COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Controller’s Office

DATE:

8/10/2004

BOARD MEETING DATE:

8/31/2004

TO:

Honorable Board of Supervisors

FROM:

Tom Huening, Controller

SUBJECT:

Collections of Special Assessments By Means of the Countywide Property Tax Bill.

Recommendation

Approve resolution authorizing agreements with the Town of Woodside, Menlo Park City School District, Ravenswood City School District, City of Pacifica, California Statewide Communities Development Authority, San Mateo County Mosquito Abatement District, City of Half Moon Bay, City Millbrae, and Half Moon Bay Fire Protection District for the collections of special assessment charges.

Background

As a service to cities and special districts the County collects certain special assessment charges and special taxes through the countywide property tax bill. The Board of Supervisors has established the following schedule of charges for this service.

$1.25 per transactions if submitted in electronic format (diskette, CD, magnetic tape, or electronic mail), unless fees collected are 5%, or more of total charges in which case the rate will remain at $.30 per transaction.

$1.75 per transactions if submitted in hardcopy.

$25 per transaction for each correction after the tax roll has been prepared.

Any city or special district whose fees amount to $10.00 or less will be waived due to its immaterial fiscal impact.

Discussion

According to California Code 50077(b), if the County on behalf of the city, or district collects special taxes, the County may deduct its reasonable costs incurred for the services before remittal of the balance to the city or special district. An analysis of the County’s cost, performed in March of 1993, indicated that it costs $1.25 per transaction for special taxes.

Each of the agencies listed above have provided resolutions from their governing boards, establishing the special assessment/charge and indemnified the county against claims that may arise from the placement of those charges on the tax bills:

Vision Alignment

This resolution supports the Vision 2010 Commitment that says government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

Fiscal Impact

It is estimated that $65,500 will be generated from transaction fee collectable under the contracts, to offset some of the County’s property tax administration cost. Under the law, property tax administration cost allocable to school districts cannot be recovered nor can it be distributed to other taxing jurisdictions.