I. RECOMMENDATION:
Financial Services Director recommends the City Council adopt Resolution No. 4095 to continue an existing ad valorem pension property tax at a rate of $0.0720 per $100 of assessed property value for the purpose of raising revenue to fund the City's obligation to the pension and retirement fund for the City's public safety employees. The property tax will be continued at the same rate that was imposed in the 1982-83 fiscal year as permitted by Revenue and Taxation Code Section 96.31(a)(4).
II. BACKGROUND:
The ad valorem pension property tax is provided through the State of California Revenue and Taxation Code Section 96.31, paragraph (a)(4) which reads as follows:
"For the 1985-86 fiscal year and for each fiscal year thereafter, a jurisdiction shall not impose a property tax rate pursuant to subdivision (a) of section 96, unless it is imposed for one or more of the following purposes (4) to make payments in support of pension programs approved by the voters before July 1, 1978, provided that the local agency imposed the property tax rate in the 1982-83 fiscal year."
III. DISCUSSION:
IV. ALTERNATIVES:
V. FISCAL IMPACT:
For Fiscal Year 2021-2022, revenue received was $450,000 and retirement program costs were $545,068. This property tax funded an estimated 83% of retirement costs for public safety employees appropriated from the general fund for fiscal year 2021-2022. For Fiscal Year 2022-2023, projected revenue is $515,000 and estimated retirement program costs are $601,928. The property tax is expected to fund an estimated 86% of retirement costs for public safety employees appropriated from the general fund for fiscal year 2022-2023. | | |