2003/01/22 City Council Resolution (2)Resolution No. 2003 -16
A Resolution of the City Council of the City of Rohnert Park
Urging the California Legislature to Reject the Governor's Proposed Shift of
Local VLF (Vehicle License Fee) 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 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 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 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% of city general funds and more than half
of county general funds go to front line law enforcement, fire, emergency medical services, and
health care programs making revenues derived from the VLF and backfill 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 the VLF will
cause widespread disruption in local government services essential to the well -being of
California citizens; 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
annually already transferred from local services to fund state obligations.
Resolution 2003 -16 (continued)
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Rohnert Park
requests 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.
BE IT FURTHER RESOLVED that the City Council of the City of Rohnert Park hereby
expresses its profound appreciation to the legislators who support such VLF restoration
legislation.
Duly and Regularly Adopted this 22nd day of January, 2003
City of ohnert Park �1
Mayor CITY
FLORES: AYE MACKENZIE: AYE NORDIN: AYE SPRADLIN: AYE VIDAK- MARTINEZ: AYE
AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0)