REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  September  18, 2018
CATEGORY:  Consent - General Government-2.

SUBJECT:

Fiscal Year 2018/2019 Property Tax Rates

Supervisorial District No. :  ALL

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

STAFF REPORT APPROVED BY:  Brian Muir, Auditor-Controller

RECOMMENDATION

Adopt a resolution which approves the Fiscal Year 2018/2019 Countywide Tax Rate, Unitary Debt Service Rate, and the tax rates for bond sinking funds, voter-approved debt, and tax overrides.

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.

When calculating the rates for each bond, loan, voter approved debt, or tax override rate, the annual required funding is first reduced by all anticipated revenue sources such as unitary debt service, interest earned, and cash balance on hand.  The remaining amount needed to satisfy each bond payment, loan payment, voter approved debt payment, or tax override rate is then divided by the assessed valuation within the respective District to arrive at a rate.  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, any new information provided to the Auditor-Controller’s Office by Cascade Elementary School District and the Red Bluff Union High School District may necessitate the need to correctly reflect the bond rates calculated and approved by the respective boards.

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 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

A portion of the taxes collected will be apportioned to Shasta County.  The remainder is apportioned to other agencies, or is used to satisfy debt requirements.