HomeMy WebLinkAbout5.3 LtrSenatorBoatwrightSB1234
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: July 26, 1993
SUBJECT:
Written Communication: Letter from Senator Daniel
Boatwright regarding Senate Bill 1234 (Bergeson)
(Prepared by: Richard C. Ambrose, City Manager)
. ~Letter from Senator Boatwright dated July 16, 1993
. ~. Senate Bill 1234
EXHIBITS ATTACHED:
RECOMMENDATION~ ARS -Direct Staff to prepare a letter to local state
(i/v legislators expressing the City's opposition to SB 1234
FINANCIAL STATEMENT:
Approximately 79% of the City's General Fund
Revenues would be impounded by the state on July
1, 1994 unless the service/fiscal structure
between Local, County, and state Government was
revised.
DESCRIPTION: The City has received a letter from Senator Daniel
Boatwright requesting the City's opposition to SB 1234 (Bergeson).
SB 1234 has a laudable objective of forcing the State Legislature to
address the repeated annual State Budget crisis by forming a special
Legislative Committee to develop a plan to realign the fiscal/service
responsibilities between the State and Local Agencies.
In order to facilitate serious discussion and the development and
implementation of fiscal/service realignment, this bill impounds Local
Property Taxes, Local Sales Taxes, Vehicle License Fees, and $10 billion in
State Sales Taxes if the Governor and Legislature fail to act upon the
Special Legislative Committee's recommendations by July 1, 1994. For
Fiscal Year 1993-94, it is estimated that approximately $10.2 million of
the City's $13 million in General Fund Revenues would be subject to impound
by the State. This could have serious operating consequences to the
community in terms of jeopardizing the City's ability to provide even basic
services.
According to the League of California Cities, this bill has passed the
Senate and is now in the Assembly. If this bill is passed by the Senate
and signed by the Governor. It would be effective January 1, 1994. Given
the Legislature's past budget performance, two months would not seem to be
adequate time to prepare a report recommending realignment of state and
local responsibilities with a remaining four months for passage in the
Senate and Assembly and approved by the Governor.
It is Staff's recommendation that the Council direct Staff to prepare a
letter for the Mayor'S signature opposing SB 1234.
ITEM NO. , . j
COPIES TO:
CITY CLERK
FILE ~
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PLEASE REPLY TO
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MEMBER.
BANKING, COMMERCE
& INTERNATIONAL TRADE COMMITTEE
BUDGET AND FISCAL REVIEW
COMMITTEE
SACRAMENTO ADDRESS
- ROOM 3086. STATE CAPITOL
SACRAME:NTO 95814
TELEPHONE, {9161 445-6083
I; I;
CENTRAL COUNTY
1001 GAlAXY WAY
Co. SUITE 210
CONCORD 94520
TELEPHONE, {5101 689-1973
~tnatt
<!!a I ifumia 1Jltgislaturt
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EAST COUNTY
420 W. THIRD STREET
ANTIOCH 94509
TELEPHONE,15101754-3011
DANIEL E. BOATWRIGHT
CHAIRMAN
ELECTIONS AND REAPPORTIONMENT
COMMITTEE
REVENUE AND TAAATIQN COMMITTEE
TRANSPORTATION COMMITTEE
CHAIRMAN,
BUDGET SU8COMMITTEE NO 4
ON LEGISLATIVE, EXECUTIVE.
BUSINESS. TRANSPORTATION,
HOUSING, AND GENi::RAL
GOVERNMENT
COMMITTEE ON BUSINESS AND PROFESSIONS
July 16, 1993
CHAIRMAN:
SUBCOMMITTEE ON SPORTS
CHAIRMAN,
SELECT COMMITTEE ON
STATE PROCUREMENT AND
EXPENDITURE PRACTlCES
REPRESENTING'
SEVENTH SENATORIAL DISTRICT
Honorable Pete Snyder
Mayor, City of Dublin
P.o. Box 2340
DUblin, CA 94568
Dear Mayor Snyder:
Enclosed is a copy of a bill, SB 1234 (Bergeson), which
should be of critical concern to the City of Dublin.
SB 1234 was introduced to address the perceived need to
realign the fiscal and programmatic relationships between the
state and local agencies -- a goal that many of us consider
laudable.
However, in attempting to ensure that the Legislature and
Governor reach consensus on some form of realignment, Senator
Bergeson has included a "penalty" provision in SB 1234 that will
almost certainly result in the shutting down of the operation of
your city as of July 1, 1994.
SB 1234 creates a twelve-member committee to make
recommendations on changes that should be made in the existing
state-local alignment. If the LegiSlature and Governor fail to
act upon the committee's recommendations by July 1, 1994, SB 1234
specifically requires that all property taxes, local sales taxes,
vehicle license fees and state sales taxes be sequestered as of
that date.
Lest it be forgotten so quiCkly, this year was the first time
in the past seven years that the Legislature and Governor were
able to agree upon our budget by our constitutional deadline.
There is absolutely no basis for assuming that the
Legislature and Gdvernor will be able reach consensus on an issue
as far-reaChing as the reordering of the state-local government
financing and programmatic relationship by this deadline.
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July 16, 1993
The sequestering of these monies will mean that your city has
no money to operate -- no money to pay for police services, fire
protection services or any other of the myriad of local
government services that you are responsible for funding and
operating.
While I didn't hear from any of my cities on this bill, I
spoke vehemently against SB 1234 when it was on the Senate Floor
yesterday because of the serious implications that it will have
for your city and every other city in my district if it becomes
law. -
Defeat of this legislation should be of utmost concern to
your council. I cannot possibly stress in any stronger terms the
urgency of contacting Assemblymember Rainey to urge his
opposition to this bill while it is under consideration in the
Assembly.
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CJSinc~;~~t signed by: ~
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Enclosure
cc: Richard Ambrose, city Manager/
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