07-27-2004 CC RPT 01 - Laserfiche WebLink

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LEAGUE OF CALIFORNIA CITIES Received at meeting of: 1400 K Street, Suite 40 Phone: Date:_._2.~_~ 7 -O~d'' cC Item No.:_ TO: FROM: DATE: SUBJECT: Mayors, Council Members and City Managers Chris McKenzie, Executive Director July 27, 2004 Local Government Agreement Update Late last night the Governor announced agreement with the Legislative Leaders on a bipartisan agreement to protect local government funds that will be put in final form and presented to the legislature in the near future. The Governor's announcement follows this memo. On Monday the League board reviewed the proposal and authorized the Executive Committee to endorse it provided the final language carded out the intent of the agreement and the redevelopment increment is adequately protected. In a phone conversation last night with the League officers, Mayor Hahn and Mayor Autry, the Governor pledged to work with us to ensure the drafting of the constitutional amendment and the statutory provisions carried out the terms of the agreement. While we expressed to the Governor our appreciation for his work, we let him know of our concerns that the proposed language concerning redevelopment needed considerable work. As you know, redevelopment is one of the most important programs for producing jobs in the state. The proposal does contain significant protections, including: complete protection of the remaining VLF, the property tax backfill for sales tax in the Triple Flip, the constitutional guarantee to return the 1/4 cent sales tax suspended by the triple flip, complete protection of the Bradley-Bums sales tax, a prohibition against future ERAF shifts, and a requirement of a 2/3 vote to reallocate the property tax (now a simple majority). Our main concern at this time, however, is the likely inadequate protection of a portion of the redevelopment increment from future raids. Over the next few days we will monitor the drafting of the final language and advise you whether our concerns about redevelopment and any other areas have been addressed. We will work actively with the Administration and Legislature on these concerns in an effort to reach a position of fore, al support in the near future. This has been a historic year for the League and local government in general. Thank you for your efforts to support our campaign and to secure constitutional protection of local revenues.