HomeMy WebLinkAboutCC Reso No 2003-04RESOLUTION NO. 2003-04
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
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 taaces on motar 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 taac 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 Yeduce the VLF payments of vehicle
owners. This amount, lrnown as the "offset", grew in future years to a 67.5 percent offset against the
amount owned. The amount paid to local governments in lieu ofthe reduced VLF payment is lrnown
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 oftypical 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, emergencymedical services,
and health care programs.
WHEREAS, revenues derived from the VLF and backfill are of critical importance in
fixnding 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
WHEREAS, shifting $4.2 billion in locally controlled revenues far local services is neither
equitable nor fair. No state program ar deparhnent 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 RESOLVED BY THE CITY OF LAKE ELSINORE,
CALIFORNIA, that if the state General Fund can no longer afford the expense of part or all of the
VLF "backfilP' that the Legislature and Governar 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 Lake Elsinore hereby expresses its profound
appreciation to the legislators who support such VLF restoration legislation.
PASSED, APPROVED AND ADOPTED this 28th day of January, 2003, by the following
vote:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS:
AT EST:
.rc~-~ ~ __V ~
Vicki L. Kasad, City Clerk
HICKMAN, KELLEY, SCHIFFNER, BRINLEY
BUCKLEY
NONE
APPROVED AS TO FORM;
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE )
I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution duly adopted by
the City Council of the City of Lake Elsinore at a Regular Meeting of said Council on the
28`n day of January, 2003, and that it was so adopted by the following vote:
AYES: COUNCILMEMBERS:
HICKMAN, KELLEY, SCHIFFNER,
BRINLEY
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABS AIN: COUNCILMEMBERS:
~~
VICHI KAS , CMC, CITY CLERK/
HUMAN RESOURCES DIRECTOR
CITY OF LAKE EL5INORE
(SEAL)
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE)
BUCKLEY
NONE
NONE
I, VICHI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
Resolution No. 2003-04 of said Council, and that the same has not been amended or
repealed.
2003
V~CKI KASAD, CMC, CITY CLERK/
HUMAN RESOURCES DIRECTOR
CITY OF LAKE ELSINORE
(SEAL)