Amador County – Ione City Council next week will consider adopting a resolution opposing the state government’s taking a loan from municipal property tax funding. The resolution is patterned on one sent recently in a memo from Chris McKenzie, Executive Director, of the League of California Cities. The city council will consider passing the resolution that says “a severe fiscal hardship will exist if additional city property tax funds are seized and additional unfunded mandates are adopted by the state of California.” Ione City Manager Kim Kerr in a report to the council Tuesday said the California Department of Finance on May 5th “announced it had proposed to the governor that the state “borrow” more than $2 billion dollars in “local property taxes from cities, counties and special districts to balance the state budget, causing deeper cuts in local public safety and other vital service.” Kerr said in order to start that process, the governor would have to issue a proclamation declaring the existence of a “severe fiscal hardship.” The Legislature would then have to implement the “borrowing” program by passing urgency legislation, with a 2/3rds majority vote, which identifies how the “loan” will be repaid with interest. The Ione resolution notes “cumulative property tax losses of cities statewide” is $8.6 billion. Kerr said Ione has lost $25,524 dollars due to the shift, since the early borrowing began statewide, in the 1990s. If the state “borrows” these funds from Ione, the city will lose approximately 8 percent of its property taxes for fiscal year 2009-2010. In 2007-2008, Ione received $1.49 Million Dollars in property taxes and vehicle license fees. Kerr said if Ione gets the same amount next year and the State “borrows” 8 percent, the city would lose $119,174 for the year. The property tax loss would impact the city’s budget and require reductions to ensure a balanced budget. Kerr recommended the council pass the resolution, which states that Ione “cannot sustain the loss of any more property tax funds or to be saddled with any more state mandates as they will only deepen the financial challenge facing our city.” If passed, copies of the resolution would be sent to the governor, state senators and assembly members and the League of California Cities. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
Wednesday, 13 May 2009 00:35
Ione City Council
Amador County – Ione City Council next week will consider adopting a resolution opposing the state government’s taking a loan from municipal property tax funding. The resolution is patterned on one sent recently in a memo from Chris McKenzie, Executive Director, of the League of California Cities. The city council will consider passing the resolution that says “a severe fiscal hardship will exist if additional city property tax funds are seized and additional unfunded mandates are adopted by the state of California.” Ione City Manager Kim Kerr in a report to the council Tuesday said the California Department of Finance on May 5th “announced it had proposed to the governor that the state “borrow” more than $2 billion dollars in “local property taxes from cities, counties and special districts to balance the state budget, causing deeper cuts in local public safety and other vital service.” Kerr said in order to start that process, the governor would have to issue a proclamation declaring the existence of a “severe fiscal hardship.” The Legislature would then have to implement the “borrowing” program by passing urgency legislation, with a 2/3rds majority vote, which identifies how the “loan” will be repaid with interest. The Ione resolution notes “cumulative property tax losses of cities statewide” is $8.6 billion. Kerr said Ione has lost $25,524 dollars due to the shift, since the early borrowing began statewide, in the 1990s. If the state “borrows” these funds from Ione, the city will lose approximately 8 percent of its property taxes for fiscal year 2009-2010. In 2007-2008, Ione received $1.49 Million Dollars in property taxes and vehicle license fees. Kerr said if Ione gets the same amount next year and the State “borrows” 8 percent, the city would lose $119,174 for the year. The property tax loss would impact the city’s budget and require reductions to ensure a balanced budget. Kerr recommended the council pass the resolution, which states that Ione “cannot sustain the loss of any more property tax funds or to be saddled with any more state mandates as they will only deepen the financial challenge facing our city.” If passed, copies of the resolution would be sent to the governor, state senators and assembly members and the League of California Cities. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
