HomeMy WebLinkAboutMINUTES - 03171987 - 1.32 i - + CORRECTED Z
To BOARD OF SUPERVISORS
FROM: Phil Batchelor Contra
County Administrator Costa
DATE: March 11, 1987
County
SUBJECT
Legislation: Senate Bill 572 (Garamendi)
SPECIFIC REQUEST(S) OR RECOMMENDATION(_S) & BACKGROUND AND JUSTIFICATION
RECOMMENDTION•
Adopt a position of support for SB 572 by Senator Garamendi on
the condition that the bill is amended as outlined below.
BACKGROUND:
The Board will recall that in 1986 the Legislature passed, and
the Governor signed, AB 2890 by Assemblyman Hannigan which
authorized. the county to reimburse itself for the cost of
processing the supplemental property tax roll not to exceed 5% of
supplemental tax roll revenue. The legislation specified that
costs to be reimbursed were "actual" costs regardless of the date
those costs are incurred. The precise date that counties could
start deducting the (up to) 5% was not clearly defined in the
bill.
Senator Garamendi has introduced SB 572 which specifies that the
starting point from which counties may deduct the costs is from
supplemental roll collections received on and after January 1,
1987 . Enactment of SB 572 as introduced would preclude . the
county from recovering its costs from collections received during
the first half of the 1986-87 fiscal year (July 1, 1986 through
December 31, 1986) .
The Auditor-Controller has recommended that we ask Senator
Garamendi to amend SB 572 in two respects:
1 . Move the effective date for the cost recovery allocations
back to July 1, 1986 so as to cover all collections received
during the 1986-87 fiscal year. This change seems equitable
in view of the fact that the county has already lost one
full year of cost recovery; namely, the 1985-86 fiscal year.
2 . The legislation as enacted by AB 2890 defines the "actual
administrative costs" which are eligible for reimbursement
as only those "direct costs for administration, data
CONTINUED ON ATTACHMENT: YES SIGNATURE:
_ RECOMMENDA*ION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
X APPROVE OTHER
SIGNATURE(S): & - " 'f .
ACTION OF BOARD ON March 17, 1987 APPROVED AS RECOMMENDED OTHER _
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS (ABSENT r AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVIS ON THE DATE SHOWN.
County Administrator 9 8
cc: Auditor-Controller ATTESTED 1
Assessor PHIL BATCHELOR, CLERK OF THE BOARD OF
Treasurer-Tax Collector SUPERVISORS AND COUNTY ADMINISTRATOR
CSAC Director
Senator John Garamendi BY .DEPUTY
M382/7-83
Paged 2
2 . (continued)
processing, collection, and appeal which are incurred by
county auditors, assessors, and tax collectors" .
The Auditor-Controller has suggested that there are, in
fact, costs of administration which are legitimate costs in
collecting and administering the supplemental property tax
roll which do not fall within this definition of
administrative costs. Mr. Bouchet recommends that this
section be amended by Senator Garamendi to authorize
inclusion of those costs approved by the State Controller' s
Administrative Cost Plans Unit. This unit in the State
Controller' s Office has delegated authority from the Federal
Government to audit local agency cost plans for compliance
with the federal system for distributing indirect costs to
various programs better known as the "A-87 Cost Allocation
Program" . That program recognizes that costs, even though
they may be sometimes classified as "indirect" costs are
indeed. actual costs.
The A-87 process allows certain carefully specified indirect
costs to be included as chargeable costs for a given
program. There are costs which are, in fact, costs of
collecting the supplemental property tax roll which are
probably not commonly thought of as "direct costs" , but
which would be included under the A-87 process. Since the
Controller' s Office already audits the Auditor' s cost
distribution system, it would seem more objective and fair
to accept those figures for claiming purposes rather than
having to construct an additional and somewhat artificial
system of collecting and charging costs for the
administration of the supplemental roll.
This office concurs with the recommendations of the
Auditor-Controller and, therefore, recommends that the Board
support SB 572 subject to Senator Garamendi' s agreeing to these
two amendments.