HomeMy WebLinkAboutResolutions - No. 2003-09RESOLUTION NO. 2003-09
A RESOLUTION OF THE LODI CITY COUNCIL URGING THE CALIFORNIA
LEGISLATURE TO REJECT THE GOVERNOR'S PROPOSED SHIFT OF
LOCAL VEHICLE LICENSE FEE (VLF) REVENUES AND TO HONOR THE
1998 COMMITMENT TO RESTORE THE VLF
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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 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 approximately 13 percent of the City of
Lodi's general purpose revenues. Approximately 43 percent of the City of Lodi's operating
budget goes to fund public safety services; and
WHEREAS, revenues derived from the VLF and backfill are of critical importance in
funding vital local 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 Lodi
citizens and their family members; and
WHEREAS, a range of City services could be affected in Lodi; and
WHEREAS, the City has multiple capital projects, which will likely be delayed; and
WHEREAS, Governor Davis' proposal to divert $3.35 million in City of Lodi 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 Lodi resident; and
WHEREAS, shifting $3.35 million in City of Lodi 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 $20 million
Educational Revenue Augmentation Fund (ERAF) transferred from City of Lodi services to fund
state obligations.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Lodi,
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 the 1998 VLF law.
Dated: January 21, 2003
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I hereby certify that Resolution No. 2003-09 was passed and adopted by the City
Council of the City of Lodi in a special meeting held January 21, 2003, by the following vote:
AYES: COUNCIL MEMBERS — Beckman, Hansen, Howard, Land,
and Mayor Hitchcock
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2003-09