HomeMy WebLinkAboutC.C. RES 03-07RESOLUTION NO. 03-07
A RESOLUTION 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 11 percent of the City of Tustin's
General Fund revenues; and
WHEREAS, 52 percent of the City's General Fund expenditures are committed to police
and fire services; 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
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.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
TUSTIN, 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
RESOLVED FURTHER, that the City of Tustin hereby expresses its profound appreciation
to the legislators who support such VLF restoration legislation.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin on
the 21st day of January, 2003.
ATTEST:
Pamela Stoker
City Clerk
City of Tustin
RESOLUTION CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF ORANGE )SS
CITY OF TUSTIN )
RESOLUTION NO. 03-07
I, PAMELA STOKER., City Clerk and ex-officio Clerk of the City Council of the City of
Tustin, California, hereby certifies that the whole number of the members of the City
Council of the City of Tustin is five; and that the above and foregoing Resolution No. 03-
07 was adopted at a regular meeting of the City Council held on the 21st day of January,
2003, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
~orley, Kavashima, Bone, Davert, Thomas
None
None
None
Pamela Stoker, City Clerk