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Home My WebLink About09/29/1993 BAKERSFIELD Kevin McDermott, Chair Patricia J. DeMond Randy Rowles Staff: John W. Stinson AGENDA BUDGET AND FINANCE COMMITTEE Wednesday, September 29, 1993 1:00 p.m. City Manager's Conference Room 1. Property Tax Distribution ("Teeter Plan") 2. Set Next Meeting ADMINISTRATIVE REPORT IMEETING DATE: September 22, 1993 ] AGENDA SECTION: Consent Calendar [ ITEM NO: 3. c. 2. TO: Honorable Mayor and City Council APPROVED FROM: Gregory J. Klimko, Finance Director DEPARTMENT HEAD DATE: September 13, 1993 CITYATrORNEY N/A CITY MANAGER SUBJECT: Correspondence from James A. Rhodes, Kern County Auditor Controller regarding Property Tax Distribution ("Teeter Plan"). RECOMMENDATION: Refer to Budget & Finance Committee. BACKGROUND: SB 742 provides a mechanism, known as the "Teeter Plan", for handling the allocation of revenues attributable to delinquent property taxes. Counties operating under the Teeter Plan allocate property taxes to jurisdictions based on the total amount of property taxes levied, not the amount collected. At the time the County adopts the Teeter Plan, the County must als0 forward to each local agency delinquent, property taxes from prior fiscal years. The City of Bakersfield must adopt a resolution by October 15, 1993 in order to participate in the Teeter Plan. SE22FI4.CC September IL 1993, 4:40pm ~-~E...,EIVEi-: !$£P 1 1993 septe,nb.r 8, !993 FINANCE DEPI'. . ~ ~ (X)UNTY CI?IES ~fl). 8ELF~ c S~: ~ E~TI~ T~ DI~I~I~ ~ (~~r PI~~) Chapter ~ of P~rt 8 of givi'sion 1 of ~e C~liforni~ Revenue ~d T~xetton C~e (co~encing vi~ S~tion 4701) pr~tde8 ~ltern~tive ~~ for dis~ibution of t~x levies. ~e Co~ty plans to iBple~nt this ~lternntlve pro~ ~ ap~io~ent pr~es8 for ~11 ~gencies gove~ by ~e ~rd of Su~isors for ~ri~s ~fter July 1, 1~9~. ~is ~ltera~tive [r~ess (~11~ the 'T~ PI~', ~fter its ~u~o~) h~s three ~or ~: · First, 'the Ce~ty rill 'buy ~t' ~11 ~ion~ of delin~ent ~~ t~xes ~ to the ~ff~ted agencies. ~is rill resat In e °ne-ti~ ~nt to e~ch ~gen~ of 95~ of their 8h~re of ~11 delin~ent s~ur~ t~xes ~e close of ~ines~ on Z~e ~0, 1~3. ~e reB~iaing to cover t~ l~s~ in--red vhen ~e sele ~rice of pro~y i8 less ~n ~e ~t of' t~xe8 due. - S~cnd, the Cowry viii ~ar~t~ that each agency'viII r~eive ~e full a~o~ts of 'sec~ pro~rty all~at~ to it for each year st~i~ ~l~ fis~l 1993-94. ~ri~ each year ~e ~lll ~ntinue to ap~ion ~ney to aff~t~ a~encies as ~ ~ents are receive. In July~ foll~i~ ~e end of a fl~l yea~ up ~y difference ~t~een ~e ~t all~at~ a~ency ~ ~e ~ount ap~io~ d~i~ ~e ye~. In o~er ~or~ ~e Cowry ~lll ~ke each-a~en~ during the final re~nciliation pr~ess in July. · ~i~, ~e Co~tY ~ill r~etve ~ei~ ~are s~~ ~es~ ~nalties ~ interest ~hich ~uld no~all~ go to 'each involv~ a~e~. i ~ion Co~ty~s revenues fro~ current ~nalties ~ prio~ CITIES/SELF-gOVERNED DISTRICT8 September 2, 1993 Page 2 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 1992-93 apportionment factors) and the comfort of a ~ore stable revenue source :since 100% of allocated taxes are assured, protecting the agencies from an increase in property tax delinquency. 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, ~cluded are unsecured tax payments, unitary (utility roll) 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 public districts for which' the County treasury is not the legal depository, 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 astheir legal depository must adopt a resolution by October 15, if participation in this alternative process is desired. Self-governedspecial districts which douse the County treasury as their legal depository, will be included automatically in the process. Entities are advised that the conitment 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 initiative 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 30, 1993. CITIES/SELF-GOVERNED DISTRICTS September 2, 1993 Page 3 " Further details concerning this alternative processare available from E d Johnston, Chief, Auditing Division, at (805) 861-2331, Ext. 3533. Sincerely, AUDITOR-CONTROLLER jAR/EEJ:ksw Attachment COUNTY OF KERN DISTRICT BY DISTR]CT ANALYSIS TEETER PLAN AGENCIES THAT OO NOT KEEP THEIR FUNDS IN TREASURY 95~ AGENCY NAHE FUND BUY OUT . CIITY OF ARVIN 20001 2,428.55 CZ:TY OF BKSFLD 20101 1,147,280.24 BKSFLD CZTY BONDS 20104 12,748.25 BK:FLD REDEVEL 20160 189,869.39 C]TY OF CAL]F CITY 20201 47,146.44 CA'L CITY R.O.A. 20207 272,765.20 CI.TY-OF DELANO 20301 64,439.02 DE!LANO R.D.A 20304 2,527.27 C]'TY OF HARICOPA 20351 .2,489.47 CIiTY OF HCFARLAND 20401 7,187.18 CITY OF R]DGECRST 20451 38,665.92. ROGCRST REDEV. 20459 336,830.68 CI:TY OF SHAFTER 20501 15,929.22 SH~AFTER RDA 20502 6,781.72 czTy OF TAFT 20551 22,684.49 TAFT REDEV 20554 48,218..38 CZTY OF TEHACHAPI 20601 33,796.90 C]~TY OF'HASCO 20651 17,377.23 HASCO R.D.A. 20654 14,015.98 EAST KERN JT HOSP 42160 6,163.78 KERN VALLEY HOSP. 42180 8,039.86 HUROC HOSPITAL 42183 4,437.43 NO KEN SO TUL HOS 42184 15,370.39' TEHACHAP! HOSP. 42186 19,934..93 TEH VAL HOSP BD 42188 2,681.90 ~E'ST SZDE HOSP. 42190 32,832.14 ANT VAL SOIL CONS 42450 319.74 FRAZ PK UTZL DZST 42620 1,561.41 FRAZ PK PUD BONDS 4262'7 5,023.51 LAHONT UTZL DIST 42640 3,308.48 LAH UT 1965 HEED 42641 133.24 SO SAN JOAQ ~TIL 42700 17,437.00 BEAR VAL CON SERV 50010 31,008.~! RoSAHONO CON.$ERV 50360 9,391.9g ROSAHONO CSO BONO 50365 12,8~4.04 8ERREND HESA HTR '60010 4,266.10 DEVZL'S DEN HTR 60043 73.49 HENERY H~LLER HTR 60045 2,397.60 KERN DELTA HTR 60050 36,845.55 LOST H~LLS HTR 60060 8,284.90 BUTTONH CO HATER 60100 598.43 BUTTONE ~TR ~1 BD 60101 1,153.40 LEBEC CO ~ATER 60148 978.03 COUNTY'OF KERN D[STRZCT BY DISTRICT ANALYSIS TEETER PLAN. AGENCIES THAT O0 NOT KEEP THEIR FUNDS ZN TREASURY 95~ AGENCY NANE FUND BUY OUT RAND CON CO WTR .60150 1,655.00 RAND CO WTR II BD 60153 838.42 ANT VALE KRN ~TR 60205 18.,916.89 *AV EK WTR-CL CITY 60207 433.10 AV-EK ~TR BOND 60210 97,058.39 AV-EK WTR CAL BO 60211 35,183.33 ,AV'EK WTR DEBT 60215 255,943.00 KERN CO WTR AGNCY 60220 102,835.10 KCNA ZN l? OEBT 60229 129,074.22 KCWA ZN Il? OEBT 60239 177,061.65 KC~A ZN 118 DEBT 60240 3,659.10 KCWA ZN t19 DEBT 60241 283,889.46 KERN CO ~TR INPil 60261 1,042.50 KERN CO ~TR ZNPI3 60263 191.58 KCW.A ZMP. #4 BD 60264 104,504.03 ANT VAL JR COL 69960 24,669.66 A V~L JR 'COL BDI2 69980 465.25 COUNTY OF KERN DISTRICT BY D]STR]CT ANALYSIS . TEETER PLAN AGENCIES THAT KEEP THEIR FUNDS IN COUNTY.TREASURY .. 95~ AGENCY NAHE FUND BUY OUT NOR SAN]T. 40279 7,385.40 ARv[N PUBLIC CEN 42000 1,607.99 KERN R]V VAL CEH 42010 3,427.60 EAST KERN CEN 42020 8,907.62 NO KERN CENETERY 42030 12,781.63 CEHETERY NO I 42035 7,978.57 TEHACHAP] CEN 42045 11,598.38 WEST S[DE CEH 42050 10,892.34 FAZRHAVEN F~RE DT 42080 2,339.72 SO WEST HOSP 42185- 2,345.60 DELANO NOSQ ABATE 42305 17,669.76 KERN NOSQ ABATE 42315 108,032.94 WEST SIDE NOSQ. 42335 36,980.43 BEAR HT REC & PK 42402 10,654.49 BUTNWLD REC & PK 42404 2,122.68 NCFARLAND REC-PK 42409 21,873.97 N BKSFLD REC & PK 42411 154,182.04 SHAFTER REC & PK 42415 8,677.38 TEHACNAP! REC-PK 42420 29,181.49 WASCO REC & PK.' 42429 12,309.60 WEST SIDE REC-PK 42438 49,351.10 CU~AHA SOIL CONS 42464 1.18 EAST KERN REC CON 42468 733.22 TEHACHAP! RES CON 42480 396.43 8KSFLD SEP GRADE 42530 7,048.82 HOJAVE UT]L D]ST 42650 16,197.14 PLA]NVIEW UT]L BD 42660 597.31 KERN RIVER LEVEE 42922 1,635.62 EAST KERN AZRI:~)RT 42950 9,511.20 TULARE LAKE DRN 42970 0.29 BORON COHH SERV 50040 987.50 BORON CSO ]NFl'Il ' 50045 154.28 DESERT LAKE CSO 50220 387.07 E N]LES CON SERV 50250 12,079.44 GOLD HILL CSD 50270 6,313.14 GOLD HILL NT tl 50274 209.61 GOLD HILL NT t2 50275 90.19 HTN HDOWS CON SER 50330 381.96 STAL SPG CON SERV 50380 14,989.53 SH-WASCO ]RR DEBT 50580 46,447.69 SAND CANYON.WATER 60085 1,882.35 GRNFLD CO WATER 60120 1,107.37 HRTTLER CO WTR 60149 250.53 COUNTY OF KERN. DISTRICT BY O]STR]CT ANALYSIS ,~ TEETER PLAN AGENCIES THAT KEEP THEIR FUNDS IN COUNTY TREASURY 95~ AGENCY NAHE FUND BUY OCIT TEH CUNN CO WTR 60170 1'17,861.24 TEH CUN WTR ]HPI2 60176 80.52 TEH CUN WTR ]NP~3 60177 205.23 TEH CUHH WTR' BONO. 60179 30,280.95 TEH CUHH WTR DEBT 60180 64,275.71 T-C WTR STATE PHT 60182 76,381.06 NOR HUN]C]PAL ~TR 60960 11,615.64 NOR NUN] WTR BOND 60962 11,506.63 NOR HUN] WT-]NP A 60970 1,841.60