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RESOLUTION NO. 68-2009
AUTHORIZING THE CITY ATTORNEY TO COOPERATE WITH THE LEAGUE OF
CALIFORNIA CITIES, OTHER CITIES AND COUNTIES IN LITIGATION
CHALLENGING THE CONSTITUTIONALITY OF ANY SEIZURE BY STATE
GOVERNMENT OF THE TOWN'S STREET MAINTENANCE 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 $10
billion of city property tax revenues statewide, now amounting to over $900 million
each year, to fund the state budget even after deducting public safety program
payments to cities by the state; 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,
immediately jeopardizing the ability of the Town to maintain the Town's streets,
bridges, traffic signals, streetlights, sidewalks and related traffic safety facilities for the
use of the motoring public; and
WHEREAS, under the Governor's proposal, the Town would lose $712,482 for FY 2009-
10, an amount equivalent to approximately 70% of the Town's annual pavement
management budget. The loss of this revenue will seriously compromise the Town's
ability to perform critical traffic safety related street maintenance, particularly when
coupled with declining revenues impacting other services provided by the Town; and
WHEREAS, in both Proposition 5 in 1974 and Proposition 2 in 1998 the voters of our
state overwhelmingly imposed restriction 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, according to a recent statewide needs assessment1 on a scale of zero (failed)
to 100 (excellent), the statewide average pavement condition index (PCI) is 68, or "at
1 California Statewide Local Streets and Roads Needs Assessment, Nichols Consulting Engineers, Chtd. (2008),
sponsored by the League of California Cities, California State Association of Counties and County Engineers
Association of California.
risk." Local streets and roads will fall to IIpoorll condition (Score of 48) by 2033 based on
existing funding levels available to cities and counties; now, therefore, be it
RESOLVED, that the Danville Town Council hereby directs the City Attorney to take
all necessary steps to cooperate with the League of California Cities, other cities and
counties in supporting litigation against the state of California if the legislature enacts
and the governor signs into law legislation that unconstitutionally diverts the Town's
share of funding from the Highway Users Tax Account (HUTA), also known as the "gas
tax, II to fund the state general fund; and, be it further
RESOLVED, that the city clerk shall send this resolution with an accompanying letter
from the mayor to the Governor and local legislators, informing them of the Town's
adamant resolve to oppose any effort to frustrate the will of the electorate as expressed
in Proposition 5 (1974) and Proposition 8 (1998) concerning the proper use and
allocation of the gas tax; and, be it further
RESOLVED, that a copy of this Resolution shall be sent to the League of California
Cities, the local chamber of commerce, and other community groups whose members
are affected by this proposal to reduce the safety of the streets of our Town for
pedestrians, bicyclists and motorists.
APPROVED by the Danville Town Council at a regular meeting on June 16, 2009, by
the following vote:
AYES: Arnerich, Doyle, Andersen, Shimansky, Stepper
NOES: None
ABSTAINED: None
ABSENT: None
APPROVED AS TO FORM:
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CITY ATTORNEY
ATTEST:
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CITY CLERK
PAGE 2 OF RESOLUTION NO. 68-2009