2000 AGN JUN 06 I17 - Laserfiche WebLink

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City of Colton AGENDA REPORT FOR CITYCOUNCIL MEETING OF JUNE 6, 2000 TO: HONORABLE MAYOR PRO TEM AN CITY COUNCIL APPROVAL: HENRY T. GARCIA, CITY MANAGE FROM: AL HOLLIMAN, FINANCE DIRECTOR SUBJECT: SUPPORT STATE/LOCAL FISCAL REFORMS DATE: May 23, 2000 BACKGROUND: Recent declines in federal, state and county aid to cities along with major reductions in property tax distributions have substantially undermined the stability of local revenues. There have been various legislative attempts in recent years to enact fiscal reform for local government including efforts to reverse the negative impacts of the property tax shift to the Education Revenue Augmentation Fund (ERAF). None of these efforts have resulted in any significant positive reforms for local government. DISCUSSION/ANALYIS: The decline in aid to cities from other governmental agencies and the decline in property tax revenues have led to service and program reductions in cities throughout the State of California. Due to the uncertain funding from intergovernmental sources, cities have become increasingly reliant on local sales tax revenues & fees. Reliance on sales tax revenues by cities may place an undue emphasis on retail land development proposals in comparison with other competing desirable uses such as industrial and residential development. The League of California Cities has appointed a special task force and charged it with formulating recommendations for addressing the major problems in the state/local fiscal relationship in California, and the means to achieve greater balance and predictability in local revenue systems and land use decision-making. FINANCIAL IMPACT: None ENVIRONMENTAL IMPACT: None RECOMMENDATION: It is recommended that the Council recognize and support state/local fiscal reforms that are necessary to provide a stable and reliable revenue source to fund essential services, and adopt the attached resolution R 00 Item # 17