The Fight To Return $1.8 Million To Wildomar Continues

A bill that would restore millions of dollars to new cities – including Wildomar -- crossed another hurdle Tuesday. 

California’s SB 1566 passed out of the Senate Transportation and Housing Committee and is now headed to the state Senate Appropriations Committee.

to the city an ongoing revenue stream that was stripped away last year by SB 89. Under that bill, which was signed by the governor last June, millions of dollars in vehicle license fees revenue that cities historically receive was instead placed into an account for law enforcement services.

California’s newest cities were hit especially hard by the legislation. When Wildomar incorporated in 2008, SB 89 was not on the radar and losing the reliable revenue stream was not part of the city’s plan. For fiscal year 2012-13, the hit is $1.8 million lost.

For a young city, the shortfall is significant. In fiscal year 2008-09, the city’s general fund revenues totaled $9.5 million. General fund revenues for the 2012-13 fiscal year, which begins July 1, are projected at $6.6 million, according to Wildomar Assistant City Manager Gary Nordquist, who provided the figures during an April 17 budget workshop. The drop, Nordquist explained, was directly tied to the loss in vehicle license fees revenue.

If SB 1566 becomes law, the newly incorporated cities of Wildomar, Eastvale, Jurupa Valley, and Menifee will see a portion of the vehicle license fees revenue returned.

“The Legislature made a commitment to these cities… ,” said Senator Bill Emmerson, who represents Lake Elsinore, among other areas. “It’s time we live up to our promise and SB 1566 is an important step toward restoring the revenue our local cities have rightfully relied on when they decided to incorporate or annex a territory.”

Emmerson (R-Hemet) along with Senator Gloria Negrete McLeod (D-Chino) introduced SB 1566 earlier this year.