HomeMy WebLinkAbout03-016 - Resolutions RESOLUTION NO. 03-016
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, URGING THE
CALIFORNIA LEGISLATURE TO REJECT THE GOVERNOR'S
PROPOSED SHIFT OF LOCAL VLF REVENUES
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, at the time that the State decreased the VLF rate, the Legislature
promised to continue to make cities and counties whole by"backfilling" their VLF revenue losses
with State funds; 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 the•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
WHEREAS, any failure by the Legislature to maintain the VLF backfill 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 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.
Resolution No. 03-016
Page 2 of 2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Rancho Cucamonga that:
The City of Rancho Cucamonga hereby respectfully urges the California State
Legislature to reject the Governor's proposed shift of Local Vehicle License Fee
Revenues and honor the 1998 commitment made to keep cities and counties whole by
"backfilling" VLF revenues.
PASSED, APPROVED, AND ADOPTED this 5`h day of February 2003.
AYES: Alexander, Gutierrez, Howdyshell, Kurth, Williams
NOES: None
ABSENT: None
ABSTAINED: None
William J7,nder, Mayor
ATTEST:
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D bra J. Adams, CMC, City Clerk
I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga,
California, do hereby certify that the foregoing Resolution was duly passed, approved and
adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting
of said City Council held on the 5`h day of February 2003.
Executed this 6`h day of February 2003, at Rancho Cucamonga, California.
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D bra J. Adams C, City Clerk