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HomeMy WebLinkAboutResolution 1998-023 RESOLUTION NO. 1998-023 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO URGING THE GOVERNOR AND THE STATE LEGISLATURE TO SUPPORT THE PHASE-OUT OF VEHICLE LICENSE FEES ONLY IF SUCH PHASING-OUT IS LINKED TO A CONSTITUTIONALLY- GUARANTEED REPLACEMENT SOURCE AS WELL AS THE RETURN OF PROPERTY TAXES TO CITIES, COUNTIES AND SPECIAL DISTRICTS TAKEN AWAY BY THE STATE THROUGH ERAF BE IT RESOLVED by the Atascadero City Council as follows: WHEREAS, the Governor and the State Legislature are considering a phase-out of vehicle license fees over a five year period; and WHEREAS, vehicle license fees are an essential source of funding for key city and county services like police and fire protection, and if the State takes these revenues away from local government—on top of property tax revenues already taken away from cities and counties by the State through ERAF—this will severely jeopardize local government's ability to provide basic services to our communities, and to financially plan for the future; and WHEREAS, vehicle license fee revenues have a long tradition as a local government funding source, and are a fair source of funding the vehicle-related costs that local agencies incur in servicing motorists, such as traffic enforcement, safe street design and street maintenance; and WHEREAS, although"assurances"have been made that cities and counties will be "made whole" in the event that VLF is phased-out,the history of State and Local government fiscal relationships over the past twenty years (and underscored by the past five years)tells us that trading a stable, dependable revenue source for a State-controlled one is the exact opposite direction from where State and local governments should go. The fiscal future of cities and counties lies in greater fiscal independence from the State, not in greater reliance upon it; and WHEREAS, the discussion of phasing-out VLF stems from the State's improved financial condition, and a large part of this improvement is a direct result from the revenues taken away from cities and counties by the State under ERAF. For this reason, any State fiscal surplus should go to repaying local agencies for these take-aways ($3.6 billion annually)before Sacramento contemplates a substantial giveaway; and WHEREAS, if the State believes that its improved fiscal condition warrants a tax cut, there is no need to draw local government finances into this discussion. There are many other broad-based taxes that could be reduced—such as sales and income taxes— Resolution No. 1998-023 Page 2 without again placing local governments at risk by needlessly involving them in the State budget process; and WHEREAS, in conclusion, executive and legislative efforts should be directed towards restoring revenues taken away from local governments by the State under ERAF; however, if this is not going to happen, at minimum, the State should not be making things worse by causing even greater fiscal uncertainty and instability at the local level. On motion by Council Member Luna seconded by Council Member Johnson,the foregoing resolution is hereby adopted in its entirety on the following roll-call votes: AYES: Council Members Clay, Johnson, Lerno, Luna and Mayor Carden NOES: None ABSENT: None ADOPTED: June 9, 1998 CITY OF ATASCAD By: 4_ ATTEST: AHarold L. Carden, III, Mayor Marcia M. Torgerson, City erk APPROVED AS TO FROM: a. 1 Royl. Hanley, CityVkttorney