City of Hermosa Beach --- 05-12-98


VEHICLE LICENSE FEES


Recommendation:


That the City Council take a position of opposing repeal of the Vehicle License Fee program.


Background:


A number of bills are pending in the legislature that would reduce or eliminate the Vehicles License Fee revenues to cities and counties. The total collected statewide is almost $4 billion according to estimates made by the League of California Cities. The majority of the impact is on counties at $2 billion and cities over $1 billion. Hermosa Beach's estimate is $760,000 for the next fiscal year. This, of course, is general fund and would impact the ability to provide a full range of services should it be completely repealed. The City Council would be faced with a significant cost cutting challenge should these funds be removed by action of the state legislature.


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