CC - Urgency Action to Consider Resolution 98-14 Opposing State Efforts to Repeal Vehicle License Fees - Box 066TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: 'FRANK G. TRIPEPI, CITY MANAGE
DATE: APRIL 28, 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 11, 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 11, 1998.
Assemblymember McClintock's bill will be 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 be 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 8 1998
ITEM No. =..D
Resolution No. 98-14
April 28, 1998
Page 2.
RECOMMENDATION:
It is recommended that the City Council take the following action:
1. Amend the agenda to include consideration of Resolution No. 98-14.
2. Approve Resolution No. 98-14.
ccreso.98-14.jk