HomeMy WebLinkAboutAgenda Statement 1972/08/08 Item 07 Ordinance 1411
August 15, 1972 C.i.t�t A�txpxney; ' PCekee p2epa.te .tke �teeeaaan! (neaaku.t�.u�t) u:c ( oa•d.tnance) .
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Staff Commentary on nqenda Item No. �7
CHULA VISTA CITY COUNCIL MEETING OF August 15, 1972 �. I� II �, , ��
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Item Title: Ordinance - Setting tax rate for fiscal year 1972-73 - First reading
/ and adoption
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Initiated by : City Manager
Attached is a copy of Resolution [ ] Ordinance [x ] Agreement [ ] Plat_ [ ]
3ac;:ground:
A tax rate increase of one cent is proposed calling for a total City tax rate of
$1.46 per 5100 of assessed valuation. The provided ordinar.ce indicates the rate
breakdown by fund.
This recommendation is predicated on the following:
1. Reco:mnend deferral of the purchase of the Bookmobile for one year • �
(approximate taac rate impact - two cents)
2. Provide a reserve level adequate to cover "lean period" for cash flow
demands, $777,530 (est. ) .
3. Provide for emergency operating reserve purposes. Five per cent of the
� 1972-73 expenditure budget for the funds tied to direct City force
activities, 5344,830.
4. Provide a reserve of $66,870 for seed money purposes, and later aopropriation,
for the Parks-in-Cities Grants programs (Otay and Larkhaven) .
5. Provide no surplus for unscheduled and/or non-specific projects. Unless an
unbudgeted funding demand is of emergency nature, deferral until the 1973-74
budget would be the regular disposition.
No provision is included to acquire the Post Office or to cover a cost
increase via the San Diego Transit Corporation agreement.
It is noted tha�.;since Council's Preliminary Budget deliberations occurred, the hoped- .
for "higher" than �estimated assessed valuation did not materialize; in fact, the state
of our tax base came in lower than calculated, which accounts for more than one cent
on the tax rate. Also, the court decision affecting the Telephone Company affected
our utility tax revenue estimate by almost another equivalent cent on the tax rate.
, Finally, SB 9 (if signed by the Governor) reduces the revenue subject to SB 325
by about $30,000, or an equivalent one and one-half cents on the tax rate. These
reversals were significaatly minimized by a higher than expected carryover from
fiscal 1971-72 operating budgets.
' CONTINUED ON SUPPLEMENTAL PAGE
See EXHIBITS [X ] rio. 1
Financial A P P R 0 V E D � S[S ng�r
Statement : As in background, above. by the /2f�TF
City Council
Commission-BOard of
Reco*nmendation : N.A. CY11118 V18t3, California �
Dated ___ /
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Department i?ead
Recommendat�_on : Director of Finance recommends adoption of $1.46 tax rate.
^ity htanager
t2ecortmendat?on : That tax rate of $1.46 per 5100 assessed valuation be adopted.
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A 113 (Send o�ie copl .to : Adm� ii.�a.t.2n.t�oit; C�.z� CPe-th; C�.•t� A.t.ton�ie�;. Dep.t,
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SUPPLEMENTAL PAGE NO. 1. ITEM NO. 7
, We note that the proposed one cent tax rate increase also provides for the new
City share of contribution to C.P.O. for S27,360.
My recommer.dation is r.ot intended to ignore earlier Council budget direction on
the Bookmobile, but merely to state what course of action I feel appropriate
to minimize a tax rate increase.
If Council elects not to accept this proposal, dollar changes equate by
$19,400 (approxinate) to one cent on the tax rate.
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August 7, 1972 ti 9
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To:� • Honorable Mayor and City Council
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From: John Thomson, City Manager�-{�
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Subject: 1972-73 Assessed Valuations - Revenue Impact
Rather than realize good news on assessed valuations for fiscal
1972-73 , the news was bad. The preliminary estimate of assessed
valuations for the City was $197 , 670, 000. The final figure as
- reported by the Director of Finance is $196 , 182 ,051, or a de-
crease of $1, 487 , 949.
Assume a $1. 50 tax rate and the decrease impact is $22, 319 less
property tax revenue than expected for 1972-73.
The last quarterly report on sales tax showed only a 5ti growth
pattern, too low to realistically look for any windfall there
to offset the property tax revenue picture. The 58 figure was
the lowest of all cities in the County. '
JRT:abc /
cc: City Clerk
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