HomeMy WebLinkAboutItem No.40CITY OF LAKE ELSINORE
REPORT TO THE CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: RON MOLENDYK, CITY MANAGER
DATE: JULY 13, 1993
SUBJECT: RESOLUTION - ALTERNATIVE METHOD OF TAX
BACKGROUND
On July 6, 1993, the County Board of Supervisors adopted the
alternative method of tax distribution as provided for in the
California Revenue & Taxation under.Section 4701.
The City may participate in this program by adopting a formal
resolution requesting authorization from the County. ,
A formal policy will be presented to the Board in 60 days.
The alternative method of tax distribution consists of 3 major
parts-
1) The County will distribute 958 of all delinquent secured
taxes as of June 30, 1993 to participating entities. The remaining
58 must be placed in a permanent tax loss reserve fund to cover tax
losses incurred if properties sold at auction do not yield
sufficient amounts to cover taxes owed.
2) The current secured taxes levied in each subsequent year
will be distributed to participating entities at 100% of the levy
(irrespective of delinquency).
3) The delinquent taxes, penalties and interest collected in
subsequent years will not be distributed to participating entities
but instead must go to fund the tax loss reserve fund and the
distribution of 1008 of the current levy.
FISCAL IMPACT
For F/Y 1993 -94 and subsequent years the County will distribute
1008 of the current secured taxes levied in the City irrespective
of delinquency.
This will provide for a stable tax revenue base and that will not
fluctuate with economic conditions.
The prior year delinquencies on the 18 tax rate, could provide an
additional $140,000 - $150,000 to the City.
AGENDA ITEM 140. �C_ ._
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RECO)RUMATION
By motion, adopt Resolution No. 93 --I� requesting the County to
allow the City to participate in the alternative method of tax
distribution.
PREPARED BY:
APPROVED FOR
AGENDA LISTING:
AGEND„ VTEP:NO.
ppr l,1C
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RESOLUTION NO. 93- aD
A RESOLUTION OF THE CITY- .COUNCIL OF
THE CITY OF LAKE ELSINORE, CALIFORNIA
REQUESTING THE RIVERSIDE COUNTY BOARD OF
SUPERVISORS APPROVAL TO PARTICIPATE
IN THE ALTERNATIVE METHOD OF TAX
DISTRIBUTION - "TEETER PLAN" - SB 742
WHEREAS, Chapter 3 of Part 8 of Division 1 of the California
Revenue and Taxation Code (commencing with Section 4701) provides
for an alternative method for Tax Distribution; and
WHEREAS, the Riverside County Board of Supervisors will be
considering, on July .6, 1993, the adoption of this- alternative
method, subject to a final recommendation to be made`to them within
90 days; and
WHEREAS, the aforementioned method consists of 3 major parts;
1) The County will distribute 95% of all delinquent secured
taxes as of June 30, 1993 to participating entities. The remaining
5% must be placed in a permanent tax loss reserve fund to cover tax
losses incurred if properties sold at auction do not yield
sufficient amounts to cover taxes owed.
2) The current secured taxes levied in each subsequent year
will be distributed to participating entities at 100% of the levy
(irrespective of delinquency).
3) The delinquent taxes, penalties and interest collected in
subsequent years will not be distributed to participating entities
but instead must go to fund the tax loss reserve fund and the
distribution of 100% of the current levy.
NOW, THEREFORE, the City Council of the City of Lake Elsinore
requests the Riverside County Board of Supervisors approval to
participate in the alternative method of Tax Distribution.
HO
Resolution No. 93 -_ Page 2
PASSED, APPROVED AND ADOPTED this 13th day of July, 1993 by
following votes:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
GARY M. WASHBURN, MAYOR
CITY OF LAKE ELSINORE
ATTEST:
VICKI L. KASAD, CITY CLERK -
CITY OF LAKE ELSINORE
APPROVED AS TO FORM AND LEGALITY:
JOHN R. HARPER, CITY ATTORNEY
ACr_'dL)A t i
Office of
County Auditor - Controller
County Administrative Center
4090 Lemon Street, t It6 Floor
P.O. Box 1326
Rivaside, CA 92502 -1326
(909)275.3600
FAX (714) 275 -3602
July' 1, 1993
TO: Local Taxing Entities Not In The County Treasury Pool
RE: Alternative Method of Tax Distribution - ".Teeter Plan"
(Revenue & Taxation Code 4701, et seq.)
RECEIVED
JUL 7 1993
CITY MANAGER
Anthony J. Bellanck CPA
Audimr4C;oen11iv
William Takehara
Asda t Audhor{'.ar dkr
Chapter 3 of Part 8 of Division 1 of the California Revenue and Taxation Code
(commencing with Section 4701) provides for an alternative method for tax distribution.
The Riverside County Board of Supervisors will be considering; on July 6th, the adoption
of this alternative method, subject to a final recommendation to be made to them within
90 days.
Pursuant to Section 4715 of the Code, taxing entities that do not use the County Treasury
for legal depository must agree by resolution of their governing boards and the Board of
Supervisors of the County to their participation in the plan. If your agency wishes to
participate in this plan beginning this year, the adoption of this resolution must be
accomplished by July 15, 1993. Pending legislation (SB742), if passed, will extend this
deadline to October 15, 1993.
The alternative method (called the "Teeter Plan" after its author) consists of three major
parts.
1) The County will distribute 95% of all delinquent secured taxes as of June 30, 1993
to participating entities. The remaining 5% must be placed in a permanent tax loss
reserve fund to cover tax losses incurred if properties sold at auction do not yield
sufficient amounts to cover taxes owed.
2) The current secured taxes levied in each subsequent year will be .distributed to
participating entities at 100% of the levy (irrespective of delinquency).
AGENDA ITEM ,
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July 1, 1993
Page 2 '
3) The delinquent taxes, penalties and interest collected in subsequent years will not
be distributed to participating entities but instead must go to fund the tax loss
reserve fund and the distribution of 100% of the current levy.
If you have any question concerning this matter, please call either myself, Marty Nakunz
or Jeff Ashbaker at (909) 275 -3800.
Sincerely,
I
Anthony J. Ilanca
Auditor- Controller
AJB:Ip
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cc: Honorable Patricia A. Larson, Chairperson
Supervisor A. -Norton Younglove
Supervisor Melba Dunlap
Supervisor Robert Buster
Supervisor Kay Ceniceros
Wayne Watts, Treasurer/Tax Collector
Larry Parrish, Administrative Office
William Katzenstein, County Counsel
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AGENDA ITEM NO. t
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