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HomeMy WebLinkAboutMINUTES - 03021993 - IO.6 TO: BOARD OF SUPERVISORS I .O.-6 Contra •� + FROM: INTERNAL OPERATIONS COMMITTEE .' Costa County DATE: February 22, 1993 SUBJECT: IMPLEMENTATION OF THE SENIOR TAX WORK-OFF PROGRAM: SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS : 1 . Authorize implementation of a Senior Tax Work-Off Pilot Program in calendar year 1993 consistent with the attached' staff report on this subject. 2 . Direct the County Administrator to encourage all departments to utilize senior citizens for temporary, part-time employment within their departments after laid off employees have been utilized fully. 3 . Designate the County Administrator' s Office to implement this Pilot Program utilizing senior volunteer coordinators until such time as funding is located to assign a full-time staff to administer its procedural aspects . 4 . Approve and endorse the concept paper seeking funding from the Koret Foundation and direct the Director, Area Agency on Aging, to continue to seek other funding resources for the Prqgram. 5 . Direct the County Administrator to closely monitor, analyze and report back to the Internal Operations Committee on a quarterly basis on the program' s utilization and effectiveness as well as whether the program should be continued. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD CO MIT E APPROVE OTHER SIGNATURE(S): SUNNE WRIGHT McPEAK JEF I ACTION OF BOARD ON March 2, 1993 PP O ED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS f 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 q�DATE SHOWN. TH ATTESTED """""""" '?1� /y�;3 Contact: PHIL BATCHELOR.CLERK OF THE BOARD OF CC. I SUPERVISORS AND COUNTY ADMINISTRATOR See Page 2 . BY DEPUTY I .O.-6 BACKGROUND: On January 5, 1993, the Board of Supervisors authorized the Senior Tax Work-Off Program Committee to prepare a concept paper which could be presented to the Koret Foundation in an effort to seek funds to administer the Senior Tax Work-Off Program. The Board of Supervisors also directed the Senior Tax Work-Of f Program Committee to return the concept paper to the Board of Supervisors for endorsement. Staff from the County Administrator's Office have fulfilled each of the Board' s directives and have answered the questions which were raised by the Board of Supervisors in January, 1992 . The attached report identifies each of these issues and responds to each. It seems clear that at least a minimal volunteer program can be implemented along the lines previously advocated by this Committee, within the parameters outlined in the attached report. We are, therefore, recommending its implementation, recognizing that the upcoming budget pressures may require some adjustment of priorities . For this reason we are recommending that this matter be left on referral to our Committee so we can provide quarterly oversight to the subject matter and make further recommendations to the Board of Supervisors . cc: County Administrator Social Services Director Bob Sessler, Executive Director, Area Agency on Aging, SSD Treasurer-Tax Collector Auditor-Controller County Counsel Director of Personnel Sondra Rothwell, CAO' s Office 2 Contra Costa County OFFICE OF THE COUNTY ADMINISTRATOR 651 Pine Street, 10th Floor Martinez, CA 94553 510-646-2764 Date: February 22, 1993 To: Internal Operations Committee Fm: Senior Tax Work-Off Program Committee Re: IMPLEMENTATION OF CONTRA COSTA COUNTY SENIOR TAX WORK-OFF PROGRAM RECOMMENDATIONS: Accept report from the Senior Tax Work-Off Committee and recommend to the Board to authorize implementation of a pilot program in calendar year (CY) 1993 with the approval of the Committee's Program implementation plan. Direct the County Administrator to encourage all departments to utilize seniors for temporary, part-time employment within their departments after laid off employees have been utilized fully. Designate the County Administrator's office to implement this Pilot Program utilizing senior volunteers coordinators until such time as funding is located to assign a full-time staff to administer its procedural aspects . Approve and endorse the concept paper seeking funding, for the Koret Foundation and direct the Director of the Office on Aging to continue seeking other funding resources for the Program. Direct the County Administrator to closely monitor, analyze and report back to the Internal Operations Committee in one year as to the program's utilization and effectiveness and whether to recommend the program be continued. Remove this item from the Internal Operations Committee under the condition that the Committee provide periodic or quarterly status reports . BACKGROUND: On January 5, 1993, the Board of Supervisors authorized the Senior Tax Work-Off Program Committee, to prepare a concept paper which can be presented to the Koret Foundation in an effort to seek funds to administer the Senior Tax Work-Off Program. The Board also directed the Committee to return the concept paper to the Board for full endorsement. Page 2 Senior Tax Program In addition, the Board requested the Committee address Employee Organization, Local 1 's, concerns relative to the lost of property tax revenue resulting from implementation of this program. First of all, the County Tax-Collector can not provide a property tax credit to any property owner. Therefore, there will not be a loss of property taxes as a result of implementing this program. All property owners are required to pay their taxes even if they participate in this Program. The benefit of the Senior Tax Work- Off Program is that it will assist low-income homeowners to earn wages that can be used to pay their property taxes. Finally, the number of participants expected to participate in the Program is expected to be very low. In fact, Riverside County has indicated that they served 65 seniors in 1991 . Thus no economic impact evaluations are required but rather a monitoring to the number of seniors participating and how it benefits those participants and the County. This program will not have a negative impact to the County general fund or taxing entities. Other concerns expressed by concerned citizens and Employee Organizations are addressed below: A. What types of jobs in the County would be appropriate for a Senior Tax Work-Off Program? Response: It is anticipated that seniors will apply for various types of part-time positions and will be considered for the positions if they meet the eligibility requirements and possess the qualifications/skills/experience required for the available temporary position. B. What is an appropriate wage to pay for these jobs where they are performed as a part of a Senior Tax Work-Off Program? Response: Under the County's Senior Tax Work-Off Program, the participants will be paid at the minimum wage level ($4 .25/hour) . C. Should some type of means test be included to eliminate those senior citizens who are better able financially to pay their property taxes? Response: Yes . The annual income should not exceed $22,000. D. Should such a program provide a credit which is provided directly to the Treasurer Tax-Collector against property taxes or should it provide a direct wage to the senior citizen, who is then responsible for paying his or her property taxes? Advantage and disadvantage of each alternatives? Response: No. By State statutory requirement, the Tax- Collector cannot substitute payment for taxes by providing a credit. Page 3 Senior Tax Program Tl:e participants will be responsible for paying their own taxes . E. Review response to B & D. Note: The participants will only be allowed to work 260 consecutive calendar day period. F. Should the program be available only to senior citizens. . . Response: Yes . G. How can the program protect against current volunteers. . . Response: The participants of the County' s Senior Tax Program will be paid contract employees and not volunteers. H. Can such a program be designed in such a way that other taxing jurisdictions which receive a portion of the property tax are protected legally in terms of receiving the cash to which they are entitled? Response: All taxing entities are protected. Property taxes are distributed based on what's on the tax roll, not based on collections or the form or timing of the collections. I . Under a property tax credit program would the senior citizen be treated as an employee and have taxes and other deductions withheld from his/her pay. . . Response: Yes . Contract employee have worker compensation and federal and state withholding deducted and paid to the federal and state governments . J. Should a distinction be made between seniors who still own "pre- Prop 13" homes as opposed to those who have bought a home more recently and thus have had their home reappraised to current value? No. No seniors will be discriminated against. All seniors will be able to participate if they qualify. K. How can the legitimate concerns of the employee organizations regarding the possible loss of jobs for full-time County employees in exchange for helping senior citizens be addressed? Response: Senior citizens employed as County "contract employees" will be funded by department ' s budgeted funds for temporary employees or contracts . Seniors would be employed only in necessary temporary assignments of a Page 4 Senior Tax Program short-t:?rm nature. Such assignments could be made only after the Board' s priority of rehiring laid off permanent employees in both temporary and permanent positions has been met. A major operational concern will be that during times of permanent reductions in force, little money will be available for hiring any temporary employees including seniors . Likewise, seniors hired as contract employees will not be regular County temporary employees and will not be covered by MOU's or letters of understanding which provide minimal benefits and union representation for County temporary employees . L. What additional liability exposure does the County incur with the use of senior citizens in jobs such as those which have been suggested where the County may be sued because of the actions of the senior citizen? Response: None. There will be no additional liability exposure as participants will be recognized as County contract employees. M. What is estimated cost of providing a credit. . . Response: N/A. Again, no tax credit can be allowed. N. Review response to question D. Response: Since by law the County can not provide a credit, the participants will be responsible for making tax payments . 0. Given a reasonable set of assumptions about the size, scope and complexity of such a Senior Tax Work-Off Program, what is staff ' s best estimate of the administrative cost of operating such a program and how are those estimates arrived at? Response: Attachment 2 is an estimated budget for the first year to operate the Senior Tax Work-Off Program. Note that the utilities and rent will be provided by the County as we anticipate being able to utilize current vacant office space. Some of these expenses can be reimbursed if funding is secured. In conclusion, the County Senior Tax Work-Off Committee is requesting that the County implement a pilot senior tax program in Contra Costa County. Start up of the Program will be administered by senior volunteers . The County Administrator' s office is currently seeking space and equipment to locate the volunteers preferably in downtown Martinez so the volunteers have access to the various key departments such as Personnel and the Auditor' s office. IMPLEMENTATION OF THE SENIOR TAX WORK-OFF PROGRAM On, January 6, 1992, the County Administrator, Auditor-Controller, Treasurer Tax-Collector, County Counsel, Personnel and Social Services Departments were requested by the Board of Supervisors to establish a Committee to review the feasibility of implementing a Senior Tax Work-Off Program in Contra Costa County. As a result of various Committee meetings, the Committee determined that such a program could be implemented in Contra Costa County however, it would require a program administrator and/or approximately $60,000 to provide on-going administration. The Committee began pursuing a number of funding resources. In the meantime, it was recommended by the Committee that a small pilot program be implemented with the assistance of senior volunteers . Thus the proposed concept for a program in Contra Costa County with the following specific implementing recommendations was developed: 1 . "The Board of Supervisors is requested to authorize a 12 month pilot Senior Tax Work-Off Program effective April 1, 1993 under the following parameters : a. All participants must be homeowners within Contra Costa County, at least 55 years of age with an annual income not exceeding $22,000 annually. b. Participants will not work more than 260 hours per Calendar Year. C. Participants will be paid at the minimum wage level ($4 .25/hour) . Some key information about the Senior Tax Work-Off Program is as follows: 1. What is the Purpose of the 1993 Senior Tax Work-Off Program? The purpose of the Senior Tax Work-Off Program is to allow low income senior homeowners an opportunity to work as contract employees part time (260 hours Calendar year) in various County departments in order to earn funds to pay County property taxes . The Senior Tax Work-Off Program is authorized by the Board of Supervisors and will be administered by seniors under the direction of the County Administrator's office. For information contact Sondra Rothwell, Management Analyst, at (510) 647-2764 . 2 . Who is Eligible? Participants must: * Be homeowners residing within Contra Costa County who pay County property taxes; and * Be at least 55 years of age; and * Have an annual family income for the past 12 months not to exceed $22,000; and * Possess the qualifications/skills/experience required for the available temporary position. 3 . How Much May be Earned? Wages are $4 .25 per hour. Participation is limited to 260 hours per calendar year and participants may earn no more than $1, 100. No employment benefits, other than workers compensation, are provided. 4 . What is the Procedure for Applying? The Senior Tax Work-Off Program coordinator (unpaid volunteers) will be responsible for contacting departments to identify temporary jobs for use in the Program. The Coordinator will be responsible for advertising these jobs and providing information about making an application. Applications will be accepted on a first come first serve basis. (Note: applicants have no guarantee that a position is or will be available) . The Senior Tax Work-Off Program Coordinator will refer interested applicants to Departments for interview and possible selection. During the selection process, departments will be responsible for validating applicant' s eligibility for this program. Applicants must provide the departments with their current County property tax bill and most current income tax return forms . After selection, the Department initiates the hiring process by using the Revised procedures for independent contractors . Departments are required to advise the Senior Tax Work-Off Coordinator if an applicant is hired and the type of job the individual was place into. Participants are paid as contract employees through the County payroll system by the host Department and receive a paycheck, in his/her name on the 10th and 25th of each month. -2- Earnings are subject to federal and state tax withholding and reporting requirements as required by law. It is up to the participant to use the funds to pay or offset the payment of property taxes . The payment of taxes is strictly between the participant homeowner and the County Tax Collector. The Tax Work- Off Program will have NO direct or indirect role in the relationship between the homeowner and tax collecting authorities . 5 . What are the Benefits? Participants will have an opportunity to re-enter the work force and earn extra income to assist them in paying their County property taxes. The County gains an opportunity to complete needed projects and reduce work backlog with competent and capable temporary help paid at minimum rate. -3- BUDGET INFORMATION An estimated (CY) budget for the Senior Tax Work-Off Program will be used for planning purposes showing salary costs for a Coordinator' s position. Once actual experience of the Program is obtained a more actual account of the cost can be provided. Consideration for administrative costs, supplies, and printing are listed below. Space rent, and utilities will be provided by the County. PERSONNEL: Salaries : Annual Cost ( 1) Program Administrator $ 3044/mo Benefits 1065/mo Total Personnel $ 4109/mo $49,308 OTHER COSTS: Communications 800 800 Supplies 4,000 4,000 Printing/Duplic Postage Spec Dept Expense Maint Equip Auto mileage 200 200 Total Other Costs $ 5,000 $ 5,000 Grand Total $ 91109 $ 54 ,308 Indirect Cost Space/Rent ? County Employee Assistance ? Equipment/furniture ? (Total Indirect to be determined) CONCEPT PAPER CONTRA COSTA COUNTY SENIOR TAX WORK-OFF PROGRAM Contra Costa County government proposes to establish a Senior Tax Work-Off Program to offer short-term employment opportunities to homeowner property taxpayers age 55+ with an annual household income of $22,000 or less. Program participants will be able to work up to 260 hours annually in various County departments at the minimum wage of $4 .25 . Earnings can then be used to help pay their property tax obligations . Successful programs operated in Boulder County, Colorado and Riverside County, California provide the models for this proposed program. Contra Costa County has been unsuccessful in its attempt to implement this program because of lack of available staffing resources to administer the recruitment, interviewing, and placement of program enrollees. County funds are available for the actual employment and supervision of program participants . County departments would utilize funds already available for employment of temporary staff to pay the hourly wages of program participants and would be able to provide on the job supervision from their available supervisory and management staff. Unfortunately, recent cutbacks in management staffing of County government leave no current staff position to oversee the coordination and implementation of the program. Thus, the County is seeking foundation support for a one to two year period of a coordinator position to initiate implementation of this program. Without an initial trial period with professional, paid staff position within the County Administrator' s Office, it will not be possible to initiate the program. The complexities of initiating this program, as shown by the experiences of Riverside County, indicate that it will not be successful without paid, professional staff support for recruitment of senior property taxpayers; identification of appropriate short-term job openings; matching of applicant' s skills with available openings; and eligibility determination. Program Operation Foundation funding will enable the County to hire a professional personnel analyst as a part-time contract employee to assume responsibility for program implementation. This analyst would be responsible for recruiting, certifying, and selecting older homeowners for participation in the program. This analyst also would cooperate with various county departments to identify potential short-term, temporary job assignments in various County operating departments to which eligible older homeowners would appropriately be referred. Each department would make the decision to hire an individual if satisfied s/he were appropriate for the assignment in question. On-the-job supervision would be provided by the supervisory/management staff in the County operating department. The program personnel analyst would assist in placing program enrollees in alternative assignments if the original assignment proved unsatisfactory or if there were additional eligibility for continued participation in the program beyond the time available for the original referral . Benefits of the Program . The benefits of this program would include: 1) financial assistance to low-income elderly homeowners enabling them to remain living independently; 2) ready source of low-cost short-term, skilled, experienced workers for appropriate County job openings; 3) provide local government work experience to foster a better understanding of local government operations among older residents of the county; 4) provide opportunities for service to the community. Future Funding of Program Once successfully operated for a one to two year period, it is our intention to provide for ongoing support of management and administration of the program from one of the following sources: 1) non-profit community agency; 2 ) county-funded staff support if county fiscal picture improves; 3) volunteer staffing with county in-kind support.