Item 7 - Reso Renewing the Fire Protection Special Tax to be Collected on the Property Tax Roll for FY 20-21August 4, 2020, Item #7DATE: TO: FROM: CONTACT: SUBJECT: Summary: August 4, 2020 Honorable Mayor and Members of the City Council Aaron Beanan, Director of Finance ·~ Stacey Tang, Finance Manager gf (858) 668-4426 or stang@poway.org Resolution Renewing the Fire Protection Special Tax to be Collected on the Property Tax Roll for Fiscal Year 2020-21 Consideration of a resolution renewing the Fire Protection Special Tax to be collected on the property tax roll for Fiscal Year 2020-21. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution approving the collection of the Fire Protection Special Tax on the property tax roll for Fiscal Year 2020-21. Discussion: Annually, the City collects various taxes, fees, charges, and assessments on the tax roll by following the San Diego County Auditor/Controller's procedures established for such collections. The composition of the taxes, fees, charges, and assessments varies slightly from year to year as the time span for the assessments expires or new areas and charges are added. The taxes, fees, charges, and assessments include: Fire Protection Special Tax; Weed Abatement; Landscape Maintenance District Assessments; Nuisance Abatement; and collection for the repayment of Neighborhood Loans (Water Line Improvement Assessments, and Water and Sewer Improvement Assessments). To collect these items on the tax roll, it is necessary to adopt a resolution setting the charges and to authorize staff to transmit the information to the San Diego County Clerk of the Board of Supervisors and Auditor/Controller. The following narrative explains the Fire Protection Special Tax that is to be collected via the San Diego County tax roll. A parcel-specific listing of the amounts to be collected is on file in the City Clerk's Office. 1 of 3
August 4, 2020, Item #7Fire Protection Special Tax -Voters approved the Fire Protection Special Tax on June 17, 1997 which was codified as Poway Municipal Code Chapter 3.20 via Ordinance No. 476. As a special tax, the Fire Protection Special Tax can only be used to support fire protection services, including but not limited to, the acquisition of equipment and the payment of personnel costs. For Fiscal Year 2020-21, the Fire Department has assigned an estimated 209,967 points to parcels on the tax roll. The tax rate of $3.12 per point is unchanged from Fiscal Year 2019-20. The estimated Fire Protection Special Tax to be collected on the tax roll for Fiscal Year 2020-21 is $654,971. For tax roll purposes, a not-to-exceed amount of $700,000 is authorized by the Resolution (Attachment A). The higher amount is used in the Resolution to ensure that if further additions to the tax roll are made, for properties in the business park for example, the authorized amount will not be exceeded. The amount per parcel is rounded to the nearest even whole cent. Parcels that are not listed on the property tax roll will be billed directly by the City. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The Fire Protection Special Tax helps support fire protection services provided by the Fire Department. The Fire Department's total operating budget for Fiscal Year 2020-21 is $13,447,219 while the estimated Fire Protection Special Tax to be collected is $654,971, or 4.87 percent of the total budget. While the revenue can offset all fire protection services, this revenue specifically helps offsets fire prevention operating costs of $659,265 for Fiscal Year 2020-21. Expenses exceed the revenues collected through the Fire Protection Special Tax because it did not include a voter approved inflator when it was adopted in 1997. The Fire Protection Special Tax revenue estimate for Fiscal Year 1997-98 was $535,000 which helped support a Fiscal Year 1997-98 Fire Department budget of $3,193,860, or 16. 75 percent of the total budget. In order for taxes, fees, and assessments to be collected on the tax roll for Fiscal Year 2020-21, it is necessary for the City Council to adopt a resolution authorizing this action. Public Notification: A Notice of Public Hearing was published in the Poway News Chieftain on Thursday, July 23, 2020 and Thursday, July 30, 2020. Attachments: A. Resolution renewing the Fire Protection Special Tax to be collected on the property tax roll for Fiscal Year 2020-21. Reviewed/ Approved By: We~ Kaserman Assistant City Ma nag er 2 of 3 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
August 4, 2020, Item #7RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, RENEWING THE FIRE PROTECTION SPECIAL TAX TO BE COLLECTED ON THE PROPERTY TAX ROLLS FOR FISCAL YEAR 2020-21 WHEREAS, the residents of Poway approved a Fire Protection Special Tax in 1997; WHEREAS, the City Council of the City of Poway desires to have the Fire Protection Special Tax collected on the property tax roll; and WHEREAS, pursuant to Poway Municipal Code 3.20.070 the City Clerk fixed the public hearing date as August 4, 2020 to adopt the Fire Protection Special Tax; and WHEREAS, following duly given notice, the City Council of the City of Poway did hold such public hearing, receiving, considering and evaluating public comments. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: That the not-to-exceed amount of $700,000 shall be collected on the property tax roll in the form of a Fire Protection Special Tax of $3.12 per point as authorized by Ordinance No. 476 of the City of Poway. SECTION 2: That the City Clerk is instructed to forward a certified copy of this Resolution to the Clerk of the Board of Supervisors and the Auditor/Controller of the County of San Diego. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC Interim City Clerk 3 of 3 ATTACHMENT A