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HomeMy WebLinkAboutRES NO 016-03RESOLUTION 0 I 6 ' 0 3 A RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD URGING THE LEGISLATURE AND THE GOVERNOR TO MAKE CITIES WHOLE BY CONTINUING TO BACKFILL THE VEHICLE LICENSE FEES TO LOCAL GOVERNMENT 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 per cent fee charged against the value of the motor vehicle; and WHEREAS, in 1948, the rate of the VLF was increased to 2 per cent of the value of the vehicle; and WHEREAS, in 1986, the voters overwhelmingly voted to constitutionally dedicate the proceeds of the VLF to fund city and county services; and WHEREAS, in 1998, during 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 per cent 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 over 10% of the City's discretionary general purpose General Fund revenues, with 64% of its General Fund spent on public safety, including front line law enforcement and fire; and WHEREAS, VLF and backfill revenues statewide constitute 15-25 per cent of typical city and county general purpose revenues, with more than 60% of city general funds and more than 50% of county general funds spent on law enforcement, fire, emergency medical services, and health care programs; 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's 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 each community's local control over 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 Council of the City of Bakersfield of the State of California, that the Legislature and the Governor of California are hereby respectfully urged to make cities whole by continuing to backfill the VLF to local government. IT IS FURTHER RESOLVED, that the City Council of the City of Bakersfield hereby expresses its profound appreciation to the Legislators who support the return of VLF to local control. .......... 000 .......... I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the City Council of the City of Bakersfield at a regular meeting thereof held on ,~,k, ~q ?~3 , by the following vote: AYES: NOES: ABSTAIN: ABSENT: COUNCILMEMBER CARSON, BENHAM, MAGGARD, COUCH, HANSON, SULLIVAN, SALVAGGIO COUNCILMEMBER~. COUNCiLMEMBER P,J.,.'~/'-~- - COUNCILMEMBER CITY CLERK and EX OF~ClO of the Council of the City of B~fl~ersfield APPROVED JAN 29 2003 HARVEY L. HALL Mayor APPROVED AS TO FORM: BART J. THILTGEN City Attorney ADDITIONAL SIGNATURES ON NEXT PAGE David R. Couch, ~ice Mayor and Councilmember, Ward 4 Ir~rson, ~ouncdmember, Ward 1 i Susa~ Bon~am, Councilmember, Ward 2 Mike Maggard, Councilmember, Ward 3 Har~ol('Hanson, C~uncJmber, Ward 5 Jacq~ie Sullivan, Councilmember, Ward 6 Mark C. Salvaggio, Councilmember, Ward 4