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2/4/02 <br />O R I G I N A L <br />RESOLUTION NO. 14414 <br />RESOLUTION OPPOSING ASSEMBLY BILL 680 — <br />REALLOCATION OF LOCAL SALES TAX REVENUES <br />WHEREAS, the City of Redwood City recognizes that local sales taxes are <br />among the last, and most important, remaining regular sources of revenue for <br />cities and counties; and <br />WHEREAS, sales tax represents over 30% of all revenues for the City of <br />Redwood City; and <br />WHEREAS, Assembly Bill 680 would give the State the authority to <br />reallocate the growth in city and county shares of local sales tax revenues in the <br />Sacramento region, as a pilot program for the rest of the State; and <br />WHEREAS, a reallocation of local sales tax growth represents a potential <br />loss of sales tax revenue, which any city can ill -afford in light of current economic <br />conditions; and <br />WHEREAS, the effects of this bill will further erode local control over land <br />use decisions and the ability to raise revenues for local services, and will create a <br />disunity among the fiscal `winners and losers' that will result; and <br />WHEREAS, the provision of funding source `bonuses and priorities' to the <br />bill's affected jurisdictions will give them an unfair advantage over and be at the <br />expense of any other jurisdiction in California, not just those in the affected region, <br />including Redwood City; and <br />WHEREAS, if enacted as a pilot program, this concept of reallocating local <br />sales tax would be expected to extend to other communities, including the Bay <br />Area and Redwood City, where its negative impacts would be felt; and <br />WHEREAS, California cities' experience with the State's existing authority <br />to reallocate local funding sources has clearly been detrimental, and with the <br />State again deliberating ways to divert local funds to help offset its budget deficit, <br />it would not be prudent to provide the State with additional authority to reallocate <br />local funds. <br />NOW, THEREFORE, BE IT RESOLVED THAT THE COUNCIL OF THE CITY OF <br />REDWOOD CITY OPPOSES ASSEMBLY BILL 680 — REALLOCATION OF <br />LOCAL SALES TAX REVENUES <br />F:Atty /Reso /Reso.1274 <br />013002 <br />