CC - 1973-40 - State and Local Fiscal Assistance Act of 1972A .
RESOLUTIbN'73-40
'A RESOLUTION OF THE CITY COUNCIL OF THE CITY'
OF ROSEMEAD URGING REVISION OF THE STATE AND
LOCAL. FISCAL ASSISTANCE ACT'OF 1972 TO GIVE
GREATER CREDIT TO CITIES WHICH DO.NOT.LEVY A
PROPERTY TAX.
n WHEREAS,'allocations and payments are currently being
processed and paid_to'local public entities under the State and
Local Fiscal -Assistance Act of 1972; and
WHEREAS Sections 108 and 109 of said Act provide the
entitlements-, 'definitions and rules for allocation 'formulas;
and
WHEREAS; Subsection (e) of Section 109'allows credit
for certain sales aaxes,as part of the "tax effort" factor
whicY is included in the allocation formula, but does not allow
that-credit to such a degree or in such a-way,as to adequately
recognize the,tax effort'and sound fiscal policies of cities
which do-not 'levy a;.property tax; and
WHEREAS, the City of Rosemead, as a result of 'sound
fiscal management and conscientious fiscal control, has been
able to operate said city,without the imposition of a city
property tax; and
WHEREAS, while the City of Rosemead does not impose
a property tax, services normally considered to be'governmen-
tal in character are provided through other financing sources,
such as special assessment district taxes, private enterprise
service charges for services such as trash collection, fran-
chise taxes, and a fire protection district tax. All of said
a
services and the charges therefor are often included in city
property taxes in other cities and represent a service effort
on which "tax effort" may be more properly compared for revenue
sharing purposes; and
WHEREAS, the 'City of Rosemead, and other cities like
it, which do not impose a property tax, should receive a more.
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73 -
favorable allocation of monies under the State and Local Fiscal
Assistance Act of 1972, and not be penalized as a result of good
money management;
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Rosemead that this City Council hereby emphatically
condemns the present inequity in the allocation of revenue-sharing
funds and goes on record in favor of a revision to the State and
Local Fiscal Assistance Act of 1972, to provide a greater allocation
of revenue-sharing money to cities which exercise sound fiscal
management and as a result do not impose a property tax and which,
by the delegation of service activity to special district service fees
and free enterprise charges, do not directly levy all of the customary
service taxes which are presently a component resulting in the com-
putation of "tax effort" for revenue-sharing purposes; and
BE IT FURTHER RESOLVED that the City Clerk of the City
of Rosemead'is hereby directed to certify this Resolution and forward
copies of same to Richard M. Nixon, President of the United States,
to Alan Cranston, U.S. Senator from California, to John Tunney,
U.S. Senator from California, to George E. Danielson, Representative,
29th Congressional District of California, to the members of the
Board.of Supervisors of Los Angeles County, to Ronald Reagan, Governor
of the State of California, State Senator Alfred H. Song and Harvey
Johnson and Walter-l}arabian, Members of the California State Assembly.
PASSED AND ADOPTED this 13th day of March, 1973.
HERBERT R. HUNTER '
Mayor
ATTEST:
JENN AVENPORT
ty Clerk
I, JENNY E. DAVENPORT, CITY CLERK OF THE CITY OF ROSEMEAD, CALIFORNIA
DO HEREBY CERTIFY that the foregoing is a full, true and correct copy
of Resolution No. 7,3-.40sadopted by the City Council of the City of
Rosemead on the 13th day of March, 1973•
City Clerk
-2- March 19, 1973