BY GLENN FREEMAN
Eastvale – The fate of a legislative bill expected to restore Vehicle License Fees (VLF) to four Riverside County cities remains in limbo, though recent activity indicates it’s again progressing through the legislature. However, at least one of the four cities – Eastvale – has essentially thrown in the towel.
Sponsored by California Sen. Richard Roth (D-Riverside), Senate Bill 69 replaces a similar bill (SB56) that previously stalled in the legislature. Last May, SB69 passed the state senate and proceeded to the state assembly, where the bill awaits a final vote.
The bill proposes to move an estimated $18 to $19 million in property tax money normally marked for education to the four Riverside County cities. It stems in part from a 2011 decision by California lawmakers – via SB89 – to shift millions in vehicle license fee funds from cities as part of the prison realignment process that shifted these costs from the state to counties. The shifting of VLF funds was done to help counties absorb these new costs. However, the funds came from those normally given to cities, removal of which greatly impacted newer municipalities that typically rely heavily upon VLF funds.
Locally, the four cities most affected by the shifting of VLF funds were Eastvale, Jurupa Valley, Wildomar, and Menifee, all of which have incorporated since 2008. The four cities have worked for the past two plus years – sharing a lobbyist – in trying to get the funds restored.
Eastvale, however, recently decided not to renew its contract with the lobbyist, saying doing so was “throwing good money at bad. We have better uses for that money,” Mayor Ike Bootsma told The Press-Enterprise. Bootsma says he’s not optimistic that if SB69 passes, that Governor Brown will sign it, thus the City is not counting on restoration of the lost funds.
Michele Nissen, Public Information Officer for Eastvale, says City officials have been prudent in their budgeting without relying on the VLF funds.
“We have been very conservative in our budget decisions (past, present and future) and have not counted on getting the VLF money back. The major impact to the City is that the loss of VLF money takes away our ability to provide more police officers and other services,” said Nissen.
In particular, the loss of VLF funds was hardest on Jurupa Valley, which was the last of the four cities to incorporate in 2011, just two days after the shifting of VLF funds by the state. The new city lost nearly half of its general fund budget during its first year. It has since cut expenses and delayed some payments to Riverside County. But without restoration of the VLF funds, the city expects to run out of money by July 2015. As a precaution, city officials reluctantly began the lengthy disincorporation process this past January.
However, other options to make up the lost monies – including a possible public vote for an annual assessment on property – are also under review. It is unknown at this time whether either option will save Jurupa Valley from potential disincorporation.
