HomeMy WebLinkAbout2003 004 CC RESO2003 004 CC RESO (Ìì Š Ì RESOLUTION NO. 2003-004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BALDWIN PARK URGING THE CALIFORNIA LEGISLATURE
TO REJECT THE GOVERNOR'S PROPOSED SHIFT OF
LOCAL 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 15 to 25 percent of typical city and
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 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 $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
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2003 004 CC RESO (Ìì Š Ì Resolution No. 2003-004
Page 2
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, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF
THE CITY OF BALDWIN PARK. CALIFORNIA, 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
RESOLVED FURTHER, that the City of Baldwin Park hereby expresses its profound
appreciation to the legislators who support such VLF restoration legislation.
APPROVED AND ADOPTED on this 5th day of Febru
Mayor
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES) ss:
CITY OF BALDWIN PARK
I, Rosemary M. Ramirez, Chief Deputy City Clerk of the City of Baldwin Park, do
hereby certify that the foregoing Resolution was duly and regularly approved and adopted
by the City Council of the City of Baldwin Park at its regular meeting of the City Council on
February 5th, 2003, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ROSEM^RY^T^MIREZ
Chief Deputy City Clerk
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