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IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO <br />RESOLUTION NO. 98-71 (1123/ 1050 ) <br />JOINT RESOLUTION OF THE <br />CITY COUNCILS OF ALL THE CITIES IN ALAMEDA COUNTY <br />URGING THE GOVERNOR AND THE STATE LEGISLATURE TO <br />OPPOSE THE PHASE -OUT OF VEHICLE LICENSE FEES <br />WHEREAS, the Governor and the State Legislature are considering the elimination or reduction of <br />vehicle license fees (VLF) proposed in various bills and in the Governor's May Revised Budget; and <br />WHEREAS, vehicle license fees are an essential source of funding for key city and county services <br />like police and fire protection, and if the State takes these revenues away from local government, this <br />will severely jeopardize the ability of local government to provide basic services to our communities, <br />and to plan for the future; and <br />WHEREAS, vehicle license fee revenues have a long tradition as a local government funding source, <br />and are a fair source of funding the vehicle -related costs that local agencies incur in servicing <br />motorists, such as traffic enforcement, safe street design and street maintenance; and <br />WHEREAS, although "assurances" have been made that the amount of VLF reduced or eliminated <br />will be replaced by other revenues, the history of State and local government fiscal relationships over <br />the past twenty years (and underscored by the past five years) strongly suggest that cities and <br />counties should not trade a stable, dependable revenue source for a State-controlled one, and that the <br />fiscal future of cities and counties lies in greater fiscal independence from the State, not in greater <br />reliance upon it; and <br />WHEREAS, the discussion of phasing -out VLF stems from the State's improved financial condition, <br />which results in part from the revenues taken away from cities and counties by the State under ERAF, <br />so that any State fiscal surplus should go to repaying local agencies for these take-aways ($3.6 billion <br />annually) before Sacramento contemplates a substantial giveaway; and <br />WHEREAS, if the State believes its improved fiscal condition warrants a tax cut, there is no need <br />to draw iocai government finances into this discussion because there are other tares that could be <br />reduced -- such as sales and income taxes -- without again placing local governments at risk by <br />needlessly involving them in the State budget process; and <br />WHEREAS, executive and legislative efforts should be directed towards restoring revenues taken <br />away from local governments by the State under ERAF; however, if this restoration is not going to <br />occur, the State should not worsen the financial situation of local governments by causing even <br />greater fiscal uncertainty and instability at the local level. <br />NOW, THEREFORE, BE IT RESOLVED by all the City Councils of the Cities in Alameda <br />County that we urge the Governor and the State Legislature to: <br />