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HomeMy WebLinkAboutMINUTES - 06082004 - C.138 *♦ C .t. Contra TO: BOARD OF SUPERVISORS ' . t r r� Costa FROM: JOHN SWEETEN, County Administrator t r DATE: JUNE 11 2004co �v �"""•`� County i SUBJECT: RESPONSE TO GRAND JURY REPORT NO. 0402, ENTITLED "WHAT YOUR TAX BILL DOES NOT TELLYOU AND WHAT YOU NEED TO KNOW" SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: APPROVE response to Grand Jury Report No. 0402, entitled "What Your Tax Bill Does Not Tell You and What You Need to Know", and DIRECT the Clerk of the Board to forward the response to the Superior Court no later than June 9, 2004. BACKGROUND: The 2003/2004 Grand Jury filed the above-referenced report on March 11, 2004, which was reviewed by the Board of Supervisors and subsequently referred to the County Administrator, Treasurer-Tax Collector, and Auditor-Controller, who jointly prepared the attached response that clearly specifies: A. Whether the finding or recommendation is accepted or will be implemented; B. If a recommendation is accepted, a statement as to who will be responsible for implementation and a definite target date; C. A delineation of the constraints if a recommendation is accepted but cannot be implemented within a six-month period; and D. The reason for not accepting or adopting a finding or recommendation. CONTINUED ON ATTACHMENT: YES SIGNATURE: ------------------------------------------------------------------------------------------------------- -- - -------- -"�-------------------- ------------------------------ r.'''RECOMMENDATION OF COUNTY ADMINISTRATOR RECO M DATION OF BOARD COMMITTEE �tL-oAPPROVE OTHER SIGNATURE(S): ------------------------ --- - ----- ----=�='------- ------'�------------ -------------------------------------------------------------------------------------------------- ACTION OF BO -D N JUNE, $. 200+ APPROVE AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN X UNANIMOUS(ABSENT NONE } AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE AYES: NOES: SHOWN. ABSENT: ABSTAIN: ATTESTED: JUNE 8,2004 CONTACT: JULIE ENEA(925)335-1077 JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR CC: BOARD OF SUPERVISORS MEMBERS PRESIDING JUDGE OF THE GRAND JURY GRAND JURY FOREMAN COUNTY ADMINISTRATOR TREASURER-TAX COLLECTOR AUDITOR-CONTROLLER � � A PUBLIC WORKS DIRECTOR BY , EPUTY RESPONSE TO GRAND JURY REPORT NO. 0402 WHAT YOUR TAX BILL DOES NOT TELL YOU AND WHAT YOU NEED TO KNOW FINDINGS 1. The property tax is a significant funding source for local government services. This tax is also one of every property taxpayer's most direct connections to the funding of these services. Response:Agree. Despite a significant shift of local property tax dollars to the state to fund education, property taxes remain one of the primary sources of funding for local government services. The property tax bill has a direct connection to almost every property owner of the County. The Revenue and Taxation (R&T) code §2610.5 requires that on or before November I of each year, the county tax collector mail or electronically deliver a tax bill(or a copy of one) for each property on the N y secured roll if taxes are due. An exception to this is if the b amount is twenty dollars ($20) or less, or when the amount owed is too small to justify the costs of collection, in which case the tax collector would not have to send a tax bill (R&T §§2611.1, 2611.3 & 2611-4). 2. Property tax bills contain detailed information about: a. The property: It's location, ownership and assessed value along with other identifying details such as Tax Rate Area and Assessor's Parcel Number. b. Individual Parcel Levies and Bonds: These are separately stated on the tax bill and indicate where and how to get additional information on these levies and bonds. C. Countywide tax rate and other special district tax levies based on assessed property valuations. Response:Agree. The property tax bill includes all information required by Revenue and Taxation Code §§2611.6, 2612 and 2615.6. 3. The property tax bill does not further describe, at any level of detail, the allocation or distribution of the 1% basic countywide tax. For many, if not most property taxpayers, the largest portion of the property tax is the countywide tax of 1 (Taxes assigned to the value of the property.) Response:Agree. The property tax bill does not necessarily have to furnish information regarding the allocation or distribution of the 1% countywide tax,, even when it is the largest portion of the bill. The Revenue and Taxation code does not require such information to be displayed on the tax bill, nor has the tax collector ever before received any request to display it. Unquestionably, there are taxpayers interested in learning how state and local governments spend their tax dollars. What Your Tax Bill Does Not Tell You And What You Need To Know June 1, 2004 Treasurer-Tax Collector's Response to Grand Jury Report No. 0402 Page 2 Information on government spending may be obtained from the annual budgets and financial reports of those agencies, which are generally available from the agencies in hard copy and electronically, via the Internet 4. The distribution of the funds generated by 1% basic countywide tax can vary significantly, depending upon the property's location and jurisdiction. Response:Agree, with clarification. Property tax allocations are performed on a countywide basis only. Allocations are based on tax rate area shares, which can vary significantly as illustrated by the tables provided in the Grand Jury's report. 5. The countywide tax rate of 1% funds many things including: ?a Elementary School Districts ? High School Districts ? Community College Districts ? Law Enforcement Authority ? Fire Protection Service Provider ? Public Transit Service Agencies ? Healthcare or Hospital District (if any) ? Redevelopment Agency (if any) Response: Agree. 6. There is no indication on the tax bill if the property is located in a Redevelopment Project Area. Response: Agree. The property tax bffl does not necessarily have to indicate if the subject property is located in a Redevelopment Project Area. The Revenue and Taxation code does not require such information to be displayed on the tax bill, nor has the tax collector ever before received any request to display it 7. The Contra Costa County Treasurer-Tax Collector is engaged in an exploration of the issues associated with revising the current property tax bill to be more user-friendly, with more information systematically arranged. Response: Partially disagree. The Treasurer-Tax Collector endeavors to make the tax bill more user friendly by removing information that does not relate to the compilation of taxes due, the method and timing of payment, and who to contact for additional information; and to re-arrange the information to make the bills easier to read. The present bill is difficult to read because of the print size and the amount and flow of information. The Treasurer-Tax Collector's Office hopes to assist the taxpayer in better understanding and using the tax bffl by eliminating information that is not required and by displaying the remaining information in a more logical and easy-to- What Your Tax 131811 Does Not Tell You And What You Need To Know June 1, 2004 Treasurer-Tax Collector's Response to Grand Jury Report No. 0402 Page 3 read format. As a result of the changes,, it is anticipated that fewer taxpayers will need to call the Treasurer-Tax Collector for assistance, thereby enabling staff to provide better customer service to all of its clients. Additionally, most of the information eliminated on the front-side of the tax bill will be pre-printed on the backside along with all other "static"information to reduce production costs. RECOMMENDATIONS The 2003-2004 Contra Costa County Grand Jury Recommends that: 1. The County Treasurer-Tax Collector continue to work to improve the appearance, organization and clarity of the information provided to taxpayers as part of the property tax bill. Response: Not yet been implemented, but will be implemented in fiscal year 2004105. It is the Treasurer-Tax Collector's objective to produce such a tax bffl that will provide an optimum amount of Information as mandated by law and necessary for the taxpayer to make an informed and timely payment with minimal assistance by the Office. 2. The County Treasurer-Tax Collector redesign the tax bill to permit taxpayers to know more about how their money is being spent. Response: The recommendation will not be implemented because it Is not warranted or reasonable. The Treasurer-Tax Collector's Office has neither control over nor direct access to the records regarding the allocation, distribution, and expenditure of ad valorem taxes and assessment revenues. It is responsible for the receipt and investment of funds., not the appropriation, distribution, and expenditure of funds. By providing such information on the tax bill, the Treasurer-Tax Collector would be inviting recipients of the bill to call the Office for further information or clarification. With minimal staff available and a fiscally strained budget, the Treasurer-Tax Collector cannot afford to provide the information on the bill nor the costs of additional staff and training to field taxpayers'inquiries. Note,, too, that the County collects and allocates property tax revenues to over 200 local agencies. It is not feasible for the County to coordinate and analyze the financial data of the myriad local agencies that receive and spend property tax dollars to report on how tax dollars are spent. Each public agency is required to publish budgetary and financial reports for public inspection. 3. Space on the bill be devoted to describing the ten largest recipients as shown in the example below, of taxes paid within the property's jurisdiction. This data is What Your Tax Bill Does Not Tell You And What You Need To Know June 1, 2004 Treasurer-Tax Collector's Response to Grand Jury Report No. 0402 Page 4 available from the County Auditor-Controller based on statutory tax allocations and application of the property tax assigned to various redevelopment agencies. City of Pittsburg TOTAL(1%Countywide Tax) $47,978,603.89 100.0% Agency Receiving Funds Amt.Received As%of Taxes Paid This reflects ONLY the top 10 recipients Not Total of 100% Pittsburg Redevelopment Agency $2919821337.52 62.5% Pittsburg Unified School 454519660.19 9.3% Contra Costa Fire District 2592730027.43 6.1% City of Pittsburg 25689,587.30 5.6% K-12 Schools ERAF 251505348.92 4.5% County General 198895143.52 3.9% Contra Costa Comm. College 8751839.67 1.8% East Bay Regional Park 571,740.28 1.2% Mt.Diablo Unified School Dist. 4101448.22 0.9% Los Medanos Health Care Dist. 3549005.13 0.7% Response: The recommendation will not be implemented because it is not reasonable. There is insufficient space on the tax bill to accommodate the extra data. Adding data not required by law would contravene two of the County's goals for redesigning the bill, which are (1) to create more space by removing from the bill all information not required by law and by changing the paper size from 8.5x11(letter) to 14x11 (legal), and (2) to assist the taxpayer in finding the legally required information by strategic placement of data elements on the bill. The spacing of the data was also carefully considered for future folding and stuffing of the bill. The current form is oftentimes folded across the OCR (optical character recognition) computer data line, which negatively impacts the computer scanning of the payment. With the new design, this problem can be avoided and, thus, save the Treasurer-Tax Collector's Office a significant amount of time and resources. The new design will also reduce printing costs, as only variable data will be printed on the front side of the bill. Information on the backside of the bill will be static and preprinted at a lower cost. The new design will also enable the Treasurer-Tax Collector to some day transition to a window reply envelope that will require the taxpayer to place the made-to-fit What Your Tax Bill Does Not Tell You And What You Need To Know June 1, 2004 Treasurer-Tax Collector's Response to Grand Jury Report No. 0402 Page 5 coupon with the return address facing the window and the check payment placed on the opposite side. This arrangement will also contribute toward making the payment processing even more efficient. In response to the Grand Jury's recommendation, however, the County is investigating the possibility of publishing on the County web page prior-year property tax allocation and distribution data by tax rate area, and possibly additionally linking that data with the County's Geographic Information System (GIS), which is also available to the public at the County's website. If this application is found to be feasible, the County may have the site operational for the FY 2004105 tax year. This website could be referenced on the preprinted side of the property tax bill. 4. This data be organized by political jurisdiction in the case of incorporated municipalities and by commonly recognized communities within unincorporated areas of the county. Response: Will not be implemented because it is not warranted or reasonable. (Reference the County's response to Recommendation No. 3.) The recommendation is not consistent with the primary objective of the redesign of the property tax bill, which is to effectively inform taxpayers of required information and to collect taxes in a manner that is efficient for the County. The Treasurer-Tax Collector would have to rely on the Auditor-Controller to provide such information and on the Department of Information Technology to maintain and electronically import it onto the bill, all of which would incur new expenses for which the County does not have the funds to cover. Moreover, if property tax distributions were reported on the commonly recognized communities within the unincorporated areas of the County, over two thousand data tables would have to be created and maintained for these areas, a cost of which the level of demand for such information does not appear to justify. The County is committed, however, to investigating the possibility of making this information available to the general public on the County's website as a service of the Auditor-Controller's Office. 5. This data be calculated for the current fiscal year (the year being billed on the tax form). If that is not practical, then data for the previous fiscal year could be used. Response: Will not be implemented,, as explained in the County's responses to Recommendation Nos. 3 and 4. If the County determines it is feasible to provide this information on the County's website,, the data would necessarily be for the prior year. Property tax bills are usually mailed as early as in the middle of September each year. It is most unlikely the appropriation of funds for the same fiscal year would be available. What Your Tax Bill Does Not Tell You And What You Need To Know June 1, 2004 Treasurer-Tax Collector's Response to Grand Jury Report No. 0402 Page 6 6. The tax bill for property located within a Redevelopment Project Area show, within the comments area of the form: i) the name of the Project Area, ii) the Redevelopment Agency with jurisdiction and iii) the percentage of property taxes paid within the project area that are allocated to that Redevelopment Agency as its property tax increment. Response: Will not be implemented, as explained in the County's responses to Recommendation Nos. 3 and 4. The "Remarks"section of the bill is strictly reserved for vital information regarding the assessment and collection status of the property. This section is highlighted with an offsetting color designed to draw the reader's attention to such information. Recent changes to the comments section of the tax form have already produced a significant response to such things as outstanding prior year taxes owing on the property. This notice has helped taxpayers become immediately aware of their delinquent taxes and avoid future collection actions that would have affected their credit and ownership of the property. The County does not consider the diversion of the limited yet vital space from the tax bill for purposes of publishing information about Redevelopment Project Areas in the best interest of the taxpayer. 7. These changes appear on the property tax bills to be issued on October 2004 for the 2004-2005 Fiscal Year. Response: Will not be implemented because of the reasons already given. Rather than spend the time and resources researching possible ways the recommendations could be included in the property tax bill, the County will explore use of the County's website to make such information widely available. Most citizens today have access to a computer, whether in the home, business, public library or school. Reference could be made on the backside of the tax bill identifying the appropriate website. 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Y• its _ CONTRA TO: BOARD OF SUPERVISORS }Jl il' _ TA 14 COUNTY 4`4 FROM: John Sweeten, County Administrator . ; Y. 3cl DATE: June 8, 2004 SUBJECT: Grand Jury Report No. 0404 — Take Action Now to Reduce Costs of Retiree Health Insurance SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION(S): RECEIVE the Grand Jury Report No. 0404 entitled "Take Action Now to Reduce Costs of Retiree Health Insurance" and REFER it to the County Administrator's Office for response. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS f I HEREBY CERTIFY THAT THIS IS A UNANIMOUS(ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ABSENT: ABSTAIN: ON MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact:Julie Enea,Sr.Deputy CAO � ATTESTED ULR `K- 10c) JOHN SWEETEN,CL RK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR cc: CAO BY 1%lk (0 IC-DEPUTY