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HomeMy WebLinkAboutMINUTES - 04211987 - 1.64 VIA TO: BOARD OF SUPERVISORS t FROM: Phil Batchelor Contra County Administrator Costa DATE: April 15, 1987 County SUBJECT: Legislation: Assembly Bill 1210 (Cortese) SPECIFIC REQUEST(S) OR RECOMMENDATION(_S) & BACKGROUND Aim JUSTIFICATION RECOMMENDATION• Adopt a position in opposition to AB 1210 by Assemblyman Dominic Cortese which substantially revises the method by which the Special District Augmentation Fund ( SDAF) is financed, and which restricts the manner in which the Board of Supervisors can allocate the SDAF. BACKGROUND: Under current law, special districts which received State bailout funds in 1978-79 contribute a portion of their property tax revenue to a Special District Augmentation Fund ( SDAF) . The Board of Supervisors is then authorized to distribute the funds in the SDAF to any eligible special district to assist in maintaining the operations of the district. Only special districts which received State bailout funds in 1978-79 contribute to the SDAF. Assemblyman Cortese has introduced AB 1210 which makes . two major changes to current law: 1. All local jurisdictions would be required to contribute to the SDAF, including the County, cities, and school districts, as well as special districts. This require- ment imposes a new State-mandated local program on all local jurisdictions. However, no provision is made in AB 1210 to reimburse counties, cities, and school districts for the loss of revenue. 2. The Board of Supervisors is required to allocate 800 of the SDAF to special districts which received an allocation from the SDAF in each of the 1983-84, 1984-85, 1985-86 and 1986-87 fiscal years. AB 1210 dictates how this 80% of the SDAF will be allocated to those districts. The remaining 20% of the SDAF would be available to the Board of Supervisors for allocation to any special district. CONTINUED ON ATTACHMENT: ^ YES SIGNATURE: X RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE X APPROVE OTHER S IGNATURE(S): ACTION OF BOARD ON Rpri1 21 , 1987 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENT Z— 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 APR 21 .1981 cc: Auditor-Controller ATTESTED Jackson/Barish & Associates PHIL BATCHELOR, CLERK OF THE BOARD OF D. J. Smith Associates SUPERVISORS AND COUNTY ADMINISTRATOR CSAC Director Assemblyman Dominic Cortese BY ,DEPUTY M382/7-83 R Page 2 These requirements to contribute to the SDAF, coupled with the requirement that the Board of Supervisors allocate the SDAF in specific ways substantially undermines the original purpose of the SDAF and removes the Board' s discretion. For these reasons, we believe the Board should oppose AB 1210. See attached memo from the Auditor-Controller' s Office for additional details. Office of Contra ;,%ost ('Oum, r COUNTY AUDITOR-CONTROLLER Contra Costa County Martinez, California March 17, 1987 COUnt Admiri't,'21tor TO: Phil Batchelor, County Administrator Attn: C. L. Van Marter, Assistant County Adminis rator FROM: Donald L. Bouchet, Auditor-Controller By: Sam Kimoto, Deputy County Audit SUBJECT: Special District Augmentation Fund A 1210 Cortese We refer to your memo of March 9, 1987 on the above subject. Beginning July 1 , 1988 (fiscal year 1988-89) this bill would completely revise the procedure of property tax revenues to be deposited into the SDAF. It would also revise the allocation procedures by imposing mandatory allocation of portion (80%) of the fund to certain eligible districts only and the remainder (20%) to be allocated to special districts as the governing body deems appropriate. This bill also requires additional notices be given regarding estimates of allocable funds , proposed allocations , and actual allocations. In the revised procedure of depositing revenues to the fund, the bill requires all agencies (county, special districts , cities , and schools) to contribute to the SDAF. This is changed from the existing procedure where special districts only (special districts that received state bailout monies in 1978-79) contribute to the SDAF. In the revised allocation procedures, the bill establishes each eligible district to receive specified amount based on' allocations received during the four previous fiscal years or three of the four previous fiscal years. This would be for 80% of the funds. The balance (20%) would be allocated to special districts as the governing body deems appropriate. This is change from the existing procedure where the governing body has complete discretion in all allocations. This office recommends that the Board of Supervisors oppose this bill for the following reasons: 1 . The County 'General Fund and all other agencies would be required to contribute to the SDAF. 2. The 80% allocation of the SDAF monies is being confined to each eligible district that received SDAF monies during the past four years. This is change from the original intent of the SDAF where the Board of Supervisors was given authority to provide funds to special districts as needed. -2- .1 ' Phil Batchelor, County Administrator March 17, 1987 Attn: C. L. Van Marter, Assistant County Administrator Special District Augmentation Fund AB1210 Cortese 3. The bill does not provide for reimbursement for costs incurred or losses suffered. It further states that local agency or school district has authority to levy service charges , fees, or assessments to reimburse itself. This does not appear to be true according to Proposition 62 of election of November 4, 1986, where any new or increased general or special taxes require approval of the voters. SK:dh cc: Vic Westman, County Counsel Bill Maxfield, Chief Contra Costa Fire District Tony Enea, Deputy CAO Terry McGraw, Deputy CAO