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
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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
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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
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