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6847..........Not numbered in minutes for June 22, 2009
A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDLANDS AND THE BOARD OF THE REDEVELOPMENT AGENCY
OF THE CITY OF REDLANDS AUTHORIZING THE CITY
ATTORNEY/AGENCY GENERAL COUNSEL, AND CITY AND AGENCY
STAFF, TO COOPERATE WITH THE LEAGUE OF CALIFORNIA CITIES,
THE CALIFORNIA REDEVELOPMENT ASSOCIATION, AND OTHER
CALIFORNIA CITIES, COUNTIES AND REDEVELOPMENT AGENCIES
IN POTENTIAL LITIGATION CHALLENGING THE
CONSTITUTIONALITY OF ANY SEIZURE BY STATE GOVERNMENT
OF THE CITY'S STREET MAINTENANCE FUNDS AND ANY SEIZURE
OF REDEVELOPMENT AGENCY TAX INCREMENT FUNDS
435.,..........Not numbered in minutes for June 22, 2009
A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDLANDS AND THE BOARD OF THE REDEVELOPMENT AGENCY
OF THE CITY OF REDLANDS AUTHORIZING THE CITY
ATTORNEY/AGENCY GENERAL COUNSEL, AND CITY AND AGENCY
STAFF, TO COOPERATE WITH THE LEAGUE OF CALIFORNIA CITIES,
THE CALIFORNIA REDEVELOPMENT ASSOCIATION, AND OTHER
CALIFORNIA CITIES, COUNTIES AND REDEVELOPMENT AGENCIES
IN POTENTIAL LITIGATION CHALLENGING THE
CONSTITUTIONALITY OF ANY SEIZURE BY STATE GOVERNMENT
OF THE CITY'S STREET MAINTENANCE FUNDS AND ANY SEIZURE
OF REDEVELOPMENT AGENCY TAX INCREMENT FUNDS
SEE RESOLUTION 6847
t CITY COUNCIL
ile (JUNE 22, 2009 MTG.)
JOINT RESOLUTION
A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDLANDS AND THE BOARD OF THE REDEVELOPMENT AGENCY
OF THE CITY OF REDLANDS AUTHORIZING THE CITY
ATTORNEY/AGENCY GENERAL COUNSEL, AND CITY AND
AGENCY STAFF, TO COOPERATE WITH THE LEAGUE OF
CALIFORNIA CITIES, THE CALIFORNIA REDEVELOPMENT
ASSOCIATION, AND OTHER CALIFORNIA CITIES, COUNTIES AND
REDEVELOPMENT AGENCIES IN POTENTIAL LITIGATION
CHALLENGING THE CONSTITUTIONALITY OF ANY SEIZURE BY
STATE GOVERNMENT OF THE CITY'S STREET MAINTENANCE
FUNDS AND ANY SEIZURE OF REDEVELOPMENT AGENCY TAX
INCREMENT 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
WHEREAS, since the early 1990s the state government of California has seized
over SIO billion of city property tax revenues statewide, now amounting to over S900
million each year, to fund the state budget even after deducting public safety program
payments to cities by the state; and
WHEREAS, 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
tiscal year; and
WHEREAS, 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
WHEREAS, 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, potentially jeopardizing the ability of the City of Redlands (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
1:,cele rk Resolutions=Res 6800-6879 Joint Rest,Seizure by State of Maintenance and fax FUnds.doe
WHEREAS, the loss of almost all of the City's gas tax funds will seriously
compromise the City's ability to perform critical traffic safety related street maintenance,
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
WHEREAS, some cities report to the League of California Cities that they will be
forced to eliminate part or all of their street maintenance operations while others will be
forced to cut back in other areas (including public safety staffing levels) to use city
general funds for basic street repair and maintenance; and
WHEREAS, 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 any effort to permanently divert the local share of the gas tax
would violate the state constitution and the will of the voters; and
WHEREAS, cities and counties maintain 81% of the state road network while the
state directly maintains just 8%; and
WHEREAS, ongoing street maintenance is a significant public safety concern. A
city's failure to maintain its street pavement (potholes filling, sealing, overlays, etc.),
traffic signals, sips, and street lights has a direct correlation to traffic accidents, injuries
and deaths; and
WHEREAS, 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." Local streets and roads will fall to "poor" condition (Score of 48) by 2033
based on existing funding levels available to cities and counties;
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF
THE CITY OF REDLANDS (--THIS CITY COUNCIL") AND THE BOARD OF THE
REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS ("THIS BOARD"),
AS FOLLOWS:
Section 1. This City Council/Board hereby directs the City Attorney/Agency
General Counsel, and City and Agency staff, to take all necessary steps to cooperate with
the League of California Cities, California Redevelopment Association, and 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 Agency's redevelopment tax increment and/or the City's
I Cet[�.'Ibrnia Statewide LocalStreets and Roads Needs Assessment,Nichols Consulting Engineers,Chtd.(2008),
sponsored by the League of California CitiQs,California State Association Of Counties and County Engineers-
Association of California.
1:cclerk Resolutions,Rts 6800-6879 Joint Reso Sei/,ure by State ot'Maintenance and Tax Funds.doc 2
share of funding from the Highway Users Tax Account (HUTA), also known as the "gas
tax," to fund the State general fund.
Section 2. This City Council/Board further directs that the City Manager/Agency
Executive Director and City Clerk/Agency Secretary shall cause this Resolution, with an
accompanying letter from the Mayor/Chairman, to be sent to the Governor and the City's
and Agency's local State legislators, informing them in the clearest of terms of the City's
and Agency'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.
Section 3. This City Council/Board further directs that the City Manager/Agency
Executive Director and the City Clerk/Agency Secretary shall cause a copy of this
Resolution to be sent to the League of California Cities, the California Redevelopment
Association, the Redlands Chamber of Commerce, and other community groups whose
members are affected by this proposal to create unsafe conditions on the streets of our
City for pedestrians,bicyclists and motorists.
ADOPTED, SIGNED and APPROVED this 22nd day of June, 2009.
ATTEST: Jon Harrison, Mayor of the City of Redlands
/1"
,,Chairperson, Board of Directors,
Redevelopment Agency of the
City of Redlands
G---rri oyzer, Ci ,Ierk
Citlly�(Clerk,/Agenc(y SecretaryI
1, Lorrie Poyzer, City Clerk/Agcncy Secretary of the City of Redlands, hereby certify that
the foregoing resolution was adopted by the City Council/Board of the Redevelopment
Agency at a regular meeting thereof held on the 22nd day of June, 2009 by the following
vote:
AYES: Councilmembers/Board Members Gilbreath, Gallagher, Aguilar, Bean;
Mayor/Chairperson Harrison
NOES: None
ABSENT: None
City 11
Cl6rk/Agenc0ary
L cderk Re-solutionsRes 6800-6879 Joint Reso Seizure.by State of Maintenance and'Fax Rlnds.doc 3