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