AGENDA REPORT
Meeting Date: August 15, 2023
Item Number:
To: Honorable Mayor & City Council
From: Jeff S. Muir, Director of Finance
Tatiana Szerwinski, Assistant Director of Finance
Brandy Gros, Budget Manager
Subject: RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY HILLS
FIXING THE RATE OF TAXES TO PAY THE BONDED AND OTHER
VOTER-APPROVED INDEBTEDNESS OF THE CITY FOR THE
FISCAL YEAR 2023-24
Attachments: 1. Resolution
RECOMMENDATION
Staff recommends adoption of the resolution fixing the rate of taxes for the Fiscal Year 2023-24 to $0.038459 per $100 of assessed valuation.
INTRODUCTION
This report seeks City Council approval and adoption of the resolution fixing the rate of taxes for Fiscal Year 2023-24 at $0.038459 per $100 of assessed valuation. The City is required to submit a copy of the resolution fixing the rate of property taxes to the County of Los Angeles so that the rate may be included in the current year’s assessments. The County’s due date is August 21, 2023.
DISCUSSION
In accordance with the provisions of Article XIIIA of the Constitution of the State of California, the City may levy an annual tax rate for the repayment of interest and principal on general obligation bonds and other voter-approved indebtedness. This rate is in addition to the general rate of 1% of full market value authorized in the above-noted Constitution article. In 1974, the voters of Beverly Hills approved a Resolution improving retirement benefits for Safety employees and authorized that the current and future costs of these retirement benefits would constitute a rate of tax in addition to the maximum property tax rate. When Proposition 13 was approved in 1978, the property tax rate was limited to one percent for each individual piece of property, but indebtedness approved Meeting Date: August 15, 2023
by voters (including property tax pension overrides) was excluded. This limited the City’s property tax override to paying only for the costs of CalPERS Safety Plan retirement benefits effective or contracted before July 1, 1978. Each year the City Council approves a resolution with the property tax override rate, as calculated by staff.
The rate is meant to represent the employer contributions attributable to the pre-1978 benefit level and exclude any portions of the employer contributions attributable to benefit improvements post-1978.
Staff engaged Foster & Foster, Inc. to provide an actuarial calculation of the Fiscal Year 2023-24 employer contributions attributable to pre-1978 benefits using the June 30, 2021, CalPERS actuarial report (the report used to establish required Fiscal Year 2023- 24 contributions). The determination was that 84.1% of employer contributions were attributable to pre-1978 benefit levels, or $17.301 million.
With total secured assessed valuation of approximately $45.0 billion for Fiscal Year 2023-24, a levy of $0.038459 per $100 of assessed valuation is required to recover the cost of the above expenditures. This compares with a rate of $0.041611 in the previous year.
Assessed Value $ 44,985,003,719 $ 42,734,220,528 $ 2,250,783,191 Levy Per $100 of AV 0.038459 0.041611 (0.003151)
Total Levy $ 17,301,000 $ 17,782,000 $ (481,000)
Fiscal Year 2023-24 Fiscal Year 2022-23 Difference
The decrease in the rate of the tax override results from a larger increase in assessed valuation relative to the smaller combined increases in PERS normal cost and safety employee annual salaries, offset by a decrease in unfunded liability contributions.
Thus, the decreased levy is being distributed over a larger tax base, resulting in a decrease to the levy per $100 of assessed valuation.
FISCAL IMPACT
This tax override will recover approximately $17,301,000 of City expenditures for this year's public safety personnel CalPERS pension payments.
Tatiana Szerwinski,
Assistant Director of Finance
Jeff S. Muir,
Director of Finance
Approved By Approved By
Attachment 1
B0785-0001\2847153v2.doc
RESOLUTION NO. 23-R-______
RESOLUTION OF THE COUNCIL OF THE CITY OF
BEVERLY HILLS FIXING THE RATE OF TAXES TO PAY THE
BONDED AND OTHER VOTER-APPROVED INDEBTEDNESS
OF THE CITY FOR THE FISCAL YEAR 2023-24
The Council of the City of Beverly Hills does resolve as follows:
Section 1. Pursuant to law, there hereby is fixed and levied the rate of taxes, designated in the number of cents upon each One Hundred Dollars ($100.00) of the assessed value to be taxed as assessed by the County Assessor and equalized by the Board of Supervisors of the County of Los Angeles, as set forth in Section 2 hereof.
Section 2. Upon all of the taxable property in each of the taxing districts within the City of Beverly Hills, there hereby is fixed and levied the rate of taxes as follows:
All Districts $0.038459
The rate so fixed is needed to raise the amount necessary to make annual payments for other indebtedness of the City approved by the voters prior to July 1, 1978.
Section 3. The City Clerk shall cause this resolution to be published and circulated in the City within fifteen (15) days after its passage, in accordance with Section 36936.1 of the Government Code; shall certify to the adoption and publishing of this resolution and shall cause this resolution and her certification, together with proof of publication, to be entered in the Book of Resolutions of the Council of this City.
Adopted:
JULIAN A. GOLD, M.D.
Mayor of the City of
Beverly Hills, California
ATTEST:
(SEAL)
HUMA AHMED
City Clerk
DocuSign Envelope ID: AB338CDA-4DFA-47BD-9A6A-D4FA9DFDBDFB 2 Approved as to form: Approved as to content:
LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
JEFF S. MUIR
Director of Finance
DocuSign Envelope ID: AB338CDA-4DFA-47BD-9A6A-D4FA9DFDBDFB Certificate Of Completion
Envelope Id: AB338CDA4DFA47BD9A6AD4FA9DFDBDFB Status: Sent Subject: Complete with DocuSign: CLEAN_-_Resolution_-_FY2023-24_Property_Tax_Overide.pdf Source Envelope:
Document Pages: 2 Signatures: 2 Envelope Originator:
Certificate Pages: 3 Initials: 0 Sivan Levin
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.181
Record Tracking
Status: Original
8/10/2023 11:53:11 AM
Holder: Sivan Levin
[email protected]
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Deborah Hakman for (LE)
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Jeff S. Muir
[email protected]
Director of Finance
City of Beverly Hills
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Logan Phillippo
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Real Property Development Manager
City of Beverly Hills
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Nancy Hunt-Coffey
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Julian A. Gold, M.D.
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Huma Ahmed
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Brandy Gros
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Tatiana Szerwinski
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Jill Doohen
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City of Beverly Hills
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Shani Parker
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City of Beverly Hills
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City Clerk
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