HomeMy WebLinkAboutReso 013-03 Ca Legis Local V L F$ RESOLUTION NO. 13 - 03
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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, 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
WHERE~iS, 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 RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBLIN, C/iLIFORNIA, 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
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBLIN, 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
BE IT FURTHER RESOLVED, that the City of Dublin hereby expresses its profound
appreciation to the legislators who support such VLF restoration legislation.
PASSED, APPROFED AND ADOPTED on this 4th day of February, 2003, by the following vote:
AYES: Councilmembers McCormick, Oravetz, Sbranti and Zika and Mayor Lockhart
NOES: None
ABSENT: None
ABSTAIN: None
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K2/G/2'4-03/reso-v~doc (Item 8.1)