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03/27/1997 15:40 813-358-5556 T ENV. SVCS. PAGE 04/05 F COVI N .114, �� 125 East College Street a Covina, California 91723-2199 MSH 25,1997 To- SWATE REVENIX AND TA 'nON COM1 MEMBERS FROM, 1901 THOMAS M. 01EAAY, MAYOFf PF COVINA SUBJECT: gEWATE BILL 1310 (JOIBQSO T, MARG "'TT, 1VAfiflLITt NO) SA132S TAX VOTER 0i'310N-$Fr FOR APPdL 16,1997 SB 1310 will provide cities and counties with the option to establish a voter - approved permanent anddependable source of revenue without a tax increase and without impacting serol funxiing. This option is extretteiy important to Cities and our city fully supports the islet of voter participation in how revenue is distributed been cities and the state. 1310 would allow vowss in earn city or county to reduce the stage sales tax rate by 1% and establish a new 1% sales tax rate dedicated to local government. In approving jurisdictions, the rate dwitge would be phased in. saver 5 years at .2% per year, until the ft 1% nate change is ar plished. The revenue from the new sale tax sra#e old be distrr`iauted to the participating jurisdictions on a per capita basis. SB 1310's impact an the state would depend on how many jurisdictions' voters approve the m easmv, as well as what revenues flaw from the sales tax. Schools axe helm harmless. The mill will not impact the states proposed budget since the revenue shift would not gra into effect untLI 19%-99. As you know, cities have the responsibility to provide We communities by funding police, fire and enx-zgenry medical services. Cities also maintain public infrastructure including streets, libraries and parks. Yet, in the last several years cities' revenue base has been eroded by state takeaways and by state -imposed unfunded mandates- Moreover, voters have restricted citiesrevenue raising ability and have demanded more accoun:tabthty through Propositions 13, 62 and 218 without fully realizing that nnotst of their taro dollars actuehy go to support the state or state -funded services Schools we requestmg more service from cities, such as community resouroe officers, crossing guards, and evert intersection improvements to accommodate the added number of students ga ng to middle schools clue to class size reductions. MAR -27-199? -16:34 Sib E358 5556 P.04