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HomeMy WebLinkAboutReso - CC - 010-2003RESOLUTION NO. 10-2003 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME URGING THE CALIFORNIA LEGISLATURE TO REJECT THE GOVERNOR'S PROPOSED SHIFT OF LOCAL VEHICLE LICENSE FEE (VLF) REVENUES AND TO HONOR THE STATE OF CALIFORNIA'S 1998 COMMITMENT TO RESTORE THE VLF TO LOCAL AGENCIES RESOLVED, by the City Council of the City of Burlingame: 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 uniform 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 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, 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 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 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 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, if the Legislature does not either maintain the VLF backfill or restore the VLF, widespread disruption in local government services essential to the well-being of California citizens and their cities and counties will result; and WHEREAS, Governor Davis' proposal to divert $4 billion in local VLF backfill payments to pay for the Governor's programs 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 WHEREAS, suddenly 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 already transferred from local services to fund state obligations, and the countless unfunded mandates of the State and Federal governments; and WHEREAS, the City of Burlingame is in the process of reducing its expenditures for the coming year by ten percent or more, which will already reduce services; and WHEREAS, the proposed seizure of the VLF by the Governor will mean an additional $1 million dollars in service cuts for the City of Burlingame for the 2003-2004 fiscal year alone, NOW, THEREFORE, IT IS RESOLVED: 1. If the State General Fund can no longer afford the expense of part or all of the VLF "backfill", 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 t backfill. D�I MAY vv I, ANN T. MUSSO, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the 21st day of January 2003, and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: BAYLOCx, COFFEY, GALLIGAN, JANNEY, O'MAHONY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE 2 AA Y CLERK