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Home My WebLink About31- Water Department CITY OF SAN BERNAL-ANO - REQUEST FO`. COUNCIL ACTION From: Bernard C. Kersey Subject: ADOPTING PARTICIPATION IN THE SAN BE:RNARDINO COUNTY ALTERNATIVE Dept: Water Department TAX DISTRIBUTION PLAN Date: July 12, 1993 Synopsis of Previous Council action: None Recommended motion: Adopt Resolution Signat e Contact person: Paul E. Harmon Phone: 384-5184 Supporting data attached: Yes Ward: N/A FUNDING REQUIREMENTS: Amount: N/A Source: (Acct. No.) (Acct. Description) Finance: Council Notes: CITY OF SAN BERNAR NO - REQUEST FOR ;OUNCIL ACTION STAFF REPORT The County of San Bernardino has invited all Cities and Self-Governed Special Districts to participate in an Alternative Tax Distribution Plan. The County is implementing the alternative tax plan this fiscal year for all agencies governed by the Board of Supervisors. South San Bernardino County Water District merged with the City in 1991 and still receives property taxes to pay pre-merger voter approved bonded debt. To date, the County records show delinquent taxes due South San Bernardino County Water District of $2,154.01. Participation in the County Alternative Tax Plan would stabilize the debt service revenue. The Plan is explained below. The Alternative Tax Plan (Plan) has three major parts: 1) The County will buyout all portions of delinquent secured taxes and pay each agency 95% of their share of the delinquent secured taxes. . The remaining 5% must be placed in a permanent Tax Loss Reserve Fund to cover tax losses incurred when the sale price of the property is less than the amount due. 2) The County will guarantee that each agency will receive full amounts of secured property tax allocated to it for each year starting with fiscal year 1993-94, with any differences being made up during a reconciliation process each July. 3) The County will receive the share of prior year secured taxes, penalties and interest which would normally go to each involved agency. The one-time cash payment for delinquent taxes and a more stable revenue source are the advantages of participating in this plan. Since the districts will be getting 100% of their taxes,under this plan,the County is the agency which will bear the burden of uncertain cash flows. However, because 100% of the revenue is distributed to the participating agencies, the County will be the one to benefit from the collection of penalties and interest revenues from delinquent accounts. South San Bernardino County Water District (SSBCWD) collects voter approved property taxes in order to pay debt service on bonds issued prior to the merger with the City of San Bernardino Municipal Water Department. By participating in this plan,SSBCWD is assured of receiving 100% of the required funds to pay the debt service amount,instead of receiving only the amount taxpayers have paid, plus delinquent amounts and penalties from prior years. These amounts could be higher or lower than the required debt service,which leads to uncertainty as to whether or not the necessary amount to pay debt service will be collected each fiscal year. It is recommended that the Mayor and Common Council adopt the resolution authorizing the participation of South San Bernardino County Water District in the County of San Bernardino Alternative Tax Distribution Plan. With the necessity of getting this on the Board of Supervisor's Meeting, for the County's tax rate adoption and receiving notice from the County of San Bernardino on June 15, 1993, it, is necessary to have the matter acted on by the Mayor and Common Council at the July 19, 1993, meeting. 15-0264 1 RESOLUTION NO. 2 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 3 SAN BERNARDINO AUTHORIZING THE PARTICIPATION IN THE SAN BERNARDINO COUNTY ALTERNATIVE TAX DISTRIBUTION PLAN. 4 WHEREAS, South San Bernardino County Water District has merged 5 with the City of San Bernardino and collects property taxes for G payment of debt service; and 7 WHEREAS, Chapter 3 of Part 8 of Division 1 of the Revenue and 8 Taxation Code (commencing with Section 4701) provides an 9 alternative procedure for the distribution of property tax levies 10 on secured roll made by counties on their behalf or as the tax- 11 levying and tax-collection agency for other political subdivisions; 12 and 13 WHEREAS, Section 4702 of the Revenue and Taxation Code 14 provides for implementation of the alternative tax apportionment 15 procedures by resolution of the Mayor and Common Council; and 16 WHEREAS, the one-time payment for unpaid prior secured taxes 17 and the assurance of receiving one hundred percent of secured taxes 18 in the year of apportionment for all future years for the South San 19 Bernardino County Water District is a desired benefit which would 20 result from adoption of the alternate procedure; 21 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL 22 OF THE CITY OF SAN BERNARDINO as follows: 23 SECTION 1. The alternative tax apportionment procedure 24 set forth in Chapter 3 of Part 8 of Division 1 of the Revenue and 25 Taxation Code (commencing with Section 4701) is adopted for 26 distribution of property taxes for South San Bernardino Water 27 28 7/12/93 1 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE PARTICIPATION IN THE SAN BERNARDINO COUNTY ALTERNATIVE TAX DISTRIBUTION PLAN. 2 County Water District. 3 I HEREBY CERTIFY that the foregoing resolution was duly 4 adopted by the Mayor and Common Council of the City of San 5 Bernardino at a meeting thereof, held on 6 the day of , 1993 , by 7 the following vote to wit: 8 Council Members: AYES NAYES ABSTAIN ABSENT 9 NEGRETE 10 CURLIN 11 HERNANDEZ 12 OBERHELMAN 13 OFFICE VACANT 14 POPE-LUDLAM 15 MILLER 16 17 Rachel Clark, City Clerk 18 The foregoing resolution is hereby approved this day of 19 1993 . 20 21 Tom Minor, Mayor City of San Bernardino 22 23 APPROVED AS TO FORM AND LEGAL CONTENT: 24 JAMES F. PENMAN 25 City Attorney 26 By: 27 28 2/93 2 IDITOR/CONTROLLER-RECORDER 12._*&`'^A 0 NO COUNTY OF SAN BERNAROINO 'TOR/CONTROLLER • 222 West Hospitality Lane, Fourth Floor d, - t" ERROL J. MACKZUM, CPA 3emardino, CA 92415-0018 • (9091387-8322 Auditor/Controller-Recorder )RDER • 222 West Hospitality Lane, First Floor ROBERT L. CALDERON. CIA, CISA 3ernardino, CA 92415-0022 • (909) 387-8306 Assistant Auditor/Controller-Recorder Vn i J N i 4 1993 June 11, 1993 }Utz 1993 i TO: ALL SAN BERNARDINO COUNTY CITIES AND SELF-GOVERNED SPECIAL DISTRICTS SUBJECT: INVITATION TO PARTICIPATE IN AN ALTERNATIVE TAX DISTRIBUTION PLAN Chapter 3 of Part 8 of Division 1 of the California Revenue and Taxation Code (commencing with Section 4701) provides an alternative method for distribution of tax levies. The County plans to implement this alternative property tax apportionment process for all for all agencies governed by the Board of Supervisors for periods after July 1, 1993. This alternative process (called the "Teeter plan", after its author) has three major parts: • First, the County will "buy out" all portions of delinquent secured taxes owed to the affected agencies. This will result in a one-time payment to each agency of 95% of their share of all delinquent secured taxes as of the close of business on June 30, 1993. The remaining 5% must be placed in a permanent Tax Loss Reserve Fund to cover tax losses incurred when the sale price of the property is less than the amount of taxes due. • Second, the County will guarantee that each agency will receive the full amounts of secured property tax allocated to it for each year starting with fiscal year 1993- 94. During each year we will continue to apportion money to affected agencies as tax payments are received. In July, following the end of a fiscal year, we will make up any difference between the amount allocated to an agency and the amount apportioned during the year. In other words, the County will make each agency whole during the final reconciliation process in July. • Third, the County will receive the share of prior year secured taxes, penalties and interest which would normally go to each involved agency. A portion of the County's revenues from current penalties and prior delinquent penalties and interest also must be retained in the Tax Loss.Reserve Fund. The advantages to agencies are the one-time cash payment for delinquent taxes (distributed using the more-beneficial current apportionment factors) and the comfort of a stable revenue source since 100% of allocated taxes are assured. t Board of Svlz:r HARRY RRY M MA" MARSHA TUROU. . . . . . . . First District Bi�.RRARA GRAM RIORDAN . . . .Third Districi JON D. kliKFLS . . . . . . . . . . .Second District L. . '' Wii KE1 . . . Fourth District. ABB/LTR CT ES/SELF-GOVERNED DISTRICTS June 11, 1993 Page -2- The County will deal with the uncertain cash flows caused by changing delinquency and payment rates, and will benefit from penalty and interest revenues. Tax payments which will be included in this plan are current secured taxes, debt service payments, secured utility taxes, and State Homeowner's Exemption reimbursement amounts. Excluded are unsecured tax payments, unitary tax distributions and special assessment payments; these will continue to be distributed to agencies as in the past. At this time, we believe supplemental tax payments will be excluded from the alternative process, however this area is under study and these payments might be included. Cities and self-governed special districts which desire to participate in this alternative tax apportionment process are invited to do so. Revenue and Taxation Code (RTC) Section 4715 requires that agencies which do not use the County treasury as their legal depository must adopt a resolution by July 15 if participation in this alternative process is desired. We are also requesting such a resolution from any self-governed special district which does use the County treasury as their legal depository so we will have written consent to include these independent entities in the process. Entities are advised that the commitment to participate in this process is virtually irrevocable. RTC 4702 provides for discontinuance of the entire process by action of the Board of Supervisors either on its own iniative or after receipt of a petition to do so from two-thirds of the participating entities. There is no provision for withdrawal from the process by an individual agency at their request. To aid in deciding whether or not to participate in this process, the attached listing reflects the amount of taxes receivable for each entity as of June 4, 1993. The final amount distributed will be 95% of the unpaid tax balance on June 30, 1993, which will be less than shown due to collections during June. Further details concerning this alternative process are available from A.B.Brand at (909) 386-8856 or Ron Leuschen at (909) 386-8829. Sincerely ERRO . MAC Auditor/Controller-Recorder EJM:ha Attachment s:%"woe%abbvuktiVa,atY UNPAID T.-.XES AMOUNT bov Q=* AGENCY MANE ,:EqQ I CEMETERY DISTRICT 11 ,04S.SS VB02 NEEDLES CEMETERY DISTRICT 4.733.92 V593 2? FALML CEMETERY DISTRICT 11,500.52 VCO2 YERMO SERVICES nISTRICT 7,621.3Z %501 APPLE VALLEY FIRE PROTECTION DISTRICT 2%053.02 VFOZ BARSTOW FIRE FROTECTION DISTRICT 115,526.0-- VF03 CREST FOF.'=7 FIRE FRC-TECTION DISTRICT 150,62s.m OF17 CHINO VALLEY :MDEFENDENT FIRE DISTRICT 9?6,7!a.76 L= FEAR !AKE PEST ABATEMENT 1,secas DISTF::CT i53,063.76 17 OZ: DISTRICT 14?.046.07 QW• 3 FAR= DNI FORK rND RECREAT:GH GISTRICT 734.32 V771 =7 CUNSERVATION DISTRICT 0.515.7? vF12 TNLIND EMPFFE WEST RES. CONSERVATION DISTRICT 27,377.17 VE03 X07AME DFTFk" RESOURCE CONSERVATION DIST. 563.3E ljw02 MOJAVE RIVEP.' COUNTY WATER 6,230.45 whoi BIG LIT. AIRPORT DISTRICT 75.157.87 wcol BAKER CENNUN:TY EERVICE DISTRICT 4,596.39 WCO2 BARSTOW HEIGHT COMMUNITY SERVICE UISTRICT mly.22 ucoo BIS BEAR CITY COMMUNITY SERVICE DISTRICT 147,430.SS 0204 SZE RXER CONHUNITY SERVICES DISTRICT 2,966. 1C wcoo DAGEE77 !:2.'•l!--J-fl-.T7 SERt."ll-CES '--lSTi--,'ICT 6,osq.w J:% NTWLEERV DISTRICT 13.4Q5.5L- ;icoc LAKE iWPM*TAD COMMUNITY SERVICES DISTRICT 2QS,2Z0.28 UC19 RUv:VJUX COMMUNITY SERVICES DISTRICT 2S3.57 4C 1 Q VALLEV COMMUNITY SERVICES DISTRICT 10,056.&F WHO! DEAP VAL= 200MUNITY HCSP17AL VISTRICT 19.A71 .21 W-HOZ NEEDLES DESERT COMMUNITY HOSPITAL DISTRICT 4,082.36 WH04 SAN EDNO NTS COMMUNITY HOSPITAL DISTRICT 64,561. 12 wi of i..ERN -Cllq-i HOSPITAL 2.35 WROI R:VIESIDE CORONA RES CONS DIST 131.33 HT.01 SAN FERJ-iAliz-.*DNO VALLEY RES CONS DIST 7.000.60 UT09 CHINO BAS11i WATER CONSERVATION DIST 51,467.99 WUQ6 E516 BEAR MUNICIPAL WATER DISTFRICT 192.921.26 wu0s CHjNO BASIN MUNICIPAL WATER DISTRICT 1,433,?SS05 4II!22 SAN BERNARDINO VALLEY MUNICIPAL WATER 2,5I8,926.40 .IJWCI i APPLE VALLEY WATER DISTRICT 600.37 141+1)2 APPLE V ALL EV HEIOHTS COUNTY WTR PIST 252.55 WW04 ARROWBEAR PARK COUNTY WATER DISTRICT 20!462.80 wwoz BALDY MESA WATER DISTRICT 47,967.05 wwii ERGSTLINE VILLAGE LOUNTY WATER DISTRICT 12,973.52 wuiE CUCAMMIGA COUNTY WATER DISTRICT 929S72.?O WW!S DESERT VIEW WATER DISTRICT 1,609.53 wi-j:Z, HLSPERIA WATER DISTRICT 27,656.60 Awis HI DESERT COUNTY WATER DISTRICT 114,554.34 WW 16 00SHUn BASIN COUNTY WATER DISTRICT 54,0ea.46 WN:7 7UCIPER WATER DISTRICT 22,5S4. 1? idols MARI.fiNA L%-ATEF. DISTRICT 272.76 WwEl MONIE ',,*-T37A COUNTY WATER DISTRICT 73,356.02 .,'WE2 R'J'NNINIZ, 5::'FJ:-EE:_ WATER !)!STRICT S:, •79.99 0 WW24Y 4 SOUTH SAN BERNARD I NO WATER DISTRICT-- 2:154.01 WW25 THUNDERESIRE, COUNTY WATER DISTRICT 1j267.56 wwzs WEST SAN BERNARDINO CO WTR DISTRICT 96,924.74 WN29 YUCAIPA VALLEY WATER DISTRICT 142,201.0iD Ww-4c COUNTY WATER 894.92 WY OE BISHORN!DESEET VIEW WATER AGENCY 2S,742.61 wylo CREETLINE-LALE ARROWHEAD WATER AGENCY 246,203.Z3 WY 19 METROPOLITAN WATER AGENCY 250,3:6.0? W• EO MOjAVE NATER AGENCY 2,577,520.w2 ---------------- T9TAL 11,03SMS9.06