CC – Item 3D – Staff Report – Urgency Action to Consider Resolution 98-14 – Opposing State Efforts to Repeal Vehicle License Fees S
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TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGER
DATE: APRIL28, 1998
RE: URGENCY ACTION TO CONSIDER RESOLUTION NO. 98-14 - OPPOSING
STATE EFFORTS TO REPEAL VEHICLE LICENSE FEES
Late yesterday, the City's Legislative Advocate faxed the attached memorandum stating that the
Governor's Office has made the repeal of vehicle license fees (VLF) a leading priority during this
year's State budget process. At stake is nearly $600 million annually,much of which is received by
local governments. The City of Rosemead alone receives$2 million (more than 22% of the current
general fund budget) in vehicle license fees each year. To date, Assemblymember McClintock.and
others supporting the elimination of the VLF, have stated that they intend to provide a"backfill" for
revenues lost by local governments. However, unless such revenues are constitutionally protected.
those revenues earmarked for local governments will be distributed at the whim of the Legislature.
During periods of economic downturn, or other unforeseen events, it is likely that those revenues to
cities would be reduced or eliminated.
In light of the issues stated above,and because the Legislature will begin discussing this issue before
the next regularly scheduled City Council meeting on May I I, 1998, staff is requesting that the City
Council amend the agenda to consider Resolution 98-14 as an urgency item and approve the staff
recommendation. The City's Legislative Advocate recommends that a copy of the resolution be
forwarded to the members of the Assembly Revenue and Taxation Committee by May 1 I. 1998.
Assemblymember McClintock's bill will he discussed at that time.
Attached is a copy of the memorandum and background information from Anthony Gonsalves and
Resolution No. 98-14. To consider the item, it will he necessary for the City Council to (1) amend
the agenda to include consideration of Resolution 98-14 because of the necessity to take action of
this issue before the next regularly scheduled City Council meeting and (2) vote on the staff
recommendation. A 4/5 majority vote is required to amend the agenda.
COUNCIL. AGENDA
APR 2 81999
ITEM No. id . D
•
RESOLUTION NO. 98-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD OPPOSING THE EFFORTS OF THE CALIFORNIA
LEGISLATURE TO ELIMINATE VEHICLE LICENSE FEES
WHEREAS, in light of a currently sound statewide economy and projected windfall tax
revenues, the State Legislature and Governor's office are exploring the possibility
of eliminating vehicle license fees in the State of California; and
WHEREAS, vehicle license fees have proven to be among the most stable sources of revenue
for local governments since the passage of Proposition 13 in 1978, as indicated by
the fact that the City of Rosemead receives more than 22% of its $9 million
general fund budget in the form of vehicle license fees; and
WHEREAS, vehicle license fees in recent years has proved to be the foundation of available
revenue sources used by local governments to fund necessary police, fire and
other public safety services; and
WHEREAS, though there has been discussion of"backfilling"the revenues lost by local
governments,the City Council of the City of Rosemead does not believe that the
Legislature is in a position to commit scarce discretionary revenues to local
governments, especially during the inevitable periods of economic downturn; and
WHEREAS, the plausibility of gaining legislative and voter approval of a Constitutional
Amendment to protect revenues for local governments is highly unlikely in this
era of cynicism toward government and its motives; and
WHEREAS, in the wake of a devastating statewide recession during the early years of this
decade, it appears overly optimistic to count on an unabated stream of tax
revenues at the State level in lieu of vehicle license fees.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES
HEREBY RESOLVE:
L To oppose the current effort to rescind vehicle license fees in California unless the
Legislature can ensure a simultaneous Constitutionally protected source of funds to
"backfill" revenues lost by local governments.
2. Authorize the Mayor to send all necessary correspondence to the State Legislature and
Governor's office stating the Council's opposition.
3. Authorize the City Clerk to send certified copies of this resolution to the League of
California Cities, the California Contract Cities Association and other entities
interested in protecting the current vehicle license fee.
DONE THIS 28TH DAY OF APRIL, 1998.
RPR 27 '98 24: 11P1 GONSALVES & SON P. 1/5
4.
Joe A. Gonsalves
Anthony EDGB25LET.•SUI
IX GonsalvesDK
+) If 11 PARK EXECUTIVE BL .• TE 250.SACRAMENTO,CA 65914-0904
%If•441-1166? • • • MX B16.4415061
1?
1I'
FAX COVER SHEET
DATE: April 27. 1998 TIME:
TO: City Manager
FROM: Joe and Anthony Gonsalves
NUMBER OF PAGES: 5 INCLUDING COVER SHEET
MESSAGE: Urgent memo regarding Vehicle License Fee Legislation. Sacramento
Bee newspaper article. and a list of the Assembly Revenue and Taxation Committee
Members.
FAX NUMBER (916) 441-5061
INFORMATION TELEPHONE NUMBER (916) 441-0597
APR 27 '99 04: 11=M GONSALVES & SON
P.2/5
Joe A. Gonsalves
i • Anthony D. Gonsalves
+Irill PARKOFEXEOUAL B IOSL TIVE REPRESENTATION
i� 925 L ST•SUITE 250.SACRAMENTO,CA 95914-2>0'
BIG•441-0597 • • • FAX 9I6.4tlSU61
iI
I
. J
T0: City Manager
FROM: Joe and Anthony Gonsalves
DATE: April 27, 1998
RE: Vehicle License Fee Legislation
Attached is a copy of a newspaper story that appeared in the
Sacramento Bee on Saturday, April 25, 1998 .
The sounds coming from the Governor's office, until now, have been
that there would probably be no support for this proposal of
eliminating the vehicle license fee. However, as you can tell by
the story in the Bee, it states that the administration officials
have said the idea is a leading priority as they make final
adjustments to the proposed new State budget.
According to the newspaper story, the Howard Jarvis tax group has
mailed out thousands of petitions on this issue, and has directed
supporters to telephone the Governor's office.
Assemblyman McClintock' s office has petitions with 10, 000
signatures backing the proposal , according to Chief of Staff Kirk
Hudson.
It is extremely urgent that we respond to this immediately.
The first thing I recommend you do is get the support of your
safety members, your police department, and your fire department.
If you are contracting with the county, make sure that your county
sheriff' s office is in support of your position. Make sure that
your fire department is in support of your position, and make sure
they communicate their opposition to this proposal to the
Governor's office and to the Legislators in their district.
The second recommendation I have is that the Mayor and the Council
Members individually, and collectively by resolution of the City
Council, express their strong opposition to Governor Pete Wilson
and to the Members of the Legislature who represent them.
APR 27 '98 04:11°M GONSPLVES & SON P.9/5
I would recommend each Mayor and Council Member take the time to
call their Senator and Assemblymember. Talk to them personally
about this, and urge them to oppose this proposal.
I believe it would be important for you, the City Managers, to
provide information to your Mayor and Council Members, and your
fire and police departments, as to the impact on the city unless
this proposal is defeated.
I would provide them with dollar amounts, percentages of your
budget, and any other adverse affects that would take place by the
imposition of this onerous proposal.
Remember, at this time the Governor is not yet supporting this
proposal. The Governor's office ie gathering all the information
they can before deciding on what will and will not be in the State
budget. So, it is very important you immediately communicate your
opposition, and with great numbers, to offset what ie being done by
the other side.
The McClintock bill, AH 1776, is tentatively set for hearing on
Monday, May 11 in the Assembly Revenue and Taxation Committee at
1:30 p.m. in room 126.
I have attached the names of the Chairman, the Members of the
Committee, the room numbers, fax numbers, and telephone numbers .
It is critical that they hear from you immediately, and constantly,
until the day of the hearing. In addition, the city should send
someone to represent them at the hearing in opposition to AS 1776 .
If you have any questions, or wish to discuss this with Anthony and
me, please do not hesitate to call .
75
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RPR 27 '9B 04:12PM GONSALVES & SON P.SiS
!EMBERS OR THE ASSEMBLY REVENUE AND TAXATION COMMITTEE
MEMBER ROOM PHONE (916) FAX (916)
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