HomeMy WebLinkAboutAGENDA REPORT 1993 0303 CC REG ITEM 11MCity of Alhambra
Gatewat,
to the
San Gabriel 1Wlev
111
South First Street
Alhambra
California
91801
2?ARK, CALIFG ,''
February 26, 1993 y Council Meeting
btf 199
ACTION
Honorable Mayor & Members of the City Council 17 t I 0/1z
11110
Note: This Letter is being sent to all cities in
California �y-,�
Dear Mayor & Councilmembers:
On February 24, the City of Alhambra and the Alhambra Redevelopment
Agency filed an Original Writ/Complaint with the California Supreme Court
challenging the constitutionality of the FY 92/93 State Budget Legisla-
tion which diverted property taxes from cities and redevelopment agencies
to replace the State's constitutional obligation to fund public educa-
tion. The case is entitled City of Alhambra v. Ikemoto, Case No.
S031350.
The lawsuit, as it relates to cities, is based upon the constitutional
provisions which prohibit the State from using city property tax to fund
state obligations. In particular, the case is designed to reaffirm the
Home Rule powers of a city under Article XI of the State Constitution to
receive and control local tax revenues. The lawsuit asserts that
property taxes are local taxes which may not be used for non -local
purposes -
The argument with regard to redevelopment agencies is that Article XVI
section 16 of the State Constitution prohibits the use of tax increment
funds generated by redevelopment areas for any use other than the direct
benefit of the redevelopment area from which the tax is generated.
This action also challenges the State's ability to preempt local taxes on
tobacco. The power of a city to impose local taxes has long been one of
the fundamental tenets of the Home Rule Doctrine and is supported by
extensive case law. We argue that there is no statewide interest served
by prohibiting local taxation on tobacco.
We urge all cities to write a letter to the Supreme Court requesting that
the Court hear this matter. Since the Court may decide whether or not to
hear this case in a short period of time, the letter should be sent imme-
diately. We believe that the preservation of property tax revenue as
local revenue, which this case seeks to establish, is a crucial issue to
all cities.
Any questions, please contact Julio J. Fuentes, City Manager, at (818)
570-5010, or Leland C. Dolley, City Attorney, at (213) 236-2711.
Sincerely,
CITY OF ALF11TIV-41i
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RECEIVED —�
MAR 0 1 1993
City of Moorpark
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