HomeMy WebLinkAbout6124_CCv0001.pdf RESOLUTION NO. 6124
A RESOLUTION OF THE CITY OF REDLANDS 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 off 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 amounts 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; and
WHEREAS, revenues derived from the VLF and backfill are of critical importance in
funding vital local public health and safety services, and loss of these funds will result in cuts to
public safety and essential public service 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
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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$4.2 billion in locally controlled revenues for local services is neither
equitable nor fair. No state program or department has been asked to shoulder such a
disproportionate share of the budget pain. These cuts come on top of the nearly$S billion each year
that is transferred from local services to fund state obligations.
NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Redlands,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
BE IT FURTHER RESOLVED that the City Council of the City of Redlands supports the
efforts of Assembly Speaker Wesson to move this issue through the Legislature on a priority basis.
ADOPTED, SIGNED AND APPROVED this 21 st day of January, 2003.
Mayor of the City of Redlands
ATTEST:
City lark
1,Lorrie Poyzer,City Clerk of the City of Redlands, hereby certify that the foregoing resolution was
adopted by the City Council at a regular meeting thereof held on the 21 st day of January, 2403 by
the following vote:
AYES: Councilmembers Peppler, Gilbreath, George, Harrison; Mayor Haws
NOES: None
ABSENT: None
City erk
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