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