HomeMy WebLinkAboutAGENDA REPORT 1998 0218 CC REG ITEM 10A79 g. q (i)
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CITY OF MOORPARK, CA? 'rORN1A
City Council Mc.'
CITY COUNCIL AGENDA REPORT of
CITY OF MOORPARK AC •
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TO: The Honorable City Council
FROM: Mary K. Lindley, Director of Community Services G'
DATE: February 9, 1998 (City Council Meeting of February 18, 1998)
SUBJECT: Consider Ventura Regional Sanitation District Property Tax Transfer
Proposal
BACKGROUND
Since its formation in 1970, the Ventura Regional Sanitation District (VRSD) has been partially
supported by a portion of the property taxes assessed within its jurisdictional boundaries. In fiscal
year 1996/97, property tax revenues received by VRSD totaled nearly $1.4 million. Beginning in
1983, and periodically over the ensuing years, numerous proposals have been developed for the
reallocation of these property taxes to their jurisdictions of origin. The underlying premise of
these discussions has been that VRSD should operate as a solid waste enterprise, and that
property taxes are more appropriately allocated to general purpose governments to fund programs
of broad public benefit.
While the cities of Moorpark and Simi Valley detached from VRSD in 1985, a potion (50
percent) of the respective jurisdictions' property tax was retained by the County. As a result, the
City has had an active interest, and has since participated, in efforts to reallocate 100 percent (or
close to 100 percent) of the property taxes back to the jurisdiction of origin.
In the fall of 1996, the CAO /City Manager's Committee appointed a VRSD Property Tax
Subcommittee to revisit the issue of property tax reallocation. The Subcommittee's objective was
to develop a proposal to permanently transfer all of VRSD's property tax revenue to the ten cities
and the County, while preserving adequate funding for contingency liabilities and for solid waste
programs generally. Three guiding principles were adopted for proposal development: (1) VRSD
enterprise functions shall be operated with enterprise - generated revenues only, and without tax
subsidies, enabling property tax to be utilized for general purpose functions; (2) a reliable funding
mechanism shall be provided for VRSD long term known and unknown solid and hazardous
waste liabilities; and (3) all twelve jurisdictions shall be made "whole."
In developing this proposal over the past 18 months, the Manager's Subcommittee encountered a
number of significant challenges relating to past policy decisions, equity, and complex technical
C:\DOCS \SULIDWST\VRSDTAX.AGD
VRSD Property Tax
Page 2
and legal issues. Among these challenges were previous VRSD detachments of the cities of
Moorpark and Simi Valley and associated property tax distributions, the existing County -VRSD
(Erickson -Bush) property tax transfer agreement; continuity of regional solid waste program
funding; the potential impact of Gann spending limits on property tax distribution; and the
development of an appropriate mechanism and schedule for proposal implementation.
On July 17, 1997, the VRSD Board affirmed its intention to transfer all of the District's property
tax to its member cities and the County over a three year period under applicable provisions of the
State of California Revenue and Taxation Code. While this initial VRSD proposal differs from
that developed by the Manager's Subcommittee in both scope and timing, its objectives are
parallel. The Manager's proposal is currently under review by VRSD staff.
The property tax transfer and funding proposal described below was unanimously supported by
the City Managers and County Chief Administrative Officer at their regular meeting of January
20, 1998. It is currently being presented to the governing bodies of all participating jurisdictions
for conceptual approval.
PROPERTY TAX TRANSFER AND FUNDING PROPOSAL
The Manager's proposal contains three principal elements: (1) a reallocation plan for the
permanent transfer of VRSD property tax to the ten cities and the County, effective July 1, 1998;
(2) recision of the underlying tax transfer agreement and funding to the County associated with
the 1985 Simi Valley and Moorpark detachments from VRSD (approximately $125,000 annually);
and (3) recision of the 1989 Erickson -Bush Agreement and associated solid waste program
funding to the County (approximately $280,000 annually), and corresponding support for an
increase of $0.16 /ton in Countywide Integrated Waste Management Plan (CIWMP) Fees to the
County (approximately $160,000).
The proposed reallocation of VRSD property taxes to the ten cities and the County, as
represented by 1996 -97 Assessed Values, is presented in Attachment 1. The proposal provides
that cities will receive a permanent transfer of 98% of the VRSD property tax collected within
their boundaries. The County will receive a permanent transfer of 100% of the VRSD property
tax collected in the unincorporated area and 2% of the VRSD property tax generated within each
city (including the former VRSD tax revenue in Simi Valley and Moorpark; collectively about
$26,200 annually at 1996 -97 Assessed Values). Since the City of Moorpark already receives 50
percent of the property tax identified on the attachment, the additional revenue to the City would
equal approximately $25,000 in FY 1998/99 and would increase with the assessed value of
property in Moorpark.
C :1D OC SISOLID W STIVRSDTAX. AGD
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VRSD Property Tax
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The Manager's proposal also preserves funding, at a reduced level, for regional solid waste
programs conducted by supplanting lost fees with CIWMP Fees. The proposed fee increase
partially offsets revenues lost through recision of the Erickson -Bush Agreement, and would raise
CIWMP Fees from the current $0.34 /ton to $0.50 /ton ($0.16/ ton increase). Revenue deficits
created by the shift of tax revenues from the regional to local level will be addressed by a
reduction in regional programs provided by the County.
After the last meeting of the Managers, where the proposal was last discussed, VRSD expressed
concerns about transferring 100 percent of the property tax all at once. It appears that the
District would be more comfortable with a phased approached over a two or three year period. If
VRSD Board pursues a phased approached, the Managers will convene a meeting to discuss the
ramifications, and depending on the outcome of that meeting, a revised proposal may be presented
to the various policy bodies.
PROPOSAL IMPLEMENTATION
Implementation of the Manager's proposal will require approvals by all ten cities, VRSD, and the
County. This is envisioned as a two -step process: 1) conceptual approval of the property tax
transfer and funding plan by the twelve jurisdictions will be secured, and a responsible party
designated for the drafting of a formal master reallocation and funding agreement; and 2) the
agreement and resolution approving the permanent property tax transfer will be adopted by the
twelve jurisdictions (to be acted upon at a future Council meeting). It is anticipated that
conceptual approvals will be obtained during the month of February. Formal adoption of the
master agreement and local resolutions must be accomplished by April 1, 1998, to effectuate
permanent property tax transfers on July 1, 1998.
Recommendation
Staff recommends that the City Council indicate its support for the conceptual proposal to
transfer property tax from the Ventura Regional Sanitation District to the cities and the funding
plan for regional solid waste activities. Additionally, direct staff to communicate the Council's
support to the other involved jurisdictions.
C ADOCS \SOLID WST \VRSDTAX.AGD
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FEB- 3 -98 TUE 9;34 VEN CO SOLID WASTE MGMT FAX NO. 8056489233
ATTACHMENT ]
P. 05
Jurisdiction
CasarRil0 .~_ � �_~�
�+t8p Tax
067A tion
EstimatoeS
Receipts
1�0_�y.0�2'8
33
ate, 2 65
_ _.. _..,X. 4 99 2.5
- �5 982
157,607
360,185
5 160
14,627
2-43,686
15,662
COu17t
Fi llmare
_ __ _ _
O ...M ...., .r.._ . +._._.., ..�,....._ .. �__ �_. _
Oxnard
Port Huenente_...� ...__... _.. __ �.�_..... _...r ..
__...... �.._
.._,_.........._._.._,_.._
Paula Santa Paula °"�""
- �� 27
27428
353270
25675 221,162
—'�'" "'A '_ -ti_,_ ....__„__
Thou oaks
�_�
Ventura
119se
- -4s0
_
Su ......, ,.,�. � a r Tax ..._ —_
kr of a LSD ? r t
Former VR,0D 'fi t ds +fret tin (Deus �a�sxt)
....__�_.._.�.�..w
_-
1,393,988
.._. 51 484 484
516
�5�t�� 000
....�.. _
r� 988
Moor ark_..-
Simi -
Subt tal bet ghm9nt7P pert�_Tax�1._
,.._..w_ �. ,..... _ .. _...
51,434
193 566
245t000
1, 643198;Y
To al Protttrl_y Tax.___
ALL NUMBERS SUBnCT TO VERIFICATION AND
ADJUSTMENT BY THE COUNTY AUDI rOR-CONTROLLER
BASED OH 199697 ASSPSSPD VALUES
(A)CO3 7
FEB 03 198 09:35 8056489233 PAGE.05