HomeMy WebLinkAboutMINUTES - 10111994 - 1.49 77
TO: BOARD OF SUPERVISORS s L Contra
r
FROM: Phil Batchelor, County Administrator _
Costa
County
DATE:
October 6, 1994 '�S .•' �T�
SUBJECT: REQUEST THAT THE STATE DEPARTMENT OF FINANCE MAKE AB 3304 (BATES)
OPERATIVE IN CONTRA COSTA COUNTY
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
1 . REQUEST the State Department of Finance to make operative in
Contra Costa County Revenue and Taxation Code § 97 . 035
(c) (2 ) (B) , as added by AB 3304 (Chapter 524, Statutes of
1994) , which would exempt the first $104,000 of money which
would otherwise have been transferred from the Kensington
Community Services District to the schools as a part of the
property tax transfer implemented beginning with the 1993-94
fiscal year.
2 . AUTHORIZE the Chairman, Board of Supervisors, to sign a letter
to the State Department of Finance transmitting this request.
BACKGROUND:
In the 1993-94 fiscal year, the transfer of property tax funds from
local jurisdictions (cities, counties and special districts) to the
State continued and increased. The Kensington Community Services
District was one of the districts providing police services which
was hard hit by this property tax transfer. The County made a
substantial effort to exempt special districts which provided
police services from having to be affected by this property tax
transfer, as fire districts had been exempted from the transfer.
This effort was unsuccessful during the 1993-94 fiscal year. A
further effort was made during the 1994-95 fiscal year to exempt
special districts providing police services from this transfer or
to offset the revenue loss with funds from another source.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPJOVE OTHER
ATURE(S): 0' &A; '�e 1�/w
S
ACTION OF BOARD ON October 1 1 1 q q 4 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
_UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
HIT Ii I
ATTESTED
Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF
cc: See Page 2 SUPERVISORS AND COUNTY ADMINISTRATOR
. n
By d1V 0�1+ J DEPUTY
-2-
This effort, too, was unsuccessful in terms of the dependent
special districts providing police services (P-6 ) . However, the
Kensington Community Services District, with support and
encouragement from the County, was able to obtain the passage and
enactment of legislation which exempted $104,000 of the property
tax transfer which the Kensington Community Services District would
otherwise have had to make to the State for the 1993-94 , 1994-95
and subsequent fiscal years . This legislation was AB 3304 (Bates) ,
which has been signed by the Governor and is now Chapter 524,
Statutes of 1994 .
One of the provisions of AB 3304 provides that it applies to a
district which: " . . .is located within a county in which the board
of supervisors has requested the Department of Finance that this
subparagraph be operative in the county. "
Therefore, before the Auditor-Controller can recompute the property
tax transfer from the Kensington Community Services District to the
Educational Revenue Augmentation Fund (ERAF) , it is necessary that
the Board of Supervisors formally request that this subparagraph be
operative in Contra Costa County. The $104 ,000 which will be
excluded pursuant to the provisions of AB 3304 will come directly
from the State. It does not jeopardize or affect any funds
belonging to the County or any other special district in the
County. AB 3304 simply excludes the first $104 ,000 of the amount
which would otherwise be transferred to the ERAF from being
transferred to the ERAF, thereby requiring the State to make up
that property tax loss for the schools .
In view of the fact that the County encouraged and supported the
effort of the Kensington Community Services District to have some
or all of its property tax transfer excluded, it seems appropriate
for the Board of Supervisors to now take the actions recommended.
cc : Assemblyman Tom Bates (Via CAO)
Russell S. Gould, Director
State Department of Finance (Via CAO)
James M. Bray, General Manager
Kensington Community Services District (Via CAO)
Kenneth J. Corcoran, Auditor-Controller
Victor J. Westman, County Counsel
Phil
The Board of Supervisors Contra Clerk ooffthe Board
and
County Administration Building Costa
County Administrator
651 Pine Street, Room 106 (510)646-2371
Martinez, California 94553-1293 County
Tom Powers,1st District
Jeff Smith,2nd District aE• :" L:.,01
Gayle Bishop,3rd District
Mark DeSaulnier,4th District /
Tom TorlakSon,5th istrict o! "° ^
October 17, 1994
e
srA_cootie`
Russell Gould
Director of Finance
State of California
Room 1145, State Capitol
Sacramento, CA 95814
Implementation of AB 3304 (Chapter 524, Statutes of 1994 in Contra
Costa County
Dear Mr. Gould:
AB 3304 (Chapter 524 , Statutes of 1994) provides that a portion of
its provisions can be effective only where the community services
district in question 11 . . .is located within a county in which the
board of supervisors has requested the Department of Finance that
this subparagraph be operative in the county. "
On October 11, 1994 , the Contra Costa County Board of Supervisors
voted unanimously to ask that this provision be made operative in
this County and authorized me to forward this request to you. In
accordance with this authorization, the Contra Costa County Board
of Supervisors hereby requests that the State Department of Finance
make operative in Contra Costa County Revenue and Taxation Code S
97 .035 (c) (2) (B) , as added by AB 3304 (Chapter 524, Statutes of
1994) , which would exempt the first $104 ,000 of money which would
otherwise have been transferred from the Kensington Community
Services District to the schools as a part of the property tax
transfer implemented beginning with the 1993-94 fiscal year.
Very tru y y urs,
TOM WERS
CHAIRMAN
Attachment
cc: The Honorable Tom Bates, Assemblyman, 14th District
3923 Grand Avenue, Oakland, CA 94610
James M. Bray, General Manager
Kensington Police Protection and Community Services
District, 217 Arlington Avenue, Kensington, CA 94707-1401
Phil Batchelor, County Administrator
Kenneth J. Corcoran, Auditor-Controller
Victor J. Westman, County Counsel
KENSINGTON POLICE PROTECTI
AND COMMUNITY SERVICES DISTRICT
September 28, 1994
Thomas Powers, Supervisor
Contra Costa County
100 37th Street
Richmond, California 94805
RE: AB 3304 (Assemblyman Bates)
On behalf of the Board of Directors of the Kensington Community Services District and the
entire community, 1 would like to thank you and your staff for all your support of AB 3304.
Through your strong support AB 3304 raced through the legislative committees with very little
opposition and was recently signed by Governor Wilson.
Implementation of the bill requires approval of the Board of Supervisors (see page -4- section
2 (iv). We would hope this is merely a formality and would be accomplished at your earliest
convenience.
Once again, thank you for all your support.
-'-'Sincerely,
James M Bray
a Manager
217 Arlington Avenue • Kensington, California 94707-1401 • (510) 526-4141
4 '
Assembly Bill No. 3304
CHAPTER 524
An act to amend Section 97.035 of the Revenue and Taxation Code,
relating to local government finance.
[Approved by Governor September 11, 1994. Filed with
Secretary of State September 12, 1994.]
LEGISLATIVE COUNSEL'S DIGEST
AB 3304, Bates. Property taxation: revenue allocations:
community services districts.
Existing property tax law requires, for purposes of determining
property tax revenue allocations in each county for the 1993-94 fiscal
year, that the amounts of property tax revenue deemed allocated in
the prior fiscal year to special districts be reduced in accordance with
I certain formulas. It requires that the revenues not allocated to
special districts as a result of these reductions be transferred to the
Educational Revenue Augmentation Fund in that county for
allocation to school districts, community college districts, and the
? county office of education.
This bill would, upon the request of a county, establish a limited
exclusion from these reduction and transfer provisions with respect
to a community services district within the requesting county that
succeeds to the powers, properties, and service area of a police
protection district upon that district's dissolution.
The people of the State of California do enact as follows.
SECTION 1. Section 97.035 of the Revenue and Taxation Code,
as amended by Chapter 155 of the Statutes of 1994, is amended to
read:
97.035. Notwithstanding any other provision of this chapter, the
computations and allocations made by each county pursuant to
Section 97, as modified by Section 97.03 for the 1992-93 fiscal year,
shall be modified for the 1993-94 fiscal year pursuant to subdivisions
(a) to (c), inclusive, as follows:
(a) The amount of property tax revenue deemed allocated in the
prior fiscal year to each county and city and county shall be reduced
by an amount to be determined by the Director of Finance in
accordance with the following:
(1) The total amount of the property tax reductions for counties
and cities and counties determined pursuant to this section shall be
one billion nine hundred ninety-eight million dollars ($1,998,000,000)
in the 1993-94 fiscal year.
(2) The Director of Finance shall determine the amount of the
reduction for each county or city and county as follows:
94 100
Ch. 524 —2—
(A)
2—(A) The proportionate share of the property tax revenue
reduction for each county or city and county that would have been
imposed on all counties under the proposal specified in the "May
Revision of the 1993-94 Governor's Budget" shall be determined by
reference to the document entitled"Estimated County Property Tax
Transfers Under Governor's May Revision Proposal," published by
the Legislative Analyst's office on June 1, 1993.
(B) Each county's or city and county's proportionate share of total
taxable sales in all counties in the 1991-92 fiscal year shall be
determined.
(C) An amount for each county and city and county shall be
determined by applying its proportionate share determined
pursuant to subparagraph (A). to the one billion nine hundred
ninety-eight million dollar ($1,998,000,000) statewide reduction for
counties and cities and counties.
(D) An amount for each county and city and county shall be
determined by applying its proportionate share determined
pursuant to subparagraph (B) to .the one billion nine hundred
ninety-eight million dollar ($1,998,000,000) statewide reduction for
counties and cities and counties.
(E) The Director of Finance shall add the amounts determined
pursuant to subparagraphs (C) and (D) for each county and city and
county, and divide the resulting figure by two. The amount so
determined for each county and city and county shall be divided by
a factor of 1.038. The resulting figure shall be the amount of property
tax revenue to be _subtracted from the amount of property tax
revenue deemed allocated in the prior fiscal year.
(3) The Director of Finance shall, by July 15, 1993, report to the
Joint Legislative Budget Committee its determination of the
amounts determined pursuant to paragraph (2).
(4) On or before August 15, 1993, the Director of Finance shall
notify the auditor of each county and city and county of the amount
of property tax revenue reduction determined for each county and
city and county.
sr� fi (5) Notwithstanding any other provisionof this subdivision, the
amount of the reduction specified in paragraph (2) for any county
or city and county that has first implemented, for the 1993-94 fiscal
year, the alternative procedure for the distribution of property tax
levies authorized.by Chapter 2 (commencing with Section 4701) of
Part 8 shall be reduced,for the 1993-94 fiscal year only,in the amount
of any increased revenue allocated to each.qualifying school entity
that would not have been allocated for the 1993-94 fiscal year but for
the implementation of that alternative procedure. For purposes of
this paragraph, "qualifying school entity" means any school district,
county office of education, or community college district that is not
an excess tax school entity as defined in Section 95.1.
Notwithstanding any other provision of this paragraph, the amount
of any reduction calculated pursuant to this paragraph for any county
94 130
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or city and county shall not exceed the reduction calculated for that
county or city and county pursuant to paragraph (2).
(b) The amount of property tax revenue deemed allocated in the
prior fiscal year to each city shall be reduced by an amount to be
determined by the Director of Finance in accordance with the
following:
(1) The total amount.of the property tax reductions determined
for cities pursuant to this section shall be two hundred eighty-eight
million dollars ($288,000,000) in the 1993-94 fiscal year.
(2) The Director of Finance shall determine the amount of
reduction.for each city as follows:
(A) The amount of property tax revenue that is estimated to be
attributable in the 1993-94 fiscal year to the amount of each city's
state assistance payment received by that city pursuant to Chapter
j 282 of the Statutes of 1979 shall be determined.-
(B)
etermined.(B) A factor for each city equal to the amount determined
pursuant to subparagraph (A) for that city,divided by the total of the
amounts determined pursuant to subparagraph (A) for all cities,
shall be determined.
_ (C) An amount for each city equal to the factor determined
pursuant to subparagraph (B), multiplied by three hundred
eighty-two million five hundred thousand dollars ($382,500,000),
' I shall be determined.
i (D) In no event shall the amount for any city determined
I pursuant to subparagraph (C) exceed a per capita amount of
nineteen dollars and thirty-one cents ($19.31), as determined in
accordance with that city's population on January 1, 1993, as
estimated by the Department of Finance.
(E) The. amount determined for each city pursuant to
subparagraphs (C) and (D) shall be the amount of property tax
revenue to be subtracted from the amount of property tax revenue
deemed allocated in the prior year.
(3) The Director of Finance shall, by July 15, 1993, report to the
Joint Legislative Budget Committee those amounts. determined
pursuant to paragraph (2).
(4) On or before August 15, 1993,the Director of Finance shall
notify.each county auditor of the amount of property tax revenue
reduction determined for each city located within.that county.
j (c) (1) The amount of property tax revenue deemed allocated in
the prior fiscal year to each special. district, as defined pursuant to
subdivision (m) of Section 95, shall be reduced by the amount
determined for the district pursuant.to paragraph (3) and increased
i by the amount determined for the district pursuant to paragraph (4).
The total net .amount of these changes is intended to equal two
hundred forty-four million dollars ($244,000,000) tin the 1993-94 fiscal
year.
j J (2) (A) Notwithstanding any other provision of this subdivision,
no reduction shall be made pursuant to this subdivision with respect
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Ch. 524 —4—
to
4—
to any of the following special districts:
(i) A local hospital district as described in Division 23
(commencing with Section 32000) of the Health and Safety Code.
(ii) A water agency that does not sell water at retail, but not
including an agency the primary function of which, as determined
on the basis of total revenues, is flood control.
(iii) A transit district.
(iv) A police protection district formed pursuant to Part 1
(commencing with Section 20000) of Division 14 of the Health and
Safety Code.
(v) A special district that was a multicounty special district as of
July 1, 1979.
(B) Notwithstanding any other provision of this subdivision, the
first one hundred four thousand dollars ($104,000) of the amount of "
any"reduction that otherwise would be made under this subdivision
with respect to a qualifying community services district shall be
excluded. For purposes of this subparagraph, a "qualifying
community services district" means a community service district
that meets all of the following requirements:
(i) Was formed pursuant to Division 3 (commencing with Section
61000) of Title 6 of the Government Code.
(ii) Succeeded to the duties and properties of a police protection
district upon the dissolution of that district.
(iii) Currently provides police protection services to substantially
the same territory as did that district.
(iv) Is'located within a county in which the board of supervisors
has requested the Department of Finance that this subparagraph be
operative in"the county.
(3) On or before September 15, 1993, the county auditor shall
determine an amount for each special district equal to the amount
of its allocation determined pursuant to Sections 96 or 97, and 98 for
the 1993-94 fiscal year multiplied by the'ratio determined pursuant
to paragraph (1) of subdivision (a) of Section 98.6 as that section read
on June 15, 1993. In those counties that were subject to Sections 98.65,
98.66,98.67, and 98.68, the county auditor shall determine an amount
for each special district that represents the current amount of its
allocation determined pursuant to Sections 96 or 97, and 98 for the
1993-94 fiscal year that is attributed to the property tax shift from
schools required by Chapter 282 of the Statutes of 1979. In
determining this amount, the county auditor shall adjust for the
influence of increased assessed valuation within each district,
including the effect of jurisdictional changes, and the reductions in
property tax allocations required in the 1992-93 fiscal year by
Chapters 699 and 1369 of the Statutes of 1992. In the case of a special
district that has been consolidated or reorganized, the auditor shall
determine the amount of its current property tax allocation that is
attributable to the prior district's or districts' receipt of state
assistance payments pursuant to Chapter 282 of the Statutes of 1979.
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Notwithstanding any other provision of this paragraph, for a special
3 district that is governed by a city council or whose governing board
has the same membership as a city council and that is a subsidiary
t district as defined in subdivision (e) of Section 16271 of the
Government Code, the county auditor shall multiply the amount
that otherwise would be calculated pursuant to this paragraph by
0.38 and the result shall be used in the calculations required by
1 paragraph (5). In no event shall the amount determined by this
i paragraph be less than zero.
(4) (A) On or before September 15, 1993,the county auditor shall
f determine an amount for each special district that is engaged in fire
protection activities,as reported to the Controller for inclusion in the
1989-90 Edition of the Financial Transactions Report Concerning,
f Special Districts under the heading of"Fire Protection,"that is equal
i to the amount of revenue allocated to that special district from the
Special District Augmentation Fund for fire protection activities in
Ir the 1992-93 fiscal year. In the case of a special district, other than a
t special district governed by the county board of supervisors or whose
governing body is the same as the county board of supervisors, that
i is engaged in fire protection activities as reported to the Controller,
the county auditor shall also determine the amount by which the
district's amount determined pursuant to paragraph (3) exceeds the
amount by which its allocation was reduced by operation of Section
r 98.6 in the 1992-93 fiscal year. This amount shall be added to the
amount otherwise determined for the district under this paragraph.
In any county subject to Section 98.65, 98.66, 98.67, or 98.68, the
county auditor shall determine for each special district that is
engaged in fire protection activities an amount that is equal to the
[ amount determined for that district pursuant to paragraph (3).
t (B) For purposes of this paragraph, a special district includes any
r special district that is allocated property tax revenue pursuant to this
t chapter and does not appear .in the State Controller's Report on
1 Financial Transactions Concerning Special Districts, but is engaged
in fire protection activities and appears in the State Controller's
t Report on Financial Transactions Concerning Counties.
s (5) The total amount of property taxes allocated to special
districts by the county auditor as a result of paragraph (4) shall be
i subtracted from the amount of property tax revenues not allocated
i to special districts by the county auditor as a result of paragraph (3)
to determine the amount to be deposited in the Education.Revenue
Augmentation Fund as specified in subdivision (d).
1 (6) On or before September 30, 1993, the county auditor shall
notify the Director of Finance of the net amount determined for
l special districts pursuant to paragraph (5).
1 (d) (1) The amount of property tax revenues not allocated to the
county,city and county,cities within the county, and special districts
as a result of the reductions required by subdivisions (a), (b),and (c)
shall instead be deposited in the Educational Revenue Augmentation
QA 9.00
Ch. 524 —6—
Fund
6—
Fund established in each county or city and county pursuant to
Section 97.03. The amount of revenue in the Educational Revenue
Augmentation Fund, derived from whatever source, shall be
allocated pursuant to paragraphs (2) and (3) to school districts and
county offices of education, in total, and to community college
districts, in total, in the same proportion that property tax revenues
were distributed to school districts and county offices of education,
in total, and community college districts,in total, during the 1992-93
fiscal year.
(2) The county auditor shall, based on information provided by
the county superintendent of schools pursuant to this paragraph,
allocate that proportion of the revenue in the Educational Revenue
Augmentation Fund to be allocated to school districts and county
offices of education only to those school districts and county offices
of education within the county that are not excess tax school entities,
as defined in Section 95.1. The county superintendent of schools shall
determine the amount to be allocated to each school district in
inverse proportion to the amounts of property tax revenue per
average daily attendance in each school district. For each county
office of education, the allocation shall be made based on the
historical split of base property tax revenue between the county
office of education and school districts within the county. In no event
shall any additional money be allocated from the Educational
Revenue Augmentation Fund to a school district or county office of
education upon that district or county office of education becoming
an excess tax school entity. If, after determining the amount to be
allocated to each school district and county office of education, the
county superintendent of schools determines there are still
additional funds to be allocated,the county superintendent of schools
shall determine the remainder to be allocated in inverse proportion
to the amounts of property tax revenue, excluding Educational
Revenue Augmentation Fund moneys,per average daily attendance
in each remaining school district, and on the basis of the historical
split;described above for each county office of education,that is not
an excess tax school entity until all funds that would not result in a
school district or county.office of education becoming an excess tax
school entity are allocated. The county superintendent of schools
may determine I the amounts to be allocated between each school
I district and county office of education to ensure that all funds that
would not result in a school district or county office of education
becoming an excess tax school entity are allocated.
(3) The county auditor shall, based on information provided by
the Chancellor of the California Community ..Colleges pursuant to
this paragraph, allocate that proportion of. the revenue in the
Educational Revenue Augmentation Fund to be allocated to
community college districts. only to those community college
districts within the county that are not excess tax school entities, as
defined in Section 95.1. The chancellor shall determine the amount
C)A 00n
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to be allocated to each community college district in inverse
- proportion to the amounts of property tax revenue per funded
full-time equivalent student in each community college district. In
no event shall any additional money be allocated from the
Educational Revenue Augmentation Fund to a community college
district upon that district becoming an excess tax school entity.
(4) If, after making the allocation required pursuant to paragraph
(2), the auditor determines that there are still additional funds to be
allocated, the auditor shall allocate those excess funds pursuant to
paragraph (3). If, after making the allocation pursuant to paragraph
(3), the auditor determines that there are still additional funds to be
allocated, the auditor shall allocate those excess.funds pursuant to
paragraph (2). If, after determining the amount to be allocated to
each community college district, the Chancellor of the California
Community Colleges determines that there are still additional funds
to be allocated,the Chancellor of the California Community Colleges-
shall
ollegesshall determine the remainder to be allocated to each community
college district in inverse proportion to the amounts of property tax
revenue, excluding Educational Revenue Augmentation Fund
i moneys, per funded full-time equivalent student in each remaining
i community college district that is not an excess tax school entity until
all funds that would not result in a community college district
becoming an excess tax school entity are allocated. .
j (5) For purposes of allocations made pursuant to Section 97 for the
1994-95 fiscal year, the amounts allocated from the Educational
Revenue Augmentation Fund pursuant to this subdivision, other
than those amounts deposited in the Educational Revenue
Augmentation Fund pursuant to any provision of the Health and
Safety Code, shall be deemed property tax revenue allocated to the
l Educational Revenue Augmentation Fund in the prior fiscal year.
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