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THE CITY OF 3 <br /> CITY COUNCIL AGENDA REPORT <br /> PL-EASANTONb <br /> June 2, 2009 <br /> City Manager <br /> TITLE: ADOPT RESOLUTION FINDING A SEVERE FISCAL HARDSHIP WILL <br /> EXIST IF ADDITIONAL LOCAL PROPERTY TAX FUNDS ARE SEIZED <br /> AND ADDITIONAL UNFUNDED MANDATES ARE ADOPTED BY THE <br /> STATE OF CALIFORNIA <br /> SUMMARY <br /> State legislators may consider a proposal to borrow $2 billion dollars in local property <br /> taxes from cities, counties and special districts to balance the state budget. This <br /> represents an impact of $4.5 to $4.7 million to the City of Pleasanton. In addition, many <br /> legislative bills still being considered may result in new costs to local agencies due to <br /> unfunded mandates. Municipalities are experiencing serious revenue losses as a result <br /> of the current economic recession and, in conjunction with the League of California <br /> Cities, are opposed to a proposal to further shift local property taxes from local <br /> government to offset a structural deficit at the State level or implementing new unfunded <br /> mandates on local agencies. <br /> RECOMMENDATION <br /> Adopt the attached resolution finding a severe fiscal hardship as a result of the State's <br /> borrowing proposal and its interest in establishing new unfunded mandates on local <br /> agencies. <br /> FINANCIAL STATEMENT <br /> There is no financial impact to the City as a result of this action. However, the current <br /> State proposal could result in an immediate loss between $4.5 to $4.7 million. <br />