HomeMy WebLinkAboutReso 2003-030 RESOLUTION NO. 2003-030
RESOLUTUION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA URGING THE CALIFORNIA LEGISLATURE
TO HONOR THE 1998 COMMITMENT TO REINSTATE THE
VEHICLE LICENSE FEES
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 percent fee charged against the value of the
motor vehicle; and
WHEREAS, in 1948 the rate of the VLF was increased to 2 pemcnt of the value of the
vehicle; and
WHEREAS, in 1986, the voters overwhelmingly approved a constitutional dedication of
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, despite the concerns of local government agencies that the funds being reduced
were not those of the State; and
WHEREAS, the legislature acknowledged the importance of the VLF resources to local
government by committing to backfill those funds that would otherwise be lost, and committed
to reinstating the full VLF should the time come when the State General Fund could no longer
support the backfill; and
WHEREAS, the reduction in VLF paid by vehicle owners (known as the "offset"), grew
in subsequent years to a 67.5 percent offset of the amount owed; and
WHEREAS, the VLF and backfill revenues constitute 17 pement of Chula Vista's
discretionary revenues; and
WHEREAS, on average, more than 60% of City general fund spending and more than
half of County general fimds go to front line law enforcement, fire, emergency medical services
and health care programs; and
WHEREAS, a failure by the State Legislature to honor it's commitment to backfill local
government or reinstate the VLF when State General Funds are insufficient to backfill local
government will cause irreparable harm to the public safety services provided by local
government and essential to the safety and well-being of California residents; and
WHEREAS, the proposal put forth by Governor Davis to eliminate the VLF backfill to
local government far exceeds the proportionate spending reductions proposed for any State
program or department, particularly in light of the annual loss of nearly $5 billion in property tax
shifts to support the State's obligation to schools Educational Revenue Augmentation Funds
(EP,~F).
Resolution 2003-030
Page 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby urge the legislature and Governor of California to honor the 1998 commitment
and implement the provisions of current law and restore the VLF in an amount necessary to keep
local government whole if the State General Fund can no longer afford the expense of part or all
of the VLF "backfill".
Presented by Approved as to form by
David: ?:'''} ~*J//':: D. Rowlands,t(6~-'-'"-'(~¢] * Jr. ~ff~// ~'cJ0~. ~(al(/~--~- eny ~) /j
City Manager ~,ffy Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 21st day of January, 2003, by the following vote:
AYES: Councilmembers: Davis, Rindone, Salas, McCann and Padilla
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
ATTEST:
Susan Bigelow, City Cler}~
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2003-030 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 21st day of January, 2003.
Executed this 21 st day of January, 2003.
Susan Bigelow, City Clerl~