CC - Item 3C - Resolution 2003-03 reject proposed shift of local VLF - Box 07097
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: BILL CROWE, CITY MANAGER
DATE: JANUARY 28, 2003
RE: RESOLUTION NO. 2003-03 - URGING THE CALIFORNIA LEGISLATURE TO
Y
REJECT THE GOVERNOR'S PROPOSED SHIFT OF LOCAL VEHICLE
LICENSE FEE (VLF) REVENUES AND TO HONOR THE 1998 COMMITMENT
TO RESTORE THE VLF I
Governor Davis has made two separate announcements of proposals to close an estimated $34.6
billion budget gap. The first, referred to as his "Mid-Year Proposal'+ was announced on December 6,
2002, totaling $10.2 billion which the Governor wants acted upon by the end of January 2003.
Secondly, Governor Davis announced his formal 2003-04 budget package which provided solutions
for the remaining $24.4 billion budget gap.
Validating local government officials' worst fears, Governor Gray'Davis' budget proposal reneges
on the promise legislators and the Governor made four years ago to protect cities and counties from a
loss of Vehicle License Fee (VLF) funds caused by the state's 1998 decision to reduce annual vehicle
registration fees paid by consumers. 1
The proposal is to eliminate $1.3 billion of the remaining 2002-03 fiscal year VLF backfill payments,
and eliminate $2.9 billion of the VLF backfill payments estimated for 2003-04. This proposal
eliminates all of the VLF backfill going to cities, leaving funding only from the remaining VLF fees.
Assembly Speaker Herb Wesson has announced that he plans to mode swiftly to introduce legislation
to allow for restoration of the VLF funding for cities and counties. He was quoted as saying, "We're
prepared to clarify the law to operate as intended - and restore the VLF to its normal level." Further,
the Speaker has specifically asked that cities and counties take action to support his efforts, as has the
League of California Cities' board of directors. 11
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No.
CC1IIICII_ AGE
JAN 2 8 2003
ITEM NO.-:72Z • e--
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
WIIEREAS, 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
WHEREAS, shifting over S4 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
backfili.
BE IT FURTHER RESOLVED, that the Rosemead City Council hereby expresses its
profound appreciation to the legislators who support such VLF restoration legislation.
APPROVED on this 28TH day of January, 2003.
MAYOR
ATTEST:
CITY CLERK
Speaker proposes mid-year budget moves
CALIFORNIA STATE ASSEMBLY
Democratic
0- h, Caucus
Feature
Thursday, January 16, 2003
Speaker proposes mid-
year budget moves
Wesson advocates balanced approach
comprised of substantial cuts and restoration
of Vehicle License Fee
Action anticipated by end
of month
January 14, 2002
SACRAMENTO - Assembly
Speaker Herb J. Wesson, Jr. (D-
Los Angeles/Culver City)
announced today that Assembly
Democrats would make significant
budget cuts and seek to restore the
Vehicle License Fee in a balanced
approach to tackling California's
budget crisis.
"We face the biggest budget crisis
in California's history - and
Democrats in the Assembly are
http://democrats. assembly. ca.gov/english/featurestory/ 1724. htm
Speakees
statement on
budget
agreement
Page 1 of 3
1/16/2003
Speaker proposes mid-year budget moves
reaay to taKe me nrst steps to
address it in a balanced and
responsible way," Speaker Wesson
said.
"Before the month's end, we will
take action on substantial mid-year
budget cuts. Our subcommittees
will be making initial decisions on
these cuts in the next few days,"
Wesson continued.
But the Speaker added that
Democrats have always believed
that the solution to the state's
budget woes lies in striking a
balance between cuts and revenues.
In keeping with that approach,
Speaker Wesson said he would
author legislation to allow a
restoration of the Vehicle License
Fee collected for city and county
governments.
"During the years of surpluses, we
rolled back fees that had been in
place for years, including the
vehicle license fee - which our
state Constitution sets aside for
cities and counties," Speaker
Wesson said. "From day one, the
rollback was conditional - it was
only to take place when the state
had the money to protect local
services. We're prepared to clarify
the law to operate as intended -
and to restore the fee to its normal
level."
Speaker Wesson said that the cuts
supported by Assembly Democrats
would be at least as large as the
revenues generated for cities and
counties with the restoration of the
VLF.
Assembly Budget subcommittees
were set to begin hearings on mid-
year cuts starting Wednesday.
http://democrats.assembly.ca.gov/english/featurestoty/I 724.htm
Page 2 of 3
1/16/2003
Budget Proposals Impacting Cities
Governor Davis has made two separate announcements of proposals to close an estimated $34.613 budget
gap. The first, referred to as his "Mid-Year Proposal" were announced on December 6, 2002 totaling
$10.213 which the Governor wants acted on by end of January, 2003. Secondly, Governor Davis
announced his formal 2003-04 budget package, which provided solutions for the remaining $24.413
budget gap.
Governor Davis' Mid-Year Budget Proposals
I. Local Street and Road Maintenance Funding in the Traffic Congestion Relief Act: The
elimination of the second, third and fourth quarter 2002-03 apportionments to local agencies for street
and road maintenance. $90m total cut. $45m impact on cities.
2. Redevelopment Agency Low and Moderate Income Housing Funds: Immediate transfer (to the
State General Fund) any balances in the Low and Moderate Income Housing Fund of a
Redevelopment Agency that were unencumbered on December 1, 2002. Estimated $500m transfer.
[Apparently converted to ERAF shift in Jan. 10 budget]
3. Local Flood Control Subventions: Reversion of $58.1m from this program (out of $128.3m
appropriated in the past three years) to the General Fund. Total city impact unknown.
4. Public Library Foundation: Reduction in the Public Library Foundation per capita formula grants
to local libraries totaling $15.8m.
5. State-Funded Mandates: Continue the deferral of payment for various budget year and prior year
reimbursable non-Proposition 98 mandates. $769.4m impact to local governments.
Governor's Budeet Summary - 2003-04
1. Reduction in Vehicle License Fee Baekfill: Reducing the vehicle license fee backfill to cities and
counties by $1.265 B in 2002-03, and $2.929 B in 2003-04. This reflects an elimination of all
backfill amounts to cities beginning in February, 2003 and going forward. Total impact on cities:
$553m 02-03; $1.213 03-04.
2. Redevelopment Agency Shift: For 2003-04, Redevelopment Agencies would be required to pass
through, to schools, $250m in property tax increment revenues. This "shift" would continue and
increase in subsequent fiscal years to the reach the full amount of the school district share of property
taxes over time. Impact: $250m immediate; over $]b potential future annual impact.
3. Elimination of Booking Fees Reimbursements: $38m
4. Public Library Foundation: Extends the $15.8m reduction.
Proposed "Structural Fiscal" Reforms (see boldface items)
1. Allow mid-year budget adjustments and suspension of statues restore the Executive Branch
authority to make mid-year budget adjustments when revenues fall significantly below anticipated
levels.
2. Create a State budget reserve to mitigate the volatility of the State's revenues, and re-evaluate current
spending limit requirements.
3. Require sunset review of all "automatic" spending laws.
4. Request that the legislature revise its appropriations process to require the identification of future year
costs on legislation, and to identify the funds available to pay those costs.
5. Rebalance the portfolio of state revenue to achieve a more stable mix of major revenue sources.
6. Rebalance the portfolio of local government revenue to achieve a better mix of major revenue
sources, and encourage "rational growth" decisions.
7. Restore local community control of programs and revenue raising - Included in this item is a
complete review of statutory mandates on local governments after which, those mandates
determined to be unnecessary should be repealed.
1.14.3
VLF Losses Under Governor's Propos
ed Budget Jan 2003
EFY02-03 estimated
FY03-04 estimated
V
LF Back
ft %General$
VLF Total
Governor's
VLF Total
Governor's
% of
spent on
(incl backfill)
ProRosed Cu[
.
(
incl backfll).
; Proposed Cut
General$ i3olice&Fire
HAWTHORNE
$
4,790,845 [
.
$
(1,616,910)
$
5,126,307
.
.
.
$
(3,460,257;
.12%
89%
HERMOSA BEACH
$
.
1
,
045
,276
[
$
(352,781)
E $
1
,
1
25
,
078
$
.
(759,427)
5%
57%
.
HIDDEN HILLS
.
$
.
111,886
$
(37,762)
$
120,376
$
.
(81,253);
7/0
12/0
HUNTINGTON PARK
. $
........3,5.........14,540:.
.,157)
. .(I,I86
i $
3,751,766
i $
(2,532,442)..
:
3%
3°%
.
INDUSTRY
[ $
.
44,051
$
(14,867)
.
$
47,021
$
(31,739);_
______0%.....
9%
INGLEWOOD
$
.
6,419,777
$
(2,1.66,675)
.E $
.
6,843,232
j $
.
(4,61.9,182):,
,...,.8%
55%
ALE
i $
82,740E
$
(27,925).
i..$ .
............88,396..
.....,..(59,668).E.
......0%.....
...........30%........
LA CANADA FLINTRIDGE
[ $
.
1,199,816 [
$
(404,938)
E $
1,285,996
E $
(868,047
12%
28%
LA HABRA HEIGHTS
.
$
323,332
$
(109,125)
$
348,111
$
(234,975):
9%
20%
LAKEWOOD
E $
.
4,696,585 [
$
(1,585,098)
[ $
5,017,638
: $
(3,386,906);
12%
26%
LAMIRADA
.
.
2,772,524
$
(935,727).
.
2,962,178
$
(1.,999,470),.
,..,,,8%.....
24%
LANCASTER
$
.
7,073,630 j
$
(2,387.350)
E $
7,603,287
i $
.
(5,132,219);
17%a
41%
LAPUENTE
$
.
2,460,786 [
$
(830,515)
$
2,630,926
: $
(I,775,875).,.
,..,21%_.
..,1.,.__,48%._.__,
.LAVERNE
.
: $
. .
1,787,005E
$
(603,115)
;
E $
1,912,791
...2....
$
. .
(1,291,134);
12%
67%
LAWNDALE
$
.
1,889,139 :
$
(637,585)
,.1.$.
.....2:018,959,.
.1.5...
._(1,362,797).1.
12%°....
...E........ 34%°........,
LOMITA
E $
1,186,380 [
$
(400,,404).
,.:„5.
,...,..1,271,963
$
(858,575).;
13%0
32"%
LONG BEACH
$
26,177,260:
$
(8,834:825)
$
27,955,132
: $
(18,869,714
8"/0
74%
LOS ANGELES
$
210,178,098
$
(70,935,108)
E $
225,432,576
:
152,166,989);
.5%°
74%
LYNWOOD
$
.
4,002,798
$
(1,350,945)
$
4,284,272
: $
.
(2,891,884):
.
17%
51%
MALIBU
.
E $
. . . . .
.
711,442
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. .
$
. . . .
(240,112)
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
[ $
. . . . . .
764,449
. . . . . . . . . . . . . . . .
$
. . . . . . .
(516,003):
: . .
9%
42%
i
.
MANHATTAN_BEACH
$
.
1,919,654:
$
(647:884)
[ $
2,078,795
: $
.
(1,403,186):
.
4%
49%
MAYWOOD
.
1,609,476
$
(543199
..,...1..720,153,.
,(1.161:103);.
.....22%
...........57%°........,
NROVIA
: $
.
2,093,259 [
.
.
$
.
(706,475)
[ $
2,238,574
: $
. :
(1,511,038):
.
8%
71%
MONTEBELLO
.
i $
.
3,546,043
:
$
(1,
196,790)
E $
3,790,726
$
(2,558,740)..
......11%
...........85%°....,,..,
MONTEREY PARK
$
.
3,436,774
$
(1,159,911)
$
1692,880
$
.
(2,492,694):
12%
57%
NORWALK
.
$
.
.
6,162,794 [
$
(2,079,943)
:
E $
6,631,841
E $
(4,476,492)1
12%
i 28%
PALMDALE
$
.
7,031,238
$
(2,373,043)
[ $
7,651,613
: $
.
(5,164,839):
.
19%
42%
PALOS VERDES ESTATES
.
.
: $
.
750,130 [
$
(253,169)
.
:
[ $
805,219
[ $
.
(543,523
5%
34%
.
,....PARAMOUNT
$
.
.
3,307,629
$
(1.,1.16,325)
3,535,871
: $
.
(2,386,713),.
.,...,14°%
........51°%....
PASADENA
: $
: .
.
7,588,305:
$
(2,561,053)
[ $
8,198,302
i $
(5:533,854);
:.5%
.i 52°%
PICO RIVERA
,
,
,
,
: $
,
3,801,964 [
$
(1,283,163)
$
4,069,386
: $
(2,746,836):
14%
36%
,
POMONA
$
,
8,552,609
$
(2,886,506)
[ $
9,138,476
[ $
(6,168,471)[
10%
i 76%
RANCHO PALOS VERDES
_2,432,409
$
.(820.938)
$
2,597,340
$
(1,753,205)[
14°%
22°%
REDONDO BEACH
$
,
3,573,678
$
(1,206,117)
$
3,854,376
1 $
(2:601.704)
6%
57°%
ROLLING HILLS
$
110.380
$
.
(37,254)
$
117,557
s.
.......(79,351);
8°%
17°%
ROLLING HILLS ESTATES
: $
454,144
$
(1.53,274)
E $
486,302
.
i $
. .
(328,254):
6%
32°%
.
ROSEMEAD
[ $
3,205,472
$
(1,081,847)
1 $
3,427,906
E $
.
(2,313,837);
21%
52%
SAN DIMAS
:
: $
2,073,009 j
.
$
.
(699,641)
.2,215,604
.
$
(1:495,533);
13%°
i 32°%
1.......... .
SAN FERNANDO
: $
,
1,351,363
$
(456,085)
.,__...1,445,088..
...,.(975,434),x.
10%
o
........62%
SAN GABRIEL
:
E $
:
2,256,859
$
(761,690)
E $
2,416,916
i $
(1,631,418);
.12%
i 78%
.
SAN MARINO
.
$
.
.
727,635:
$
(245,577)
.
..,......,778,579
:
.
_..,,(525,541 , .
......5%
.......35%
.
SANTA CLARITA
:
E $
:
8,573,777
$
(2,893,650)
i $
9,300,474
$
(6,277,820)
13"/0
23%
SANTA FE SPRINGS
$
.
1,042,238
$
(351,756)
$
1,117,107
[ $
.
(754,048):
2%
49%
. .
SANTA MONICA
.
$
.
4,763,652:
$
1,607,733)
$
5,167,314
$
(3,487,937):
....................I.
2%
31%
SIERRA MADRE
$
594,710 [
$
(200,715)
$
635,564
$
(429,006):
11%
[ 44%
Source: State Controller & VLF allocation tables. Computations by Coleman Advisory Services
revised 14Jan03 CaliforniaCitlfinance.com page 5 of 15
CALIFORNIA LEGISLATURE-2003-04 FIRST EXTRAORDINARY SESSION
ASSEMBLY BILL No. 4
Introduced by Assembly Member Wesson
January 21, 2003
An act to amend Sections 10754 and 11000 of the Revenue and
Taxation Code, relating to taxation.
LBGISLATIVI? COUNSFUS DIGFST
AB 4, as introduced, Wesson. Vehicle license fees.
The Vehicle License Fee (VLF) Law establishes, in lieu of any ad
valorem property tax upon vehicles, an annual license fee for any
vehicle subject to registration in this state in the amount of 2% of the
market value of that vehicle, as specified. The VLF Law offsets this
amount by 67.5% for vehicle license fees with a final due date on or
after July 1, 2001, and requires the Controller, upon receipt of monthly
notification from the Department of Motor Vehicles of the amount of
offsets applied, to transfer General Fund moneys to reimburse local
governments for losses resulting from the vehicle license fee offset.
The VLF Law also requires, in the event there are insufficient
moneys in the General Fund for the Controller to fully reimburse local
governments for losses resulting from the vehicle license fee offset, that
the offset amount be reduced in proportion to the shortfall in funding
to reimburse local governments for those losses. Existing law does not
designate the person or agency responsible for making the
determination of whether there are sufficient moneys in the General
Fund to make these reimbursements.
This bill would provide that the Director of Finance is required to
make the same determination of whether there are insufficient moneys
❑1 99
AB 4
-2-
in the General Fund for the Controller to fully reimburse local
governments for losses resulting from the vehicle license fee offsets.
This bill would clarify that the tern "General Fund," as used with
reference to the vehicle license fee offset, has the same meaning as set
forth in a specified statute, and would specify that the tern "General
Fund" does not include any moneys in that fund that the state is
obligated to repay to the source from which those moneys were
received, or any moneys in that fund that are derived from loans or other
forms of indebtedness.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 10754 of the Revenue and Taxation
2 Code is amended to read:
3 10754. (a) Notwithstanding any other provision of law, the
4 total amount of the vehicle license fee otherwise required with
5 respect to a vehicle shall be offset in accordance with those
6 provisions set forth below that are operative pursuant to
7 subdivision (b):
8 (1) (A) For any initial or original registration of any vehicle,
9 never before registered in this state, for which the final due date
10 for the license fee is on or after January I of any calendar year for
11 which this paragraph is operative, and for any renewal of
12 registration with an expiration date on or after January 1 of any
13 calendar year for which this paragraph is operative, the department
14 shall offset the total amount of fees otherwise due at the time of
15 registration of that vehicle by an amount equal to 25 percent of the
16 amount computed pursuant to Section 10752 or 10752.1, or
17 Section 18115 of the Health and Safety Code.
18 (B) Upon proper payment of license fees to the Department of
19 Motor Vehicles, the amount of the offset for each vehicle shall be
20 transferred into the Motor Vehicle License Fee Account in the
21 Transportation Tax Fund, and into the Local Revenue Fund,
22 pursuant to Section 11000 or Section 11000.1, as applicable.
23 (C) During any period ire for which the Director of Finance
24 makes a finding that insufficient moneys are available to be
25 transferred from the General Fund to fully fund the offsets
26 required by subparagraph (A), within 90 days of a redeetion o
❑ 99
-3- AB 4
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
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22
23
24
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Fil
funding, the department shall, as soon as possible, but no later
than 90 days after the Director of Finance makes that finding,
reduce the amount of each offset computed pursuant to that
subparagraph (A) by multiplying that amount by the ratio of the
amount of moneys actually available to be transferred from the
General Fund to pay for those offsets to the amount of moneys that
is necessary to fully fund those offsets.
(D) The Controller shallprovide the Director of Finance with
any information available to the Controller that is requested by the
Director of Finance for purposes of making the determination
required by subparagraph (C).
(2) (A) For any initial or original registration of any vehicle,
never before registered in this state, for which the final due date
for the license fee is on or after January I of any calendar year for
which this paragraph is operative, and for any renewal of
registration with an expiration date on or after January I of any
calendar year for which this paragraph is operative, the department
shall offset the total amount of fees otherwise due at the time of
registration of that vehicle by an amount equal to 35 percent of the
amount computed pursuant to Section 10752 or 10752.1, or
Section 18115 of the Health and Safety Code.
(B) Upon proper payment of license fees to the Department of
Motor Vehicles, the amount of the offset for each vehicle shall be
transferred into the Motor Vehicle License Fee Account in the
Transportation Tax Fund, and into the Local Revenue Fund,
pursuant to Section 11000 or Section 11000.1, as applicable.
(C) During any period ift for which the Director of Finance
makes a finding that insufficient moneys are available to be
transferred from the General Fund to fully fund the offsets
required by subparagraph (A), within 99 days of a reduetion a
funding, the department shall, as s00I7 as possible, but no later
than 90 days after the Director of Finance .makes that finding,
reduce the amount of each offset computed pursuant to that
subparagraph (A) by multiplying that amount by the ratio of the
amount of moneys actually available to be transferred from the
General Fund to pay for those offsets to the amount of moneys that
is necessary to fully fund those offsets.
(D) The Controller shall provide the Director of Finance with
any information available to the Controller that is requested by the
99
AB 4
4
5
6
7
8
9
10
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13
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30
31
32
33
34
35
36
37
38
39
40
11
-4-
Director of Finance for purposes of making the determination
required by subparagraph (C).
(3) (A) For any initial or original registration of any vehicle,
never before registered in this state, for which the final due date
for the license fee is on or after January 1 of any calendar year for
which this paragraph is operative, and for any renewal of
registration with an expiration date on or after January I of any
calendar year for which this paragraph is operative, the department
shall offset the total amount of fees otherwise due at the time of
registration of that vehicle by an amount equal to 671/2 percent of
the amount computed pursuant to Section 10752 or 10752. 1, or
Section 18115 of the Health and Safety Code.
(B) Upon proper payment of license fees to the Department of
Motor Vehicles, the amount of the offset for each vehicle shall be
transferred into the Motor Vehicle License Fee Account in the
Transportation Tax Fund, and into the Local Revenue Fund,
pursuant to Section 11000 or Section 11000.1, as applicable.
(C) During any period in for which the Director of Finance
makes a finding that insufficient moneys are available to be
transferred from the General Fund to fully fund the offsets
required by subparagraph (A), within 99 days of a reduetion in.
funding, the department shall, as soon as possible, but no later
then 90 days after the Director of Finance makes that finding,
reduce the amount of each offset computed pursuant to that
subparagraph (A) by multiplying that amount by the ratio of the
amount of moneys actually available to be transferred from the
General Fund to pay for those offsets to the amount of moneys that
is necessary to fully fund those offsets.
(D) The Controller shall provide the Director of Finance with
any information available to the Controller that is requested by the
Director of Finance for purposes of making the determination
required by subparagraph (C).
(b) The offset provisions set forth in subdivision (a) shall be
operative as provided by the following:
(l) Paragraph (1) of subdivision (a) shall be operative for
vehicle license fees with a final due date in the calendar year
beginning on January 1, 1999.
(2) Paragraph (2) of subdivision (a) shall be operative for
vehicle license fees with a final due date on or after January 1,
2000, and before July 1, 2001.
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(3) Paragraph (3) of subdivision (a) shall be operative for
vehicle license fees with a final due date on or after July 1, 2001.
(c) (1) For purposes of this seetion, " " section:
(1) "Department" means the Department of Motor Vehicles
with respect to a vehicle license fee offset for a vehicle subject to
registration under the Vehicle Code, and the Department of
Housing and Community Development with respect to a vehicle
license fee offset for a manufactured home, mobilehome, or
commercial coach described in Section 18115 of the Health and
Safety Code.
(2) The "final due date" for a
license fee is the last date upon which that fee may be paid without
being delinquent.
(3) "General Fund" has the same meaning as that term is
defined in Section 16300 of the Government Code, but does not
include either of the following:
(A) Any moneys deposited in the General Fund that the state is
obligated to either repay or return to the source, fund, account, or
any successor thereof from which the money was received
(B) Any moneys deposited in the General Fund that are derived
from short-term obligations, loans, sales of bonds or debentures,
or other forms of indebtedness.
SEC. 2. Section 11000 of the Revenue and Taxation Code is
amended to read:
11000. (a) Beginning on the operative date of Section 9551.2
of the Vehicle Code, the Controller shall do both of the following:
(1) Transfer from the General Fund to the Motor Vehicle
License Fee Account in the Transportation Tax Fund an amount
equal to 75.67 percent of the amount of offsets that are applied by
the department pursuant to Sections 9551.2 and 9554.1 of the
Vehicle Code.
(2) Transfer from the General Fund to the Local Revenue Fund,
established pursuant to Section 17600 of the Welfare and
Institutions Code, in the Transportation Tax Fund an amount equal
to 24.33 percent of the amount of offsets that are applied by the
department pursuant to Sections 9551.2 and 9554.1 of the Vehicle
Code.
(b) The department shall notify the Controller and the Director
of Finance of the total amount of the offsets applied by the
department pursuant to Section Sections 9551.2 and 9554.1 of the
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Vehicle Code concurrently with the department's transfer for
deposit of vehicle license fee revenues as required by law.
(c) For purposes of Section 15 of Article XI of the California
Constitution, the General Fund revenues that are transferred as
required by paragraph (1) of subdivision (a) shall constitute
successor tax revenues to the vehicle license fees offset in this part
and shall be allocated in the same manner as revenue derived from
taxes imposed pursuant to this part.
(d) For purposes of Article 1 (commencing with Section
25350) of Chapter 5 of Part 2 of Division 2 of Title 3 of the
Government Code, Section 11003, and Chapter 6 (commencing
with Section 17600) of Part 5 of Division 9 of the Welfare and
Institutions Code, the General Fund transfer amounts specified in
paragraphs (1) and (2) of subdivision (a) are hereby deemed to be
vehicle license fee proceeds and vehicle license fee revenues.
These General Fund transfer amounts are subject to the same
pledges, liens and encumbrances, and priorities set forth in Section
25350 and following of, Section 53584 and following of, and
Section 5450 and following of, the Government Code.
(e) Nothing in this section amends or intends to amend or
impair Section 25350 and following of, Section 53584 and
following of, the Government Code, or any other statute dealing
with the interception of funds.
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Roland Aranjo, District Director for Assemblywoman Judy Chu, urged the Council to support
Resolution No. 2003-03, Urging the California Legislature to Reject the Governor's Proposed Shift of
Local Vehicle License Fee, and to Honor the 1998 Commitment to Restore the VLF. Mr. Aranjo
explained that in 1998, the VLF was reduced when California had a budget surplus. Now the State is
facing a $26 to $34 billion budget deficit. Mr. Aranjo continued that a proposal is going through the
State Assembly this week that would restore the VLF, resulting in $4.2 billion dollars being brought
back to the cities and counties.
The following item was taken out of order:
'ftftJ'bW. C. RESOLUTION NO. 2003-03 - A RESOLUTION OF THE'CITY OF ROSEMEAD
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
. MOTION BY COUNCILMAN IMPERIAL, SECOND BY COUNCILMEMBER CLARK that
the Council adopt Resolution No. 2003-03. Vote resulted:
Yes: Imperial, Taylor, Bruesch, Clark, Vasquez
No: None
Absent: None
Abstain: None
The Mayor declared said motion duly carried and so ordered.
Mayor Bruesch stated to Mr. Aranjo that the City is still interested in meeting with Caltrans
regarding the off-ramp issues in Rosemead. Mayor Bruesch explained that many of the off-ramps in
the City are atrocious, except for the ones that the City contracts to maintain.
The regular order of the meeting continued.
H. PUBLIC HEARINGS
An explanation of the procedures for the conduct of the public hearing was presented by the
City Attorney.
A. PROPOSED REALLOCATION OF FUNDS AND AMENDMENT TO THE
CITY'S CONSOLIDATED ANNUAL FUNDING PLAN FOR FY 2002-2003
The Mayor opened the public hearing for those in the audience wishing to speak for or against
this item. There being no one wishing to speak, the Mayor closed the public hearing.
MOTION BY COUNCILMAN IMPERIAL, SECOND BY MAYOR PRO TEM VASQUEZ
that after public testimony, review and any amendments, the Council approve the City's proposed
reallocation of CDBG and HOME funds for FY 2002-2003 and authorize this item as an amendment to
the City's Annual Funding Plan. Vote resulted:
CCMIN:1-28-03
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