HomeMy WebLinkAboutRes 06-40 Return of Full Funding of Proposition 42CITY OF PALM DESERT
Community Services Division
Staff Report
REQUEST: REQUEST FOR ADOPTION OF RESOLUTION NO. 06- 40
SUPPORTING THE RETURN OF FULL FUNDING OF PROPOSITION
42
SUBMi i i er.r BY: Patricia Scully, CFEE, Senior Management Analyst
DATE: March 23, 2006
CONTENTS: Resolution No. 06-40
RECOMMENDATION:
Waive further reading and adopt Resolution No. 06-40 , relative to funding of Proposition 42.
EXECUTIVE SUMMARY:
The California Constitution provides for transportation improvement projects through the
passage of Proposition 42. Currently, Proposition 42 funds are being used for General Fund
accounts. Adoption of this resolution would secure future local transportation funding.
BACKGROUND:
Proposition 42 was placed on the ballot in 2001 as a Constitutional amendment. As passed,
until the year 2008, the State's share of sales tax on gasoline will be largely spent on 141
transportation projects contained in the State's Traffic Congestion Relief Fund. After 2008,
money collected from this tax would be divided by a different calculation, and municipalities
would receive a full 20% of this funding. However, these funds have been diverted from the
Traffic Congestion Relief Fund to the State General Fund to assist in decreasing the budget
deficit and to be used for other General Fund projects. This resolution demonstrates the City
of Palm Desert's support of returning Proposition 42 money to local transportation projects.
CITY COUNCIL STAFF REPORT MARCH 23, 2006
RE: REQUEST FOR ADOPTION OF RESOLUTION NO. 06- 4o SUPPORTING THE
RETURN OF FULL FUNDING OF PROPOSITION 42
Therefore, staff recommends that the City Council waive further reading and adopt Resolution
No. 06-40 and notify the League of California Cities of its support.
PATRICIA SCULLY, CFEE
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CARLOS L. (WTEGA
CITY MANAGER
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RESOLUTION No. 06-40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, IN SUPPORT OF MEASURE TO SECURE LOCAL
TRANSPORTATION FUNDING
WHEREAS, the City of Palm Desert engages in periodic capital improvement
assessments and planning relating to the condition of its transportation infrastructure; and
WHEREAS, the City of Palm Desert is concerned that it is not able to maintain its
transportation infrastructure consistent with public works best practices because of limited
funding availability; and
WHEREAS, constraints on the City of Palm Desert's ability to fully fund local
transportation infrastructure projects adversely affect residents, visitors, and businesses
within the City; and
WHEREAS, the City had anticipated receiving monies for this purpose as the result
of Proposition 42, approved by the State's voters in March 2002, which dedicated the State
sales tax paid on gasoline to State and local transportation infrastructure projects and
programs; and
WHEREAS, Proposition 42 contains a provision that allows the State to transfer the
sales tax on gasoline to non -transportation State purposes during times of fiscal need; and
WHEREAS, as a result, some $2.5 billion in Proposition 42 monies has been spent
over the past three years for non -transportation purposes; and
WHEREAS, a measure is being circulated to qualify a Constitutional amendment
for the November 2006 ballot that would ensure that future revenues raised by Proposition
42 are dedicated to State and local transportation projects only; and
WHEREAS, the measure also requires the State to reimburse the $2.5 billion in
funds previously spent on non -transportation expenses to be repaid in ten (10) years; and
WHEREAS, ensuring that Proposition 42 revenues are used solely#ortransportation
projects, along with the reimbursement of prior revenues, will greatly assist the City of Palm
Desert in meeting its street maintenance obligations to the benefits of its residents, visitors,
and businesses.
RESOLUTION NO.06-40
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Palm
Desert, California, does hereby support a Constitutional amendment to ensure that
Proposition 42 revenues are used exclusively for State and local transportation projects
and that revenues previously used to offset non -transportation purposes be reimbursed.
PASSED, APPROVED, and ADOPTED by the City Council of the City of Palm
Desert, California, this day of , 2006, by the following vote, to
wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
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JIM FERGUSON, MAYOR