HomeMy WebLinkAboutResolution No. 6633 RESOLUTION NO. 6633
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY 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
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. 6 6 3 3
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Reduction of VLF Offset. 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.
SECTION 2. Appreciation. The City Council of the City of Downey hereby expresses
its profound appreciation to the legislators who support such VLF restoration legislation.
SECTION 3. Certification. The City Clerk shall certify to the adoption of this
Resolution and provide for the distribution thereof.
APPROVED AND ADOPTED this 2 8th day of January, 2003.
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f
RICK TREJO, Mayor
ATTEST:
KA HLEEN L. MIDSTOKKE, City Clerk
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City
Council of the City of Downey at a regular meeting held on the 2 8th day of January ,
2003 by the following vote, to wit:
AYES: 4 Council Members: Cartoz ian , Perkins , Bayer , Tre j o
NOES: 0 Council Members: None
ABSENT: 0 Council Members: None
ABSTAIN: 1 Council Members: McCarthy
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KATHLEEN L . MIDSTOKKE , City Clerk