HomeMy Public PortalAbout2003.006 (01-15-03)RESOLUTION NO. 2003.006
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
URGING THE CALIFORNIA LEGISLATURE TO REJECT THE
GOVERNOR'S PROPOSED SHIFT OF LOCAL VLF 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
WHEREAS, in 1935, the Legislature first enacted the Vehicle L•icense 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 "offseY', 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 f~ully 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 typicai city
~ and county general purpose revenues On average, more than 60 percent of city
general fund spending and more than half of county general funds go to front line law
enforcement, fire, emergency medical services, and health care programs
V4'HEREAS, revenues derived from the VLF and backfill are of critical importance
in funding vital local public health and safety services, and
WHEREAS, any failure by the Legislature to maintain the VLF backfiil or restore
the VLF will cause widespread disruption in local government services essential to the
well-being of California citizens and their cities and counties, 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, '~HEREFORE, the CITY COIJNCIL OF THE CITY OF LYNWOOD DOES
HEREBY FIND, PROCLAIM, ORDER ANC RESOLVE AS FOLLOWS
Section 1: 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 econornic times and to restore the VLF in an amount necessary
to reduce the VLF backfill
Section 2: That the City of Lynwood hereby expresses its profound appreciation
to the legislators who support such VLF restoration legislation.
PASSED APPROVED and ADOPTED this 15th day of January , 3
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~ RNANDO PED OZA, AYOR
City of Lynwood
ATTEST
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Andrea L. Hooper, City Clerk
City of Lynwood
APPROVED AS TO FORM'
G~.~~~ __---~
Mike Montgomery
City Attorney
APP VED A TO CON ENT.
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,
Faus ' Gonza ~
City Manger
STATE OF CALIFORNIA ) ss
COUNTY OF LOS ANGELES ) `
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify
that the above and foregoing resolution was duly adopted by the City Council of
,--~ ~ said City at a special meeting thereof held in the City Hall of said City on the day ,
I ~
; January 15th , 2003 and passed by the following
Vote.
AYES: COUNCILMEN BYRD, REYES, RICHARDS, RODRIGUEZ, AND PEDROZA
NOES. NONE
ABSENT. NONE
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City Clerk, City of Lynwood
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City
Council of said City, do hereby certify that the above and forgoing is a full, true
and correct copy of Resolution No 2003.006 on file in my office
~ and that said resolution was adopted on the date and by the vote therein stated
Dated this 15th day of January , 2003
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Andrea L. Hooper, City Clerk
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