CC Resolution No. 03-019- RESOLUTION NO. 03-019
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
URGING THE CALIFORNIA LEGISLATURE TO REJECT THE GOVERNOR'S
PROPOSED SHIFT OF LOCAL VEHICLE LICENSE FEE REVENUES AND TO HONOR
THE 1998 COMMITMENT TO RESTORE THE VEHICLE LICENSE FEE
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 such fee was increased to 2 percent in 1948; and
WHEREAS, in 1986, the voters voted overwhelmingly to constitutionally dedicated 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, VLF and backfill revenues represent 50 percent of the City of Cupertino's
public safety budget, which funds front line law enforcement and safety.
WHEREAS, any failure by the Legislature to maintain the VLF backfill or restore the
VLF will cause widespread disruption in local govemment 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
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Cupertino,
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
IT IS FURTHER RESOLVED that the City of Cupertino hereby expresses its profound
appreciation to the legislators who support such VLF restoration legislation.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 21st day of January 2003, by the following vote:
Vote
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Chang, James, Kwok, Sandoval, Lowenthal
None
None
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