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Home My WebLink About06/11/93_ � ' _� . , � � , �� B A K E R S F I E L D MEMORANDUM � June 11, 1993 T0: HONORABLE MAYOR AND CITY COUNCIL FROM: ALAN TANDY, CITY MANAGER SUBJECT: GENERAL INFORMATION 1. Congratulations! Welcome to Councilmember-Elect Randy Rowles, wf�o will be included in this, and all other Council mailings, during the transition period. 2. County Relations Report: We.felt we had storm clouds gathering on the horizon with solid waste issues, as well as two items which have appeared on their agenda for next Tuesday. One of those is a proposal for a new County Fire Assessment District - the language for which sounds like they might assess in the City. The second is a proposal ta change annexation policy to look at "all" revenues. We had two meetings with them, this date, and both were difficult, but fairly positive. We got their attention with the draft notice to commercial customers on garbage - they claim they have changed attitude and will be moving toward forced, phased-in, mandatory service. I agreed to moderate the tone of the notice to our commercial customers. The County Administrative Officer assures us the new Fire Assessment proposal does not include our area. Even on the tax split issue, there was a desire expressed by both parties to seek common ground. The bottom line - we can continue to renew effarts to cooperate - I have no predictions on outcome, but potential still exists. 3. I am sorry to contl nue to del ay provi di ng you wi th an amendment to the Proposed Budget, but we are still reviewing data at this time - the trend of gradual improuement continues and we hope to get details out shortly. The Federal freeze on cable rate increases was extended today from August 1 to October 1. Warner's response to the increase proposal is, "Yes, if federal officials approve it as being valid under the new regulations, and then only for a test period of one year." We will work to clarify the federal opinion and revise revenue estimates for the shorter time frame, if necessary. 4. Enclosed is a memo from Lee Andersen whlch, among other things, describes the delays that have occurred in the opening of the Silvercreek Recreation facility. � HONORABLE MAYOR AND CITY COUNCIL June 11, 1993 Page -2- 5. You will find enclosed a memo from the Police Chief indicating what his analysis is of Police needs if we annex the Union Avenue #10 and Rosedale #5. I am in general concurrence, and we would have the revenue stream available to fund that level of service. The Union #10 annexation, by the way, cannot occur until at least January. In light of County proposals on tax splits, the topic could get more complex. 6. There continue to be new rumors about the State moderating its action on the capture from local governments. Everything is very unclear; the only thing that is developing, as a trend, is that they are talking about abating the full capture. The specific proposals and amounts are completely inconsistent, as far as we can ascertain. 7. We received a flat "no" from the County on the structural Fire Fund issue. We are in the process of developing a listing of alternatives and a recommended course of action. 8. Work on the cost evaluation of the Hotel has begun in earnest. On Tuesday, June 8th, and or► Wednesday, June 9th, representatives of John Q. Hammons Hotels, Inc. met at the Convention Center to fine tune the cost to complete the Hotel. Arrangements were made through the Convention Center for their use of a meeting room. The Hammons group included Dave Jones, their Chief Executive, and Bob Niehaus, responsible for California operations. The project's original architectural firm (The Callison Partnership) has been retained, as has been the project's original structural engineering firm. This visit was meant to acquaint the various players with the site and its condition. City staff provided support to the group. In discussing the project, the group appears pleased with the condition of the improvements and have estimated a shorte'r construction period than previously considered. A brief ineeting has held with the Fire Marshal and the Building Official. Assurances were given that the City is prepared to extend its full cooperation and is looking forward to working with the Hammons group. Select members of the team will be returning to Bakersfield over the next month to obtain accurate cost estimates from the original subcontractors. 9. A memo on the payment "in lieu" issue was requested by two Councilmembers, and is enclosed. AT.alb Enclosures cc: Department Heads City Clerk � 805 325 3979 L ��6�10i�3 �8:1E � KERM CAO JOSEPI�1 E DREW � P COU197Y ADMl1VISTfiP►1iYE OgFl Post•it° brand 1ax tre�asm�ttal memo 7�71 Mor�.ae._. 1NARY W�DpF11. A�pyunt Co�tMy Ad��►+�h�s ol5ra,r CQUNTY ADMIIVlSTRATIVE CyFFiCE �oard �f Supervisors Kem County AdminlsVati�e Centar 'f 115 Truxtun Avenus 6akersfiaid, Caiifomla 933�1 � .,., 5C01T JONE13 D�nemr ot $ud� & F'a�anc� ADEL C. K[.EII�I Ueet+a of Pdiey Msb�is & Inlcreoyem�l Rdst�w Wli.I.UM C. �OUt3i.AS PmvloYer HdMb� Ott�e� June 15, 1993 iMPL�MENTATIOH OF A COUNTY•WIDE F7RE SUPPRESSION BENEFIT ASSESSME'hiT : FUNDINQ: FISCAL lMPACT UNKNOWN �n Februsry 16, 1993, your Board rafarrad f�or study the canoept ot creaUng a� special county- wide assessmer�t district ih order to augment existing Fire Fund revenuas fo� the purpose of praviding structural flre protecdon services. The Admtnistrativ� Office, With the assisiarace af the Fira pepartment and County Counsel, h�s revlewed the cptiiat�s ahd legal authortty for the Coumy to raise additlonal revenues in order to provide an adequate and sta�le level ot flre protection servicas to all the cltizens cf Kem Gounty. Back �vund on �ire nd's �Inandal CondEtion: Over the psst several �scai years, tha Flre �epartmant has been #aced with increas3ngly diificuit declsions in providing fire suppresston and prsventEprl Servioes ;o a groWing population, witll ahrinking budgetary resources. Ir�fiationary and emptayee wage/benefltfactors affecting the cost of providing thes� services con�nues to outstrip the growth in revenue soucces acaruing to the �kre Fund. The level of �t�e Fund revenues versus the cast of providing �ire related services has become so stressad that the Board has been foroed to 1r�tuse revenu�s from other Cou�y Funds into the Fire Department's b.tadget for four out otthe pasi flve tiscal y�e�'s, In the most recent two fiscal years alvne, $5 m�liton dollars of Gene�a� Fund revenue has been requireti in order to support the �ire Depetrtmerrt's operatiorts, This trend appears ta con�nue ir�to the future and is lurther compourided by the Sta�te's praposed ellmination of the Special pistrlct Augmentation Fund, which equates to an approximate �2.2 million additional loss to the Fire Department for FY 1993-84. The tollow�ng tab�e ou�mes the sources of funds appropNated to the Flre Department's budget for past ftve fiscal years. 1125 Truxtusi Avenue, Sth Ftvor BAKF.RSFIEL.D� CAL¢QRNIA 99301 t805 861•2371 � FAX t805; 325�479 .� 06/10/93 08:17 KERN CAO 002 , Board of Supervtsvrs Ir17plerr�entatton oi a Cautyty-Wlde Fire 3upprasslon Benefit Asse�ment Juns 15, 1983 Page 2 � Fiecal , Aawunt Year Funding Soarc� Approprlated 1988�9 Struat�ual Fi�e Fund & Operating itevenue $34,138,825 A�tmat�ted Gpieri Outlay - Fire Fund � S�Z76�?.66 1989-90 Stractural Fir� Fund ds Operstfng Itevenue $38,818,867 7990-91 Serucceual Fire Pund 6� Operatlng Revenue $40,969,334 Accuenulat�d C:apital Ouday - Fire Fund 5�.4U3.9U4 199i•92 Savaural �ire Pund & Operating Revenue $36.686,59b Generel Fund $2yS00.000 199�93 Slructuiat Fire Fund & Operating Revenue $35,295,195 Accumulated Capitsl Outley • F'u+e Fund �I,159,602 General Fund $��Q0,000 This infusion of revenuss from atiYer CourEty Funds has baen cou�led with the Fire De}�artmenYs etforts to reduce operational costs. AdminlsVative and training expenses hava been trimmed, as well as a 13.896 reducrtior� of the staffing levels at the Courrty's as fire atations. �quipmern �epiacement has been ali but eliminated, . dramatic�lly �ncreasing the aver�ge ag� of the tire suppresslon fieat and sending th� cost of rnalr�taiMng the fleet soaring. �7he dep�rtment has not �eplacad a fire ertgine or iattder truck in thrae years, resuttin8 in th� s�verago age vf the departme�Ys "iront ilne' spparatu� ot 12 years. Parts neceasary to malMaln eorne of thess vehioles are no Ionaer even avafleble and have to be tai�ricated as needad. Further, the Depertmecrt has deterred most m�or rngintenance projects ar� thefr staRlons, which althouph It ha� savad expenses in the shott te�rrt, wlll Iikely prove more cost{y kn the lon8 term. Save�al altert�ative methods af augmeriiing ihe Fira Fund revenu�s 4or tha provlsion oi sVuctural firo servicas were eveluated. Amon� these were the creatfon of a Me1to-Roos Communtty Facllities DiSt�ict, levying a Speda! Tax (fax .OveMde) and the implementation af a beneflt assessmeM far ftra suppression. 'fhe first two altemattves are qulte complax 1n nature and �equi�a a two-thirds vote of ihe electorate tn order to levy additlonal taxes. The deveiopm�nt ot a benefit �ssessmar-d pravides the greatest flextbtllty and ease of implemern�tlon. BanBflt Assessme�f�tr Fire Sttparess�an Services: The lega) authority for the Bvard to Implemerrt a tlre suppression ben�flt assessment is found In 3ectlon 50078 ot the Callfomla Governrnent Gode. Sec�tion 50076 states: "Any Ixal ager�cy which provictes fire suppression servlces diractiy or by co�tp'act with �e stata or a Iac�1 agency may, by wdlnance or by resolution adopted after noNce and hearing, datermine and levy an assessment tor flre supprassion servioes pursuent to this ar#Iale. The assessmerrt may be me�de for the purpose of obtaining, furnishlnQ, operating and malntalning firo suppression equlpmerrt,;or a�pparatus or fvr the purpase of payirtg the salaries snd beneiits of fir�ghtin8 pe►raonnel, or both, whether or nat fire supprossio� services are actuelly used by or upon e parcel, Improvement or property " A beneflt assessment !s a chsrge for servlce in direct retaUonshtp to the beneflt recalved from that service. Only fire suppresslan requlraments such as per5onhel, equipment, suppiies, snd ti � 06i10i93 08:17 KERN CAO 003 � �061fd Of $Up9tVES01'S lmplemanta�an vf � Cvumy-Wlde Fire Suppression Sene�t Aasa�sment June 15, i 993 Page 3 maintensulce Can be funded through this mechaniam. The establishmeM o�f a beneffit assessment to flnanca flre suppression has lor�� baen an avaiiable optlon for iocal govemmerrt. Cor�slstent wtth the apirEt of Proposition 't 3, the publlc heartng proc:ess requlred for the implemeritation of e� benellt assessmerrt allows indh►Iduals ar�d bu�lnesa to dscide on tMe level af flre protectlon servicas de�red. Although a beneflt assessment is not leg�lly considared e tax> and thereforo does not requlre a two-thlyds apprwal by the electorate, it does requlre a public hearing before your Board. At thm duiy noticed publlc hearing, if Indkviduals appear tc pratest, who collectively would ba assessed iess than 696 of the totel amourrt of the rovenuas �enarated fram the. propasad assessmeM, ihe Board of Supervtsor� me�y implament a banefit assa�smerri by majority vote of the �oard. IT there is more than a 596, but less than a 60% protest, in terms of tatal revanue to be generated, then a majorEty approval af the eiectorate is requfred in order ta fevy the assessmerit lf the 9oard rec�lves protests fi'om Irtdl�iduals �epreseryti�g 8reater than 6096 of the revenue anticipated to ba gerierated, then the e�ssessmant m�y not even proca�d to a vote of the electorate. ' 'I'he goard me�y Ievy the bene�t a�ssessmer�t in tha unincorporated partion of tha Gaur�tyr, and withtn ttte Incorpor8t8d areas th�t the Fre Department prov€des flre prctec�tibn services with the consent tha respective Clty Coancit, The amount of the �nrwe�l benafitt assessmant is reviewed adjusted annuaily, wlthin a predetermined ilmlt se�t upon the Inftiai establlshment of the assessmeni. in years that Fire Fund revenuas are adsquate ta meet the funding requirements of the pvpiutmerrt, tha benefit assessment can be lowered or temporarlly suspende�. In years vf stiortfail, the berrefit a�sessment c�n be fncxeased to its spedlled Ilmtt In onie� to stabfllze tMe F(re Depertmer�Ys tundin�. �onciuslon & Rocom�„q,ndatlon: 7l�e impEementatlora af a beneilt assessment to augment Fire Fund revenues #or 4he purpose of providing flre protedion services is an excellent long-term mechanism far stablpzing sufflcier,t resources for the Fire Oepartmarrt. Through the pu�iic !'fearing p�'ocess sctd county-wtde bailot measure, f# required, the public witl have an opportuntty to voice tts �pinion regarding the level of �re protecdvn �erv�ces desired, The davelopmerrt ot an �ssessmeni schedule and an imptamerrtat�on plan, together wlth the� pubiic tnput ptocess, wlll require sbc to eight months to accomptish. Ideally, the implemer,tation plan should colncide with the development of ih� Fire Depe�rtment's Fi$ca! Year 189485 budget. Therefore, IT IS RECOMM�NDED that the �oard approve the concept of Implemer}�ng a county- wide �ire suppresslon bene?it 8ssessment for fiscal year 189495 s�'1q direct the Fl�e Department to cfavelop an implsmerrtadon plsn to bs brought back to your Board by October 1, 1993. Sincerely, eph �. Drew C nty Adminlstrative Officer cc: Firv Depeirtment Couniy Counsel 805 325 3�79 o ��/1�I�J �V•1V J�5EPH E. DRE'VU CQt1NN AQM1Nl&TRATNE OFFICER MARY WEDDF.LL AsFC�M1 Coumv Admrniauei�ve Olhnr K:EFN CAO K�RN CpCiNTY ADM1NtS7"RATIVE OFFiCE Post-It"' brand �ax transmittal memo Bc�arci Of $uperv 1 �il Ci0i3I1�iv;,,..,.u...�NVG tiGLacC1 1115 'i�ruxtun Avenue Baksra�field. CA 93901 .. SC07T JONES D�r�c�ot o1 tiwlyv� !G Fn.nnc� AU�L C. K1,..E{N Dv�c�w o1 Poicy Aruy�n & Intagowmrtwntal Rela�mi wrwr►M c. aouc�►s Emplovee Aeyhons 011�eo� ,Jvne 18� i883 RSVIBIONB 7'O PRdPER'IT TAX EBC�ANCiE POLICY RBI�TSD TO CITY ANATEXATIONB FD9lGAL ttdPA�CT: [Jl�pWI'1 On February 26. 1899, your Boarod dinc[pd the CounEy Admmiiatiativc (3$Ice to revicw the County's current pmperty tax pochange po11Cy relaud to dty auuexations �nd to presCnt rccommended ctiauges far Board conaideration. 'Iivs lette�r is in response to that direet�ve. A report on loCa,i govermncnt tlnanclal siructure and flscal lmpect of C14v arinexations was presen�ed Lo yonr Board in Nwember. 1990 and Ls attached for yvtrr reference ��'��, Althaugh mtnor portions of tiic report are outdated, e.g, a rcfennce to Cig�ttc [ax revenuce. the report providcs an excelle�nt wen►�ew of the current annexatson poUcy� its origins aud its fmpaets. As ss noted in the attached roport, ti�e curnnt policy applled to the e�chaage of prpperty texes due to annexation was establlshed in 198b by agreement reatched between 8l1 incorporatect clties aad tha County. The agre�ment provides ior the app�icauon af a formula whereby the County pernsanently transkra to the annr,�ng ctty that amaunt of property tax rcvcnues necesa�ry for the Couaty sad clty to share thc property tax nwenuee cicrived from the annexed axca fn the same ratlo the�l prvperty taxes are �hared between the County and the dty.1n the entire inco�paratCd arca of that city. when t}us standardized formula was tnitlally insututed, it was @ntltled the "COSt/8C1YiCC rAtiO". As that time. �t was presumcd that thc exisung d�strlbutfon forrrtula far pmperty tasee� combined w�th other rcvenues, a$'orded each entity ihe ftnancial wherevvtthal to pravide servlces at an adequate level and thus, de facto. it was rational for this eadsting spllt ta contittue into the futurc. Iniiercnt in this presumpUon wais the conCept that the cost of the services bt�ng transferred and assumed by the ar�qdng aty was direct}y correlated ta the amount of pro�erty tax rcv�enucs concurrently being iran�ferred. A1so. at the ttmte this agcccment wa,s reached. the Cotmty was wei2 oves !Cs Gann limik, and unable to utilsze a portion of its tax p�roeeeds, Unfartunateiy. there ts no correiation tactween the cosE af the services being a$eumed try the ann�adng city and the amovnt of properiy taxes beit�g relinqulshed try the County, For exemple. . the cost/servtce ratlo currently pravides far the City of Bakersfield to be tranafeired 45 percent °f �� P�P�nY taxcs that, had the annacauon not occurred, would have accrued to the Counc3rs 1215 Truxtun Avenue, Sth Floor f3AKFRSFIEL.D, Cp►L�pRNIp g3$pl {8p5� g61�T$7I FAX 1e05 3253979 06i10i93 08:19 KERhJ CAO 002 B08f(� Of SUj7CIViSOI'S Ft�i�t9ION3'1�0 PROPERIY TAX EXCHANt3E POLtCY RELATED TD CTtY ANNF.XATiONS FISCAL IMPACi': tJNiQY04f/IJ June 15. 1999 Page 2 Genera] �,nd. Hawever, the on suvice responatbilieies that aie transterred to the City that are fur�ded frvm the City's Qaneral Fund a� police and anizqal Conisol. Whue pla�uung and bu�lding lnspectfoa services are also trausferred, thcse sen►lces are funded prlmarity through user fee6. Thns, wh11e the City ia trarnsferred 46 percent a�' the Caunty's property tax revenueg in the annexed area. and as�umes few service responsfbfitites, [he Couaty ret6ilna responslbtlity fpr the provision af th� most costly o! serv�cea--those that are prpvfded Countywtde, irrespective of city boundartes: public health and humacx eervi�es, asweil aa the enttre criminal�ustice syatem, from court operattons and proaec�tion to adult and �uvenste detentlon faciUty operauons and probatfon activiti�s. In addltion to irat�sferring 45 parcent of the County's prOgeTly t8x rCVenveB, due to ihe Altus methodalogy for the dispibution of sales tax, the Caunty also ioses ail of the sales tax Teveaues thatwould have accrucd to ihe County Cientra] l�und from the snnexed aT+ea. P't]Yt1iCr, the County loses court fines arid fflrfe�tu�es. trans�enc ocGuParuy tax. anft r�a,i properiy tran�fer tax revenves. In yca:s paat, the appltcatlon of the standard formula far anncxauons, while detlimental tp the County� �did not grasely adversely impact the County's abil�ry to eontinue to provide quality sctviccs. �e County, along with the rest of the State, en�oycd a healthy economic gmvvth and a corre�po�dirig fncrease ir, revenuea wtEh which to fund seivices. However. in recent yeare, this sltuation has rcvcraed. .�s the economy has slowed, the effect has been an uicreasing demand for thc sernlces t]ze County is mandated to prnvide along wtth a sharply declirliag revenue base, Whi1C BriTIC7CatlOIL9. �O]'d lOCSI �CfIC1e3 the opportunity ta plaxi for orderly gr4wth and ihe associated infrasavcture i�eeds, and se�ve, perhaps, to enhanee the coet effecttveness of servfee provisions, it is also fmportarit that excriange of revenues associated with annexStions be fafr &nd equttable and that there is a cifrecc correlauon beiween ths cost of seivieea tranaferred and the revenues transferred. Eacli atu�cxa#�on proposai �otYta�n� uztique ch8ractetletlCS. Soi�e erinCX8t1oII propo8tils encompaea cunently dcveloped resldential properties, others consist of prapertfes to be developerl inio resident3ai a�zas wtth c��runercfal cent�rs, and sttU others constst of e�dsting strictly rctali . outlets. Thus, to continue to uulize a standart�zed formnla foz the traraafer of property taxes for a11 annexauons. regardless of the type of properties being annexed. is an inherGntty flawed, questfonable practice. A much more reasonable approach is to pracess each aru�exaUon based upon the parucular characcerlst�cs of the properttes to be annexed. It 1s proposed that for each anncxailRn, the actuai cost of �ervices bei�ng prrn►lded by the County that wlll be transferred to a c1ty upon annexatton be determfned, and that the negotiation for the. exchange of property taxes be based on this factor. bver the last year, the County has devoted constderable resources to the dcvelopment of a�ound methodology fpr dcteraitning tite i�cal fmpact on the Counry due ta new development. 'Irils eaxne methodolo�y, wtth some variattons. could very aptly be app�ted to anncxauon proceedtngs, 'i'his methodology Ls fottaded on the cost of servfces at the currcnt flscal yeaYs levcl and can be appl�cd to cumntly developed praperiy as weil as groperty proposed for development based on the proposed zoning, 06/10i93 08:20 K.ERN CAO 003 $oard of Supeivlsors i2EVI3IONS 'TO PROPEKIY TAX EXCIiANGE POidCX R�IATED 't'p Grjy,4NjV$Xt�7�QNg -FI$CAI.IMPAGI': [INI{AiQiWN June 15, I993 Page 8 Along wtth ensuring that the� �s a dirccl correlatton betwexn the cast af servfces besag transfetted aad thc amount a� revenucs being relinqufshed, �� at�oula be noted rhat wrule in ttie pa�t the U�ansfer of resourccs due to annexauons have ad�ressed property taxes oniy, thig !S nOt a statutory requfrcment tncludtd in the negouatton process �hpuld be conalderatlon ofall revemiCS being forfWted by the County: saiea tax: trans�ent occupancy ta� real properiy tranafcr tax; and court fine and fprfclture rcvcnues. While the Stats Board af Equal�zatlon d�stributcs sales tax to ctues and caunties based an t2ie pa�nt of orsgta, there fs no prohibitton ad tp the sharing of this revcnue souree by a�eemenl. between citlee and counues. � Revcuue and T`a�rat�on Code Sections 99 and 99. i speeify the prOCCBS Bzid t,tmeframe8 that mnst bc adhered to by local agendes affected by an annacauon. Pertinent tn this di�scussion ia the requiremCnE that the loCAi BgCrideB who9C SCiViCe Ar�a Oi SCiViCC YC8ppA91bi11t�C8 gPC A1tE11Ed by virtuc of an annexauon or detachmenc must negouate au exchange of property taxes within gp days of notfficatton. Tlus cxehange. and hence the anncxaqon proceecling. fs orily effected 1f both agcacles irtvoived -pxcse�zt adopted resolut�ons to the acecut.tve oftieer of the Local Agency Farmatlon Cormr,isaton. An alternattve to subjecting each aanpcatipn prpposal to this stringent tlmclfne is also pruvided for in Section 99. S�ec.lflc�aliy, it is permisaible for local agerides to entcr into a maa�tcrproPtrty ta�c traasfer agrccment. A nsaster praperty tax tranafer agreement 1s not limited ta add�saing only prOperiy Eax exci�anges; it can encempass ali nt the aforemcnttoned revenue sources. An agreement wouid allow far ministerial annpmtton proceeciuzga to mwc more quickly through the requ�r+ed pzocess. a�d would allow a csty to initiata proceedtng� Irnowing the revenue stream and thus able to ple�xi !ts se�vlca del�vcry accoidingly. Any agrcement would pravide for an exemptian fpr unique cireutnstances, such aa a la:gc anrtexatlan or the annexauon of a pa�rtiCUlar type of development. 'I�-iEREFORE.IT IS RECO�iDED, tha[ your Boanl: I) authorJze the �►dzninistxative O�ce to rtegottate on your behaif the exchange of revenues asaoclated with anne�qon and detachment proceedings: 2) dsrect that cach snnesatton proceecling be apprnachcd with eon$�deration given to the untqua character��tles of thc property enoompasaed .1n the anne�tuon: 3� direcC that all sour�ce� of revenue �ncluding property tax, sales tax, trarislent accupancy tax, rea] property tranafer tax. and court iinee and forfe:iures be considend in the ncgotlatton process; 4► autharize the A�ainistrattve Office to enter into negouaqons for the development of maater property tax transfer agreements with those cities de�siring such an agreement. Sinccrely. E. Dz+ew Admtntetrative Otrice .Its D:ACKdr�arucpol. bos Attachmenc cc; All City Mangers Auditor-ControlEcr County Counsci LAF'CO 06i10i93 08:20 KERN CAO 004 RE�YOBT ON LOCAL GQVERiV1VffiyT FD�IANCL►L ST�[1Cl'IJRE APTD F78CAI. IlV�'AGT OF' CPPY AIVNEXAI7�I�IS �.I ; • �I :��y � a 1� : � �i�[� : �� . Y • ♦ � ' .�. . .1 /Jt� •Iu1J1►Y � ► . �. y The eaacmneat .of Pmposicion 13 (Ardcle 7�I1-A, California Canstitution) in 2978 radically nsasformed local gov�rnmeat 8nance tiuou�out the Stare of Califomia Prior ta the passage of Proposidon 13, aIl iocal governmmt ageacies had the gbility to levy incneased propeny aaxes ro ensu:r su�t fundiag foz their programs. Prapositioa 1� suddeuly liwited the ad :vaiarem tax rate on ail property roo 196 of m8rket value, e�ccepr tv ca�v�er �d debt In additto� it estabiished FY 1975-ib as rhe b�e year far de�etmiaing rhe t�xable value of proPenY� and provided that propercy could be reappraised oniy upan change of ownership o� fot aew conaauction Tlu annual increaae in aar�essed valuadon far pmgerties not nrwly constntcted oz chattging own�chip w�s limiced co an znrlad►o:�ry raceor not co ezceea a�, per year. The imAecdiAte effect of the liiaits �ed by Proposidoi► 13 was a Smctvvide losa of elosE to S7 billivn, or app=o�amateiy 5096, �a local gmQarry tas r�v�enues for !�Y 1978-79. i�e County of Kzra experienced aa immediate decrease of S36 million, or 4746, in it� pmp�rtyr tan rev�ennues for FY 1978-79. This enorntovs loss in revenues, combined with the � natricaons an loeai governmmrs ab�icy m raiae revenues t�unugh propetry taxes, created a Srar�wide fiscal cdsis. The S�te Legislana�e responded to the �raposiuon 13 �scal cisis bY P�S �S'�7► �lsdon (SB 154; Chapter 29Z, Siatutes of 2978) which provided oae-ve�.onlv '68ilottt" fut�ding for Fy 1978-79 ia ttu amouat of 54.4 billfvn f�nr ciries, caunt�e�, epecisl dis�icm, an�d 6e}�opls. Th�a SCau "baflauc" #undittg came from ui accumu}ated State �ud�et surplus in three ioim�: (1) SteLe fuadiag for K-14 school dsstricts was fnCreased, (2) the Stafe temporanly assumed AII of the Co�tLy COSts related to the Medf•Cai Progtam aitd speci�ed Connty-operated wdfare psvgrams, artd (3) blocic grancs totaiiag �835 million wPS�c pr�vided co cities� counties� and sp�cial dis�icts based on spectlled formulas tied ta properry taz Iosses: This one-yettr "solution" to the pipposition 13 fisc.�l rrisia applied only to pY 1978-79. ia i979, the I.egisiature fm�plcmenrtd its long•m� "soluQOn" for finencing iocal g�oyqrment chrough the pas:age of AB 8(Cbagoer 28Z, Scatutes of I979). A8 8 apeciHed the mcthod which muat be uscd for alloca[it�g among aillocal govemment ag�eittia th� p:+opeity taYes resal�tg fiom the 196 pmperty taz race set by proposirion 13. This le�isladon also es�abliahed the mechsnism for darermi�iag each.local Sov��enc a8mc�s ProPe!'tY rax base, and c:eated the Special Dis�ict AugmenrariQn Fund ro psvvide flnanctal asaistance to speeial distiicts. Inst+egd of coaqutiing State biock grantr.e m make up iocai prop�y c�t lasses, AH 8, petmaitattly shlfted a pattion of the properry ta�c fmm school dis�iccs to counries, ciries, aand special districts, wh�1e pemm�endy iacreasing dirPCt State finenc:iai suppon for school dist�ic�s. In addidon, the State easumed che Counry share of cos� for the Medi-Cal Pmgram and for thc Supplemental Securiry income/ S�PI��1 �uritY payments Progrsm, and assumed �� fuadiitg of du Counry cost� twlated to Counry-provided health services (source of the AB 8 Couiuy Health Services Subvmtioa), the Aid to Families with Degendent Children Program, and the Boardittg HomC/Insdtutions Program. 06i1ai93 �8:21 KERN CAO 005 � :� :r �; � +►� �trr + . a�.. . h : :��; •,r� �; � • � .� .� i�+: .�„� .r • , � , „ • '�'�''"I Thc macmteat of Propo'irion i3 has played a major rok ia resbapiag the bastc fiaancial structure oi nll local gover=uaaac e�graaea ia California. The ma:siv� reduaroa ia F�Y tax rtvenues resulti�tg hom Pmposid�on 13 haa made ali local gavcrnmcnt agencia more dependeat upon State finsacial assistan��r. However� there stil! east� stime very fundammz�al dif�reaces ia saurcea of fundiAg amang cauades, dday school dfstd.t�s� at►d sperial disu�icrs. The sources of revmues for caah type vf a�eucy for PY 198&89 sre shown below (Statewide rotgls). � FtrlANCINli S4iJRCB& FOR LOGi. 6oVBRNMSNT AGffid(.'�'8 IIV C.Ai.�►OBlY1A AI! Wuatie� Atl Cmas Aii 8�001 NI 8pedd Df�tei�tt tg-32� DMt1'lc�r ptop�[y I��s: 24.6% 8.6li 18.39b 33296• proper�y A�eewaom�- o.olb .4% 0.0lr 7.8l� Spedsi: Seies lbxes: , 1.7'K 21.59i QOK 0.0li Sasi� Chnigml - 8.3l4 38.3'!� 7.496 34.046 l7� Aees: SC�ta Aid: 36.6% 7.4lU 60.87i 4,996 Pedea�t Ald: 18.896 SA1i 6.9M 2.94ti A11 OtLa Reveq�as: 10.096 30.4% 7.496 17.79i 1'OTAL RLVBN[lBS 1110.096 i00.096 100.0�1 10�.09i •Esehtda �evmun f�+om Spe¢Iy Di��kt Au�eau�tica Puod. The dara shown above very clearly shows the following mejor diffaraces !a fistancial suvcture amorig coun�es, ciries, school disuicrs, �nd apecial distiicts: The pximatq source of funding far coundea and school disaicts is Stau Aid, wuh counties aiso beiag heavily dependent upon Federai Aid. Theae major sourcrs cf ftmding are laroelv unconu+nllabie ac t� 1�n� �1 (ia the s�ev�eaue receiv�ed mvst be spe�u an apecific progtaa�s)• o Local pmperty t�za comprise the aecoad l�a:g�est funcii�tg eource for eounties aad school dis�ic�. a Service charges/user fees and iocal su�es caz mvenurs are the larg�esc revenue sourets for citiea. 2 06i10i93 �8:21 . KERN CAO 006 o �ities arE mu¢h 1P•ss dependent on lOCal pr�cperty t�es thaa are cotultie6� special di�ic�. attd schoo� dis�d�s. a Cit[es aad fpecial disuicts necdve a vay small portion of their f:nnnci:tg from StatrJFedcsal sources, aad are dependeat p�oazily upon L�sl s+ev�eauc soune9 which are aubject to �eat� 1Q�p,j con�el. �,�1a�1 a % ! 1 ' � 1.� � � The Califarnia Consdcuaoa aen►ts as the basis f+cr lxal gwnernmeat ta�n$ suthcriry, and p�vides as follows: o A111oca1 goMCrnmeut 8�gcncies az+e autho:iz�d to kvy proper[y ta�cts, but the tax rate and method of propeny valnation are li�nited by the constitutional , provi�ion ndded by Propestden 1� {Arttde XIIIq). The Stau L.egislanu�c has thc sole authority to levy taus on pexsonal incomo, alcoholic bev�eragea, corporations, bania� and other finenr;al lilsa[EltioAS. o COUIIti[8 82�e �IEd SA tllt tyge6 Of i�XCS Wh�Ch $L�}► m8}► 1CVy►. HeCSUiE counries lack the consrirutianai grant of suthasity over t}teir "muuicipal affaiis," they can only ievy dte types of taxes s}xd$cally aut�torized by State siatutes. County ta�dng aulhority currenily extends oalY � Pi'�P�Y �� local sales t�ces, uansimt occupaiu,y iaxes. PmpertY rreasfer ta�ces, aitd (wirh the passage of SH ZS57 in con�uncdon wfrh dte FY 2ggp-9� 'State $ndget) uuli�y user ta:es and business liccAae taxes. e Ci�artex dries have broad ta�ng authority, Iimited only by resRictions caivained ia the Stace Consdrut[on. Charrer ciries are geaeraiiy ftee to enaci any rax not prohibited or limired by tluir charoe�s. General law dtiea wer� givrn ta�uA .powers alazost as bro�d as ct�ait�er citq authority thmugh the enactment af State le�islauon in 1962, although new or inareA�ed taus are subjecr ta woer apgravaL � Cf�AfM4n��Nnf of Proposiuoa 62 in the Navcmber, 1986, geaeral elecdon resulaed in a requizement appliarble to a111oca1 government agtitde6, e�teept cZtatter sides, that any new or u�cieased general tri7[ (ip be used for gen�rill P'�Posu) must be appraved by a majority of the wtas. !t fqtthet required thac any special tax (to be used for speci8c purPoses) be appmv�cd by a two- thuds votc of che people. Proposiaon 136 appeating on the November 6� 1990, bailot would e�tend these voter approvai requinments for new or higher tares ta char�ter dties. Both eo�ss and cities (general law and charter) do hav�e attthority ta tharge fea for the sc�vi�es whicb they provide, wich the fee amount limit�ed tv the actual cost of providiag the. service. This fee authoriry is bmader and less restrieted far cities aad for chsrt�er counries tt�$n for g�eaerai law counries such as K�er1t Couniy. Genesal 3 0 06ii0i93 08:22 KERN CAO 007 �yrr canadcs �e_tces f�r:ervicea oril�to the e�men�,8pecigcal�y antl�ortzed �e law. Us� fea for many types of Cauaty seivices are not allowed by Stute �wr, � tlte amotimt of f�eea whith may be charged for odur rypes of Cozmty savices are epee�ifically limited by Stace stacutrs. fl ' ; 1 M'. ' 1 �� 1 � �I1� ; � ' �; M .t The basic graviaions of ABS (Chapter 282, Scatuces of �974) havn remaine�i unci�a�eg�ed since 1979� attd st371 gvvern the dis�ution oE praperty taxes amang atl u� of gov�emnunt in accordance with the requiremeats of Prnpeairion 13 (Atticle xiItA, California Conscitue�a). Under these sdll-tu:zeat stscuces, pr°PertY taxes an altocatied to local gov�nta�ent as follows: - Prope�ty taxes darived from tbe 19b iocal gov�t taz rate are apportioned aa=oag all �a�dng ag�ncics on a pro rara basis, dace=m�ed by the relative ieceive� by each agenry grior co ihe passag� of Proposit{on 13. — The relative propordan of rotal p�vpetty �s teceived by couuties, cmes, and aper.ial disaricca ia ba8ed on the � percentage ot rotsi PmP�Y tia�tes reaeived in tha three Years im�►�df�►telY P�S � pagsage of Proposiqipn 13 (1977-78, 19yb-77. aad 1975-76). -- Thc relativc proporaon of rotel prop�ty ta�es received by ��j � is based on ea¢h dis�ct's pzvpecty � a11oc8ti�on fos gy 1977-78 onty. o Under �c prv rara disus�urion formula, esch ra�ug sg�nry now mrives the saaae amoutut of property taues received in tke p�or year plus ar�xtus its ehare of a�r chsnge in PmpercY tsa revenues ns�ng from annual c}�tges ue assessed valuadon of pmperties locared witMn fts service botutdaties. Tltis pl�vid�s for �y�y�iG411 � P�nY tax r�cv�enuea. Earh ag�rcc�s share of propercy tax growth is dcte:mined by the pre-Prvposidon 13 . perraitage faccor d�ed above (adjusted for any prop�iy taz � eachnagea or formation of new redevdap�aent agendes). o Within the hozmuidaries of redevelopmait agenciea..siry grawth iit pr'°Pe�rt�' tau reva�ues resulting from assessed valuadva increases is all,ocated to the rede�v�elapment agency, absenc specific tax shariag agreamenrs with other ag�en�ies. ';�'�' 1► :�, ..� 1�� :►. ��. �t- ; •, � � � � .. In addition to pnscnbing the allocation formula for propeny �c reveuues, AB 8 t�hApter 282, Statutes of 1979) also esaablished regttiremmts for local governmmt jutisdictional changea. This � 06ii0i93 08:22 KERN CAO 008 State iaw pmNides that pacr to d� effe�ve date of any local a8�i' J�oA81 , such as aa e�dou, detacbaa�a� or coasolidation. t3�e govemiag bodies of all agmtdaa whosG 8C1YL�e araas os Betvice responsi�ititie� wouid be altered by auch chamga � on the amouat of prope:tq t� revea� m be esch�wgad bacween them. The ag�c,ci� hav�e 30 daye �o negapate aad adopt s+e�ojutiom agreeiag to an e�crLange of praPertY tax rt�. If the ageaci�s aln un8ble to agrea oa ari e�ange of psoparcy taz revenues wtthnt the 30-day period, a11 Proceedings of the juris�ictional chang�e will au�omaacally be termiaaoed T�erefore, s�o, attncxadca iavalving a uanafer of aervice resQo�wbilir�s can taks efha witiwut all af the ai%cMd ageada agreeing on the amaunt of g�perty taz nv�enues c�a be e�ochaaged. .. , �..,.,��. � : , .,. .. .. In 1980, rhe Councy and all incorparaced cicies �ched a�ent oa a fozmuia for determining the exchange ef property tax �cvGnuca fvr city annea�tions. ibia fonauta ia still being ttsed attd refleccs che Co�mt�is cum�nt poliry wirh irspecY to rity annn..z�tioa of- uaiacorporated areas. The rurrrnt foimula evoived from a negat�ted agr+eemmt wlth the City af B�ke�ield develoged ia 2980. The logic for che formnla is simpiy based on providing the same cicy/cotutty propescy t� ratio in annexed areas that esists in the �nrir� area of rhe ciry. The � amowu of property tax endrlemmt �ar�fe�red Irom the County m anneai�tg citiea undes this formuis is � based on rhe actc�al cost af service respouslbtlides of eirher rhe city or the Coum,y, The tra�sfet formula sddre�ses oaly prvperty tax revenues, and does � tak� iam consid�radon County loaaes in salea tases attd�other revenues. T9te currettt policy and proPtt�tY taz �an$e fi�rmtt}8, which apply to uuiexations iavnlvfng the trensf�r af s�rrvice respoasib�ities. pravid�s as foliows: o Couaty pera�an�tiy �ansfars ro the annexing city the ewtount of prnpeity ta�t rtvrnues aecessary far the Gpunty snd ciry to s3�+e she proP�Y � revenua de�vad fzom the annexed a�ea ia the � dtst proparry te�oes are shared betwem the Coustty and the ciry in the a�re incorporated urta of t�hat dtq. The exchang�e of gropaty ca�c endtlemeat coacinues in a]1 future fiseal years, � prO�y � inrnrmwaC ICVCl1Les re6lil�tg flOm fUL111�C A83�Sed VA�{i8II0A giOVVl�I VY�tTII C�1C nnnr�d a�eas ar� shared betweete the Couuty aa� city . based oa the samc t�z s}tarirtg rntio used to de[rxm�e. the u�iti81 Prup�RY rax exch,sag�e. o Whea dtere is no transfier in cesgonsfbiiity for eQUCtural fire protection, th�re is no trar�er of propary tazes allocated to tlte Co�7r S�uctural �ire Fuad. F.XAp�LE: C�y of Eakersficid Anaeuadon of Unincorporated Arca (Hypotherical Example) '.�f r\�'�7�� .��' i�� ► 1� 1 1.:. ��I� Ciry $ 16�15Q,519 9b of Total Counry ��,9:�7 4 1 46 of Toiel Cotmty an,d City Totai $ 35,525,440 S 45.4fi9� � - .� �� y��L� 06/10i93 �8:23 KERN CAO 009 C0luliy Geaaal Fttnd � i00,Q40 {BefoQe Anamtian): � Amount of Pmperty ?ax � 45,460 � (45,4b96 of 5100�000) Tran�fer�ed Lo City: R�S �P�Y Tez � 54,540 (54.�g6 vf S100J Allncatinn t+� Counry: G The FY 1990-91 disu�udon of pzogary tazes betwee�t the Cotmty aad ali citua within i�tsoipornted a�as is ahown below. These propeny taz sha��,g rati� are used co d�carm�iiu the amount. of PmP�Y �a to be traa�femcd frora the Counry to ciaes withitt A*+++�==don ar�as, under the cuirent gmperry Cax pYr An�' formula. , co.ab er...� �r c�ey s�,en. or c�4 r�o�maq. or co..g r,opeetr rws rrupeery r.�rs cW.h .�d cXry e+ero�nra�e or WFewo Citr Ar�a :Vhhlb Clry AtM Ta�l Cap�9 ��' TaW C�cy of Mvlp S 34b,b8b S 28,197 T.52l6 qg.qgq6 Chy of 8a1c�d � i9,S7S,481 S 16,1Sa514 45Ab�6 54.5�9fi City af C�lit� City S' S34.438 S 695.50'1 5655ii 45.45�6 Cuy of Uatano � 962;969 S 937,5�5 49.3a� 50.66q4 City' of U�icnpa S 60,294 S 48ti454 44.S6�i � 55.41% ChY ot McFarWW i 19Z,842 S 115,851 37S3�i 62.A79b Cisy ot Rfd�c x 1,556.�12 S 639,599 �9-399i 70.61�6 City ol6beher � 393.891 S 2A6,a9B $SA796 61.539i City c1 Tah � 506,5i1 S 35I.89'B 40.99lb 59.01�5 Chp ot Tehachtpi � 418,659 S 450,51a 51.85l� 48.179t Ctry of Wa�oo S 614,77"/ S 258,935 a9.6SN 70.3796 6 06i10i93 08:23 KERN CAO 010 ' .ii:i�. ,. r. �-��.t �� Data hai prevtcvslY 1� aceumsilated oa tfie lo�s of County prope�ty ��ua n=uldag lram �ity $�mtipns pautiing duriag the 5-qear perfod of PY 1985-8b duough FY 1989-90. A wcal of 58 Ci[y sttaacations occ�us�d dutiag ti�is periad, resultfng in a totsl laa� ia GouatY P='oP�Y � ttve�ues of �I.Z miUioA (s�e Appendix 1► for dera�led liadn�. [t ahould be aotad that this aasouat does � iaclude propary taz losses n�ting fram anncYadona occur�rtg betwcm f'Y 197&79 aad FY 1984-85, aos doe� it reilect losses in other Counry rev�enues due to a�exatioas. � �. �; �_ 1.r� : :�►�a�.t 1al. : ;�� ►�:�� : . .�.��: : � � . � 'ihe locatly itapaaed 2 g6 sales sad use csx is allocated entirety to che County in uait�corpo:ared areas (esdmared at S17:S u�iaa for FY 1990-91)� aad eadr�iy to ddea tn inco�raced are�. la the case of city annex�ttians� rhe Ceumy loses all sulea tax revmua derived fzom the anne:ed erea, and che a�g eiry gains all of rhe sales t�xes lost by the Couary. The anwunt of sales tax revenues lost by the Coynty in a pardeular dry aaaezaaon depends oa the degree of coma�srcial/busiaess developmettt (ta�table sales) withm the anuexed a�eas, as weII as fucux�e commeti+cial/business de�v�elopmrnt within the area. It is avt possibl� to accurauly eswiaaoa the Counc�rs loss af sales tax rrvenua due ro aay parci�cular aAUexaaon. No gzng�am currratly e:isra t� cross-re%rence annezation or taz rate a=eas with ssl�s t�c information. However, the deon preeented as Appendix 8 clearly shows that sal� taz grnwth in the unincorporated area has not kept pRCe with the rate of sales tax g�ro�wth withiti the t�ty of �skerafiel�i, due in latge ma�m�w t0 thC 8dVCT8C ]I4�SC[ Of annesaticns ca County salea ta� seveaues. ' /r• � •� � �.� �•.• � ti ?he Counry receives ail �ienr occupancy tax revenues desived from maui/i�oul occupaacy in the unfnccupora�ed area (6% auc rare), and dties recefve aIl tt�a�sient.occupatuy �es collecced vvithia c.ity areas (race varies bY cic}'). Counry rev�enues trom t1u treaaieat occupamy tax are expecced m total 5872.000 for FY 1990.91. In the case of ciry a�exariona, the Counry loses all �ansieat occttpatuy tax revv�ues deiived frorn the aiutexed iuzs, end the stuteaa8 �Y 8� � of the �snsieat occupancy tau revenuea lost by the Couaty. T'he amouut of transient occupancy ta�c rCVenues lost as a result of any panicular annexation depends on the numbcr aad rype of mocel/t►ott1 establishm,crtts located nt thc anne�ced azea, or developed in that area in future yea:s. .• .r ' ,� •�. ".,��, ,-� Caimry revenue from cotut fines aad fo�f�ltures are aIso adversely aflfectefl by tity asiuexaaons. Kern Catimry is e=gecced w r�cdve Sb.4 mftlion from the source in FY 1990-91 {eicinding penalry ass�ut� which are levied far apecial P�uposes)• 1tl,unineQiporat+ed �rees,.xhe._Gau�yt reeeiv_� 7�40% af the fiaes aad fo�dttut+ea resulting from Penal Cade or Vehicle Code violations, irrrspecrive of the aries�g agenty. Most of the Snes and forfeitures (base amount) resulting ft+om arrests by ci�y of�ice.rr within dcv �undarles are sIIocaced co rhac ary� with s lesser pomion alioeated to tht County. The ailocadnn of im� and forfeit�ucs (base amount) resulaag from Penal Code and 06i10i93 08:24 KERN CAO 011 vci�icic violadv� � b7' �}' ��ordiag to rhe shatiag� para�rases speci�ed in Penal coae Seetion 1463, ss ahoMm beiow. � e�.0 � c�q amo�. u�.ra ar a� cmP � {�dd. qt�r Ol�r t�lod�lq� ome.rs (Iyud Cods aod taside olq Cit�' Wiid� C�d� Vloi�tlo�l C!q 8b�r� �at� 9b� pt� Bb�t+ co�ty Sbsn Hake�stiaW gp9i lo�r► 5096 5091► 1k1mma 8710 134b 50% 50l6 Metieorpe 64% 36l6 50�6 5096 Sluttrs 8546 154i SOM 30K 'lleft 8146 14M SpN Spqb �e6�cl�epd 88l► 2210 SO�i SM6 Wa�ao '7216 28�i SOK SOK ,w or� ctd.� ae+i �29� so� so+r F�� a �� a� �ua �o�� c� � s��y coa�� auo�re� a��y. For drug-reiated arnesca by�ity officeis inside the ciry, Z546 of the �iadforfeitune is allacated to the eity, and 7594 ta the State. For �xug xelaced arrests by any ageacy in unirtcorpozated area�, 25�6 of the fine/%rfeitutes is 811ocated to the Couniy and 754�o is apportioned �o the 5tat�e. r�PA*ly, ciry annexations result ia the loss of Couacy revettnes derivv�cid frnm fines snd fo�feitures. ISi LI1C CSSe OE CiL�► pf Ba]�ClSPIP.� SIIIICYSLLDAS� rhe County loux 90q6 of ruies/forfeit�ues (base a3t►ouut) f�cr most types of violadons occurring in rhe atupexed area, �e amot�t pf rev�nue loss will vary with esch particuiar annexarl�n, depandin.g on the popuiation and de�velopment ci�araccerisaes af the anneaation area. The allaatc�oa of genalry a�ents (specified 96 of base fine amouuu), which aceiue to resrricted-use funds for speriEicaTly desig,�ated purpoaea (such as court conssuction or alcohol pragrRm) remain unaffeeted by cityr ��. The County receives ail real pr�perry �a�ufer taz revenues firom real prflperiy sales � the unincorgorated anea (.119b of sak amouat). The Couaty is expected to receive 52,4 miIlion fram tlsis soune in FY 1940-91. Withia incoiporated areas, the Couary receiv�es �pgb of tqe real P�P�Y tr�sfer raz nwenues, and che ciry receives 509�. In rhe eaae c#f rity annpcations� the County losea onc•half of all rcttl PrnPerty' tax revenues generated froa► real PraptnY tsansactLons withia the annexed area. 8 06i10i93 08:24 KERN CAO 012 '! 1-15�. 1� CO�I�ES � Clttls Tttl2Ve 8 i�i�I�C O� Lt3G C�81'�Lt t� CO�GiCG� �j► t�l! $tdtC t0 bC 11sld fOI . geuetal Purpo:a. The Cousuy is es�ecc�d to receivr 5336.000 froia thia sosur.c ia PY 2990-91. The amotia�t of cigarette tai allocat�ed tio tach agmry is based oa locni sate� tmc collations and populaticn. In the aise of city ana�tationa► the County espexiauea a reductio:e ia both sales tau rrveaues and popuiatian (if an�nced area is populated). T�cr�n. citi' eaae=adons result ia a Ias: in cigaretoe t� sUocatio�u t+o the Coitaty, nnd a correspaAdiag revemie gaia w rhe aaaac�g city. : �t,� . i.i�. • i.r� -i�: � •� ; :,�: • .. - i: i ��: �. . .i.i ..x� ; City aane�caaons of uainc�orpa�ated County anea g�tnerally ihvoiv�e the tra�sfer oi tht following msjor aervice responsibilities fmm the Cousity ta tht anue�titig city: o Polia prooecaom/law r.sifo�caneat o Stcucnuai Sre prooection (if rit�' oPeiates own fu�e depa�tent) o planaiag/Suil�tng Inspecrion o Animal Conrrol Srsvices e Slse�t Mninteaaace/Construc�on o CommuAitY Dev�elo�ment Sezvices Upoa camplenon vf anae�ations, the Counry of Kern retaias nsponsiMliry for p�v[ding rhe followiag majo: auvkcea: o Cowta and C:imiaal ,iusdce -- Superior Cotut — Muaicipal Couzt » Jtuy Se:vices — Grand Jury » Prabaaon (Adnit and Juvenile) » Dis1=ict Atto:uey (incL Forensic 5cienees iab) — Pnblic Defender/Indigent Defense -- Sh�s Cfvr� Sesvic�s o Couruy Jui Servicea o JuveniZe De�aatioa�/Rehsbt�itacioa Servicea Q Couaty Hospital Services (Kern Medical Cent�er) o Pub]ic Haaldt Sesvicas p Eavit�oa�me�,pal Health Savices � Batatg�mcy Med�t Setvices � Mmtal H�alrl�/Subat�aiecc Abuse Services � Welfare St:vices o Veteraa's Setviceo � o O�'ice on Agit�g Services o /�grieulturpj Plotecrion�$�nfvnemmt Services � Farm aad Home Adviaor Services ' K►eighta and Measures �ufoxcemeiu ° Air Qualiiy Coatrol 0 06i10i93 a8:25 KERN CAO 013 o SOlid Vl�l�oe MBAa$r'AteAi o R�gional Patks S�rvices a Mtts�unn Sem�s o is3rary Secvic�a o Propeny Taz Coliecdoa Senrices o � . P�peny Assess�t Se:vices o PropeTCy Tax �►ccawtting Scrvic�s e Co�m�y G� Gav+e�unant �d C�n�st Support Scrvicca � • -y � • � �.rr '�� ; r �• �x; ; x;, : E►��. ; � • �•+�r ,�. . � • . i. , u.►:».•� � 'Th� aetual coat of Cotmty ae:vices whirh sn'll must be a�� to newly anaez�d dry areas caa 1'�Y BT��Y deprndiag oa the specific araa which is Totm! pc:pulation, demograPhic chAraccerisdcs� dev�opmeru characcerisctcs, lorarion, aad a variety of other variabks determi:ie rhe actual cosc af Caunry sess►ices provided to a spectflc gengraphical azra which has been amtezed bq a city. 'nu aer f�naad�al impact of a pamcular annetaaon alaa ia dapendmt upon which eiry is involved in the aaneza�oa, due in part w rhe great va�dance itt propary t�x �aring ratia fmm cicy LO Cily. ' lt caa be concluded that „� ��± �f nron�*ni � wk�1� the G.M� t�eceives fi,em a de�xloned ==nes�d �*+ra ef �*�;�� not cover tiL cost af �e t".ni�mq servieR w}��;,s''�1��'�_r �a .� to that_annexed a�+ea (ae previo�iy listed). This gmeral conciusio� is aupported bp the fact thai the rost of Cowuy seivices provided to each ciry area (denermined p�ily on n per eapha basis) far exceeds the amQw�t of prnp�rty taus allocated to the Couaty from that crty ares. This has been documeAOed by Couusitty savice cos[ studiea previously drweloped for rhe c�des of Bak�f'ield� Ridg�ccr�a� and Arviu. The same canclusion can a.Iso. be extended Go other cities. The eYplana�iaa for rhis is Qnic� simple--mast of Itern eoun�s property ta�ces sre deciv�i fi+o� the ussiacorporated azea, which mciudes vfrtualty all of the oii/gas ProPacties, compsiaittg ebout 4I9� of rhe Count�s pmperty taz base. At the same ume most of the population which beaefits from Cotmtywide services is concentrated ia incoxporated anea,s. 'Phi,s conch,aoa is suppaited for City af Bakersffeld anaexaCiw�a by the analyQis pre�eted as Appen�ix "C". This analyeis showa t�at the esdmared r:L� related to Cotmty services provided withfn the City of Bekersfitld area for FY 1990-91 totals almost 551.4 �lioa, compared to properry t�ute.s rcceived by th� Counry witbiu the City ana of o�ty �19.4 m�lion. Thia leav�s a "gag" of 532.4 mfllion beniveen the cast of Counry se�vices and p�+opeetq taua ncef�ed..and this "S'aP" must be filled by pmpeay taxes collected from the uniacorparated area and from other geaeral purpose nwenues zeceived by the Counry. Since pmpeny t�[ s�v�t�uea ncdved by the Caunty from within tlu Cit�► of Baketsfieid total less thaa half of rhe cast of Countq se�vices provided to che Ciry area� aad siace the City/Couary propeny taz sharing rauo that applies to the ennre Ciry also appiiea to nowly anu�xed arras, it is c�ear that t}te property taus receivec2 b}► the County from rhe ana�ated area after the foimula-based properry taa exehar►ge do not come close ta cove�g the actuai cost of the Cottnty aemrices which still must be grovided to developed annexed aress. In all City of Baket�field anaa�acons, the County loses (tlu�ough fornaula-based transfer ro the Citq) 4S.4b96 of ir� pmpeny taz revenues 10 06i10i93 08:25 KERN CAO 014 derivtd f�m the aYU�araao� araa� but doea r►ot come clase to rrdwang im cp�t of �en►Icea by thsc . perceauge a� i�► an eqtuva�ent do�r �aouac VtII. CONCLU3ION Wiih tite passage of Psopoa�ion"13 and subsequent implementing legisladon, the nature of iocal gvvetummt flasnce has dramadcally cl�aaged. No lottga caa 2oca1 goverputents iej'Y P�P�=Y � ia an amouat wbich wovld produce the necessary x�venues to fuad ]�ocal government seivicea. �nstead, the i 9� propeciy taa is distributed by a flxed formula. Addfaar�ally, �he sracc has assim�ed au ittcreesiugly domit�tt roIe in thc fimdu�g (or 1aci� of fund'a�g) of Counry provided seivices. As . a:�esult of thrae cha:�gea, as aancxarions reduce the anaount af praperty taz availabk to th� County ac a gnater race rhan service responsib�ities are reduced, ina�eesing pt+e�sure fs piaced upon r��8 ��+�Y discr�ciona�y seivices. . 0 11 B 06i10i93 08:25 KERN CAO . 015 APPENDiX "A• $UTAMARY QF �BTiMATE� COUN?Y pROPCfITY TAX LASS FROM CITY ANNE7�ATION6. FY t986-88 TNROUGH fY 198Q-90 NUMBER OF ESTiMATF� AMOUNT � CtYY ANNE��ATiONS PROPER'TY TAX TRANB�ERRm � 2 �2.$38 Oeneral Fuad �Icer�ield 3Q ' a6914,899 C3�noral FunQ D�o 3 �301 Osns�1 Fund i176 �ire Fund �, M�p� 3 �1,42s Cenerai Fund FlfdpeGreat fi" i9�089 Qon�r1N Pund 8l18fter 5 ". �82.8Q6 Qetls�l Fund � �9.179 Flre Fu�td Taft 6 5116�880 Ci�ai fund � 588��20 Firo �und Tehnd�epi 4 • 81,TS8 Getletal �und Wggc,p 1' SO Cisr�ral Fund 70TAL 58 �'t.tQ6.266 aerteral Fund _ 589�277 Rre Furtd ' Annexation8 e�¢proved but no trane�er of propeny tex until FY 1880-81. 88ic8[sfield 8 enRexat�ns; �sUmatsd traMefer of �14,T2T (Q.F.j Delano: 2 annexatlona; eetimated transfer of 514,431 (O,F.} R�deecx�eat: 2 annexatlons; estlma�ed trnnafer of S2T0 Teh8ct18p1: 2 srtr�sxtd0��s: e9t�mated vanster of �84� (Q.F.) Wasca: 1 ar�nsxadon: ertlmated lransfer ot $208 (�.F.) .. Anneu�aUon approved, but no trar�sfer ot �operty tax un�l FY 1991 �92 ShaKe�: t annexatlan; sstlmated tranater ot �8,422 (p.F.} 06ii0i93 08:26 KERN CAO 016 �• APPENDIX "H" SUMMARY OF CHA1vG&S 1N SEI.�C18D RRVSNI�E SDURCES COUN'IY OF KERN VS� CI'IY OF aAt�RSFtELD COUM'Y OF I�RN GTTY G� �AiCBRSFIFZD FY 3980�81 FY 1990-91 g6lncr. FY 1980�81 FY 1990�91 95 lncr. Est EK. �Q�pL� �I�lt4�.�'t . � �i�iit� _�� Saies & Use S 13.6 S 17.5 28.79i 5 13.2 S Z4.7 87.196 Tax - 1Yanaietit � 03 $ 0.4 200.096 $ 0.8 $ Z.9 2b2.596 Oaupaary T� PcqpeRy Tazea S 52.9 S 189.6 16b,9% � 5.6 S 16.Z 189.Z9% Chsrgea for $ 38.4 S 48.9 � 25.796 S 4.7 � 4.0 4T3.494 Sen►ices _. 06i10i93 08:26 ,KERN CAO 017 ApPEAiDfX •�.� BUMMARY QF NET COST OR COUNTY SERVICES PROVIDED WITFtlN CRY QF BAI�R$FlE.�.p VS. PROPE��TY T/U�S RECEIVED 7oDd COW1ty PopWttt�l: 049�114 Clry of Baltersfleld Pppulatlon: 168.801 {30.996 of iota! Coun�Y PQP•I OreaL9r B�Iteretl9ld Atea PopuleUon: 389�,00 CouMy 8ervioeB Provided �E11tEP1A� G�l1NTY QOVEpNM�NT Aeessaor Auditor-�o�moll�r TresaurerRax CoFleotor Bosrd ot 8upervleors Courety AdrMn. Oftice Clerk Ot the Board of 8upv. Emplpy99 BsAefltB Purd�as�tg Inb�enatlOn 8ystems Cpunly COpnasl P@raonnel Counry Cierk- Eiealone f3enetal Servicsa (a!1 buqgets� PubNo WoNts ' Ganerat tlove�rtm�ent 8ubtotat p��c P�orEC�o�u Superior court Bakerafield MuM. GouR court Battttfs- Supar�or Court Court BBllflfe- eaicera(Ie1d Munl. COUR She�tJf- Ch►!! D!vlsfor� CpuR t3ueMs & P�iaoner T�anepprt�[dvr� . ($uperlor Court a� eaketafietd Mani.) Orartd Jury Jury Ssrvtae COurtry Clerk Diaaiq Attomey DlstriCt Attomey Crime Lab Pt�IIC Defend� 8herifi'S JaU Fadllriea (exd. court aupport �erwc;�sj Prabatlon JuvenHe Matl b Juvertiie Rehabilkatlon � FY 19�a-g1 9l.iDQkTED MET COUNTY GQ$1' �6�848,038 �1,966�788 SQYYIY1Ni �1.598.812 57,�78�78Q �488�304 S1,OQ8.20Q ffi7 �118,064 �,356,b20 �9.9�4�.DQb �t �445,699 ffi'f �061,a08 $10,857,132 �+�41�6�BQ S9$,4�1,Z94 ffiP.523�214 949.722 �800,000 �560.000 5984,000 �3�398,278 �t39,060 5856,592 51,980.Z06 s�,�es,o�8 �382.130 �4,888,801 S19,B40.625 89�062.99b s7,869,892 SMARE OF NET COIJNTY CO$T PRORA7�D TO CtTY pF BAI�RSFlELD AAEA �1,897,84a $807,429 3288,506 �48Q,788 i48T,ZZ6 ii50,268 $811 �849 �845�9$4 i� ,�83,868 $58�r482 �146�872 a3aa,as� $3�286�8�4 �� 511,872�180 �779�8T3 �518,991. �330�B00 S3Q8�5S0 $387,146 �/,873,002 ;42.97Q $202�558 5611�683 52�276�118 �121,768 s,,aae.s4a �6.190�753 �2.T�7.7 72 �2,431,735 m 0 � 06ii0i93 08:26, Aqriou�,nd Ccmmhsioner Weights 8 M9�tutot Coronsr - � UIi-CQ �� N �T�1 � ITA'RON Pubi� MNlfh 6Arvi0o$ Ma� � 8ervives EnvManmentel Hee�h 8arvtcas Art�bulanos Se�vice 8ub�► Kem Medlcai Cemer- Qen. Fund Sut�aidy �s�t�rpa�cy Msdtnl8�rvioee SOad West� Ol�poql- Oen. Fpnd Subaldy MeNtlf � 8anMatfOn 8ub�otei �jBLtC A331BTANCE we�r.r• namin. wsltare C�recc Ate Vsbsrans Senrioe Offlo9 On Aqi�►0 Pt�Nc As�u�oe Subao�a! m E�UCATJON tlbfary Barv�oee-� lnalde Ctty OMy Farm d� Homs Adrl6or Educ�on 6+�btoW KERN CAO i1 �16SrS90 �tS8,�74 ��,sei.�a �QZ�S s�►s�,aoo �3�431 �� a� �a�,� 51,086.883 ��,050�000 �10,5�,400 s�Y,�a ea R �� 520�84��466 �8,9D3,7D3 58�094�926 �369�SB8 � �16,885�548 54,606�910 �.2].2 $4,984,542 018 . - 33$8,768 St3�.bt8 �g19.6+i7 �,]�Z SZ7..2T0.�80 �$36�6T8 �a�a,as� �6.469 i69Z4,4$0 53.244�5�D .. $se,a�a �1 •11 •� a2s $6�440�3�2 �2�565�84+► �2,so�,ssa �10�,189 �� 5�21T,573 54.�6.S1G �1 ��.868 �4.7Z3�178 ��A�ATI,�ON_A� �y'jj�g� Regionsl Parka Nea� Meuo Area � �3.1Q2,247 �1 �709�338 (HVARA,K.C.R.P.�Metro Rea. �rsa) Cb�urty Parlcs Ir�dds City �30,!000 est. :30�OQ0 . Musaum S�vices �.¢� � Resmea�Ott � Parks Suboo�t t9A60.78@ �1 �889�b6i QRANO TOTAt �149,810.8Q8 �51 A23,073 NET CO3T OF COUNTY B�HVICES PROVfDEp W/I CIl'Y OF BAKEfiSFiELL7: PRCPERTY TAXEB ALLOCI►TEO Tp COUNTY Wli CtTY OF bAKERBFtELD: �swse on a.a� daunquer�cy tacoo� NEf CO3T OF COUNTY $ERViCE8 PRdYtDED TO ClTY 4N EXCESS 0� PROPEiaTY TAXES RECEtVED WITHlN CCTY ARFA: �61,4,�3�073 Si 8.315,42t aaz,aa�,esa 06i10i93 08:27 APPENDI% D KERN CAO. 019 D{STRIBUTION QF PpOPERTY TaXES FR�M 1°� LOCAL GaVERNMENT �'I��C RATE � C4UNiY OF KER1V FY 1990-91 � SPECIAL Ql8TRICT$ 5.796 c�T��s �.e� . R.D.A. 1_496 I COUNTY �0.696 scHOO�s 43.s� S.D.A.F. 2.796 S.D.A.F. - SPECIAL bISTRICT AU(3MENTATIQN FUND R.D.A. - REDEVELOPMENT AGENCIES i � c' 1 ' �IIIIIIIU/' � �I.J ��': `j1\��j1� �'�•"��]�'�'� _ ,,,,.�� - = :; _ ,, :, � - � I�Nmw�� : _•ros , e � Q `�`., p _', — �Y _, `�. °_ y _., .� �� d � � �i � 1?��A�P, � TO: FROM: SUBJECT: DATE: MEMORANDUM I \ � C Alan Tandy, City Manager Leland Andersen, Communit Services SILVER,CREEK PARK OPENING June 2, 1993 - Manager � On May 20, 1993, our recreation staff inet with Suzanne T'orczon from Castle & Cooke to discuss the grand opening event for Silver Creek Park and Recreation Center. The attached agenda of activities was given to our staff at this meeting. The June 26 and 27 date for the event was decided upon by Castle & Cooke. They indicated that they wished to coincide the opening of their new model homes across the street from the facility, with the grand opening event planned f or the park�. � On May 28, 1993, my staff and I met with Vern Burke from Castle & Cooke and the construction site superintendent to discuss when the facility would be ready. The site superintendent indicated that the facility would �be partially completed mid-June and the entire project would�be completed mid-July. Our staff had been told by Castle & Cooke prior to this meeting that the entire project would be completed on June 8, 1993. Since the facility would not be completed by the grand opening date, we discussed changing the event. The original grand opening dates were advertised in the Recreation Division's summer brochure which was scheduled for d`istribution on May 28, 1993. In order to inform the public of the change, we would need to insert fliers; in the brochures, advertising the new grand opening. Vern Burke seemed reluctant to change the original grand i openirig date since the dates had already been,advertised. Our City staff was reluctant to keep the dates since the facility would not be officially ours and possible damage could occur. Castle and -� Cook has projected 5,000 people to attend this two day event, which -,would destroy the newly seeded grass. Castle and Cooke informed City staff on May 17 that the new grand opening date would be July 17 & 18. City staff designed an insert immediately as distribution of the summer brochure was being delayed due to this problem. Many of the recreation programs begin the first week in June, and the brochure is our strongest form of advertisement. The brochure is distributed to school districts in the area, so it must be received by the schools before June 4th in order for the students to receive them before the last day of school. Distribution to the�schools is the least expensive and most effective form of advertising for our summer programs. CI7:Y MA�VFIGE;�f.� 7. .�UN �i3 � ° 53 -2- On May 18, Vern Burke informed me that he had just attended a meeting with the Castle & Cooke staff and the date for the grand opening had,been changed for the third time. The new date is now scheduled for July 31 and August lst. The City flier announcing the second change for the grand opening had already been printed. The cost for the 40,000 fliers which was billed to the City was $284.79. This third change was now costing the City more money for additional fliers, wasted effort and time for City staff, and loss of advertising for those classes starting the first week of June. In addition, City staff will now have to distribute"the brochure to each school site individually in order to reach the school children before the last day of.school. Due to the late opening, many of the summer programs that_were scheduled for Silver Creek will have to be cancelled or delayed. The flier, announcing the grand opening date change, will also need to annourice the cancelled and delayed activities that were scheduled for Silver Creek. This will increase the cost of�the new flier to approximately $430, which Castle & Cooke has agreed to PaY• Those participants who pre-paid for swim lessons and competitive� swim at the Silver Creek Pool will need to be reimbursed or rescheduled at alternate locations. All activities,�including the playground program, aquatics activities, leisure classes and band concerts, that were scheduled to take place at Silver Creek will be rescheduled pending the opening of the park site. The following programs will not be offered due to the delay: Competitive Swim, Splash Bash, and the July 17 Movie Splash-Tacular. LA:lr attachment � � i� � Silver Creek Park Grand Opening June 26-27 Entertainment Clowns -- balloon animals Facepainting � Magician -- strolling Puppet Show for children Pony Rides (?) Music -- barbershop quartet FoodBeverage Coca-Cola Pepsi , Iced Tea Hot Dogs Hamburgers (Wendy's?�?) Chips -- Frito-Lay Popcorn Ice Cream -- Baskin-Robbins Demonstrations/Competitions/Etc. Swimming � Basketball Horseshoe tossing ��.' Tennis .. 1_ �, - ,! SILVER CREEK RE�REATION CE�ITER GRAND �PENING � Date Changed to Jufy17&18 Starting at 11:00 am e ' �' . . 4 J _ SI LVER CREEK PARK & RECREATION CENTER Grand Opening Date changed to July 31 & August 1 All activities, including playground program, aquatics activities, and band concerts, that were scheduled to take place at Silver Creek will be rescheduled pending the opening of the Silver Creek Park Site. The following programs will not be offered due to the delay: Competitive Swim, Splash Bash, and July 17 Movie Splash--Tacular. For more information call 326-3702. ..�..:, ,,;,;:;�.:. : , f �,KERSFIf� �. �.,� ,� �, I.�y� A �`1.ZR►�°:t�, �E'OLICE �' \`I _wJ� TO MEMORANDUM , • �L•jC FROM C �� :�i � �' �;�� :�i�l�►:: �� The following positions are proposed as a minimum staffing increase for anticipated IInion Avenue �10 and Rosedale �5 annezations: 2- Police Officer Positions - Step 3 In order to fill the positions in a timely ma.nner, we reco�end lateral entry employees, which are typically placed in step 3 of the classification. Costs for each position range from $61,240.24 to �66,157.24, depending on available equipment. Our cost estimate of $63,698.74 per position is an average of the two calculated costs. See the attached Form B2 for break- down of costs. �63,698.74 % 2 �127,397.48 1- Senior Police Officer Position - Step 5 The proposed 1993-94 budget deletes four senior officer positions. This position is requested to mitigate impact of this reduction in complement. $ 69,249.13 1 - Detective - Step 5 .�:Y ,,.�t:.��.��::�- � �- r ....�a :J _ :;-' The level of service required in proposed annegations creates a need for follow-up investigations. It is reco�ended that one detective position be added to address this need. $ 68,234.27* * Cost is less than Senior Police Officer due to holiday pay, which is included in senior officer regular salary and wages. � TOTAL = $ 264,880.88 We believe these recommendations reflect a reasonable and realistic need in light of anticipated service requests generated in these proposed anneaation areas. I appreciate your consideration for our needs. SEB:sml _�� _ Poc.,c� o,��c�2 - sr�•� 3 BUD01.03 REQUEST FOR ADDITIONAL PERSONNEL - PERMANENT POSITIONS SUBPROG 321 POLICE - PATROL CLASS# 125H POI.ICE OFFICER FUND # 011 GENERAL FUND # OF NEW STEP PAY GOST REDUCTIONS EMPLOYEES NO. PERIOD ANTICIPATED 1. 1 3 26.1 TEMP [FORM B2] TOTAL SALARY 40088.03 70100 Regula.r Salary 40088.�3 OBJT# � 70400 Retirement (Safety) 7045.47. 70700 Worker's Comp. 0.00� 70800 Insurance 2885.09 2. 70100 REGULAR SALARIES AND WAGESCµ�+�� ►�� 296fi . 65. 3. 70350 AUTO/UNIFORM ALLOWANCE 650.00 4. 71 700 UNIFORMS AND_ ACCESSORIESQI�..��aa�,5,�rc,�.,�� l.�a�rr�.z.) 1 500.00 5. 76200 RENTAL - INTERNAL VEHICLES 7572.00 6. 76400 FURNITURE & EQUIPMENT(MINOR)C�It,s.>> 350.OQ 7. 77500 SIGNAL/COMMUNICATION EQUIPMENT[�x-u��- �� 1500.00 �3. 72�i-�G !-lv,�,►.�., 2AD►o . . tF�m E;o 64557.24 N=Next F=File [#]=Change J=Justif [ALT F5]=PC Prnt P=Aux Prnt L=LPTR R=Repost 6b, i��•Z¢ ALT-F10 HELP 3 ADDS VP 3 FDX 3 9600 E71 3 LOG CLOSED 3 I?RT OFF 3 CR 3 CR BUD01.03 REQUEST FOR PERMANENT PERSONNEL [FORM B2] 01:21PM 05-26-93 SUBPROG 321 POLICE - PATROL � CLASS# 125H POLICE OFFICER FUND # 011 GENERAL FUND # OF NEW STEP PAY . COST REDUCTIONS TOTAL EMPLOYEES N0. PERIOD ANTICIPATED SALARY 1. 1 3 26.1 . TEMP 40088.03 2. 3. 4. 5. 70100 OBJT# 70400 70700 70800 70100 70350 76200 OVRTM Regular Salary 40088.03 Retirement (Safety) Worker's Comp. Insurance REGULAR SALARIES AND WAGES AUTO/UNIFORM ALLOWANCE RENTAL - INTERNAL VEHICLES 7045.47 0.00 '2885.09 2999.65 650.00 7572.00 � T�TAL COST 61240.24 N=Next F=File [#]=Change J=Justif [ALT F5]=PC Prnt P=Aux Prnt L=LPTR R=Repost ALT-F10 HELP 3 ADDS VP 3 FDX 3 9600 E71 3 LOG CLOSED 3 PRT OFF 3 CR L K��1:� ^ _,� _ �' -- SE N% o i`L Po L� G� O.� �� G�lL - S7�i° I BUD01.03 REQUEST FOR PERMANENT PERSONNEL [FORM 82] 01:09PM 05-24-93 SUBPROG 335 POLICE - RECORDS AND REPORTS CLASS# 127H SENIOR POLICE OFFICER FUND # 011 GENERAL FUND # OF NEW STEP PAY COST REDUCTIONS TOTAL EMPLOYEES N0. PERIOD ANTICIPATED SALARY 1. 1 5 26.1 TEMP 46496.42 OVRTM � 70100 Regular Salary 46496.42 OBJT# 70400 Retirement (Safety) 8171.75 70700 Worker's Comp. 0.00 70800 Insurance 2885.09 2. 70100 REGULAR SALARIES AND WAGES 3473.87 3. 70350 AUTO/UNIFORM ALL.OWANCE r 650.00 4. 7620� RENTAL - INTERNAL VEHICLES 7572.00 5. ..... ......... TOTAL COST 69249.13 N=Next F=File [#]=Change J=Justif [ALT F5]=PC Prnt P=Aux Prnt L=LPTR R=Repost ALT-F10 HELP 3 ADDS VP 3 FDX 3 9600 E71 3 LOG CLOSED 3 PRT �FF 3 CR 3 CR 0 _ __�;: ��?-�c T�v"`J�`- S��f' � �r .. � , � BUD01.03 REQUEST FOR PERMANENT PERSONNEL [FORM 82] 01:10PM 05-24-93 SUBPROG 335 POLICE - RECORDS AND REPORiS � CLASS# 104H DETECTIVE FUND # 011 GENERAL FUND � # OF NEW STEP PAY COST REDUCTIONS TOTAL EMPLOYEES NO. PERIOD ANTICIPATED SALARY 1. 1 5 26.1 TEMP 49445.19 OVRTM 70100 Regular Salary 49445.19 OBJT# 70400 Retirement (Safety). 8689.99 70700 Worker's Comp. 0.00 70800 Insurance 2885.09 2. 70350 AUTO/UNIFORM ALLOWANCE 650.OQ 3. 76200 RENTAL - INTERNAL VEHIC�ES 6564.00 4. ..... ......... TOTAL COST 68234.27 N=Next F=File [#]=Change J=Justif [ALT F5)=PC Prnt P=Aux Prnt L=LPTR R=Repost ALT-F10 HELP 3 ADDS VP 3 FDX 3. 9600 E71 3 LOG CLOSED 3 PRT OFF 3 CR 3 CR , = � � B A K E R S F I E L D MEMORANDUM /�` June 11, 1993 - � T0: HONORABLE MAYOR AND CITY COUNCIL . ; �i ;; FROM: ALAN TANDY, CITY MANAGER . SUBJECT: COUNCIL REQUEST FOR INFORMATION Councilmembers Smith and Salvaggio have requested that I respond to a variety of issues pertaining to the subject matter of "in lieu" payments. That information follows: 1. The first payment "in lieu" of taxes that we have found record of in Bakersfield was on the Agricultural Water System in 1980/81. Appearing under various labels, some level of payment of "in lieu" has been incorporated into the Water Fund since that time. Payments "in lieu" have not appeared in the Wastewater System until the proposed 1993-94 budget. 2. The changes from the originally-Adopted 1992-93 Budget to the Proposed 1993-94 Budget in the payment "in lieu" consisted of an increase in charges in Domestic and Agricultural Water from approximately $522,000 in 1992-93, to $800,000 in the 1993-94 Budget. Rdditionaliy, $626,500 was imposed as a payment "in lieu" on the Wastewater Fund. 3. There is no rate increase proposed or attributable to the $626,500 from Wastewater, as rates were held stable. The money was generated by deferral of capital improvement needs in Wastewater. There has been a previously approved 4°� increase in Domestic Water Rates, approved by the Water Board. The 4% increase, or $.70 per month for a typical residential customer, is attributable to cost increases the water system experienced. The largest portion of cost increased was higher pumping costs, due to the drought and deeper wells, and a secondary issue is, in fact, the increase from $522,000 to $800,000 in the payment of "in lieu." Obviously, both actions leave the utilities with less money in the bank, so they are not without impact. 4. Most residents of the City are on our sewage system, and will pay a proportionate share of the $626,500 payment "in lieu" from that fund. Most of the Agricultural Water users are outside of the City. They will pay $374,000 "in lieu." The $426,340 from the Domestic Water System is attributable to the Ashe Water District on the west side of Bakersfield. 5. With respect to the issue of the uniformity of this charge to City residents, or by area within the City, those citizens on Caiifornia Water Service, which constitutes most of the east half of Bakersfield, already pay this, since that is a for-profit corooration and are paying property taxes to the City. With the Proposed Budget, the costs tnat Cal Water customers pay for property taxes, and the City water system customers pay HONORABLE MAYOR AND CITY COUNCIL June 10, 1993 Page -2- "in lieu'' would be similar. There are some mutual water companies serving parts of Bakersfield in the northeast and northwest, which are tax exempt, and we have no legal basis for imposing this fee on them. It shouid be noted, however, that City water rates are substantially below those both existing and proposed by Cal Water. 6. As submitted to you in a recent memo, the legal basis for the payment "in lieu" was validated by a California case called Onita vs. City of Fresno in 1982. Prior to building the proposed revenue into the City budget, the legal staff undertook a review of this proposal to determine if it was legitimate. It is a common practice in cities across the country. 7. Was this issue a surprise and at what point was it initially brought forward? The specific numbers and their importance were denoted to you in my budget memorandum contained at the front of the Budget book, and presented on May 12, 1993. On Page xii of the Budget, paragraph 6, it states, in part, "Utiiity franchise fees and payments in lieu of taxes are made by City water funds in the amount of $800,340, and by the wastewater enterprise in the amount of $626,500. The 'tapping' of these funds to support the General Fund has been criticai to efforts to reduce damages to services and to reduce layoffs." On the visuals presented to you that night, Page 11 of the overheads, there is a document titled "FY 1993-94 Proposed Budget - They Also Contributed." This articulates, in Column 1, the specific charges attributable to payments "in lieu" from Ag Water, Domestic Water and the two sewer plants. A memorandum authored by Gene Bogart, dated May 26, 1993, was passed on as a part of responses to Budget Workshop No. 4, which contained an articulation of the charges made to the Ag and Domestic Water system. This item also had several weeks between first and second reading of the "in lieu" ordinance. The First Reading of the Ordinance went through on May 12, 1993. When the Second Reading was coming up, we received a corrtmunication from Kern Tax, asking for us to delay, which we did, until June 9th. Summary These details are provided as background for questions and comments you may receive. We recognize that valid differences of opinion exist on whether it is a positive or negative policy. AT.alb cc: Gene Bogart - City Water Department .� - :� srare cAPiro� SACRAMENTO, CA 94249-0001 (916)445-8498 DISTRICT OFFICES: ❑ 1800 30TH STREET SUITE 101 BAKERSFIELD, CA 93301 (805�'324-3300 ❑ 821 WEST MORTON AVENUE, kC PORTERVILLE, CA 93257 (209) 783-8152 June 8, 1993 Alan Tandy, City Manager City of Bakersfield 1501 Truxtun Ave. Bakersfield, CA. 93301 Dear Alan, COMMITTEES: AGRICULTURE " RULES WATER, PARKS, AND WILDLIFE HEALTH Thank you for your letter which I received regarding your opposition to the proposed property tax shift. Like yourself, I oppose shifting property taxes from local government to the state. The Legislature's annual budget deliberations, which are difficult even when the. state's economy is robust, have become acutely painful during these lean years. Once again, state budget negotiations will be plagued by California's stubbornly downtrodden economy, the scheduled, autornatic repeal of the one half cent sales tax, a$300 million tax break�for business that was suspended but is d,ue ;to. reappear next year, and tfie°voter's deeision on�election,:day,to.:cepeal the snack tax: `These. factors combined wiil create an estimated� $8�:billion. budget. deficit.... �. �,� ' After struggling to balance the budget with either tax;increases or spend'ing ,cuts.over the past three years, the range of ° traditional fiscal tools available to make budget adjustments has grown smaller and smaller. Governor Pete .Wilson has recently refeased a revised 1993-94 budget proposal which would baiance the state budget by the end of his first term. The May revise. gives top priority to state prisons and to education programs for children in kindergarten through the 12th grade. However, their gain comes at the expense of local government who are being called upon to shoulder a p�rti�n-of the-state's mass6ve $8 billion �udget-deficit_thro��gh a. shift of $2.6 billion in property taxes to the state. Significantly, the Governor's property tax shift would ask counties to absorb $2.1 billion of the total $2.6 billion shift. This compares with a$288 million loss for cities and a$65 mitlion loss for redevelopment agencies. He proposes to offset a portion of the property tax losses by giving counties and cities most of the property taxes currently given to special districts. Having served as a Kern County Supenrisor for ten years, I understand the devastation that this property tax shift would have on the ability of local government to rnaintain ` basic, necessary services such: as. � police.�and; fire protection. Therefore, I oppose shifting properry taxes from local:�government, to -the state, . The.,Legislatu,re must explore ofher avenues to closing the state's. budget deficit� without tiarming � local p�vernment. � � CLTY �iAiVAt��-i -� 9 J�f 9� t,� t� , Printed on Recycled Paper � + rr � yl�i � As a member of the Task Force on Local Government Realignment, I support repealing state mandates on . all local government programs not directly related to pubfic safety. State officials have overburdened local government with numerous mandates, however, they have failed to provide the funding necessary to maintain them. Local government should not continue to sacrifice important programs for the sake of state mandates. As part of his revised budget proposal, Governor Wilson announced a November special election to allow counties to place a local sales tax increase on the ballot. The sales tax could be increased by one cent for services such as police and fire protection. This measure would require a majority to pass. In addition, the Governor has proposed a constitutional amendment, SCA 22, which would require local government to make spending on public safety their top priority. While these __ -� proposals �wili� nof soive� all- of� focai�gover"nment's� budget problems, it is � a step in fhe right direction by allowing citizens at the local level to decide spending and program . priorities. Once again, thank you for sending me your cornments.� As budget negotiations remain fluid, it is impossible to guarantee the future of any of these proposals. In the meantime, I will work towards a responsible solution to our budget deficit while minimizing the harm to local government. Sincere! T ce arvey Member of the Assernbly TH:sd � y� . ..�..�. . • B A K E R S F I E L D Alan Tandy • Cify Manager June 10, 1993 The Honorable Robert Presley, Chair Appropriations Committee The State Senate 5114 Capitol Building Sacramento, CA 95814 Dear Senator Presley: The City of Bakersfield is opposed to additional burdens that will be placed upon it with the passage of SB 36. At a time when the City is facing decreasing sales tax revenues and loss of property taxes, as well as other economic recession reversals, it can ill afford the burden of additional costs in connection with additional Brown Act requirements. The City of Bakersfield supports Brown Act reforms within a framework which does not exceed the financial ability of the City to satisfactorily comply with those reforms. State mandates must stOp impacting the local level. Vote no on SB 36! Sincerely, Alan .Tandy C City Manager AT: j p cc: Honorable Mayor and Members of the City Council Larry Lunardini, City Attorney Trudy Slater, Administrative Analyst League of California Cities City of Bakersfield • City Manager's Office • 1501 Truxtun Avenue Bakersfield • California • 93301 ro�r� ��c ��e� � �nv /O!�[1 �� nic� � -c ,� " � .o Distribution list for Ju.ne 10, 1993 letter Opposition to SB 36 - Senator Kopp's Brown Act Revisions The Honorable Robert Presley, Chair Appropriations Committee The State Senate 5114 Capitol Building Sacramento, CA 95814 The Honorable Robert Beverly, Appropriations Committee The State Senate 5082 Capitol Building Sacramento, CA 95814 The Honorabte Alfred Alquist Appropriations Committee The State Senate 5100 Capitol Building Sacramento, CA 95814 The Honorable Lucy Killea Appropriations Committee The State Senate 4062 Capitol Building Sacramento, CA 95814 Vice Chair The Honorable Bill Leonard Appropriations Committee The State Senate 5087 Capitol Building Sacramento, CA 95814 The Honorable Marian Bergeson Appropriations Committee The State Senate 3063 Capitol Building Sacramento, CA 95814 The Honorable Ralph Dills Appropriations Committee The State Senate 3050 Capitol Building Sacramento, CA 95814 The Honorable Leroy Greene Appropriations Committee The State Senate 2082 Capitol Buitding Sacramento, CA 95814 The Honorable Pat Johnston Appropriations Committee The State Senate 4035 Capitol Building Sacramento, CA 95814 The Honorable David Kelley Appropriations Committee The State Senate 2054 Capitol Building Sacramento, CA 95814 The Honorable Bill Lockyer Appropriations Committee The State Senate 2032 Capitol Building Sacramento, CA 95814 The Honorable Henry Mello Appropriations Committee The State Senate 313 Capitol Building Sacramento, CA 95814 The Honorable Art Torres Appropriations Committee The State Senate 2080 Capitol Building Sacramento, CA 95814 .k � � , � x �,:.. , � '� t ., -. *� �'e��R�y, �' *t�' �I '�� -' s � �'�3 u.:z i : n: - � f � . Si yi ' _ . - .. . ., ff i.` � y� .� , R��i��`� ' '� � :��,�:�. .�:'Y li - JUN 0 'L IyyJ �. '�'�, .;��? � .-_ . t�J1AYOR'S OFF1�� ' �?`'�''(.��z.`�, ' {� �-j� �. `: :�°_ �i. ��,� ,r; � 4 ..LL � a 7 1. - _ . " �,-� � �' �. ��+�r� . � ��z} h �� '�' I i ��1t 4 �w � � � � �''s. ;,?. �'�y�,ti.� �. . . . . , '..�a �Y r_ • c �'-: r'x°'� «#.i� � �C , ,�-�'+ �^�'' ,� r.s.Pt� -'�a-�. �. ,r'�_.. .. .. : a , ..�,...� .y ' �c , �-r � � � _ F `�. �May �28, 1993 . ... - "`k f . ... �The Honorable Bob Price, Mayor:. , _ • , City of Bakersfield � - k , 1501 Truxtun Avenue � '�• � - Bakersfield, California.93301 '4 _ --.. Dear Mayor Price: Thank you for conveying to Caltrans, through your letter of May 14, 1993, the City's concerns regarding the Adopt-A-Highway signs featuring the reference to "Deja Vu Showgirls". Tejon Ranch, like you, believes this form of advertising of adult entertainment along our public thoroughfares,:is.totally inappropriate. � Since two of the offending signs are adjacent to our property, Tejon Ranch expressed its concerns to Caltrans, and Mr. Alan McCuen of Caltrans District 6 has given us assurances that action will be taken. We greatly appreciate your support on this issue. s very truly, ack Hunt resident , `��. � � . . _ - k - `. ` ` _ - � ' `'�' �. , i �� ' � 3 ' I _ : J' '�. x . .... .:=� t 'Gr �: ... �. : ' v � � 5 a �� .� { �'t '"i�: a�v.a� y� '" S^t�jy �++ �., .; �,A t t _ ":-'_ . �, `L -.,: � r o 7 , m 9p� S.� �� ..' {� .e z �;s i�, +dt .. < �}.. _. ..� ... � » , . .� . ,. . • s . .. . . � .. . _ . .� .. -. , . . � x.__.._ .. . . '. . . � . . . . • z-��;�-,n �?an�•!, . p n R�,� t�t�(� • i�ehe•:, C'� 4;�a.t'� •!�?(�51 o:f,�,_r,',7s -!�f?-� q�~_��e� —� .. � g � B A K E R S F I E L D � June 7, 1993 Senator Marian Bergeson State Capitol Room 3063 Sacramento, CA 95814 � , SUBJECT: Support SB732 Dear Senator Bergeson, On behalf of the Central District Development Agency I thank-you for your amendments to SB732. , With the removal of the language which restricted redevelopment agencies' abilities to pay - for relocating businesses within California, I withdraw my earlier opposition. Pending no further amendments to our detriment and continued support from the California Redevelopment Association and the League of California Cities I can reverse my previous position. I also appreciate your follow-up to my earlier letter of opposition._ It is good to know that you evaluate comments received regardipg proposed legislation. � Since y, _ / ,L�- �� n Tandy � xecutive Director City of Bakersfield • Economic and Community Development Department 515 Truxtun Avenue • Bakersfield • California 93301 (805) 326-3765 • Fax (805) 328-1548 • TDD �(805) 324-3631