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WHEREAS, the combined effects of the seizure of the City's property taxes, increasing unfunded state mandates, and the revenue losses due to the economic downturn have placed the city's budget under serious fiscal pressure; and WHEREAS, our city simply cannot sustain the loss of any more property tax funds or be saddled with any more state mandates as they will only deepen the fmancial challenge facing our city; and WHEREAS, a number of the City's fmancial commitments arise from contracts, including long term capital leases and debt obligations which support securities in the public capital markets, that the City must honor in full unless modified by mutual agreement of the parties. NOW, THEREFORE, the City Council of the City of San Leandro does RESOLVE as follows: The City of San Leandro will experience a severe fiscal hardship if the recommendation of the Department of Finance to "borrow" $2 billion of local property taxes is supported by the Governor and the Legislature, and it is further RESOLVED, that the City Council strongly and unconditionally opposes the May 5 proposal of the Department of Finance and any other state government proposals to borrow or seize any additional local funds, including the property tax, redevelopment tax increment, and the City's share of the Prop. 42 transportation sales tax, and it is further RESOLVED, that the City Council strongly urges the state legislature and Governor to suspend the enactment of any new mandates on local governments until such time as the economy has recovered, and urges the state to provide complete funding for all existing and any new mandates, and it is further RESOLVED, that the City Clerk shall send copies of this resolution to the Governor, our state senator, our state assemblymember and the League of California Cities. Introduced by Councilmember Prola and passed and adopted this 1St day of June, 2009, by the following called vote: Members of the Council: AYES: Councilmembers Gregory, Prola, Souza, Starosciak, Stephens; Mayor Santos (6) NOES: None (0) ABSENT: Councilmember Reed (1) ATTEST: V ~~Cli1~'~ ~-tl~-~ Marian Handa, City Clerk RESOLUTION NO. 2009-074 2