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HomeMy WebLinkAbout05 - Resolution in Support of Proposition 22CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 5 September 28, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, City Manager 949/644 -3002 or dkiff @newportbeachca.gov SUBJECT: Resolution in Support of Proposition 22 (November 2 General Election) ISSUE: This item asks the Council to go on record in support of Proposition 22 (the "Local Taxpayer, Public Safety, and Transportation Protection Act of 2010 ") on the November 2, 2010, General Election ballot. RECOMMENDATION: Adopt Resolution 2010 -_ relating to support for Proposition 22 DISCUSSION: The passage of Proposition 22 on the November 2, 2010, General Election Ballot would generally help protect revenues that are traditionally levied and provided to local governments like the City of Newport Beach from diversions by the State Legislature and governor. Specifically, Prop 22 amends the California Constitution to read that "the Legislature may not reallocate, transfer, borrow, appropriate, restrict the use of, or otherwise use the proceeds of any tax imposed or levied by a local government solely for the local government's purposes." The taxes and revenue sources that would be additionally protected by Prop 22 include property tax, gas excise taxes, and more. As an example, in 2009, Newport Beach was asked to loan about $6 million in property taxes to the State, to be repaid over three years. A later action allowed a different method for the State to secure the same amount of funds, but the City would have had to dip into its reserves to accomplish the transfer. Supporting Proposition 22 September 28, 2010 Page 2 Environmental Review: Not a project subject to CEQA. Public Notice: This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Submitted by: U-in Dave Kiff City Manager Attachment: Resolution 2010- Supporting Proposition 22 September 28, 2010 Page 3 RESOLUTION 2010- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH IN SUPPORT OF PROPOSITION 22 THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010 WHEREAS, California voters have repeatedly and overwhelmingly passed separate ballot measures to stop State raids of local government funds, and to dedicate the taxes on gasoline to fund local and state transportation improvement projects; and WHEREAS, these local government funds are critical to provide the police and fire, emergency response, parks, libraries, and other vital local services that residents rely upon every day, and gas tax funds are vital to maintain and improve local streets and roads, to make road safety improvements, relieve traffic congestion, and provide mass transit; and WHEREAS, despite the fact that voters have repeatedly passed measures to prevent the State from taking these revenues dedicated to funding local government services and transportation improvement projects, the State Legislature has seized and borrowed billions of dollars in local government and transportation funds in the past few years; and WHEREAS, this year's borrowing and raids of local government, redevelopment and transit funds, as well as previous, ongoing raids of local government and transportation funds have lead to severe consequences, such as layoffs of police, fire and paramedic first responders, fire station closures, stalled economic development, healthcare cutbacks, delays in road safety improvements, public transit fare increases and cutbacks in public transit services; and WHEREAS, State politicians in Sacramento have continued to ignore the will of the voters, and current law provides no penalties when state politicians take or borrow these locally- dedicated funds; and WHEREAS, a coalition of local government, transportation and transit advocates filed a constitutional amendment with the California Attorney General, called the Local Taxpayer, Public Safety, and Transportation Protection Act of 2010, which will be on the November 2010 statewide ballot as Proposition 22; and WHEREAS, approval of this ballot initiative would close loopholes and change the constitution to further prevent State politicians in Sacramento from seizing, diverting, shifting, borrowing, transferring, suspending or otherwise taking or interfering with tax revenues dedicated to funding local government services, including redevelopment, or dedicated to transportation improvement projects and mass transit; now, therefore be it Supporting Proposition 22 September 28, 2010 Page 4 RESOLVED that the City Council of the City of Newport Beach formally endorses Proposition 22, the Local Taxpayer, Public Safety and Transportation Protection Act of 2010, a proposed constitutional amendment; and be it also RESOLVED that the City Council hereby authorizes the listing of the City of Newport Beach in support of Proposition 22, the Local Taxpayer, Public Safety and Transportation Protection Act of 2010. ADOPTED this 28th day of September, 2010. KEITH CURRY Mayor of Newport Beach ATTEST: LEILANI BROWN City Clerk