Resolution 13006CITY OF ALAMEDA RESOLUTION NO.13 0 0 6
JOINT RESOLUTION OF THE CITY COUNCILS
OF ALL THE CITIES IN ALAMEDA COUNTY
URGING THE GOVERNOR AND THE STATE LEGISLATURE TO
OPPOSE THE PHASE -OUT OF VEHICLE LICENSE FEES
WHEREAS, the Governor and the State Legislature are considering the elimination
or reduction of vehicle license fees (VLF) proposed in various bills and in the Governor's May
Revised Budget; 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, this will severely jeopardize the ability of local government to provide basic services
to our communities, and to 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 the amount of VLF reduced
or eliminated will be replaced by other revenues, the history of State and local government fiscal
relationships over the past twenty years (and underscored by the past five years) strongly suggest
that cities and counties should not trade a stable, dependable revenue source for a State- controlled
one, and that 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, which results in part from the revenues taken away from cities and counties by
the State under ERAF, so that 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 its improved fiscal condition warrants a tax cut,
there is no need to draw local government finances into this discussion because there are other taxes
that could be reduced - such as sales and income taxes without again placing local governments
at risk by needlessly involving them in the State budget process; and
WHEREAS, executive and legislative efforts should be directed towards restoring
revenues taken away from local governments by the State under ERAF; however, if this restoration
is not going to occur, the State should not worsen the financial situation of local governments by
causing even greater fiscal uncertainty and instability at the local level.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Alameda hereby urges the Governor and the State Legislature to
Section 1. Oppose phasing -out VLF revenues.
Section 2. If the phasing -out of VLF revenues is to occur, then support the
concept that any phase out of VLF must be linked to a constitutionally guaranteed replacement
revenue source(s), as well as the return of property taxes to cities and counties taken away by the
State through ERAF.
BE IT FURTHER RESOLVED that the City Clerk of the City of Alameda is hereby
directed to forward a certified copy of this resolution to Gus :Morrison, Mayor of Fremont, for
forwarding to the Governor's Office.
I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly
adopted and passed by the Council of the City of Alameda in special meeting assembled on
the 9th day of June , 1998, by the following vote to wit:
AYES: Councilmembers Daysog, DeWitt, Kerr, and
President Appezzato - 4.
NOES: None.
ABSENT: Councilmember Lucas - 1
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City
this 10th day of June , 1998.
Diane Felsch, City Clerk
City of Alameda