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HomeMy WebLinkAboutMINUTES - 04101987 - 2.1 n To: BOARD OF SUPERVISORS FROM: Phil Batchelor Contra County Administrator Costa DATE: March 4, 1987 County SUBJECT: Legislation: Senate Bill 407 (Campbell) SPECIFIC REQUEST(S) OR RECOMMENDATION(_S) & BACKGROUND Alm JUSTIFICATION RECOMMENDATION: Adopt a position of opposition to SB 407 by Senator William Campbell which would transfer a portion of the County' s property tax revenue to the no-property tax cities in. Contra Costa and several other counties, and would guarantee a replacement source of revenue from the State General Fund to make up for the loss to the County of this property tax revenue. BACKGROUND: The Board is already on record in opposition to AB 339 by Assemblyman Cortese which would transfer property tax revenue from the county to "no-property tax" and "low-property tax" cities in this, and several other counties, to bring all cities up to a property tax equal to 10 cents per $100 of assessed value. Senator Campbell has introduced SB 407 which is similar to AB 339. The difference is that SB 407 only transfers property tax to "low-property tax" cities in Los Angeles County. In the other counties, property tax is transferred . only to the "no-property tax" cities. In addition, SB 407 specifies that the county will be reimbursed in each year for the property .tax loss. SB 407 provides for a very complex alternative mechanism for calculating how much the county would be reimbursed. (See the attached memo from the Auditor-Controller' s Office. ) The first year revenue loss to the County for transfer to the cities of Pleasant Hill and Lafayette would total $2,846,300 ( for the 1988-89 fiscal year) . We believe strongly that if the State wants to provide property tax revenue to the cities they should transfer the funds from the school' s share of the property tax rather than the county' s share--as is suggested by the Auditor-Controller' s Office. In this way, the State would automatically make up the school' s revenue loss and the CONTINUED ON ATTACHMENT: _ YES SIGNATURE: _X RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE X APPROVE OTHER S 1 GNATURE(S 1: L/�Y.C�I `/ -G ► Dyd"�G�/�' ACTION OF BOARD ON March 10, 1987 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT III, IV } 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. County Administrator: Auditor; G .Qir �. /o /9�7 cc: Supt. of Schools; CSAC Director; ATTESTED Jackson/Barish; Attn: Kathy Snodgrass PHIL BATCHELOR, CLERK OF THE BOARD OF Senator William Campbell ; SUPERVISORS AND COUNTY ADMINISTRATOR City Managers : Pleasant Hill , Lafayette M BY +�-� ,DEPUTY 382/7-83 Page 2 county' s property tax base would remain unaffected. This is a more direct way of accomplishing what Senator Campbell appears to be trying to accomplish with SB 407 . As an alternative, the State could simply provide a direct subsidy to these cities from the State General Fund and not go through the property tax transfer at all. For these reasons, we recommend that the Board oppose SB 407 as long as it transfers any of the County' s property tax revenue to the cities. If a transfer from the schools is made, we would be happy to conduct an analysis of the bill at that time and consider amending our recommendation to the Board. TO BOARD OF SUPERVISORS FROM: Phil Batchelor Contra County Administrator Costa DATE: March 4, 1987 County SUBJECT: Legislation: Assembly Bill 339 (Cortese) SPECIFIC REQUEST(S) OR RECOMMENDATION(S) a BACKGROUND AND JUSTIFICATION RECOMMENDATION• Change the Board' s position on AB 339 by Assemblyman Dominic Cortese from "oppose unless amended" to "oppose" . BACKGROUND: On February 18, 1987, the Board adopted a position of oppose unless amended in regard to AB 339, which proposes to transfer property tax revenue from the county to no-property tax and low-property tax cities in this and other affected counties. The initial recommendation to the Board was that the bill be opposed unless a dependable alternative source of revenue could be identified which would increase at a rate comparable to the property tax. AB 339 contains no such alternative revenue source. In discussing this bill with CSAC, we have decided that rather than transferring a part of the property tax to these cities and then having the State reimburse the county for its property tax loss, it would be much more direct for the State to simply provide . a revenue source to those cities out of the State General Fund in the amount which would otherwise have been taken from the County' s property tax. Since we believe this is a more direct way to solve the problem, we believe that any transfer of the County' s property tax base is inappropriate and, therefore, recommend opposition to AB 339, regardless of whether an alternative revenue source is identified. CONTINUED ON ATTACHMENT: _ YES SIGNATURE: X RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE X APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON March lop 1987 APPROVED AS RECOMMENDED X OTHER _ VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT III, IV ) 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. cc: County Administrator; Auditor; ATTESTED ��r�c-,�.. /0 1987 CSAC Director; Jackson/Barish; _ Assemblyman Dominic Cortese PHIL BATCHELOR, CLERK OF THE BOARD OF City Managers: Pleasant Hill Lafayette; SUPERVISORS AND COUNTY ADMINISTRATOR Clayton; Hercules; San Ramon; Danville; Orinda; Moraga M382/7-83 BY ,DEPUTY