HomeMy WebLinkAboutRES 2003-051
RESOLUTION NO. 2003-05
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND
URGING THE CALIFORNIA LEGISLATURE TO REJECT THE GOVERNOR
PROPOSED SHIFT OF LOCAL VEHICLE LICENSE FEE (VLF) REVENUES ANi
HONOR THE 1998 COMMITMENT TO RESTORE THE VLF
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WHEREAS, prior to 1935, cities and counties collected property taxes on motor vepicles
to fund essential local public health and safety services; and
WHEREAS, in 1935, the Legislature first enacted the Vehicle License Fee (VLF)ct,
replacing the property tax on vehicles with a 1.75 percent fee charged against the value of tl e
motor vehicle; and
WHEREAS, in 1948, the rate of the VLF was increased to 2 percent of the value o
vehicle; and
WHEREAS, in 1986, the voters voted overwhelmingly to constitutionally dedicate
proceeds of the VLF to fund city and county services; and
WHEREAS, in 1998, a period of strong economic growth, the Legislature approveJ 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 c ffset
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 provisi
that when insufficient funds are avaitable to be transferred from the General Fund to fully
the offsets and backfill amount that the VLF offset shall be reduced and VLF payments
increased; and
WHEREAS, VLF and backfill revenues constitute 15 to 25 percent of typical city a
county general purpose revenues. On average, more than 60 percent of city general fund
spending and more than half of county general funds go to front line law enforcement, fire,
emergency medical services, and health care programs.
WHEREAS, revenues derived from the VLF and backfill are of critical importance in
funding vital local public health and safety services; and
WHEREAS, any failure by the Legislature to maintain the VLF backfill or restore
VLF will cause widespread disruption in local government services essential to the well -b(
California citizens and their cities and counties; and
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2003-05
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WHEREAS, Governor Davis' proposal to divert $4 billion in local VLF backfill
payments over the next 17 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 $4.2 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. These cuts come on top of the nearly $5 billion each
year that is transferred from local services to fund state obligations.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR,
CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
FOLLOWS:
Section 1. That if the State General Fund can no longer afford the expense of part or all
of the VLF "backfill" that the Legislature and Governor of California 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;
and
Section 2. That the City of Diamond Bar hereby expresses its profound appreciation to
the legislators who support such VLF restoration legislation.
PASSED, APPROVED AND ADOPTED this 21 st day of January, 2003.
r
Carol Herrera, Mayor
I, Lynda Burgess, City Clerk of the City of Diamond Bar, do hereby certify that the
foregoing Resolution was passed, approved, and adopted at a regular meeting of the City Council
of the City of Diamond Bar held on the 21s day of January, 2003, by the following vote:
AYES: COUNCIL MEMBERS. Chang, o' Connor , Z irbes ,
MPT/Huff, M/Herrera
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAINED: COUNCIL MEMBERS: None
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Lynda Burgess, City Clerk
2003-05