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05/16/2002
B A.KERSFIELD i Mike Maggard, Chair Harold Hanson Mark Salvaggio Staff: Darnell Haynes BUDGET AND FINANCE COMMrI'rEE of the City Council - City of Bakersfield Thursday, May 16, 2002 4:00 p.m. City Manager's Conference Room, Suite 201 Second Floor - City Hall, 1501 Truxtun Avenue, Bakersfield, CA AGENDA 1. ROLL CALL 2. ADOPT APRIL 18, 2002 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Discussion and Committee recommendation regarding application of the business license · ordinance to commercial and residential rental property businesses B. Staff report and Committee recommendation regarding four items deferred at the last meeting from the Cost Recovery Program - Haynes · B-23 Fire Prevention Oversite · B-26 Owner Initiated Parcel Merger · D-61 Public Convenience and/or Necessity Approval · B-34 Concurrent Applications Maps 5. NEW BUSINESS A. Discussion and Committee recommendation regarding request for funding from the Bakersfield Museum of Art B. Discussion and Committee recommendation regarding request for funding from the Golden Empire Gleaners C. Discussion and Committee recommendation regarding request for funding from the f Bakersfield Symphony Orchestra D. Discussion and Committee recommendation regarding a long-term financial plan for the City- Stinson 6. COMMII'rEE COMMENTS 7. ADJOURNMENT S:~)arnell~.002Bud&FinanceCom mittee~bf02mayl 6agen.wpd D AFT BAK.ERSFIELD ~~~-~~~ Mike Maggard, Chair .~i'an Tandy, ci~ana~ler Harold Hanson Darnell Haynes, Assistant to the City Manager Mark Salvaggio AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Thursday, April 18, 2002 4:00 p.m. City Manager's Conference Room 1501 Truxtun Avenue - Suite 201 1. ROLL CALL Call to Order at 4:05 p.m. Present: Councilmembers Mike.Maggard, Chair; Harold Hanson and Mark Salvaggio 2. ADOPT MARCH 14, 2002 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A, Discussion and Committee recommendation regarding application of the business license ordinance to commercial and residential rental property businesses City Manager Alan Tandy gave a brief history of' the Committee Minority and Majority Reports which were sent to the City Council. Communications were received regarding the business license tax including a letter from the Bakersfield Association of Realtors. As there seemed to be questions and concerns, the City Council referred the issue back to the Committee for more community input. City Treasurer Bill Descary gave an overview of his response to the letter received from the Bakersfield Association of Realtors, Business license tax-applies to rental/leasing of commercial and residential properties and property management because these businesses provide services that generate revenue or "gross receipts," which is the basis of the tax. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Thursday, April 18,'2002 Page -2- Owning common stock in a portfolio and owning real' property for rent or lease are not synonymous. He further explained business license tax does not apply to property owners per se. It only applies to those who are in the business of rental/leasing property. Federal and State Income tax, as well as property tax, are different from business license tax and, therefore, not redundant. In summary, Mr. Descary stated staff recognizes the association's concerns; however, local business license tax will not impede one's ability to own and invest in real property as the rate is very Iow. The non-Professional tax rate is $.30 per $1,000 for the first million and $. 15 per $1,000 for $2 million thrOugh $10 million. $25.00 is the minimum tax. The tax rate has not been increased since 1991. This tax has been in place for over 30 years. It is not a new tax, but has become more visible. As new technology becomes available, property ownership is on the .Internet and property owners who were not aware of the business license tax are now 'being contacted to comply with the business license tax. Staff explained the debate has been with the application of the business license tax to owners of commercial and .residential rental and lease properties and whether there should be a minimum number of units excluded before the tax is applicable, or some other method of exclusion before the business license tax is applicable. Committee Member Salvaggio spoke regarding the history of the business liCense tax and his voting record. When the business license tax rate was restructured and raised in the past, he voted against the tax rate increase at that time. He explained his and Committee Member Hanson's recommendation was to exempt owners of residential rental properties that own. four or less units, who without that exemption are required to pay the business license tax under the current ordinance. Mr. Greg.Hanvey, Bakersfield Association of Realtors, spoke in opposition to the business license tax. Most rental units are owned by individual people, not companies. The Association's goal is to protect the right of property owners and if they are investment property owners, to make it hospitable for them. He expressed the tax is Iow now, but had concerns it could increase. The individual businesses in the complexes have business licences to operate their businesses, so the property owner should not be required to have one also. He expressed this business license tax should be rescinded. Mr. Leo Hinds, Attorney at Law and CPA, spoke against the business license tax and expressed it should be repealed. He had concerns about retirement funds, IRA's and KEOGH's, which have investments in rental or lease properties and how the tax will impact these types of activities. ~ BUDGET AND FINANCE COMMITTEE Thursday, April 18, 2002 Page -3- Ms. Cheryl Miller, Stockdale Property Management, stated she is being charged, not $.30, but $.65 per thousand for everything over $38,462. She feels the rates are discriminatory and should be the same. In her business she Only gets a fee from the property owner. Gross revenues are not attributed to her but to the owner of the property, so she should not be taxed on gross receipts. BilI-Descary stated Ms. Miller's business may not be.classified correctly. He-will check it out. There are two rates: Class A - Professional and Class B - nOn-Professional. The Professional rate is $.65 per thousand. Ms. Chris Frank, Chamber of Commerce, expressed concerns that this tax is double taxation and should not be allowed. Mr. Michael Freedman, Kern County Apartment Association, stated he has been flooded with 70 phone calls. Many of the owners renting their property are losing money and should not be charged on gross receipts. Committee Chair Maggard stated his position from the beginning has been it is inappropriate to charge a. business license fee on rental proceeds. He expressed the activity of investing in real estate 'should not be subject to the business license tax. However, if people are in the business of renting or leasing, then they should pay a -business license fee. For example, If there is an enterprise like a shopping center in the business of owning and operating a shopping center, that is a business and they should pay a business license fee. The Committee discussed whether the tax should apply to investors in real estate and if there is a legal definition to define an investor from someone who is in the business of renting and leasing properties. Committee Member Hanson stated with the questions brought up and without all the facts being clarified, he could not make a decision today to move forward With the business license tax On owners who rent or lease residential or commercial properties. He asked about other cities in California and how they apply the business license tax to owners of rental or lease properties. He requested staff to provide the amount of annual revenue to the City from the business license fee as currently applied to owners of rental or lease properties. The Committee requested staff to research and also check with other cities to see if they have a better model or differentiation that could be used to define when someone is in business and when someone is just an investor in real estate and not in business. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Thursday, April 18~ 2002 Page -4- 5. NEW BUSINESS A. Staff report and Committee recommendation regarding Cost Recovery Program Assistant to the City Manager Darnell .Haynes explained the Munioipal Code provides for staff.to review these fees annually. Every two years there is a thorough review of all fees. · New fees and updated fees are required to be adopted by resolution after a public hearing. An overview has been compiled of fees being proposed for anincrease and new fees staff is recommending as a result of new law, direction from the Council, or task force study recommendations. Some fees in the development area are being proposed for reduction to bring them in line with revenue being collected based on new .information from the April 2001-02 building evaluation data, as well as review and discussion with the BIA. Staff would 'like to move forward with the Cost Recovery prOgram as it is a part of the budget process. The Committee unanimously approved staff to .move forward with the Cost Recovery Program with the exception of four items: B-23 Fire Prevention Oversite, B-26 Owner Initiated Parcel Merger, D-61 Public Convenience and/or Necessity Approval, and B-34 Concurrent Applications Maps. These four items will be discussed at a later hearing. B. Staff report and Committee recommendation regarding a request from Cornerstone Group for$26,000 forgivable loan (Community Development Block Grant Funds) to rehabilitate additional office space for a southeast incubator program At the request of the loan applicant, this item was pulled from the agenda to be agendized for the next Committee meeting. C. Discussion and Committee recommendation regarding a long-term financial plan fOr the City This item was deferred. 6. COMMI'I'rEE COMMENTS Committee Member Hanson explained his position on the business license fee. He finds it difficult to waive fees that raise revenue for the City. However, before he can feel comfortable making a recommendation, more clarification is needed so he has the facts to explain the basis for his decision and be able to answer questions he may be asked by the public. 7. ADJOURNMENT The meeting adjourned at 6:10 p.m. BUDGET AND FINANCE COMMITTEE Thursday, April 18, 2002 Page -5- Staff present: City Manager Alan Tandy; Assistant City Manager John Stinson; City Attorney Bart Thiltgen; Assistant to the City Manager Darnell Haynes; Public Works Director Raul RojaS; Economic Development Director Donna Kunz; Recreation and-Parks Director Stan Ford; Development Services Director Jack Hardisty; Building Director Dennis-Fidler; Finance Director Gregory Klimko; Director of Environmental Services Ralph Huey; Public Works Civil Engineer Marian Shaw; Assistant Finance Director Nelson Smith; Assistant to the Public Works Director Georgina Lorenzi; Deputy City Attorney Michael AIIford; City Treasurer-Bill Descary; Planning Director Stan Grady; Recreation and Parks Business Manager Becky Jamison; and Assistant Recreation Superintendent Sally Ihmels. Others present: Chris Frank, Chamber of Commerce, Peter J. Rudy, KUZZ News; Cheryl Miller, 'Stockdale Property Management; Leo Hinds, CPA and Attorney at Law; Greg Hanvey, Bakersfield Association of. Realtors; .Michael Freedman; Kern County Apartment Association; Cassie Daniel, Bakersfield Association of Realtors; and. James Burger, reporter, The Bakersfield Californian cc: Honorable Mayor and-City Council DWH:jp S:~arnell~2002Bud&RnanceCommittee~bfO2apr18summary. wpd BAKERSFIELD CITY MANAGER'S OFFICE MEMORANDUM TO: The Budget and Finance Commi~ ~.~ May 10, 2002 FROM: Alan Tandy, City Manager ,~ / SUBJECT: Business License Tax ' ' The committee-has met several times on the subject of the application of the Business License Tax to those who rent or lease property. The tax has been in place since the 1960s (the first piece of it since 1893). There has not been a rate increase since the early 1990s. There can not be a rate increase under California law any longer without a referendum. The vast majority of California cities impose the tax at a rate many times higher than those in Bakersfield. The only committee discussions .on this subject have been on exempting some groups from the tax who have technically been subject to it for 30+ years. New technology is available that is identifying more who have not paid, which has made those who have not paid feel like it is a new tax, although it clearly is not. At one point, the committee voted out a majority report saying those who rent four or fewer residential units should be excluded from the tax. ^ minority report suggested that additional exemptions be allowed, based on the IRS passive income criteria. Prior to the Council meeting, several groups expressed concems. The item was removed from the agenda and placed back in committee. Discussion The staff has recommended strongly in the past that the Business Tax is a different animal than federal taxes, and that we do not have the staff to enforce provisions of the IRS code as it relates to passive income. We now have an environment where a $2.3 million General Fund revenue stream is being questioned in its entirety. In light of that, we have devised a form and are willing to recommend that those who claim their real estate investment is passive income under Section 469 of the Internal Revenue Code be exempted from the tax. The staff would still prefer to leave the tax as is, or to exempt only residential units under five. Given the overall circumstances, however, the fall back position on the passive income issue may be the best remaining alternative. We would propose that if an ordinance is adopted along this line that an educational campaign be conducted to increase awareness about both the tax and the exemption. It should also be clarified that once the exemption is enacted, it can not be removed under Proposition 218 without a referendum. A draft of the form that would be used to claim the exemption is enclosed. AT:rs Memo To: Alan Tandy, City Manager From: William C. Descary, City Treasurer Date: May 10, 2002 Subject: Business License Information The following is additional business license tax information. As you may know, the State of California Controller publishes "Cities Annual Reports," commonly known as the State Controller's Report. The conveyance letter, dated December 12, 2001, for the most current report available indicates there are 472 cities in the State. A tabulation of cities reporting business license tax revenue indicates 441 or 93 percent of the 472 reporting cities. All of the 20 largest cities in the State by population reported business license tax revenue (see schedule attached). Glendale, the 15~h largest, has a business license ordinance that charges certain businesses a flat annual tax which provided $489,232 in fiscal year 1998-99 according to the report. The Treasury Division had accurately indicated in previous information that Glendale did not have a "gross receipts" business license tax ordinance which is the usual tax basis in California cities including Bakersfield. Attachment cc: Gregory J. Klimko, Finance Director 2002 CITY POPULATION RANKINGS Total Ranking City County LOS ANGELES 3,807,400 2 SAN DIEGO SAN DIEGO 1,255,700 3 SAN JOSE SANTA CLARA 918,000 4 SAN FRANCISCO SAN FRANCISCO 793,600 5 LONG BEACH LOS ANGELES 473,100 6 FRESNO FRESNO 441,900 7 SACRAMENTO SACRAMENTO 426,000 8 OAKLAND ALAMEDA 408,800 9 SANTA ANA ORANGE 343,700 10 ANAHEIM ORANGE 334,700 11 RIVERSIDE RIVERSIDE 269,400 12 BAKERSFIELD KERN 257,900 13 STOCKTON SAN JOAQUIN 253,800 14 FREMONT ALAMEDA 208,600 15 GLENDALE LOS ANGELES 200,200 16 MODESTO STANISLAUS 198,600 17 HUNTINGTON BEACH ORANGE 194,600 18 CHULA VISTA SAN DIEGO 190,900 19 SAN BERNARDINO SAN BERNARDINO 189,800 20 OXNARD VENTURA 182,000 CITY OF BAKERSFIELD MAlL TO: CALIFORNIA PREMISES MUST CONFORM TO ZONING. CITY OF BAKERSFIELD BUILDING, FIRE AND HEALTH CODES. P.O. BOX 2057 DRA~ CHANGE OF NEW BAKERSFIELD, CA 93303 OVV~ERSHn' [] BUS~N~-SS [] CHANGE OF ADDRESS [] APPLICATION FOR BUSINESS TAX CERTIFICATE PURSUANT TO ORDINANCES OF THE CITY OF BAKERSFIELD PLEASE TYPE OR PRINT LEGIBLY IN INK BUSINESS NAME DATE , BUSINESS LOCATION (Separate Certificate Required for Each Location) S 1 REET CITY ST ZIP MAILING ADDRESS STREET CITY ST ZIP KIND OF BUSINESS OR PROFESSION TELEPHONE NAMES AND ADD1LESSES OF ALL OWNERS/CORPORATIONS LIST OFFICERS - INCLUDE TITLES NPuME HOME ADDRESS TELEPHONE STREET CITY ST ZIP STREET CITY ST ZIP STREET CITY ST ZIP TYPE OF ORGANIZATION: PARTNERSHIP ~., CORPORATION [] FEDERAL EMPLOYER DENTIFICATION NLrlVlBER INDIVIDUAL [] Name SSN I claim exemption from the Business License Tax for the organization or individual named above since it is [] Tax Exempt under Internal Revenue Code Section 501 (C)(3) or under State of California Revenue & Taxation Code Section 23701 or; [] Considered a passive investment in the rental of Real Property under Internal Revenue Code Section 469. I understand I may be required to provide proof of continued exemption from the Business License Tax upon request. DATE COMMENCED BUSINESS IN BAKERSFIELD CALIFORNIA STATE CONTRACTOR's LICENSE NUMBER, IF ANY SALES TAX PERMIT NO. ( .... ) ALPHA NUMERIC SUB Sales or use tax may apply to your business activities. You may seek written advice regarding the application of m.x to your particular business by writing to the nearest State Board of Equalization office. For general information, please call the Board of Equalization at 1-800-400-7115 ESTIMATED ANNUAL GROSS RECEIPTS IN BAKERSFIELD I SWEAR UNDER PENALTY OF PERJURY THAT THE FOREGOING IS TRUE AND CORRECT. TITLE DATE Signature Owner, Partner, Agent or Officer of Corporation Liceme Code Sect. To: Alan Tandy, City Manager From: William C. Descary, City Treasurer ~'x?x0~ Date: May 8, 2002 Subject: Answers to Business License Questions On April 19, 2002 you met with staff to discuss questions you developed at the Budget and Finance Committee meeting on April 18, 2002 concerning application of the business license ordinance to commercial and residential rental property businesses. Answers to those questions are as follows: 1) Why is the rate higher for the professional classification? Prior to amendments to the Business License Tax Ordinance in 1991, there were four classifications with operating profit margins set forth in the ordinance for each classification as follows: Classification A, professions and other businesses operating on a net profit often and one hundredth percent or more; Classification B, manufacturers and other businesses operating on a net profit of ten percent to four and one hundredth percent; Classification C, retailers and other businesses operating on a net profit of four percent to two and one hundredth percent; Classification D, wholesale and other businesses operating on a net profit of two percent or under. The amendment combined Classifications B, C and D into a new Classification B with a rate of.30¢ per $1,000 of gross receipts up to $1 million and a tiered rate structure for higher gross receipts. This tiered rate structure is reflected in Bakersfield Municipal Code Section 5.02.240. Under the amendment~ there were no changes to classification A or professional except the minimum tax for both classifications A and B was changed to $25.00 from $10.00. The net effect of these changes was revenue neutral. With the combined classifications under the 1991 amendment, the operating margin information became unimportant and from a practical standpoint it was not used in administering the ordinance. Therefore, the language was deleted from the amended ordinance. It appears the higher professional rate was originally based on higher profit margins. A higher professional rate is common in business license ordinances in other cities. 2) It has been stated that taxing lessees and property owners or property managers and property owners is double taxation on the same location. When one analyzes the various taxes in our economic system the perception of double taxation occurs frequently. As an example, a retail business has business license tax levied on its gross receipts and sales tax is also levied on those same gross receipts. A common example of not only Alan Tandy, City Manager May 8, 2002 Page 2 double but also multiple taxation is gasoline where there are federal, state and local taxes when the local portion of state sales tax is considered. It is perceived that double taxation occurs when a lessee pays a business license tax on retail sales and a lessor also pays a business license tax on gross receipts fi.om leases at the same location. In the case of a fire at the location, the lessee needs his inventory to be protected and, likewise, the lessor needs his building to be protected. Similar protection is provided to both the lessee and lessor by the police in the case of vandalism or theft at the location. Both the lessee's and lessor's businesses are the direct beneficiaries of city services which are partially funded by business license revenue in the General Fund. In the case of property managers, they are paid by the property owner for providing various levels of service to the property. These payments fi.om the property owner are the property manager's gross receipts that are taxed. The property owners who provide the property to be rented or leased receive payments which are their gross receipts that are taxed. These are clearly separate and distinct "businesses." Equity is an important issue in taxation. Of all of the various taxing methods in our economy, equity is possibly best achieved under a "gross receipts" business license tax because only when economic activity generates gross receipts is there a tax. 3) Other cities (survey cities) rental/leasing rates See Exhibit A attached. 4) Commercial/Residential categories A) Number of business licenses issued in each category B) Total dollars collected in each category · See EXhibit B attached 5) Kern Data - Summarize efficiency aspect Dolphin Safe Technologies has developed a soft:ware program called Kem Data accessed through www.kemdata.com., which provides detailed ownership and usage information on all parcels of real property in Kern County. The annual fee is $300.00 with access fi.om multiple terminals. The Assessor's Office has a similar sofb~vare program on the interact at no cost to users but without as much detail as Kern Data. Prior to the availability of these programs on the intemet, ownership records would have to be individually researched at the assessor's office. Alan Tandy, City Manager May 8, 2002 Page 3 Using Kern Data property tax records can be searched by the following categories: Owner Name Assessor's Parcel Number (APN) Assessor's Tax Number (ATN) File Number Mailing Address Sims Address Legal Description When one of the above categories is searched, a property description is displayed (See Exhibit C attached). If the "Roll Type" is secured, a closer look at the "Use Code" determines if the property is potentially rented or leased. The following list includes some of the "Use Codes" that would be reviewed. Triplex 4-Plex 5-9 Unit Complex 21-30 Unit Complex 31 + Unit Complex Multi Use Service/Repair Shops Multiple Use Office Buildings Small Shopping Center Large Regional Shopping Center A click on APN, Owner, File Number or Address brings up a pop-up box that will show a list of 10 records starting with the one clicked. You may then scan through the list, 10 at a time. If you click one of the items on the list, it will show the detail for the record in question. If someone owns multiple rental properties, we would be able to access this information easily by clicking the owner or mailing address and scanning through the records. This feature would also allow a review of an entire street. 6) Councilmember Maggard has expressed to the City Manager that he wants investors that are considered passive by the Internal Revenue Code of spending less than 750 hours annually in rental activities to be exempt from business license tax. There was a general discussion of business license procedures involving tax exempt non-profit businesses and how this could possibly be applied to passive investors. The attached draft Business License Application with the exemption section added is a suggested way to implement an exemption for passive investment in the rental of real property. See Exhibit D attached. cc: Gregory J. Klirnko, Finance Director BusineSs License Tax Survey- Rental Properties GR = Gross Receipts ! ANNUAL .......... ~ity ..... __~ .......... ~:/~- FOR Population Commercial Residential l ANNUAL_ RATE ........ ~1'00~000 GR- ..... l FREMONT YES Over 4 units $1.30 per $1,000 GR __ ........................................................................................... ~ ....... ~ _ __ $130.00 20Z,20_0 ............. I ............................................................................................ :~ ........... : FRESNO ~ YES YES Commercial: $10 initial application fee 4~4_!,_2_0__0_ .............. _O_v_e_ .r__4 units..$!_._60pe[$!_, .0_00 an_n ualize.d_ ................................................... i .......... ~160.00 Residential: $10 initial application fee ............;' ............ i~o-r~i~m.~I $8_';5_oji~.'un-i~-pER~-~-Ai~ER ....................................... ........................ GLENDALE ~..0_ ............ N_©_ ...... D- -°-e-s--ng-t-ha-v-e-a gr°ss-r-eceipts b-u-sjness-ljceo~e-tax°rd!nance .......... i 199,000 -1.'i "'i_ 1711.i 'i.i. ii MODESTO YES YES lAnnual Registration $50 + $2.00 per $1,000 GR ........................ i .............. _$2~0~00 ..................... -1-~4 ,--4-0~6. ! ................. / ~5'(,~:-'~--(e-~ i~j~'~iai- ~j~it-s .......................-r'-------- -- --'i-'---.'--'_-_--..'._.-..-"-.--..-~- ONTARIO __ YES YES Base fee $50 plus $0.40 per $1,000 GR I $90.00 OXNARD NO YES $154 for 3 units + $13 for each additional unit I $154.00 - 3 units 177,700 ......... ¢ ...................... Commercial - soon to be implemented PASADENA YES YES $73.76 for 3 units + $8.04 each additional unit i $73.76 - 3 units RIVERSIDE I YES YES I Minimum $65 + .44 per $1,000 GR over 25,000 ~ $98.00 _S~N.._BE_R_._N'_A_8_D!_N_C. ..... Y_ES ......... __Y...E_S_ ..... Minimum $60 for 6R up to $25,000 + $10 each $5,000 over $25,000 i17 ?217b;b'6.__iii_.'. 190,200 , STOCKTON ..... _Y___E_S _ _Y_E_S___Annual Registration $24 + $0.90 per $1,000 GR 251,100 BAKERSFIELD YES YES GR 0 to 1,000,000 = $0.30 per $1~000 i ......... -~3~']~ .......... _GR 10~00_ O,_O0_l_t_9_l__gO~O_O~O,.OOO__=_._$g.OS~e_r $1,0_~ .................... ! ................................ GR .1_¢~,00~_,-O.~1 & 0¥er.? $0_.0_!~ per_S! ,_oeo ..................................................................... Minimum tax $25.00 = GR up_.~_._$._8__3,3~.3_ ................. 04/23/02 EXHIBIT A BAKERSFIELD RENTAL/LEASING _ ACCOUNTS/REVENUE COLLECTION _ 2001/2002 FISCAL YEAR i ANNUAL ANNUAL BUSINESS NAME GROSS TAX i RES COM AAA MINI STORAGE ....... A'A-M-E--R I-C-A---N _S_E- L- F--ST_O__RA__G E ABBY'S MINI STORAGE · ALTERRA STERLING HOUSE OF BAKERSFIELD X ........ X_ ..... BAKERSFIELD MALL LLC I ~aKERS~ D SHOPPING CENTER t - ;×; E ;S;F:G-VENTURE, LP, X' --- X BRIMHALL MINI STORAGE ............. X CARRIAGE HOUSE ESTATES --- '---)~ .... CASTLE & COOKE CALIFORNIA, INC. I ..... --X-- CEDAR BROOK MINI STORAGE ' ! X '--- CERT PROPERTY MGMT & INVESTMENTS X CHESTER EQUITIES, Lrc I X.' CREEKSIDE APARTMENTS X -- D & B PROPERTIES X D__ANIEL PALENZUELA RENTALS X DAVID R. COUCH DERREL'S MINI STORAGE INC .l X DIAMOND ASSOCIATES X DOUBLE G PROPERTIES X F A M C MANAGEMENT CO X 'FORTRESS SELF STORAGE X FRUITVALE PROPERTIES LLC X GOLDMAN ENTERPRISES |- X GREEN GARDENS LLC ---.]~ X GREGORY D. BYNUM & ASSOCIATES, INC X GSF PROPERTIES INC ~ ...... HOPPER PROPERTIES LP X HW PARLEY ENTERPRISES X X KUSH PROPERTIES, INC. LANDMARK PROPERTIES X X LAVE ! TA ENNIS APTS X LOCK UP X MTM PROPERTIES, INC. X OKIDA APARTMENTS X- OLD 19T__H STREET PROPERTIES X OLIVE DRIVE PARTNERS X OMKAR INNS, INC X _O_M__NI INVESTMENT ASSOCIATES, INC. X PARKSIDE APARTMENTS __.. X PAYLESS MINI STORAGE !.PEGASUS PROPERTIES X _PHOENIX INVESTMENTS --. i X PREMIER MANAGEMENT COMPANY - X . RTA LEASING PARTNERSHIP X ~-S--~-~ MAR PROPERTIES, INC. X EXHIBIT B [-' t ANNUAL t ANNUAL l-~ '~S~-;~'~-E.::i.'-i:-::::'-~:i:_-:~::'.._-_._-. ! ~ROSS TAX RES COM 1 SANTIAGO CREEK MOBILE HOME PARK I X /S H A~50W ~'[D-(~ i~ 'APAR~ME'~TS .................. x-- isHIVA ENTERPRISES ............................. X I. SMITH MANAGEMENT_LINC. X llsP;~-i~-E~ i~00'U ...................... x [' sfbcKD ~, L'E' ' E~iJ-~i-~ E-s-s--~'E-~-~-- ...... x ~ TANNHEIM PROPERTIES X fGMCAMBRI'D"G'~'~'IE~-GE.INC, [~hh~l'E~G ~~S~~ARTM E NTS t X qHJ ~_~T_9~;.EL~ ....I x ~_ENT~6_EPARTMENTS X :VENTURE PROPERTIES X X .~_E_~-~E_B_N~A~E~S LL~ i X WESTFAI R APARTMENTS X , _WI LL!~_M s ~_~ R.~ ~ ~ [E~ _ ~ TOTAL 12~533 20,788 4,167 16,621 EXHIBIT B I~emd~ta.com - Assessment Data, Property Characteristics and Fictitious Business Names Page 1 of 2 Property Description Parcel Number 389-021-10-6 Tax Number 389-021-10-00-6 Owner Name GRUPE REAL ESTATE INVESTORS 8 Situs Address 8200 KROLL WY BAKERSFIELD Mailing ~d .... p O ~,O~, A .... CHICAGO IL 60690-3879 Tax Rate Area 001q54 - PANAMA - BUENA VISTA Use code 0503 - 1 PARCEL W/(31+) UNIT COMPLEX Roll Typel 1 - Secured Legal DescriptiOn 'TRACT MAP 4590., TRACT BLOCK, TRACT LOT PN ' Acreagel ;14.69 Acres Ag Preserve No Prop. 8 Date 10/05/1998 Supervisorial Distict 5- Pete Parra Transfer Information Date Recorded I Document # ]Type [ Amount 03/01/1995 I RLT96-1544 I Deed $ 0 BuyerI Seller GRUPE REAL ESTATE INVESTORS 8 ASSESSOR TITLE SECTION Property Characteristics Year Built/Effective 0/0 Sq. Ft. 1st Floor 0 Quality Class D 0.0 A Sq. Ft. 2nd Floor 0 Stories 0 Sq. Ft. Above 2nd 0 Bedrooms 0 Sq. Ft. Basement 0 Baths 0.0 Sq..Ft. Basement 0 Fire Places 0 Sq. Ft. Porch 0 Family Room No Sq. Ft. Patio 0 Dining Room No Sq. Ft. Garage 0 Pool No Sq. Ft. Carport 0 Spa No Total Sq. Ft. 0 Anticipated Values for Lien Date 2002 Land 2,618,000 Improvements 8,661,000 Mineral 0 Other Improvements 0 Personal Property 0 - Total Assessed Value 11,279,000 EXHIBIT C 9 0 0 0 0 0 0 0 http://www.kemdata.com/printroll.cfm. T=TE&V=479838&u=)~26 ¼3F '~27RU9R6H ¼0A&p= ~29'~3F ~.~..5/9/2002 Kernzl'~ta.com - Assessment Data, Property Characteristics and Fictitious Business Names Page 2 of 2 I Exemption (0) Net Assessed Value I 11,279,0001 Tax Bill Information - Bill I of 1 2001 Lien Date 01-1272315-00-0 Net Billed Value Proration Period 11,279,000 I Year General Amt! Spcl. Amt Spcl. Asmnts General Rate Spcl. Rate 128,501.53 866.45 36,963.52 1.139299 0.007682 Due Date Amount Date Paid Penalty Total Paid 1st Installment 12/10/2001 83,165.76 12/05/2001 0.00 83,165.76 2nd Installment 04/10/2002 83,165.74 03/26/2002 0.00 83,165.74 Total 166,331.50 0.00 166,331.50 General Taxing Districts Fund Description Rate 00280 GEN LOCAL GOVT 1.000000 60229 KCWA ZN 7 DEBT 0.032580 60239 KCWA ZN 17 DEBT 0.011595 60241 KCWA ZN 19 DEBT 0.017761 60264 KCWA IMP #4 DEBT 0.007682 70661 PANAMA SCH BD87-A 0.016567 70662 PANAMA SCH BD87-B · 0.019431 70663 PANAMA SCH BD87-C 0.019080 71041 KHS REFUNDING 96A 0.022285 Total 1.146981 Special Assessment Taxing Districts Fund Description Amount 20116 BKFLD SEWER PLT 3 $23,552.18 20184 CITY BKFLD CS MD $1,706.04 24150 *KCSWMP LAND USE $11,673.6(] 42317 KMVCD VECTOR ASMT 78038 KCCD ASSMT DIST $29.7(] Total. $36,963.52 The data contained on this site is sourced from public documents and is deemed accurate, but is not guaranteed. Dolphin Safe Technologies - 5500 Ming Avenue. Suite 160 - Bakersfield, CA 93309 - 661.282.2289 O~qpy_ri_gh__t © 1998-2002 Dolphin Safe Technologies. All rights reserved. EXHIBIT C http:#www.kemdata.com/printroll.cfm?T=TE&V=479838&u=%26%3F%27RUgR6H%0A&p=%29%3F%].. 5/9/2002 , CITY OF BAKERSFIELD MAIL TO: CALIFORNIA PREMISES MUST CONFORM TO ZONING. CITY OF BAKERSFIELD BUn. DING, FIRE AND HEALTH CODES. P.O. BOX 2057 CHANGE OF NEW BAKERSFIELD, CA 93303 DRA[:T OWNERSHIP [] BUSINESS CHANGE OF ADDRESS [] APPLICATION FOR BUSINESS TAX CERTIFICATE ' PURSUANT TO ORDINANCES OF TIdE CITY OF BAKERSFIELD PLEASE TYPE OR PRaT LEGIBLY DI E~IK BUSINESS NAME DATE BUSINESS LOCATION, (Separale C~ificate Required tbr Each Location) STREET CITY ST ZIP MAILING ADDRESS STREET CITY ST ZIP KIND OF BUSINESS OK PROFESSION TELEPHONE N,~.MES AND ADDRESSES OF ALL OWNERS/CORPORATIONS LIST OFFICERS - INCLUDE TITLES NAME HOME ADDRESS TELEPHONE STREET CITY ST ZIP STREET CITY ST ZIP STREET ' CITY ST ZIP TYPE OF ORGANIZATION: PARTNERSHIP [] CORPORATION [] FEDERAL EMPLOYER IDENTIFICATION NUMBER INDIVIDUAL [] Name SSN I claim exemption from the Business License Tax .for the organization or individual named above since it is [] Tax Exempt under Internal Revenue Code Section 501(C)(3) or under State of California Revenue & Taxation Code Section 23701 or; [] Considered a passive investment in the rental of Real Property under Internal Revenue Code Section 469. I understand I may be required to provide proof of continued exemption from the Business License Tax upon request. DATE COMMENCED BUSINESS IN BAKERSFIELD CALIFORNIA STATE CONTRACTOR'S LICENSE NUMBER, IF ANY SALES TAX PERMIT NO. ( .... ) ALPHA NUMERIC SUB Sales or use tax may apply to your business activities. You may seek written advice regarding the application of tax to your particular business by writing to the nearest State Board of Equalization office. For general information, please call the Board of Equalization at 1-800400-711S EST[MATED ANNUAL GROSS RECEIPTS IN BAKERSFIELD I SWEAR UNDER PENALTY OF PERtlY THAT THE FOREGOING IS TRUE AND CORRECT. TITLE DATE Signature O,sner, Partner, Agent or Officer of Corporation License ] Code Sect. EXHIBIT D New Fees B-23 Fire Suppression-Permit Processing - Fire Prevention Oversight. This is a new $85 fee to be charged when contractors or engineering companies request review or design advice prior to the permitting process. This type of review is covered if a permit has been issued, however staff is frequently requested to review plans prior to a permit and then the plans are altered before submission. B:26 Minor Land Division Review - Owner Initiated Parcel Merger. This is a new $890 fee proposed by Public Works for an owner initiated parcel merger. A property owner can apply to merge contiguous parcels under common ownership without reverting to acreage. This fee is for the cost incurred by staff to review the application request, prepare the environmental determination, notice of decision and recording a certificate of merger. This fee was recommended by the Development Streamlining Task Force. Prior to the adoption of the ordinance for Lot Mergers, the developers had to use the Parcel Map or Parcel IVlap Waiver process to merge lots. The Lot Merger process is much faster and is equivalent to the Lot Line Adjustment process. 'The fee for this process .is equivalent to the current fee charged for a lot line adjustment. D-61 Business Regulation - Public Convenience And/Or Necessity Approval. This is a new $300 fee proposed by the City Manager's Office to recover the City, s cost of processing the alcohol license application. The State of California has passed legislation requiring in certain circumstances the person seeking the Alcoholic Beverage Control license must have a statement from the local governing agency indicating the issuance of the license meets with the community's public convenience and or necessity. The City developed a process to accommodate this new legislation, absorbing the costs .involved in the process at no cost to the applicant. However, this service is very specific to the individual wishing to obtain the approval and requires the involvement of several departments, including police background searches on applicants and related reporting district reports. Staff is proposing a $300 non- refundable application fee be charged for this service. Existinq Fee B-34 ConCurrent Applications - Maps. Development Services is proposing to increase this fee from $4,166 per application to $7,000 per application. A Concurrent Application represents a blended process that includes both a general plan amendment and a zone change. This increase is requested because of the increased staff time required to work on complex general plan amendments and zone changes which continually require more project analysis and management involvement. The fee for a typical zone change is $2,537 or $3,045 for a PCD/PUD zone change and a general plan amendment is $4,060. If combined, the cost of these services would be either $6,597 or $7,105 depending on the nature of the zone change. The Concurrent Application fee is presently set at $4,166 which does not adequately recover the costs to process the application which averages $7,653. Staff is proposing to move toward full recovery for this fee, however, if desired the fee increase could be implemented incrementally. -.akersfield Museum of Art i :.-:': '" ' '""-. i d ' r'. o. Box tgt't, Bakersfietd. CA 9; ;03-191 t It) 30 K Street, BakersfieM. California 93301 .... -., .. , . 661.323.7219e fax 661.323.7266 EXECUTIVE CO MM FDi'EE S,=FordE,ch,,, April 12, 2002 President Greg Hardy President Tom H.o,h Alan Christensen Past President T.,ryW.rd., Assistant City Manager *d~'n~..a,i. vic. Pr.,,d.nt City Manager's Office Thomas J. Webdell ~ .... ,.~v,c. Pr..id.., City Hall Dr.,abbi. O.org. 1501 Truxtun Avenue Secretary Sa.dyO..,son Bakersfield, CA 93301 Assistant Secretor~ Bruce Macl~n Vice Pres;dent at Large R;c~a,d B .... Dear Alan, Vice President at Large Rogers Vice President at Large M.,i,,oPalm.r In a recent conversation with our city representative Sue Benham vlc. Pr.,id.n,~t~arg.~.,.Corb, regarding the $25,000 the Museum was to receive 'from the city, vic. Pr.,,d.,,o, Lar,. she indicated that we were to have requested those funds from ,,us,EEs the city on or around January of'this year. I was not advised of .,.~.,ro this requirement, and as a result, nothing was submitted. .sob ~ellue ' O0vldCohn · · - ....'. . . .. TomPeggyC°leOarllngDeNatale Alan, we take great pride in the fact that the City Council ~anOr.,, supports our efforts, and we have already budgeted for this ~ia..~.,~.,. $25,000. Part of the proceeds would go to our expanded ~,.~a,E,i,g.r.a.~,,~,~ educational program, including programs for both Rafer .Johnson ~o,~,Oib,o. and Bessie Owens elementary schools. The funds are very much ~..",C'"'~'°O'"a..a~ ...... needed in order to carry out these wonderful outreach programs. Coral Hansen s .... H .... Anything that you can do to expedite this would-be greatly Cynthia Icardo CarolynJoh.$ton appreciated. I thank you for your help in advance. Tom McCarthy Stella McMurtrey Dr. William Moore . ' ' David Morton Nancy Packard Lila Perez Barbara Poe ,a,bo,a R.~d /..Charles Meyer Chalita Brosselt Robinson ,,.da,a i.so. _Ch!er E_xecutive O~ice - Oay.a.~Sm,,~ Bakersfield MuseUm of Art Anne Spauldlng Ben Sfinson Mary Lou Thomson ~,o~wo~., Cc' Sue Benham ,,o,cWid.~oc~.,,,.ha., wri¢, Alan Tandy '%~y Younger Philip K. lander , ,~. . Oamie Werdel ,' · ' Chairman, Slue Ribbon Circle ~, . ', / .... '.,', . ' Charles 6. Mey Execu//ve Directoe ' ' ' It Starts With Food April 1. 2002 Thc Honorable Sue Bcnham Bakersfield City Council 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Councilwoman Bev. ham: This letter is a request to the City Council for $40,000 to purchase a new truck equipped with a box bed to be used for thc-collection and distribution of food for the hungry in Bakersfield and Kern County. The truck will replace our well used and worn 1987 Ford truck, which has mileage of almost 200,000 miles and now requires frequent and costly maintenance. I decided to present you with our request because of your familiarity with the Gleaners and the service wc perform in Bakersfield and throughout Kern County. We have asked the Kern County Board of Supervisors for equal funding to replace a 1983 GMC truck with mileage and condition similar to the Ford described above. Outside of the HUD money, secured to purchase our new facility at the Garces Circle, the Gleaners has never asked for any government money for operating expenses or equipment. We arc doing so now because we cannot justifiably incur additional indebtedness until our current loans are paid off. I hope that the City Council will help the Gleaners. Please let me know what information will be required for this request to be considered. Sincerely, l>hilip K. Zand~ President Board of Directors 1326 30th Street ~. Bakersfield, California 93301 ' 661/32A-CROP (2767) .. Fax 661/324-2784 Mr. Alan Tandy, City Manager 1328 34* Street, Suite A City of Bakersfield Bakersfield, California 93301 1501 Truxton Avenue (661) 323-7928 Bakersfield,-California 93301 Board of Directors February 25, 2002 President: Milt Y~nger, Esq. Vice President: Matthew Malerich, MD Dcal' Mr. Tandy, Treasure~. John Sherman, O.D. Secrela.~:. Donald R. Lindsay Bradford A. Anderson, MD On behalf of the Bakersfield Symphony Orchestra, I want to thank you and to Thomas Banks, D.V.M. let you know how very much we have appreciated your help to us. The grants Bernhard Barmann fi:om the City of Bakersfield have greatly helped to defray the operating costs Ernest Cenrantes Lois Chancy of the Symphony over the past seasons. C. L. Clad( Kurt Finberg, MD Bruce Fm~nan For this current-- and coming-- Symphony season, I would like, once again, to Toni Gallardo Frank Ghezzi ask your help. In keeping with your very gracious level of support in the past, Eleanor Heiskell I would ask an appropriation of $50,000 for the year 2002, above and beyond Jeanne Johnson J. Nile Kinney OUr basic expenses for the use of the Convention Center. As I have mentioned Jerome Kleinsasser, PhD before, we do indeed need the help to offset the $46,000 we must spend on · ' '4acllvaine, PhO ; .s Peake · the facility. But we also have a serious need for the City to. help us with the Tom/Pe~qli-Minefli, MD expansion of our programs. Larry E. Reider, EdD Sandra Serrano Hon. Jon Stuebbe As school funding has dried up for music education, the Symphony can help Gene Tackett OneidaRodenburg by expanding our Young People's Concerts, and also our.intercultural offerings. We believe strongly that a strong cultural foundation can bring any c.HOn°raTA. (Bud)LifeLamboumeMember:' community together in ways nothing else will. As you know, our Symphony. is a true community symph6ny, yet with a proven commitment to the highest standards °fquality and professionalism. It is true that our offerings are presented largely as a labor of love by this whole organization, and that we maintain our vision and service to thiscommunity within a very reasonable budget. Please consider the Bakersfield Symphony Orchestra as one of those tree civic treasures, worthy of the support of the City. of Bakersfield, and renew your support for this year. Very S~ :. (...." Milt Younger President of the Board, Bakersfield Symphony Orchestra f 2001-2002 Contents Our Vision Mission Statement, Bakersfield Symphony Orchestra Letter From The Music Director Thc Board of Directors, 2001-2002 How The Community Sees Us Letter From Harvey Hall, Mayor of Bakersfield Letter From Milt Younger, Attorney Letter From Barry Zoeller, Director: Kern County Board of Trade The Current Financial Picture An Overview 2001-2002 Budget End of Year, 2001 Audited Repor~ The Fundraising Plan List of Donors, End of Year 2001 IRS Letter of 501(c)3 Status Finance Plan Overview, 2001-2002 Vision "To provide the best possible performances of great music for the widest possible audience, and provide musical education for the young people of Kern County." -The Mission Statement of the Bakersfield Symphony Orchestra From The Music Director Board of Directors November 1, 2001 President: Milt Younger, Esq. V~ce Presidenl: Malthew Malerich MD Treasurer:. John Sherman, O.D. s~re~,: Dono~d.. Li,~ For seventy years the Bakersfield Symphony Orchestra has B~fo~a ~ ~de~on MO sought to enrich the lives of the people of Kern County through high- Tho~,o~ ~oo~ OVM caliber performances of our great musical heritage. In recent years, the Bemord Bon'nonn Orchestra has achieved an enviable reputation, based on a high standard of Em~ Ce,on~ performance. This has been made possible by the dedication of the loisChoney musicians of the Orchestra, and the support of generous patrons. It is our C .L Clark Kurt Finberg MD goal to continue building on the distinguished artistic base upon which we B~uce F~,e,,o, currently stand. Toni Gollardo We think it is important that we pass along to the next generation Ftonk Ghezzi an understanding of, and appreciation for, great music. To this end, we e~,~o~ Heis~e, present more than a dozen educational programs each year. These concerts Jeanne Johnson reach more than 25, 000 young people annually. As ambitious, and J. Nile Kinney Jerome 10ein..~3sserPhD successful, as this program has been, we are not completely satisfied. Our Joe Mocllv~ine PhD COIIllIll~ty is growing rapidly, and with it oppommities to do even more. ~,<r.. e.=ke With appropriate funding, we hope to be able to greatly expand our Antony Perelli-Mine.i MD educational outreach programs. to~ E. Reide, FdD Every human being has the capacity to respond to great music. In so~ Se~o~o the course of a season, there is a musical offering to appeal to almost Hon. Jon Stuebbe c~ne to~e, every taste. But we hope to do even more in the coming years. With sufficient funding, our orchestra can expand its programs to serve the Honorary Life Member:. needs of an ever-growing and diverse population. cx (~) t~m~oum~ The musicians of the Bakersfield Symphony and I are proud of what we have achieved together. As we look to the future, we invite you to ~.': participate in this exciting enterprise. John Fan'er ~ Music Olreotor ~ Music Director 1328 34~ Street, SuiteA, Bakersfield, CA 93301, PH: (661) 323-7928 . FAX: (661) 323-7331 Website: bakersfieldsymphony.org ~Email: bso@ncinternet, net. ~ Board of Directors 2002-2003 The. Board of the Bakersfield Symphony Orchestra is a voluntary body, serving without financial remuneration. Members are invited from a broad cross- section of community leaders who have an active interest in the Arts, and are nominated by the Executive Committee and confirmed by the full Board to serve a three year term. President: Milt Younger, Esq.: Attorney Vice President: Matthew Malerich: Physician Treasurer: John Sherman, OD · Physician Secretary: Donald R. Lindsay: Retired Bradford ^. Anderson, MD: Physician Thomas Banks, DVM: Doctor of Veterinary medicine Bernard Barmann: Kern County Counsel Ernest Cervantes: Member of the Orchestra, Teacher · Lois Chaney: Community Service Leader C. L. Clark: Owner, Clark Galleries Kurt Finburg, .MD: Physician Bruce Freeman: CEO, Castle & Cooke . Toni Gallardo: President, Bakersfield Symphony Associates, Frank Ghezzi: Architect Eleanor Heiskell: Member of the Orchestra, retired music teacher Jeanne Johnson: Band Director, Bakersfield South High School J. Nile Kinney: Attorney i' Jerome Kleinsasser, PhD: University Professor : Joe Macllvaine, PhD: CEO Paramount Farms Kandis Peake: President, Bakersfield Arts Council Tony Perelli-Minetti, MD: Physician .. Larry, E. Reider, EdD: Superintendent of Schools, Kern County Sandra Serrano: President, Bakersfield College Hon. Jon Stuebbe: Superior Court Judge Gene Tackett: Political Consultant Oneida Rodenburg: President, Bakersfield Masterworks Chorale Sandy Gamblin: Vice President, General Manager: Clear Channel Radio Honorary Life Member: C.A. (Bud) Lambourne: Founder, Lambourne Travel Agency How The Community Sees Us ~nliforni'~t November 21,2001 The Bakersfield Symphony Orchestra has been one of our community's premier cultural institutions for the past 70 years. It is a vital part of our community's cultural entertainment, as well as an educational tool for local students. As Bakersfield and Kern County grow, the Symphony will continue to provide a positive cultural image to the many new people and businesses that come here. For the Bakersfield Symphony Orchestra to continue reaching out to our community, it will need further financial assistance. I sincerely hope that local individuals, businesses, and organizations continue to support the arts in our community. Harvey L. Hall Mayor HLH/Ila 1501 Truxtun Avenue * Bakersfield. California 93301 · (661) 326-3770 · Fax (661) 326-3779 , E-mail addre.~: ma¥or~}~i.tmkersf~ld.ca.uS .. CHAIN · YOHNGFR · COHN · STILES 1430'TRUXTL~ AVENUE · P.O. BOX Z34~ · BAKERSFIELD CA 9~03 · f~Lr323-,10~ FAX 661/X24-1352 · e-maihlawinfo~cbainyoungerxom www.chaJnyoungerxom A LAW CORPOR~TiON MORRIS B. CHAJN (1904-1077) MILTON 14. YOUNGER DAVID K. COHN DAVID V. sTa. ES JAMES A. YORO JOHN A. TELLO PAUL A. WELCHANS STEVEN M. NUREZ GEORGE D. MANOL,Id(J~ RJO~J;ID J. PAPST ANTHONY P. AZEMIKA NICHOLAS P. AZEMIKA I believe in Kern County and I believe in the Bakersfield Symphony Orchestra. Over -the Past seventy years, the Bakersfield Symphony Orchestra has grown from merely an exceptional source of classical music, to a recognized force in the cultural life of the community and.the education of our children. We are a Community Symphony, yet with an ever growing influence on this region. Since.becoming the President of the Board of Directors this summer, I am even more convinced that this Symphony will play an increasingly important role in the future of the Southern San Joaquin Valley. Our Mission statement states: "To provide the best possible performances of great music for the widest possible audience and provide musical education for the young people of Kern County." As many have become aware, the Southern San Joaquin Valley has grown from a geographically- isolated enclave to a dynamic representation of California's growing demographic base. At the same time, with the growth of the Bay Area and suburban Los Angeles, and the ever increasing relocation of families from these and other large areas, Bakersfield is becoming a fast-growing cultural center in California. We are committed as a symphony to fulfilling that expanded role. Even as many other community symphonies are struggling for survival, we are not. We are unique in that we have had, for the past 26 years, an internationally acclaimed, resident Musical Director. The means exist already for the healthY continuation of our current musical schedule. Even as many other community symphonies are failing, we are growing. We of the Board, the musicians, and our fine Music Director, John Farrer, are striving to be even more ora force in the culture and education of the children of this region. Our vision and plans call for more educational programs and more creative musical outreach to the ever broadening demographic base of our Valley. To live up to this vision will take time, effort and money, and we are aggressively seeking forward thinking, progressive organizations and individuals who can help us become what we need tO be..~ ' Please include the Bakersfield Symphony Orchestra in your financi~t~.A. COUNTY BOARD OF TRADE November 14, 2001 Mr. Milt Younger Chairman of the .Board Bakersfield Symphony Orchestra 1328 344 Street, Suite A Bakerstield, CA 93301 The Kern County Board of Trade wholeheartedly supports the Bakersfield Symphony Orche~i~a and believes it serves a vital role in our community. More and more people and b~nesses are attracted to Greater Bakersfield and Kern County because of the quality of life found in.the community. Bakersfield is one of the least expensive places to live in California. But.quality of life is measured by much more than just the cost-of-living. Residents of the area have great-access to recreational and cultural amenities. Nowhere is that .bet}.er-.^r~ _re__s~_~ted th,, in the Bakerstield Symphony Orchest~ The Symphony is now ha aS 70 year and hasa well-deserved reputation for excellence among community Bakersfield Symphony Orchestra is stronger than ever. Concert attendance is up and the Symphony's vision is one ofsrowth and playing an even 8reater role in the culture of the That vision is clearly seen in the Symphony's emphasis on youth. The Bakersfield Symphony is committed to the musical education of our young people, knowing the important role such education plays in their future intellectual and social development. It is the mission ofthe Board of Trade to acon'ate~ market Kern County as & desirable placeto~ live. locate a~or ~ei~. ltaving aconmn~itytreasure such asthe Bakersfield Slanphony Orchem-a makes it much easier for us to carry out our mi~on. yours tndy. F..x~uti~ Dire'tot Barry Zodl~, Fac~ Di~ctor ~ · Tourismo FdmComm~un '2101 O~St. · POBin i312 · Balrerd'~ld~CA93~102 · 661861-2367 - ~00 500-KI:RN -.661 ~61-2017f~. Vision ~ ~ ~ ~ ~ ~ 2673 ~rnon A~., 8~-39~ 955 Oak S~c 3~4 I Current Financial Picture ....... There's No Business ..... ~ L~e Joe's Business! New MMBOU~E Castle ~rint ~ Publication, [nc ............ - ~urce Since 1948 - Pr4x~tlcI Cdt,l[Ogq - ' ~l~c ~0 OF OUR ~NY GR~T ~RED CRUISESI Pro-r,lm · '/..- .... -,- .~d..~ .............. "' ..... ..... '.,', .... ' Full Color - Full Se~ ice '' ' ' '" "*'"'" ....... ' .................. " - Digital Oulput - ................. - ..... - ............ · ..: NOW OFFERING NE~SPRINTt '~ ......' " TRADER ~ --~ ,,m ~ Fax ',~61: .... is Healthy. Our financial solveney is a function of a number of things, among them: · The value this community places, and has placed upon the cultural contribution of their Symphony, for the past 70 years · The dedication of a talented, world-renowned resident Musical Director, who has energetic.ally and creatively led the Orchestra for the past 26 years · The extraordinary commitment of the SYmphony members themselves, who willingly play far below the appropriate scale for gifted, talented musicians · The commitment of this Symphony to reach all levels of the community, and their commitment to our musical heritage and the education of our children · Good' fiscal management Bakersfield Symphony Orchestra is looking to the future, planning for growth, and committed to be a force in the cultural life of Kern County, and the Central Valley. 2001-2002 Operating Budget Revenue OPERATIONS Subscription concerts $150,000 Nutcracker Ballet 65,0O0 · 'i YPC/OT Concerts; 43,0O0 Academic Decnthlon 17~000 ¥.... Chnmber Concerts 500 "~' New Directions 3.000 $'2Sl,500 GENERAL & ADMINISTRATIVE Sustaining Funds $ 85,000 Symphony Associates 46,000 City of Bakersfield 46,000 County of Kern 31,500 Endowment Incom~ 10,0O0 Special Fund 30.000 $245,50O Total Exoenses OPERATIONS t.: Subscription Concerts $275,0O0 Nutcracker Ballet , ?0,000 YPC/OT Concerts 28,000 Academic Decathlon 2,500 Chamber Concerts 1,00O New Directions 3.000 $379,5OO GENERAL & ADMINISTRATIVE Total BAKERSFIELD SYMPHONY ORCHESTRA DECEMBER 31, 2001 6th Month of 12 2001-2002 BUDGET CURRENT YEAR PREVIOUS APPROVED DECEMBER 2001 MONTH TO-DATE ACTUAL YTD BUDGET PER MO ~EYENUE: OPERATIONS Subscription: $ 1,912 $ 88,329 $ 89,825 $150,000 Summer Concerts .......... 5,800 .Nutcracker Ba]]et 24,033 53,581 45,055 68,000 YPC/YPC OT Concert ' - .... 20,483 17,904 43,000 Academic Decathlon 5,000 5,000 17,000 Chamber Concert .......... 500 New Direction 910 3,937 1,513 3,000 A11 Other Concerts 7,500 37,579 46,149 ..... Sub-total $ 39,355 S208,909 $206,246 $281,500 GENERAL ADMINISTRATION Sustaining Funds $ 6,496 $.78,024 $ 33,502 $ 85,000 Corporate Donations 3,100 40,200 800 Symphony Associates 46,000 City of Bakersfield 27,775 28,990 46,000 County of Kern 50,031 35,000 31,500 Endowment Income 10,000 Sym Bingo 6,708' 30,000 Other Funds 575 523 Sub-total $ 10,171 $203,261 $ 98,292 $248,500 TOTAL REVENUE ~ 49.5~6 $412.170 t304.538 t530.000 EXPENSES; OPERATIONS Subscription $ 8,014 $113,457 $ 71,279 $275,000 Summer Concert 9,883 Nutcracker Ballet 43,576 45,175 43,775 70,000 YPC/YPC OT Concert 2,959 16,846 28,000 Academic Decathlon 8,449 9,735 2,500 Chamber Concert 1,000 New Direction 2,206 3,000 A]~ Other Concerts 14,977 43,009 30,427 Sub-total $ 66,567 $213,049 $184,151 $379,500 GENERAL ADMIN $ 12,867 $ 83,193 $ 81,042 $!50,500 TOTAL~ ~ 79.434 ~ ~265.193 t530.000 Surplus (29,908) 115,928 39,345 -0- ~;...~:~.:' *. The " ---' ?' Fundraising --' ==- Plan I ................................. ~ .................................... ".:~,.~.~c ' , ~- *.... · .... [~.. ~ '..': ~ .~ · . c2001-¢2C)C)C2 FRI(-I~S 0~- TI-I~ SVI~4.0f~ Milton Younger Ro~e~ Mendows Texaco Diane Sandidge Nonna Sex~n ·. ~~ ~.~~~ ~'~ ~ J. S~ T~ S~ U~m ~ of ~ ~ ~ B~I ~ U~'s ~ ~.~J~ B~M~ ~T.~~ R~~ Internal Revenue Service Department of the Treasury Dist~ct P.O. Box 2350 Los Angeles. Calif. 90053 Director Person to Contact: L. Barzasaa ~Bakersf~e~d Symphony Orchestra 1401 19th SC. 130 T~laphonaNumber: Eakezsfteld, CA 93301-~400 (213) 894-2336 Refer Reply to: gO (O2069*5) Data: APRIL 6, 199.5 RE: BakersfJ. eld Symphony Orchestra Inc. EIN: 9.5-600t765 Dear Taxpayer: This letter is in response to your recpiest for a copy of the determination letter for the above named organization. ~ Our records indicate that this organization was recognized · to be exempt from Federal income tax in June 1948 as described in Internal Revenue Code Section 50i(c)(3). It is further_classified as an organization that is not a private foundation as defined in Section 509(a)of the Code,. because it :. is an organization described in Section 509(a)(2). The exempt status for the determination letter issued in June 1948 continues to be in effect. If you need further assistance, please contact our office · - at the above address or telephone n~mber. 1' Sincerely, L. BAR, AGAR Disclosure Assistant Fundraising Plan For The BSO Mission Statement:"T~o provtde' the.best posmble' performances of great music for the widest possible attdience and provide musical education for the young people of Kern County." I. Introduction FUnd-raising and the arts The Bakersfield Symphony Orchestra-is truly a oivic treasure and is .unique for symphonies in communities of this size. Tremendous devotion, talent, and enthusiasm, a 26-year resident MUSic .Director, and great facilities are only a few of the remarkable characteristics of this enduring part ofour heritage as a community. It should not be difficult to sell this civic treasure to the public. For 70 years this symphony has provided great music and reached effectively into the Community. Its educational value, though still largely untapped, is one of its greatest community benefits, and remains one of our most important commitments. :.,. Our primary foci for our fundraising, effort are to Seek appropriate support-for the Symphony's operation, ": and to begin to build a strong financial basis for our growth in the years to come. In the execution of.our effort we are committed to good financial management, particularly in the expenditure of funds related to the fundrfiising effort. To keep these commitments central, we have established certain key points, to which we intend to stay close: · Artistic expression or content is no excuse to miss opportunities to raise funds for the symphony. The Marketing program exists to sell tickets, but also to develop community good will. · It is the function of the Development office to turn that good will into operating funds. · In this effort, the basic message is "Fund-raising is-not a dirt~ word" · Historically, art has always required benefactors and outside.support. Every means available should be explored and developed as swiftly as possible. ~' ° This Symphony has been led and operated in a singularly professional manner, yet at roughly a third the :-~. cost. 'of what similar organizations, elsewhere, typically expend. Even so, we realize that the best interests of this Symphony, and its mission to the community, will require bringing our budget to a degree of parity with civic orchestras in our class. [ _ ° There are two basic directions for this fund-raising effort: A. Immediate cash flow development. B. Sustained financial support. I. present expectations cannot be expanded by a factor of at least 50% There is no reason why the budget · over the course of the present financial year, provided the plan is carefully executed. !.. H. Immediate Tasks t:.. A. Initiate Immediate Cash Flow Program: Contact Major Donors, Develop Corporate Giving and Grants' B. Produce tools and Initiate Sustained Giving Program: i. ' 1. Purcha4e suitable Finance Software and standardize all existing lists 2. Develop the Major Donor Team 3. Schedule regular mailings and Major Donor contacts, throughout the year 4. Rebuild and expand mailing Lists, from all available sources 5. Begin Publication of Quarterly Newsletter for contributors 6. Establish A Focus Group and Finance (fUndraising) overview group 7. Produce Corporate Donor and Grant prospectus book .'i 8. Print BREs for all mailings and performance programs