REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Dahle Bulosan, Chief Financial Officer
Subject:
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Adopt Resolution No. 2020-31 authorizing the City to Levy the Annual Retirement Property Tax for Fiscal Year 2020/21 to pay for Pre-1978 Employee Retirement Benefit Levels
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Statement of Issue:
The retirement property tax has been levied each year since 1966. The retirement property tax is collected on all real property in the City of Huntington Beach to recover costs related to pre-1978 public employee retirement benefit levels. On July 16, 2012, the City Council adopted Chapter 3.07 of the Municipal Code, the Retirement Tax Cap. The Retirement Tax Cap states that the tax rate "shall be set at the rate adopted for Fiscal Year 2012/13, which is $0.01500 per $100 of assessed valuation."
Financial Impact:
Pursuant to Chapter 3.07 of the Municipal Code, the Proposed Budget for Fiscal Year 2020/21 assumes the continuation of the Retirement Tax Cap of $0.01500 per $100 of assessed value. As of the most recent audited financial statements, this tax rate resulted in $6.4 million in General Fund revenue in Fiscal Year 2018/19. This recurring revenue source is included in the Proposed FY 2020/21 Budget; hence, any reductions in the tax rate would potentially result in proportionate ongoing General Fund budget reductions.
Recommended Action:
recommendation
Adopt Resolution No. 2020-31, "A Resolution of the City Council of the City of Huntington Beach Levying a Retirement Property Tax for Fiscal Year 2020/2021 to Pay for Pre-1978 Employee Retirement Benefits" of $0.01500 per $100 of assessed valuation. The tax rate of $0.01500 would continue the tax rate included in the current Fiscal Year 2019/20 Adopted Budget.
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Alternative Action(s):
Do not approve the recommended action, and direct staff accordingly.
Analysis:
On July 16, 2012, the City Council adopted a...
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