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RESOLUTION NO. 6330
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ARCADIA, CALIFORNIA, URGING THE
CALIFORNIA LEGISLATURE AND THE GOVERNOR
TO REJECT THE SHIFT OF LOCAL VEHICLE LICENSE
FEE (VLF) REVENUES DURING ANY FISCAL YEAR
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. 7 5 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 California voters voted overwhelmingly to
constitutionally dedicate the proceeds of the VLF to fund city and county services;
and
WHEREAS, in 1998, 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
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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 - 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 pay for
public safety services; and
WHEREAS, revenues derived from the VLF and backfill are of critical
importance in funding these vital local safety services, directly benefiting California
citizens; and
WHEREAS, Governor Davis had proposed to divert $4 billion in local VLF
backfill payments over the next 17 months to fund state obligations:
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. 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 poor economic times and to restore
the VLF in an amount necessary to reduce the VLF backfill.
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SECTION 2.
The City Clerk shall certify to the adoption of this
Resolution and shall cause a copy of this Resolution to be forwarded to the
appropriate State Legislators in Sacramento, California.
Passed, approved and adopted this 4th
day of February
,2003.
ATTEST:
2i~~ )1-~
. Clerk \
APPROVED AS TO FORM:
~
~(:~
Stephen P. Deitsch
City Attorney
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) SS:
CITY OF ARCADIA )
I, JUNE D. ALFORD, City Clerk of the City of Arcadia, hereby certifies that
the foregoing Resolution No. 6330 was passed and adopted by the City Council of the
City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular
meeting of said Council held on the 4th day of February, 2003 and that said
Resolution was adopted by the following vote, to wit:
AYES: Councilmember Chang, Kovacic, Segal, Wuo and Marshall
NOES: None
ABSENT: None
of Arcadia
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