Loading...
HomeMy WebLinkAboutResolution - 2407 STATE OF CALIFORNIA ) RESOLUTION NO: 2407 COUNTY OF RIVERSIDE)ss '■- CITY OF SAN JACINTO ) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA, URGING THE CALIFORNIA LEGISLATURE TO REJECT THE GOVERNOR'S PROPOSED SHIFT OF LOCAL VEHICLE LICENSE FEES (VLF) REVENUES AND TO HONOR THE 1998 COMMITMENT TO RESTORE THE VEHICLE LICENSE FEE (VLF) WHEREAS, the City of San Jacinto is a community of 26,400 people, 25.5 square miles with over 140 miles of roads in semi-rural western Riverside County, and WHEREAS, the City of San Jacinto is projected to grow in population by 5% per annum with no apparent revenue source to offset the costs of public safety delivery for this increase in population, and WHEREAS, the City of San Jacinto has a low property tax base, receives less than 12% of its General Fund revenues from sales tax and transit occupancy `. tax and provides its citizens essentially with minimum public services, and WHEREAS, VLF revenues represent 21% of the General Fund Revenues of $6.3 Million of the City of San Jacinto and is the single largest General Fund revenue source, and WHEREAS, the City of San Jacinto is already using approximately $800,000 of General Fund Reserves to pay for General Fund services of $7.1 million, of which Public Safety represents 61% of the General Fund; and WHEREAS, the loss of any VLF revenues would be devastating and would be disproportionately adverse to the finances of all small less-affluent communities, such as the City of San Jacinto that have limited resources, a small property tax base, very little sales tax or transit occupancy tax, and WHEREAS, the City of San Jacinto already losses over $350,000 annually to the State in ERAF transfers, and WHEREAS, the Governor proposes taking additional ERAF from redevelopment agencies, which would further compound the financial difficulties of the City of San Jacinto, and Page 1 of 3 WHEREAS, the City of San Jacinto would have no choice but to reduce all services, including public safety, at or below minimum standards, and WHEREAS, prior to 1935, cities and counties collected property taxes on motnr 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 percent fee charged against the value of the motor 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 that the VLF offset shall be reduced and VLF payments increased; and WHEREAS, 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 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 San Jacinto, California, 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 Page 2 of 3 BE IT FURTHER RESOLVED, that the City of San Jacinto hereby 14� expresses its profound appreciation to the legislators who support such VLF restoration legislation. APPROVED and ADOPTED this 20th day of January, 2003, by the following vote: Ayes: Conner, Shaw, Carlson-Buydos Nays: None Absent: Ayres, Stubblefield Abstain: None City of San Ja6into by Chris Carl n-Buydos, Vice Mayor ATTEST: *Orothy6l��� houinard; City Clerk Page 3 of 3