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HomeMy WebLinkAboutAdoption of F/Y 1995/96 Tax Rate ($.04930) Per $100 of Asses Council/Agency Meeting Held:: Deferred/Continued to: A-d oe Approved ❑ Conditionally Approved ❑ Denied City Clerk's Signafure Council Meeting Date: August 21, 1995 Department ID Number: AS 94-028 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator PREPARED BY: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: ADOPTION OF 1995/96 TAX RATE // 70( V- -9 Statement of Issue,Funding Source,Recommended Action,Alternative Action,Analy ,Environmental Status,Attachments Statement of Issue: The City Charter states that "There shall be levied. . if no other provision for payment thereof is made . . ., a tax sufficient to meet all obligations of the City for the retirement system in which the City participates, due and unpaid or to become due during the ensuing fiscal year." The 1995/96 budget includes estimated revenue of $6,687,000 from a continuation of this tax to fund 67% of the retirement costs of the City. The balance of the retirement costs are proposed to be paid from other city revenues. Funding Source: The revenue generated from the recommended levy is $6,687,000 of he General Fund estimated revenue of $95,969,500. Recommended Action: Adopt Resolution (o 7od setting the tax rate for charter- approved indebtedness. Alternative Action(s): 1. Do not levy a tax to fund retirement costs. 2. Levy an amount less than the recommended levy. If this is done, the City will permanently lose the difference in revenue lost by the reduction. REQUEST FOR COUNCIL ACTION MEETING DATE: August 21, 1995 DEPARTMENT ID NUMBER: AS 94-028 Note: To be consistent with Charter requirements, Alternative 1 or 2 can be selected only if the City makes ". . .other provisions for payment. . ." of the retirement obligations. The proposed budget for 1995/96 makes no provision for payments of these obligations other than the use of the $6,687,000 estimated revenue from a continuation of this levy. Therefore, if either of the above alternatives is selected, action needs to be taken to determine how to make provision to pay the City's retirement costs in 1995/96 and in future years. Analysis: The City receives a pro-rata portion of the one-percent basic levy of all real property. In addition, Article 13-A of the California Constitution allows cities to levy additional taxes for voter-approved indebtedness. Until 1994/95, the City levied two rates; one for bonded indebtedness (1970 Park Bonds), and one which pays for a portion of the Charter approved employee retirement costs. The final payments for the 1970 Park Bonds was made in 1994. The only levy remaining is for Charter approved retirement costs which is limited to the lower of the amount needed or the amount levied in 1984/85. In our case, the lower amount is the 1984/85 levy of .04930 per $100 of assessed valuation. The levy currently covers about 67% of the City's retirement costs for 1995/96. Last year the City requested that the County clearly identify this levy as a tax to cover employee retirement costs. The County changed the listing on property tax bills as a result of this City City Council request. Environmental Status: Not applicable. Attachment(s): List attachment(s) below. City Clerk's • - Number No. Description - ............ ........._... _ . . ........._.. ....... ........... ._............ . .......... _. .. . Start Numbering 1, Resolution 2. Annual Property Tax Levy 3. California Cities Having a Property Tax Levy for Retirement Indebtedness 4. Property Taxes and Assessments -Additions to Basic Levy _._;,; 5. Property Tax Levies in Addition to the 1% Basic Levy (1993/94) Orange County Cities 0013648.01 -2- 08/14/95 1:22 PM RESOLUTION NO. sins A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH FIXING THE FISCAL YEAR 1995/1996 TAX RATE WHEREAS, the City of Huntington Beach will be receiving a pro-rata portion of the one dollar ($1.00) Basic Property Tax Rate levied by the County Board of Supervisors as a means of providing revenue for the operation and support of various city departments, offices and activities; and The tax rate herein is levied pursuant to Section 93 of the Revenue and Taxation Code for the purpose of paying voter approved indebtedness of the City of Huntington Beach; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach that the rate of taxation for said city for fiscal year 1995/1996 be fixed at zero and .04930/100ths dollars ($.04930) per$100 of assessed property value in said city. The said rate shall be applied as employee retirement costs. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting held thereof on the 21st day of Anaust- , 1995. /?�' r Mayor ATTEST: APPROVED AS TO FORM: City Clerk City.rttprrley REVIEWED AND APPROVED: INIT[ TE6 P OVED: j l City Administrator Director o urn'inistrati Se ces taxrate/8/9/95 Res. No. 6706 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 21st of August, 1995 the following vote: AYES: Councilmembers: Harman, Bauer, Leipzig, Dettloff, Green, Garofalo NOES: Councilmembers: Sullivan ABSENT: Councilmembers: None City Clerk and ex-ofI'icio Clerk of the City Council of the City of Huntington Beach, California G/fo1Jowup/resbkpg Annual Property Tax Levy Background: A separate property tax levy for retirement indebtedness was authorized by the voters in 1966. The tax levy covered only a portion of the City's retirement costs. 70% of the costs were covered in Fiscal Year 1977/78. 42 to 70% of the costs have been covered by the levy in the years since 1977/78. Huntington Beach Property Tax Levy - Retirement Indebtedness 1977/78- 1995/96 Tax Levy Property Taz Retirement Revenueas Fiscal Year :Per$100 A V Revenue Costs*** % of............. 1977/78 0.16610 $1,418,858 $2,026,098 70.0% 1978/79 0.13650 1,135,385 2,509,196 45.2% 1979/80 0.14330 1,338,341 3,193,121 41.9% 1980/81 0.14330 1,607,826 3,584,726 44.9% 1981/82* 0.03729 1,978,715 4,028,308 49.1% 1982/83 0.04930 2,792,077 4,329,797 64.5% 1983/84 0.04930 2,994,942 4,543,000 65.9% 1984/85 0.04930 3,299,596 6,870,908 48.0% 1985/86 0.04930 3,440,683 6,911,625 49.8% 1986/87 0.04930 3,773,584 7,097,000 53.2% 1987/88 0.04930 3,929,922 7,134,000 55.1% 1988/89 0.04930 4,592,276 6,817,910 67.4% 1989/90 0.04930 4,867,552 7,375,289 66.0% 1990/91 0.04930 5,230,891 8,162,283 64.1% 1991/92** 0.04930 6,116,356 8,949,277 68.3% 1992/93 0.04930 6,118,857 9,833,755 62.2% 1993/94 0.04930 6,478,879 9,745,290 66.5% 1994/95 est. 0.04930 6,420,381 9,700,000 66.2% 1995/96 Recomd. 0.04930 6,687,000 9,600,000 69.7% * Rates were reduced in 1981/82 due to the County changing Assessed Value to equal 100% of market value. Prior to 1981/82 Assessed Value was set at 25% of market value. ** Revenue prior to 1991/92 excludes delinquent payments, interest, and miscellaneous revenue categories. *** Includes City PERS pickup costs for years after 1977/78. G:\BOB\SPRDSHT\RETRA"ALLOT\RETR ff.XLW 8/9/95 Attachment California Cities Having a Property Tax Levy for Retirement Indebtedness Albany Monrovia Oakland Montebello Richmond Monterey Park Coalinga Redondo Beach Fresno San Fernando Eureka San Gabriel Alhambra South Pasadena Bell Whittier Beverly Hills Fairfax Burbank San Anselmo Compton Huntington Beach Culver City Riverside El Monte Sacramento El Segundo Rialto Glendora La Mesa Huntington Park Stockton Inglewood Santa Barbara Long Beach Watsonville Los Angeles Cloverdale Lynwood Santa Rosa Manhattan Beach Oxnard Maywood Source: State Controller's Office publication: Ad Valorem Property Tax Rates Levied in Excess of the 1% Tax Rate Limitation -Fiscal years 1985/86- 1987/88 (No longer published) taxret.doc 08/09/95 Attachment PropertyTaxes and Assessments Additions to Basic Levy Placentia Laguna Beach -------------- Tusti n San Clemente Yorba Linda Stanton WMIA, Irvine M #Sys : •;••::::•>.::..>.:44' Brea �t{>�; .�� •.,•:.,. San Juan Capistrano �• Cypress Garden Grove La Palma z : :.r": ':=:':=.':':'; Huntington Beach ....................... Huntington Beach•£# rf%s s#` Oran e f....r. 9 Costa Mesa �•;: Anaheim Westminster Los Alamitos Seal Beach Santa Ana Newport Beach Villa Park Fountain Valley La Habra Fullerton Buena Park 0% 5% 10% 15% 20% 25% 1993/94 Additional Levy as a % of Total Property Tax Bills All Orange County Cities except those incorporated since Proposition 13 (1978) Attachment Property Tax Levies in addition to the 1% Basic Levy(1993/94) Orange County Cities Background:Proposition 13 limits property tax levies to 1%of Assessed Value,with some exceptions. The 1%Basic Levy is shared by all pre-Proposition 13 taxing agencies,primarily cities,counties,and school districts. The City of Huntington Beach receives 14.8%of the basic levy. In addition,cities can levy taxes above the 1%levy,or levy assessments on property,by following procedures outlined in State law. Following is a chart listing taxes and assessments levied by Orange County cities in 1993/94.(Does not include taxes or assessments levied by and paid to the county,school,or special districts.) Taxes Assessments Cities listed from high to low in terms of > amount of levies and assessments above 1% m W basic levy per $100 Assessed Valuation. N N N d V d p l0 0 CL C C y N V C N .�. N d E N O S. '� �0 C l`0 City cc m° a a� cc n °' L) m° Annual Revenue Per $100 A.V. Per Capita Placentia >tt $4 543,155; 0.238 $108.61 Laguna Beach s s 7,380,198<: 0.233 $300.01 ........,...................:.......... .... Tustin i ... ........... .:....... ;... .. 0.221 $119.17 € 6 523,255 San Clemente jlc _5,295,360 0.142 $125.59 Yorba Linda .ilE.. 4,615,800; 0.134 $88.14 Stanton [ ........ 1,054,828 0.121 $33.65 ........,.............................: :.... Mission Viejo 6 393 568 0.108 $84.68 Irvine [ >h 14 225 349 0.102 $138.90 Laguna-Niguel € i 4,785,681; 0.093 $70.65 �... .. Brea 1,404,606 0.087 $41.87 San Juan Capistrano 1 1;689,853 0.078 $62.35 Laguna Hills i ? >I� 1,667,35.3. 0.074 $72.69 ..........,. .....:...................: .........;........,............................ Cypress ...........1..................t.............................t. 1 Z28 351. 0.074 $39.09 Garden Grove s '•: _ € € 3,21,1.,00.3 0.069 $21.69 La Palma 454,580 0.064 $29.55 Huntington Beach € � 6,3.71 953 0.056 $33.25 Orange € € € € € 2 807,192< 0.045 $24.90 Lake Forest ... ......... 1: 5..1 698: 0.039 $23.31 Costa Mesa € € € € € ;.._ ..�. i 834 256` 0.029 $18.61 Anaheim € 3,392 988 0.025 $12.80 ........,.........:.........:.......... ..... ... Westiminster - �C 551,810` 0.020 $6.90 ...................!............ Los Alamitos 1.09,184> 0.015 $8.96 Seal Beach �c ,:,,,139,937 0.008 $5.58 Dana Point € 272 214 0.008 $8.53 ,.............................. ,........,........,.........;..........................._....................................... Santa Ana € ':. 395,625 0.005 $1.30 Newport Beach jli i ili ` 4 �Ic 262,9.36 0.002 $3.71 Villa Park 7,176 0.001 $1.13 .........,........ Buena Park 72,457' 0.000 $0.18 ,........,...................: :........7........ Fullerton i 9,537 0.000 $0.08 La Habra 3 482 0.000 $0.07 .................... . „..... Fountain Valley 0 0.000 $0.00 ............................... >........:.................;.........,.........;............................,........_:......... 9- Avera a 0.068 $47.93 Huntington Beach compared to Average -17% -31% I J EL Note : Revenue is for Secured Tax levy only, which represents 90% of the total Property tax levy, on the average. G:\BO B\SPRDSHT\RETRMT\BALLOT\RETRMT.XLW 1%plus.XLS 8/9/95 d RCA ROUTING SHEET INITIATING DEPARTMENT: Administrative Services SUBJECT: Adoption of 1995/96 Tax Rate COUNCIL MEETING DATE: I August 21 , 1995 M TUSACATTAHENTS S Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff Assistant City Administrator Initial City Administrator Initial City Clerk EXPLANATION F4R RETURN OF ITEM• Space . Only)