal)