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Resolution No. 4165322 RESOLUTION NO. 4165 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS PROTESTING THE STATE CUTBACKS AGAINST LOCAL GOVERNMENTS WHEREAS, the State of California has experienced severe budget problems over the past two years and has had difficulty deciding how to address them; and, WHEREAS, the last State budget review process in 1992 continued for 64 days past the deadline and caused considerable delays, difficulties and uncertainties for local governments; and, WHEREAS, the State Legislature and the Governor have exhibited an increasing inclination to reduce levels of funding to local governments while increasing the level of mandated, required, unfunded state programs; and, WHEREAS, the "balanced budget actions" by the State have hampered the City of Cypress in its efforts to serve its citizens, have threatened the financial stability of our City and all local governments and special districts throughout the State, and have compromised the ability of said governments to provide basic services to their citizens; and, WHEREAS, the State's reduction in funds to local governments resulted in both new and increased charges, withholding of traditional revenues, and therefore, forced tremendous cuts in all local budgets; and, WHEREAS, starting in 1990 -91 the City of Cypress was forced to pay $50,000 annually in new County booking fees and $78,000 annually in new charges for property tax collection fees due to State fund reductions; and in 1991 -92, due to further State reductions, 50% of the traditional local government revenues from court fines and forfeitures ($95,000) and cigarette taxes ($35,000) were taken and the funding levels permanently reduced; and WHEREAS, the City's latest cuts from the State for the 1992 -93 budget have resulted in lost property tax ($315,000) transferred to the schools, the taking of the remaining amount of cigarette tax funds ($35,000) and its elimination from any future revenues for the City, the complete elimination of any revenue from trailer coach fees ($9,000), and the lost tax increment from the Redevelopment Agency ($7,800) also shifted to the schools; and WHEREAS, the annual effect of these additional charges and lost revenues were as follows: FY 1990 -91 $ 138,000 FY 1991 -92 258,000 FY 1992 -93 624,800; and WHEREAS, the City of Cypress has been severely impacted by these cuts resulting in the deferral of all capital outlay and general funded capital improvement projects, severely limiting its own expenditure levels, and is facing the possibility of major service level cuts in 1993 -94; NOW, THEREFORE, be it hereby resolved that the City Council of the City of Cypress demands the State of California balance its own budget without raiding the treasuries of local governments and special districts. PASSED AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the 8th day of March, 1993. ATTEST: CITY CLERK OF THE CITY OF CYPRESS MAYOR OF THE CITY(CTF CYPRESS 3'?3 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS I, DARRELL ESSEX, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 8th day of March, 1993; by the following roll call vote: AYES: 5 COUNCIL MEMBERS: Age, Bowman, Nicholson, Partin and Kerry NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None CITY CLERK OF THE ITY OF CYPRESS 2