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RESOLUTION NO. RESOLUTION OPPOSING ASSEMBLY BILL 680 - REALLOCATION OF LOCAL SALES TAX REVENUES WHEREAS, the City of Redwood City recognizes that local sales taxes are among the last, and most important, remaining regular sources of revenue for cities and counties; and WHEREAS, sales tax represents over 30% of all revenues for the City of Redwood City; and WHEREAS, Assembly Bill 680 would give the State the authority to reallocate the growth in city and county shares of local sales tax revenues in the Sacramento region, as a pilot program for the rest of the State; and WHEREAS, a reallocation of local sales tax growth represents a potential loss of sales tax revenue, which any city can ill-afford in light of current economic conditions; and WHEREAS, the effects of this bill will further erode local control over land use decisions and the ability to raise revenues for local services, and will create a disunity among the fiscal 'winners and losers' that will result; and WHEREAS, the provision of funding source 'bonuses and priorities' to the bill's affected jurisdictions will give them an unfair advantage over and be at the expense of any other jurisdiction in California, not just those in the affected region, including Redwood City; and WHEREAS, if enacted as a pilot program, this concept of reallocating local sales tax would be expected to extend to other communities, including the Bay Area and Redwood City, where its negative impacts would be felt; and WHEREAS, California cities' experience with the State's existing authority to reallocate local funding sources has clearly been detrimental, and with the State again deliberating ways to divert local funds to help offset its budget deficit, it would not be prudent to provide the State with additional authority to reallocate local funds. NOW, THEREFORE, BE IT RESOLVED THAT THE COUNCIL OF THE CITY OF REDWOOD CITY OPPOSES ASSEMBLY BILL 680 - REALLOCATION OF LOCAL SALES TAX REVENUES F:Atty/Reso/Reso,1274 013002