REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  September  19, 2017
CATEGORY:  Consent - General Government-4.

SUBJECT:

Fiscal Year 2017/2018  Property Tax Rates

Supervisorial District No. :  ALL

DEPARTMENT CONTACT:  Brian Muir, Auditor-Controller, (530) 225-5541

STAFF REPORT APPROVED BY:  

RECOMMENDATION

Adopt a resolution regarding the Fiscal Year (FY) 2017-18 Tax Rates which: (1) Repeals Resolution No. 2017-080; and (2) approves the FY 2017-18 Tax Rates as submitted by the Auditor-Controller.

SUMMARY

Tax rates are computed by the Auditor-Controller’s Office in order to raise sufficient funds to cover current required payments on voter approved obligations.

The following are the steps used to calculate the rates for each bond, loan, voter approved debt or tax override: 1. The annual required funding is reduced by all other applicable revenue sources such as unitary debt service, interest earned, and cash balances; 2. The remaining current amount required for each bond, loan, voter approved debt or tax override is divided by the assessed valuation within the respective District; 3. This rate is then applied to the secured tax bill for the assessments within each District. 

While the appropriate steps were taken to compute the necessary rates, new information provided to the Auditor-Controller’s Office necessitates the change to the Cascade ESD and the Red Bluff Union High School District bond rates.

DISCUSSION

The approval of these tax rates is necessary in order to satisfy voter-approved liabilities in the form of bond sinking funds, debt service, or tax override obligations.

Also, the approval of the Countywide Tax Rate provides funding for the continued operation of the County and all other agencies, which are entitled to current tax receipts.

Annual approval of these rates by the Board of Supervisors is required pursuant to Government Code Section 29100.

ALTERNATIVES

The Board could decline to repeal the previous resolution and adopt the adjusted rates; however, that would result in the County violating Government Code section 29100, which requires that each county adopt rates to be levied on the secured property tax roll that will satisfy amounts necessary for voter approved indebtedness.

OTHER AGENCY INVOLVEMENT

The Tax Collector will collect the taxes.

The Auditor-Controller is the director for most of the debt service funds; however, some non-school agencies manage their own funds and are responsible for issuing the bond payments.

FINANCING

No financial impact on the General Fund.