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HomeMy WebLinkAbout6330 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 1 6330 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. 2 6330 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 3 6330 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 4 6330