CC Resolution 2003-012 RESOLUTION NO. 2003-012
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, URGING THE CALIFORNIA
LEGISLATURE TO REJECT THE GOVERNOR'S PROPOSED
SHIFT OF LOCAL VLF REVENUES AND TO HONOR THE
1998 COMMITMENT TO RESTORE THE VLF
WHEREAS, prior to 1935, cities and counties collected property taxes on motor
vehicles to fund essential local public health and safety services; and
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WHEREAS, in 1935, the Legislature firsl~ 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
WHEREAS, in 1948, the rate of the VLF was increased to 2 percent of the value
of the vehicle; and
WHEREAS, in 1986, the voters voted overwhelmingly to constitutionally
dedicate the proceeds of the VLF to fund city and county services; and
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WHEREAS, 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, knows 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
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 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 program.
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
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the VLF will cause widespread disruption in local government services essential to the
well-being of California citizens and their cities and counties; and
Resolution No. 2003-012
Vehicle License Fee (VLF)
Adopted: February 18, 2003
Page 2
WHEREAS, Governor Davis' proposal to divert $4 billion in local VLF backfill
payments over the next 17 months fails to honor the 1 998 commitment and is a direct
assault on 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 City Council of the City of La
Quinta, California, as follows:
RESOLVED, 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 backfill; and
RESOLVED FURTHER, that the City of La Quinta hereby expresses its
profound appreciation to the legislators who support such VLF restoration
legislation.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City
Council held on this 18th day of February, 2003, by the following vote to wit:
AYES: Council Members Henderson, Osborne, Perkins, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
DOb ADIOLPH, ~ayor
City of La Quinta, California
Resolution No. 2003-012-
...... Vehicle License Fee (VLF)
Adopted: February 18, 2003
Page 3
ATTEST:
JUN~, CMC, C~
City of La Quinta, California
(CITY SEAL)
APPROVED AS TO FORM'