AGENDA REPORT
Meeting Date: August 20, 2024
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 2024-25
Attachments: 1. Resolution
RECOMMENDATION
Staff recommends adoption of the resolution fixing the rate of taxes for the Fiscal Year 2024-25 to $0.041042 per $100 of assessed valuation.
INTRODUCTION
This report seeks City Council approval and adoption of the annual resolution fixing the rate of taxes for Fiscal Year 2024-25 at $0.041042 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 property tax assessments. The County’s due date is August 22, 2024.
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 assessed 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 those retirement benefits would constitute a rate of tax in addition to the maximum property tax rate (“property tax pension override”). When Proposition 13 was approved in 1978, the property tax rate was limited to one percent for each individual piece of property, Meeting Date: August 20, 2024
but indebtedness approved by voters (including property tax pension overrides) was excluded from this limitation. The City’s property tax override can only pay 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 an actuarial consultant’s determination of the eligible Safety Plan pension costs divided by the City’s assessed valuation for that fiscal year. The rate represents the employer contributions attributable to the pre-1978 benefit level and excludes any portions of the employer contributions attributable to benefit improvements post-1978.
Staff engaged GovInvest, Inc. to provide an actuarial calculation of the Fiscal Year 2024- 25 employer contributions attributable to pre-1978 benefits using the June 30, 2022, CalPERS actuarial report (the report used to establish required Fiscal Year 2024-25 contributions). The determination was that 85.2% of employer contributions were attributable to pre-1978 benefit levels, or $19.221 million.
With total assessed valuations of approximately $46.8 billion for Fiscal Year 2024-25, a levy of $0.041042 per $100 of assessed valuation is required to recover the cost of the above expenditures. This compares with a rate of $0.038459 in the previous year.
The increase in the Total Levy amount is attributable primarily to an increase in the Employer Amortization of Unfunded Accrued Liability for the Safety Plan according to the June 30, 2022 CalPERS actuarial report. While the increase to the levy percentage is somewhat mitigated by the increase to the City’s assessed valuation for Fiscal Year 2024- 25, it nonetheless increased slightly.
FISCAL IMPACT
This tax override will recover approximately $19,221,000 of eligible 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
Assessed Value $ 46,832,300,172 $ 44,985,003,719 $ 1,847,296,453 Levy Per $100 of AV 0.041042 0.038459 0.002583
Total Levy $ 19,221,000 $ 17,301,000 $ 1,920,000
Fiscal Year 2024-25 Fiscal Year 2023-24 Difference
Attachment 1
B0785-0001\2847153v2.doc
RESOLUTION NO. 24-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 2024-25
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 $0.041042
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:
LESTER J. FRIEDMAN
Mayor of the City of
Beverly Hills, California
ATTEST:
(SEAL)
HUMA AHMED
City Clerk
Docusign Envelope ID: 753E7348-095D-4EE3-B7F1-4E1D6145C49C 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: 753E7348-095D-4EE3-B7F1-4E1D6145C49C Certificate Of Completion
Envelope Id: 753E7348095D4EE3B7F14E1D6145C49C Status: Sent Subject: Complete with Docusign: Resolution - FY2024-25 Property Tax Overide.docx Source Envelope:
Document Pages: 2 Signatures: 2 Envelope Originator:
Certificate Pages: 2 Initials: 0 Sivan Levin
AutoNav: Enabled
EnvelopeId Stamping: Enabled
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
8/13/2024 4:15:41 PM
Holder: Sivan Levin
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Stephanie Cao on behalf of
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
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Signed: 8/14/2024 11:25:57 AM
Electronic Record and Signature Disclosure:
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Jeff S. Muir
[email protected]
Director of Finance
City of Beverly Hills
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Signed: 8/14/2024 11:29:39 AM
Electronic Record and Signature Disclosure:
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Anthony Rodstein
[email protected]
Purchasing Services Manager
City of Beverly Hills (Finance Department)
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Sent: 8/14/2024 11:29:41 AM
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Nancy Hunt-Coffey
[email protected]
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Lester J. Friedman
[email protected]
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Huma Ahmed
[email protected]
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Shani Parker
[email protected]
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(None)
Sent: 8/13/2024 4:24:00 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Jill Doohen
[email protected]
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 8/13/2024 4:24:01 PM
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