HomeMy WebLinkAboutCity Council - 2003-8 RESOLUTION NO. 2003-8
A RESOLUTION OF THE CITY OF HUNTINGTON BEACH URGING THE CALIFORNIA
LEGISLATURE TO REJECT THE GOVERNOR'S PROPOSED SHIFT OF LOCAL
VEHICLE LICENSE FEE REVENUES AND TO HONOR THE 1998 COMMITMENT TO
RESTORE THE VEHICLE LICENSE FEE
WHEREAS, prior to 1935, cities and counties collected property taxes on motor vehicles
to fund essential local public health and safety services; and
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
In 1948,the rate of the VLF was increased to 2 percent of the value of the vehicle; and
In 1986,the voters voted overwhelmingly to constitutionally dedicate the proceeds of the
VLF to fund city and county services; and
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
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
The 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.
Revenues derived from the VLF and backfill are of critical importance in funding vital
Iocal public health and safety services; and
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
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
03reso/vehicle fees/l/1G/03 1
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, THERFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows:
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 bad
economic times and to restore the VLF in an amount necessary to reduce the VLF backfiil; and
2. That the City Council hereby expresses its profound appreciation to the legislators
who support such VLF restoration legislation.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the ust day of January , 2003.
Mayor
ATTEST: APPROVED AS TO FORM:
_ v
City Clerk jityttto+mky
REVIEWED AND APPROVED: INITIATED, REVIEWED AND APPROVED:
City Administrator City Adm' l<strator
03reso/vehicle fees/l/I6/03 2
Res. No. 2003-8
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
1, CONNIE BROCKWAY, the duly elected, qualified City Clerk
of the City of Huntington Beach, and ex-officio Clerk of the City Council of
said City, do hereby certify that the whole number of members of the City
Council of the City of Huntington Beach is seven; that the foregoing resolution
was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at an regular meeting thereof held on the
215k day of January 2003 by the following vote:
AYES: Coerper, Green, Boardman, Cook, Houchen, Hardy
NOES: None
ABSENT: Sullivan
ABSTAIN: None
City Clerk and ex officio C erk of the
City Council of the City of
Huntington Beach, California