City of Culver City, California
Agenda Item Report
Meeting Date: 12/14/09 Item Number: J-3
JOINT CITY COUNCIL REDEVELOPMENT AGENCY AGENDA ITEM: Adoption of
Respective Resolutions Endorsing the Local Taxpayer, Public Safety and
Transportation Protection Act of 2010, a Proposed Constitutional Amendment for
Potential Placement on California’s November 2010 Statewide Ballot.
Contact Person/Dept.: Shelly Wolfberg/
City Manager’s Office
Phone Number: (310) 253-6008
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Teresa Acosta, League of California Cities (12/03/09); Meetings and
Agendas – City Council (12/09/09)
Department Approval:
Martin R. Cole (12/10/09)
City Attorney Approval:
Carol Schwab (by H. Baker) (12/10/09)
Chief Financial Officer Approval:
Mark Scott (by N. Kimball) (12/10/09)
City Manager Approval:
Mark Scott (12/10/09)
RECOMMENDATION:
Staff recommends the City Council and Redevelopment Agency Board adoption
respective Resolutions in support of the Local Taxpayers, Public Safety and
Transportation Protection Act proposed to be considered by the voters on the
November 2010 ballot (Attachment 1).
BACKGROUND/DISCUSSION:
Californians to Protect Local Taxpayers and Vital Services is a coalition of local
governments, transportation advocates, business, labor, public safety and others
with major funding from the League of California Cities (using non-public funds).
This coalition is working to place the Local Taxpayers, Public Safety and
Transportation Protection Act on the November 2010 ballot. This measure would
amend various sections of the California Constitution.
The purpose of this measure, as found in the Initiative Text (Attachment 2), is to
“conclusively prohibit the State from seizing, diverting, shifting, borrowing,
transferring, suspending or otherwise taking or interfering with revenues that are
dedicated to funding services provided by local government or funds dedicated to
transportation improvement projects and services.” City of Culver City, California
Agenda Item Report
The ballot initiative that was filed by the growing coalition working to protect local
revenues and local services would:
• Prohibit the state from taking, borrowing or redirecting local taxpayer funds
dedicated to public safety, emergency response and other vital local
government services (including redevelopment); and,
• Close loopholes to prevent the taking of local taxpayer funds currently
dedicated to cities, counties and special districts; and,
• Revoke the state's authority to borrow local government property tax funds or
divert local redevelopment funds; and,
• Protect vital, dedicated transportation and public transit funds from state
raids; and,
• Prevent state borrowing, taking or redirecting of the state sales tax on
gasoline (Prop.42 funds) and Highway User Tax on gasoline (HUTA) funds
that are dedicated to transportation maintenance and improvements; and,
• Prevent the state from redirecting or taking public transit funds.
Filing the measure with the Attorney General's office was the first step in a process
of qualifying a measure for the November 2010 ballot and securing voter approval.
The coalition is in the process of collecting the approximately 1 million signatures
needed to qualify for the November 2010 ballot.
The City Council is presented with an opportunity to support the attached
Resolution. Supporting the Resolution would be consistent with the Council-adopted
Legislative Advocacy Program. On September 27, 2004, the City Council
considered and adopted a Resolution supporting Proposition 1A, the Satewide Ballot
Initiative preventing the state from taking local government revenues. On
September 25, 2006, the City Council adopted a Resolution supporting Propositions
1A, 1B, 1C, 1D, 1E, and 84 on the November 2006 Ballot. The local government
revenue protection measure in 2004 (Prop 1A) and the transportation revenue
protection measure in 2006 (Prop 1A) included provisions that allow the state to
borrow these funds during fiscal emergencies. However, after several budget
cycles, it has become apparent that these borrowing provisions are negatively
impacting local governments and transportation services and becoming a budgeting
mechanism for the State. Because the state has had the authority to borrow local
government and transportation funds, it has created uncertainty for local
governments such as Culver City to balance its budget.
FISCAL ANALYSIS:
There would be no fiscal impacts associated with adopting the Resolution.
NOTE: In FY 2009-10, the State is borrowing $858,000 from the City’s General Fund
and taking $10.9 million from the Redevelopment Agency, which is being challenged City of Culver City, California
Agenda Item Report
in court by the California Redevelopment Association. The City is participating in a
securitization program so there will be no service impact resulting from the $858,000
Prop 1A loan to the State. However, pending the outcome of current litigation, the
Culver City Redevelopment Agency may lose $10.9 million, which will have a
significant impact on the Agencies financial resources available to address blight in
the City.
ATTACHMENTS:
1. Proposed Resolutions.
2. Initiative Text
MOTION:
That both the City Council and Redevelopment Agency Board:
1A. Adopt respective Resolutions supporting the Local Taxpayers, Public
Safety and Transportation Protection Act on the November 2010 ballot;
OR
1B. Provide other direction to staff as deemed necessary.