ARA-2009-006RESOLUTION NO. ARA- 2009 -006
A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM
REDEVELOPMENT AGENCY OPPOSING AN ATTEMPT BY THE STATE
LEGISLATURE TO SEIZE THE LOCAL SHARE OF REDEVELOPMENT TAX
INCREMENT AS PART OF THE STATE BUDGET, AND AUTHORIZING THE
EXECUTIVE DIRECTOR, IN CONSULTATION WITH THE CITY ATTORNEY,
TO TAKE SUCH LEGAL ACTION AS IS APPROPRIATE TO CHALLENGE
SUCH ACTION BY THE STATE LEGISLATURE
WHEREAS, the current economic crisis has placed cities and redevelopment
agencies under incredible financial pressure and caused them to make significant budget
cuts, including reductions in direct services to keep spending in line with declining
revenues; and
WHEREAS, the Governor and Legislature are now considering seizing $350
million of redevelopment tax increment statewide each year for three years, beginning in
the current fiscal year; and
WHEREAS, on April 30, 2009, in the case of CRA v. Genest, the Sacramento
Superior Court found similar efforts by the State to seize redevelopment tax increment
for the state general fund to be in direct violation of Article XVI, Section 16 of the State
Constitution, added by the voters in 1952 as Proposition 18, which requires that tax
increment be used exclusively for the benefit of redevelopment project areas; and
NOW, THEREFORE, BE IT RESOLVED THAT THE GOVERNING
BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY hereby opposes the
taking of redevelopment tax increment to balance the State Budget; and
BE IT FURTHER RESOLVED, that the Executive Director, in consultation
with the City Attorney, is hereby authorized to take appropriate legal action, in
cooperation with other redevelopment agencies, against the state of California if the
Legislature enacts and the Governor signs into law legislation that diverts redevelopment
tax increment to fund state general fund obligations; and
BE IT FURTHER RESOLVED, that the Executive Director shall send a copy
of this resolution with an accompanying letter from the Chairman to the Governor and
each Legislator, informing them of the Redevelopment Agency's adamant resolve to
oppose any effort to frustrate the will of the electorate as expressed in Proposition 18
(1952), concerning the proper use and allocation of the redevelopment tax increment.
THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED
BY THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT
AGENCY THIS TWENTY -THIRD (23') DAY OF JUNE, 2009, BY THE
FOLLOWING ROLL CALL VOTE:
AYES: Chairman Pringle, Agency Members Hernandez, Sidhu, Galloway, Kring
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
ANAHE DEVE NT AGENCY
B
CHAIRMAN
ATTEST 2Fr %
SECRETARY
2