CC - 2003-03 - Urging CA Legislature to Reject the Proposed Shift of Vehicle License Fee•
RESOLUTION NO. 2003-03
A RESOLUTION OF THE ROSEMEAD CITY COUNCIL URGING THE
CALIFORNIA LEGISLATURE TO REJECT THE GOVERNOR'S PROPOSED
SHIFT OF LOCAL VEHICLE LICENSE FEE (VLF) REVENUES AND TO HONOR
THE 1998 COMMITMENT TO RESTORE THE VLF
WHEREAS, prior to 1935, cities and counties collected property taxes on motor vehicles
to fund essential local public health and safety services; and
WHEREAS, in 1935, the Legislature first enacted the Vehicle License Fee (VLF) Act,
replacing the property tax on vehicles with a 1.75 percent fee charged
against the value of the motor vehicle; and
WHEREAS, in 1948, the rate of the VLF was increased to 2 percent of the value of the
vehicle; and
WHEREAS, in 1986, the voters voted overwhelmingly to constitutionally dedicate the
proceeds of the VLF to fund city and county services; and
WHEREAS, in 1998, a period of strong economic growth, the Legislature approved the
use of a portion of the rapidly growing state General Fund to reduce the
VLF payments of vehicle owners. This amount, known as the "offset", grew
in future years to a 67.5 percent offset against the amount owed. The
amount paid to local governments in lieu of the reduced VLF payment is
known as the "VLF backfill"; and
WHEREAS, the 1998 legislation and subsequent enactments contain clear provisions that
when insufficient funds are available to be transferred from the General
Fund to fully fund the offsets and backfill amount that the VLF offset shall
be reduced and VLF payments increased; and
WHEREAS, VLF and backfill revenues constitute approximately 25 percent of
Rosemead's general purpose revenues, of which a significant portion goes
to front line law enforcement, and public safety programs; and
WHEREAS, any failure by the Legislature to maintain the VLF backfill or restore the
VLF will cause widespread disruption in local government services
essential to the well-being of California citizens and their cities and
counties; and
WHEREAS, Governor Davis' proposal to divert over $4 billion in local VLF backfill
payments over the next 18 months fails to honor the 1998 commitment and
is a direct assault on local services that will be felt by every California
resident; and <
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WHEREAS, shifting over $4 billion in locally controlled revenues for local services is
neither equitable nor fair. No state program or department has been asked to
shoulder such a disproportionate share of the budget pain.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemead,
that if the state General Fund can no longer afford the expense of part or all of the VLF
"backfill," then the Legislature and Governor are hereby respectfully urged to implement
the provisions of current law providing for the reduction of the VLF offset in bad
economic times, and to restore the VLF in an amount necessary to reduce the VLF
backfill.
BE IT FURTHER RESOLVED, that the Rosemead City Council hereby expresses its
profound appreciation to the legislators who support such VLF restoration legislation.
ATTEST:
CITY CLE
I hereby certify that the foregoing Resolution
No. 2003-03 was duly and regularly adopted by the
Rosemead City Council at a regular meeting held
on the 28th day of January 2003, by the
following vote:
Yes: Clark, Vasquez, Bruesch, Imperial, Taylor
No: None, Absent: None, Abstain: None
Ci y Cle
APPROVED on this 28TI' day of January, 2003.
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