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Resolution Number 04-10-19-02RESOLUTION NO. 04-10-19-0 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, SUPPORTING PROPOSITION 1A AND OPPOSING PROPOSITION 65 WHEREAS, The state has taken more than $40 million from cities, counties and special districts in the last 12 years; and WHEREAS, Proposition 1A is a historic bipartisan agreement between the governor, local governments, legislators, public safety officials, healthcare advocates, taxpayers and community leaders. Proposition 1A prevents the State Legislature from taking and using local government funds; and WHEREAS, cities and counties agreed to $2.6 billion in cuts over the next two years. In exchange, the governor and legislative leaders are supporting Proposition 1A, which not only will prohibit future raids but require the state to pay for any services it mandates on local government; and WHEREAS, Proposition 1A was intentionally written to allow flexibility and provide the governor and legislature with options — but only in the event of a "significant state fiscal hardship". Under the provisions of Proposition 1A, beginning in 2006-07, if the governor proclaims a "significant state fiscal hardship", the legislature may suspend the constitutional protection and may borrow local property taxes only under certain conditions; and WHEREAS, Proposition 65 was placed on the ballot earlier this year, prior to the historic, bipartisan July agreement that placed Proposition 1A on the November ballot; and WHEREAS, The cities agreed to provide the state with short-term contributions from local governments to help the state out of its immense budget problems, and the governor agreed to work with the legislature to place Proposition 1A on the ballot and to actively campaign for passage of Proposition 1A this fall; and WHEREAS, Proposition 65 will continue to be on the ballot, but all of the official sponsors of Proposition 65 are now opposing Proposition 65 and supporting Proposition 1A as a better, more flexible approach to protect funding for local governments and local services; and WHEREAS, Proposition 1A will not raise taxes and, in fact, will help reduce pressure for local fee and tax increases by limiting state raids of local government funding, and fN1SPIK1Zi111 WHEREAS, Proposition 1A does not reduce funding for schools or any other state program or service, and Proposition 1A was carefully written to allow flexibility in the event of a state budget emergency; and WHEREAS, Proposition 1A is supported by a bipartisan, diverse coalition including Governor Schwarzenegger, Democratic and Republican legislative leaders, local government officials, public safety representatives, healthcare, business, labor and community leaders; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano hereby supports Proposition 1A and opposes Proposition 65. ATTEST: PASSED, APPROVED, AND OJI -PTRD ttxrs PPP day of October 2004. JOE NAHAN, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. 04-10-19-02 was duly adopted by the City Council of the City of San Juan Capistrano at a regular meeting thereof, held the 19'" day of October 2004, by the following vote: AYES: COUNCIL MEMBERS: Allevato, Bathgate, Hart & Mayor Soto NOES: COUNCIL MEMBERS: Swerdlin ABSTAIN: COUNCIL MEMBERS: None 10-19-2004