HomeMy WebLinkAboutAGENDA REPORT 1993 0804 CC REG ITEM 08JTO:
FROM:
DATE:
SUBJECT:
Background
AGENDA REPORT
CITY OF MOORPARK
Honorable City Council
ITEM �• �•
zOoRPARK, CALIFORNIA
C!ty Council Meeting
of _tt__ -199-
ACTION:
By CCti
Mary K. Lindley, Assistant to the City Manager)}i'1
July 29, 1993
Consider Senate Bill 1234, Local Government Revenue
If passed, SB 1234 (Bergenson and Isenberg) would impound local
revenues effective July 7, 1994. The bill is strongly opposed by
the League of California Cities and the California Contract Cities
Association.
Specifically, SB 1234 would: 1) suspend the distribution of local
property tax ($17 billion) and state vehicle license fee ($2.4
billion) revenues to local agencies, 2) repeal the authority to
levy local sales tax ($3.9 billion), and 3) sequester 70% of the
state sales tax ($10 billion). The property tax revenue would be
deposited and held in a special fund to be created in each county
for such purposes. The vehicle license fee and sequestered sales
tax revenue would be deposited into the Special State Sequester
Fund, created by the bill. The bill would also prohibit new
redevelopment projects after July 1, 1994. Finally, the SB 1234
establishes a 12- member Joint Legislative Committee on Realignment
to evaluate state and local public services and recommend how
delivery of those services should be organized and financed.
SB 1234 is intended to be a means to encourage a comprehensive
review of state -local fiscal relationships. The author's objective
is to bring the state and local governments to the table for a
serious discussion on the public finance structure. The rationale
is that if there is no risk, i.e., loss of money, no serious
dialogue will take place.
Consider SB 1234
July 29, 1993
Page 2
The Joint Legislative Committee would be required to submit a final
report by March 1, 1994. In the absence of any subsequent
legislation, the over $33 billion in sequestered funds affected by
this bill would not be available to finance any state, local or
school programs after June 1, 1994.
SB 1234 was approved by the Senate and has been assigned to the
Assembly Local Government Committee.
Recommendation
Staff recommends that the Council direct the Mayor to write a
letter to Moorpark's State representatives and the members of the
Assembly Local Government Committee expressing the City's
opposition to SB 1234.