HomeMy WebLinkAboutS1- Water Department CITY OF SAN BERNAi4DINO - REQUEST F%wR COUNCIL ACTION
From: Bernard C. Kersey Subject: ADOPTING PARTICIPATION IN THE
SAN BERNARDINO 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 BERNAL .LINO - REQUEST F(O COUNCIL 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.
5-0264
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
6 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: �l�yrua C',�;TV-rt L
27
28 2/93 2
IDITOR/CONTROLLER-RECORDER
COUNTY OF SAN BERNARDINO
SAN EE4 NA0.DIN0
ERROL J. MACKZUM, CPA
!TOR/CONTROLLER • 222 West Hospitality Lane, Fourth Floor Auditor/Controller-Recorder
3emardino, CA 92415-0018 • (9091387-8322
ROBERT L. CALOERO CISA
)RDER • 222 West Hospitality Lane, First Floor CIA,
Assistant Auditor/Controller-Recorder
er
3emardino,CA 92415-0022 • (909) 387-8306
A� i 4 5993
June 11 1993 !U 1Q93 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.
Board of Sklpterv's,'.
HARRY to MA-1 MARSHA TUROCt First District B .Wh ARA CRAM RIORDAN . . . .Thad Districi
n, ,c Acim r JON D. l:K'r_LS . . . . . . . Second District L di';{'KER . . . . . . . . . Fourth Distric.
ABB/LTR
CITIES/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: sevuu� ay
UNPAID TAXES AMOUNT
-Luv Acs'; AGENCY WANE
CEMETERY DISTRICT
VB02 NEEDLES CEMETERY DISTRICT 4.733.93
VGQ3 2? {'• LMS CEMETERY DISTRICT 11,500.5R
VCO2 YERNO COMM.U.N!"Y SERVICES DISTRICT 7,625.35
%501 APPLE VALLEY FIRE PROTECTION DISTRICT ETI.653.02
vF02 BARSTCW FIRE PROTECTION DISTRICT 115,026.0?
:r 1S CREST FOR= FIRE PROTECTION DISTRICT 155,625.12
OF17 ZHZNO VALIEV :NDEPENDENT FIRE DISTRICT 196,71S.76
vvy: ZL FEAR !AKE REST ABATEMENT 1,S20.SS
MR= 153,063.76
0E
HESPE.F.:A DISTRICT 141.046.07
vQO3 FAR= •NI VATC RIND RECFEAT:UN DISTRICT 754.32
077� E= Vi*:LL-L-*. CONSERVATION DISTRICT 0.955.75'
VROE lN05D EAPFFE WEST RES. CONSERVATION DISTRICT 27,377-17
%903 ME50VE DESFY, F--*ES0tjRCF CONSERVATION DIST. 563.3E
VN02 Mr-lJ-',VE RIVER COUNTY WATER 69230.45
wooi DIG DEAN LIT. AIRPORT DISTRICT 75,157.87
Ncol BAKER CON%Q::7 EERVICE DISTRICT 4,376.39
ACO2 BA-;STOW HZIGHTQ COMMUNITY SERVICE DISTRICT 4,?10.22
,;coo B!3 BEAR CITY COMMUNITY SERVICE DISTRICT '_47.43 3.3^0
. woo SIE :.:VET; COMMUNITY SERVICES DISTRICT 2,966. 1C
WC05 DASEE77 EQVy?H:TY SERVICES DISTRICT 6,0a2.m.
• :oi NTWIERRY 60"=ITY SERVICES D IC
SDI 13.405-5:1
scot LAKE :'-:f':PO!•7i:.ARPOWFOAD COMMUNITY SERVICES DISTRICT ZOSATO.26
uco? RU&UJUX COMMUNITY SERVICES DISTRICT 222.57
-4C10 MOl;,Uv0':-O VALLE? COMMUNITY SERVICES DISTRICT :C' 356.09
WHO DEAF' VALIE7 WOOMUNITY HOSPITAL DISTRICT T?.47101
Iii 3T::ZiCT 48r8' s.07
NEEDLES- DESERT COINN-UNIT)l HOS ITAL DISTRICT 4 j082.36
WN04 SAN 11-•NO MTS CO�IMLJNITY POSPITAL DISTRICT 64,861. 12
WiTE EAlf iTRN :CINT EMSPITAL IJISTRICT 3.35
WROI R:VZT.SIDE CORONA RES CONS DIST 531.33
HT.OI EAN PERNAF D;NO VALLEY RES CONS DIST 7,000.60
WT'09 CHI •'O BASIN' W-ATER CONSERVATION DIST 81.467.99
WU-06 SIG BEAR MUNICIPAL WATER DISTRICT 192,921.26
• uos CHj •O BASIN MUNICIPAL WATER DISTRICT 1,433j2S.S5
W"!Z3 SAN BERNARDINO VALLEY MUNICIPAL WATER 2v018r926.40
APPLIZ VALLEY WATER DISTRICT 609.37
141-111,)? APPLE VALLEY HEIOHTS COUNTY WTR DIST 252.55
WW04 ARROWBEAR PARK COUNTY WATER DISTRICT 20,462.80
wwo-li BALDY MESA WATER DISTRICT 4? '?67.05
wwi; CR2STLINE VILLAGE ZOUNTY WATER DISTRICT I2,973.52
=52 CUCAMONGA COUNTY WATER DISTRICT 92,S7200
WW!3 DESERT VIEW WATER DISTRICT 1,609.55
W,4-):4 HESPERIA WATER DISTRICT 27,656.60
Ali& HI DESERT COUNTY WATER DISTRICT 114,584.04
WWi6 205HOA BASIN COUNTY WATER DISTRICT 54,OS2.46
WN17 7341PER RIVIERA WATER DISTRICT 2S,na4.1?
Wil!I Vi MARI.fiNA VATER DISTRICT 278.76
Ww2l MOM IE V137A COUNTY WATER DISTRICT 73,356.02
.11WE2 92MING SPRTAOS WATER DISTRICT S1,97Y.99
WW24, TOUTH SAN BERNARD INO WATER DISTRICT- 2;154.01
WWz:5 THUNDERBIRD COU14TY WATER DISTRICT 1,267.16
im28 WEST SAN BERNARD INO CO WTR DISTRICT ?6,924.74
;,c,w29 YUCAIPA VALLEY WATER DISTRICT 14ar=.00
SJbi4 C! RAND VONM40TY COUNTY WATER 894.92
NVOE BIGHORN/DESERT VIEW WATER AGENCY 28,740.61
wylo CREETLINE-LAKE WATE.-. AGENCY Z46,203.52
14y19 METF;OPCI-ITAN WATER AGENCY 2SQ,316.0?
wy2o MGjAVE =ER AGENCY 2,577,&20.w.'-�
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TOTAL 1 1v03am5S?.06