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Home My WebLink AboutMINUTES - 03071995 - 1.23 TO: BOARD OF SUPERVISORS S L Contra FROM:. Phil Batchelor, County Administrator Costa cilia i< County a..l. March 1, 1995 ^.......s;- *° DATE: �'u6ii' SUBJECT: . LEGISLATION: AB 337 (Campbell) - EXEMPTS COUNTY SERVICE AREA P-6 FROM HAVING TO CONTRIBUTE TO THE PROPERTY TAX TRANSFER TO THE SCHOOLS SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ACKNOWLEDGE that the Board of Supervisors is the SPONSOR of AB 337 by Assemblyman Robert J. Campbell, which, as introduced, would exempt CSA P-6, beginning in the 1995-96 fiscal year, from having to contribute to the property tax transfer which was implemented by the State in the 1992-93 fiscal year, thereby saving the County about $1 . 6 million per year. BACKGROUND: Current law provides for a significant transfer of property tax revenue from counties, cities and special districts to the schools to assist the State in balancing its budget. This transfer began in the 1992-93 fiscal year, was increased in the 1993-94 fiscal year and will continue indefinitely into the future. .However, fire districts and certain police services districts were exempted from having to transfer a portion of their property tax to the schools . This exemption did not extend to County Service - Area P-6 which provides Sheriff ' s patrol services in the unincorporated area of the County. The Board of Supervisors established CSA P-6 shortly after the passage of Proposition 13 in order to provide a mechanism to fund the Sheriff ' s Patrol services . In most other counties, these services are provided by the County General Fund. Having these services provided by a CSA resulted - inadvertently, we believe - with the transfer of the property tax. the Board of Supervisors had allocated to P-61s to the schools . This has the affect of treating P-6 differently than the fire districts which were exempted from the transfer and differently from certain other police service districts, which were likewise exempted from the property tax transfer. CONTINUED ON ATTACHMENT: YES SIGNATURE: ZZ& RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): C/// %�< ACTION OF BOARD ON hhT1995 APPROVED AS RECOMMENDED )" OTHER VOTE OF SUPERVISORS 1 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, ATTESTED MAR 7 1995 Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF cc: See Page 2 SUPERVISORS AND COUNTY ADMINISTRATOR BYNDEPUTY -2- The Board of Supervisors has been trying since 1992-93 to get P-6 exempted from the property tax transfer so it is treated the same as the fire districts . To date, we have been unsuccessful although we have come very close to getting legislation onto the Governor's Desk. This year, the Board of Supervisors has again included this issue as a major portion of its 1995 Legislative Program. Assemblyman Bob Campbell has agreed to carry legislation to accomplish this exemption, which would provide an additional $6 million a year to the County. In view of the importance of this matter to the County and the fact that it is included in the Board' s 1995 Legislative Program, it is recommended that the Board acknowledge that it is the sponsor of AB 337 . cc: County Administrator Sheriff-Coroner Auditor-Controller George Roemer, Senior Deputy County Administrator Les Spahnn, Heim, Noack, Kelly & Spahnn Bank of California Center 770 L Street, Suite 960 Sacramento, CA 95814 CALIFORNIA LEGISLATURE-1995-96 REGULAR SESSION ASSEMBLY BILL No. 337 Introduced by Assembly Member Robert Campbell February 9, 1995 An act to add Section 97.41 to the Revenue and Taxation Code, relating to local government finance, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 337, as introduced, R. Campbell. Local government finance: property tax revenue shift: County of Contra Costa. Existing property tax law requires that, for purposes of determining property tax revenue allocations in each county for the 1992-93 and 1993-94 fiscal years, the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. It requires that the revenues not allocated to the county, cities, and 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 modify these reduction and transfer provisions by requiring the auditor for the County of Contra Costa, commencing with the 1995-96 fiscal year, to allocate property tax revenues to a qualified county service area, as defined, in that amount that would be determined if the amount of the reduction and transfer calculated for that county service area for the 1993-94 fiscal year had been 99 AB 337 — 2 — reduced 2 — reduced by a specified amount that was allocated, as provided, to that county service area for the 1992-93 fiscal year for public safety services. By imposing new duties in the allocation of property tax revenues for the 1995-96 fiscal year, this bill would impose a state-mandated local program. This bill would also modify these reduction and transfer provisions by requiring the auditor of any county that contains a police protection district, as defined, commencing with the 1995-96 fiscal year, to allocate property tax revenues to that district in those amounts that would be determined if the amount of the reduction and transfer calculated for that district in the 1993-94 fiscal year had been decreased by the amount of the reduction and transfer calculated for that district in the 1992-93 fiscal year. By imposing new duties upon local tax officials in the allocation of property tax revenues for the 1995-96 fiscal year, this bill would impose a state-mandated local program. This bill would make legislative findings as to the necessity of a special statute. The.California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows.• 1 SECTION 1. Section 97.41 is added to the Revenue 2 and Taxation Code, to read: 3 97.41. (a) (1) Notwithstanding any other provision 4 of this article, commencing with the 1995-96 fiscal year, 5 the auditor for the County of Contra Costa shall, for any 6 qualifying county service area as defined in paragraph 7 (2) , allocate ad valorem property tax revenues to that 8 service area in that amount that would be determined if 99 - 3 — AB 337 1 the amount of the reduction calculated for that county '.c 2 service area pursuant to subdivision (c) of Section 97.3 )f 3 had been reduced by an amount that is equal to the 11 4 amount of revenue allocated to that county service area 5 from the county's Special District s Augmentation Fund .r 6 for police protection activities in the 1992-93 fiscal year. is 7 (2) For purposes of this subdivision, "qualifying .e 8 county service area" means a county service area, the it 9 governing body of which is the Contra Costa County .e 10 Board of Supervisors, that is engaged in police protection Lt 11 activities,as reported to the Controller for inclusion in the .e 12 1989-90 Edition of the Financial Transactions Report Lt 13 Concerning Special Districts under the heading of n 14 "Police Protection and Public Safety." ,r 15 (b) Notwithstanding any other provision of this a 16 article, commencing with the 1995-96 fiscal year, in any 17 county that contains a police protection district that was y 18 formed pursuant to the County Service Area Law 19 (Chapter 2.2 (commencing with Section 25210.1) of Part .e 20 2 of Division 2 of Title 3 of the Government Code) , the d 21 auditor shall allocate ad valorem property tax revenue to ,r 22 that district in that amount that would be determined if 23 the amount of the reduction calculated for that district d 24 pursuant to subdivision (c) of Section 97.3 for the 1993-94 25 fiscal year had been decreased by the amount of the .y 26 reduction calculated for that district pursuant to 27 subdivision (c) of Section 97.2 for the 1992-93 fiscal year. S. 28 SEC. 2. The Legislature finds and declares that a 29 special law is necessary and that a general law cannot be 30 made applicable within the meaning of Section 16 of 31 Article IV of the California Constitution because of the 32 unique difficulties being suffered by the County of .e 33 Contra Costa in providing essential public safety services 34 as a result of the application of property tax revenue n 35 allocation requirements. r, 36 SEC. 3. No reimbursement is required by this act Ly 37 pursuant to Section 6 of Article XIII B of the California ,h 38 Constitution because the only costs that may be incurred it 39 by a local agency or school district are the result of a if 40 program for which legislative authority was requested by 99 99 AB 337 — 4 - 1 4 - 1 that local agency or school district, within the meaning of 2 Section 17556 of the Government Code and Section 6 of 3 Article XIII B of the California Constitution. 4 Notwithstanding Section 17580 of the Government 5 Code, unless otherwise specified, the provisions of this act 6 shall become operative on the same date that the act 7 takes effect pursuant to the California Constitution. 8 SEC. 4. This act is an urgency statute necessary for the 9 immediate preservation of the public peace, health, or 10 safety within the meaning of Article IV of the 11 Constitution and shall go into immediate effect. The facts 12 constituting the necessity are: 13 . In order to prevent in a timely fashion the unwarranted 14 and unintended reduction of public safety services in 15 certain counties that would otherwise result from the 16 application of property tax revenue allocation 17 requirements enacted with respect to the 1993-94 fiscal 18 year, it is necessary that this act take effect immediately. O 99