1 Jeanie O’Laughlin
Mayor
Nick Lessenevitch
Mayor Pro Tem
Jim Creighton
Councilmember
Kelly Kulikoff
Councilmember
Karen Macedonio
Councilmember
AGENDA
CITY OF CALIFORNIA
CITY COUNCIL/HOUSING AUTHORITY/SUCESSOR AGENCY
SPECIAL MEETING
WEDNESDAY, AUGUST 3, 2022
SPECIAL MEETING @ 6:00 PM
COUNCIL CHAMBERS & VIA ZOOM
21000 HACIENDA BLVD., CALIFORNIA CITY, CA 93505
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REGULAR MEETING 6:00 PM
CALL TO ORDER
PLEDGE OF ALLEGIANCE/INVOCATION
ROLL CALL
Councilmembers: Creighton, Kulikoff, Macedonio, Mayor Pro Tem Lessenevitch, Mayor O’Laughlin
CONTINUED NEW BUSINESS
CNB 1. Public Safety Only Parcel Tax—Annual Rate-setting – by Kenny Cooper, Finance Manager Recommendation:
Approve Resolution Confirming Setting the Rate of the Public Safety Only Special Parcel Tax for Fiscal Year 2022-23 and Requesting Collection Services from Kern County
ADJOURNMENT
AFFIDAVIT OF POSTING: This agenda was posted on all official City bulletin boards and the city website at least 24 hours prior to the Special Council Meeting. Deputy City Clerk
ITEM NO. CNB 1
SPECIAL COUNCIL AGENDA ITEM
AUGUST 3, 2022
PREPARED BY: Kenny Cooper, Finance Manager
SUBJECT: Public Safety Only Parcel Tax—Annual Rate-setting
BACKGROUND
On July 31, 2018, the City’s voters approved a Public Safety Only Special Parcel Tax to be levied annually beginning in Fiscal Year 2018-19 and ending in Fiscal Year 2023-24.
The tax is governed by the California City Public Safety Only Special Parcel Tax Ordinance of 2018 (CCMC Sec. 3-2.1.501 et seq.) (the “Ordinance”). It is collected from property owners on the annual property tax bill prepared by the County. Section 3-2.1.505 of the Ordinance requires that the City Council annually determine the tax against each lot or parcel for the upcoming tax year.
The voter-approved maximum rate of the special parcel tax is .50 cents per day, or $182.50 per lot or parcel for Fiscal Year 2019-20. However, the ordinance requires that this amount be reduced by a mandatory reduction calculated pursuant to a formula set forth in Section 3-2.1.504 of the Ordinance.
For Fiscal Year 2022-23, the mandatory reduction is $36.50 (See attached calculation). Consequently, the maximum rate for Fiscal Year 2022-23 is $146.00.
FISCAL IMPACT
Continued Funding of Public Safety and Reduction of Measure C Tax.
COUNCIL OPTIONS
Council can approve the special parcel tax rate per the calculations or set a desired special parcel tax rate for Fiscal Year 2022-2023.
RECOMMENDATION
Approve Resolution Confirming Setting the Rate of the Public Safety Only Special Parcel Tax for Fiscal Year 2022- 23 and Requesting Collection Services from Kern County.
ATTACHMENTS
• Attachment A - Calculation of Mandatory Rate Reduction • Attachment B – Resolution 07-22-2938 Setting the Rate of the Public Safety Only Special Parcel Tax for Fiscal Year 2022-23 and Requesting Collection Services from the County
City of California City
2021-22 Caculation of Mandatory Reduction
Public Safety Only Special Parcel Tax
1a. FY 2021-22 Estimated Ad Valorem Property Tax Revenue $ 2,704,509 1b. FY 2021-22 Estimated Sales & Use Tax Revenue $ 757,000 1c. FY 2021-22 Estimated Cannabis Business Tax $ 1,135,570 1 FY 2021-22 Qualified Revenue (Sum of Lines 1a through 1c) $ 4,597,079 2a. FY 2017-18 Ad Valorem Property Tax Revenue $ 2,042,044 2b. FY 2017-18 Sales & Use Tax Revenue $ 360,439
2 FY 2017-18 Qualified Revenue (Sum of Lines 2a through 2b) $ 2,402,483 3a. New Revenue (Subtract Line 2 from Line 1) $ 2,194,596 3 90% of New Revenue (90% of Line 3a) $ 1,975,137
4a. Number of parcel subject to tax 50,450
4b. Number of Parcel-Days (Multiply Line 4a by 365) 18,414,250 4c. Daily Tax Reduction Per Parcel (Divide Line 3 by Line 4b) $ 0.1073 4d. Mandatory Daily Reduction (Round Line 4c Down to Nearest Cent) $0.10 4 Annual Mandatory Max Tax Reduction (Multiply Line 4d by 365) $36.50 5a. Base Maximum Rate $ 182.50
5 Adjusted Maximum Rate (Subtract Line 4 from Line 5a) $ 146.00
RESOLUTION NO. 07-22-2938
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CALIFORNIA CITY SETTING THE RATE OF THE
PUBLIC SAFETY ONLY SPECIAL PARCEL TAX FOR
FISCAL YEAR 2022-23 AND REQUESTING COLLECTION
SERVICES FROM THE COUNTY
WHEREAS, at the July 31, 2018 Special Municipal Election (the “Election”) the voters adopted the California City Public Safety Only Special Parcel Tax Ordinance of 2018, which is codified at Section 3-2.1.501 et seq. of the California City Municipal Code (the “Ordinance”); and
WHEREAS, pursuant to Section 3-2.1.502 of the Ordinance, the City levies an annual special tax (the “Special Tax”) on all lots and parcels within the boundaries of the City other than lots and parcels that (i) are exempt from this tax pursuant to the Constitution or laws of the United States or of the Constitution or laws of the State of California or (ii) are exempt from the ad valorem property tax or have an ad valorem property tax liability of zero; and
WHEREAS, pursuant to Section 3-2.1.509 of the Ordinance, the Special Tax is authorized to be levied through Tax Year 2023-24; and
WHEREAS, the Maximum Tax Rate for Tax Year 2022-23, calculated pursuant to Section 3-2.1.503 of the Ordinance, is $146.00 (representing a maximum tax rate of $182.50 reduced by $36.50); and
WHEREAS, Section 3-2.1.506 of the Ordinance provides that:
The tax shall be collected by the County of Kern in the same manner and subject to the same penalty and procedure as ad valorem property taxes collected by the county. Unpaid taxes shall bear interest at the same rate as the rate for unpaid ad valorem property taxes until paid. The county may deduct its reasonable costs incurred for the service before remittal of the balance to the city.; and
WHEREAS, pursuant to Section 3-2.1.505 of the Ordinance, the City Council desires set the rate of the Special Tax for Tax Year 2022-23; and
WHEREAS, the City Council desires to take actions necessary to authorize the County of Kern to collect the Special Tax for Tax Year 2022-23.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY RESOLVES as follows:
Section 1. Authorization
The Kern County Auditor, Controller and Tax Collector are hereby requested to levy, collect and transmit to the Special Tax for Tax Year 2022-23. The City Manager is hereby authorized and instructed to supply such information as necessary to the Auditor, Controller and Tax Collector to facilitate the levy, collection and transmittal of the Special Tax.
Section 2. Administrative Charge
The City shall pay reasonable and uniform administrative charges levied by the Auditor, Controller and Tax Collector for the services described herein as permitted by law.
Section 3. Proposition 218 Compliance
The City Council hereby certifies that the Special Tax complies with the applicable provisions of Articles XIII C and XIII D of the California Constitution.
Section 4. Tax Rate
The City Council sets the Special Parcel Tax for Tax Year 2022-23 to be $146.00 per taxable lot or parcel.
Section 5. Parcel List
A list of each parcel to be taxed and the amount of the tax for each such parcel is on file in the Office of the City Clerk, incorporated herein by reference, and is hereby approved.
Section 6. Official Record
This Resolution constitutes the official record of the assessment of the Special Tax.
Section 7. Certification
The City Clerk will certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
Section 8. Effective Date
This Resolution will become effective immediately upon adoption PASSED AND ADOPTED on July 26, 2022 by the City Council of the City of California City, County of Kern, State of California, by the following vote:
AYES:
NAYS:
ABSTAIN:
ABSENT:
____________________________
Jeanie O’Laughlin, Mayor
ATTEST:
__________________________
Deputy City Clerk
PASSED AND ADOPTED on August 3, 2022 by the City Council of the City of California City, County of Kern, State of California, by the following vote: