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HomeMy WebLinkAboutMINUTES - 06151996 - 2.2 .t 1� 2 .2 THE BOARD OR SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on June 15, 1993 by the following vote: AYES: NOES: (See below for vote) ABSENT: ABSTAIN: SUBJECT: Ordinance on Retention of Local Property Tax The Board considered adoption of the proposed Ordinance (introduced March 16, 1993) specifying retention of the local property tax. Phil Batchelor, County Administrator, referred to Measure A submitted as an advisory measure to the electorate and advised the Board that the vote indicated that there was overwhelming support of retaining locally generated property taxes from being taken by the State to balance its budget. Mr. Batchelor advised that he is recommending that Contra Costa County join with other counties in litigation against the State to see if the raid on local taxes can be stopped. All persons desiring to speak on this matter were heard. Board members discussed the severity of the budget situation facing Contra Costa County as well as other local governments in the estimated loss of $2 . 6 billion of local property taxes to the State. They also discussed the feasibility of litigation as well as instructing County Counsel to obtain a Restraining Order to preclude the Auditor from transferring property taxes to the State pending resolution of this matter in the Courts. Supervisor Smith advised that he had concerns about the constitutionality of the proposed ordinance and potential disadvantage to the County by adopting it, and therefore stated that he would not be voting in support of it. However, Supervisor Smith further advised that he would support a statewide effort for a constitutional amendment to prevent the State from taking local property taxes. IT IS BY THE BOARD ORDERED that Ordinance No. 93-37 specifying retention of local property taxes is APPROVED, and County Counsel is DIRECTED to join with other counties in litigation on this matter which includes obtaining a Temporary Restraining Order disallowing the 'Auditor from transmerring property taxes to the State. The vote was as follows: AYES: Supervisors Powers, Bishop, McPeak, Torlakson NOES: Supervisor Smith ABSTAIN: None Board Order - June 15, 1993 Ordinance No. 93-37 In taking the above action, the Board further AGREED to taking the leadership role in initiating the necessary procedures for a statwide constitutional amendment that would prevent the State from raiding local property taxes. The vote was as follows: AYES: Supervisors Powers, Smith, Bishop, McPeak, Torlakson NOES: None ABSTAIN: None I hereby certify that this is a true and correct copy of an action tckcn and entered on the minutes Of the Board of Supervisors on the date shown. ATTESTED: �� /�7 PHIL ATCHELOR,Clerk Of the Board of Supervisors and County Administrator By 'U'` n, cc: County Administrator County Counsel Auditor-Controller District Attorney a. a Ordinance No. 93-37 The Board of Supervisors of Contra Costa County ordains as follows: Section 1: Findings and Intent The Board of Supervisors of Contra Costa County finds and determines that: a. As an essential element of the local agency home rule guaranteed by the California Constitution, property taxes collected in a county have always been intended for use in that county. b. Proposition 13, as adopted in June of 1978 and amended thereafter, allows the Legislature to specify how the property taxes collected in a county are to be apportioned among the county and the cities and districts therein, but did not contemplate that property taxes would be taken for State purposes or would be apportioned in a manner inconsistent with the home rule provisions of the Constitution of California. c. Proposition 98, as adopted in November of 1988 and amended by Proposition 111 in June of 1990, provides that a county's portion of school.funding is the amount of property taxes provided to the schools in the county for fiscal 1987-8, adjusted annually for cost of living increases. Pursuant to Proposition 98, the State's Portion of school funding is the amount that, when added to the counties' portion, will bring total school funding up to the level specified in the Proposition. d. The Legislature of California has expressed its intent to take approximately $2,600,000,000 of the property taxes collected in California counties in fiscal 19934 and use those funds to pay a substantial part of the State's Portion of school funding or to pay other State expenses, in clear violation of the letter and intent of Proposition 98 and of Articles XIIIA and XIIIB of the California Constitution. 93-37 J e. For fiscal 1992-3, available revenues have fallen far short of the expenditures necessary to meet the critical fiscal needs of Contra Costa County, requiring that essential County services be cut substantially. f. If the gap between available revenues and necessary expenditures increases to any significant extent for fiscal 1993-4, the County will not be able to fund State mandates and provide for the essential health, safety and general welfare of its citizens that is requisite to meaningful home rule. g. If the Legislature acts upon its expressed intent to take approximately $2,600,000,000 of the property taxes collected in California counties in fiscal 1993-4 and use those funds to pay a substantial part of the State's Portion of school funding or to pay!other State expenses, this County would lose a very significant part of the funding now used to provide critical County services, would be prevented from providing for the essential health, safety and general welfare of its citizens, and would be deprived of meaningful home rule in contravention of the Constitution of California. h. Contra Costa County hereby finds that the aforesaid intended State action would constitute an illegal confiscation of the property taxes of this County, in that such action would prevent the County from providing for the essential health, safety and general welfare of its citizens, would prevent the meaningful home rule guaranteed by the Constitution of California, would violate the schools funding scheme of Proposition 98 by requiring this County to pay a substantial part of the State Portion of school funding, would violate Section 6 of Article XIIIB of the State Constitution by mandating increased local agency funding of schools without State reimbursement, and would be in excess of the power given to the Legislature in Section 1(a) of Article XIIIA of the State Constitution lawfully to apportion property taxes among the county and cities and districts therein. j. Contra Costa County, therefore, determines that it is necessary to take action to prevent the intended State confiscation of the property taxes to be collected in this County for fiscal 1993-4 and to insure the preservation of the Constitutionally guaranteed powers of home rule, including the power to provide for the essential health, safety and general welfare of the citizens of the County. This Ordinance, therefore, provides for the lawful apportionment among the county and cities and districts therein of the property taxes collected in this County in fiscal 1993-4. 2 93-37 Section 2: Apportionment Notwithstanding any provision of State law to the contrary, the apportionment of property taxes among the county, the cities, school districts (including community college districts) and other districts therein shall be in the manner such apportionment was made for fiscal 1992-3 pursuant to Chapter 6 of Part 0.5 of Division 1 of the Revenue and Taxation Code of California. Section 3: Collection and Disbursement The Treasurer-Tax-Collector and Auditor shall collect, apportion and disburse property taxes for fiscal 1993-4 in accordance with Section 2 unless the Board of Supervisors of Contra Costa County, by emergency declaration adopted pursuant to four-fifths vote, specifies an alternative apportionment. Section 4: Circumstances Invoking Operation of This Ordinance In accordance with the findings and intent of Section 1, this Ordinance will become operative, and property taxes shall be collected, apportioned and disbursed in accordance herewith, in the event the State enacts Legislation that would result in the aforesaid confiscation of property taxes collected in Contra Costa County in fiscal 1993-4. Section 5: Effective Date This Ordinance will become effective 30 days after passage, and within 15 days of passage, shall be published once with the names of the Supervisors voting for and against it in the Contra Costa Times, a newspaper of general circulation published in this County. Passed this 15th day of June, 1993, by the following vote: 3 93-37 Ayes: Supervisors Powers , Bishop, McPeak and Torlakson i Noes: Supervisor Smith Absent: None Abstain: None Tom Torlakson, Chair Board of Supervisors County of Contra Costa Attest: Phil Batchelor, Clerk of the Board of Supervisors and County Administrator By: , , Deputy [Seal] c:\TROrdFin:6/15/93 4 93-37