For City Council Meeting [July 27, 2021]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Bob Chandler, Interim Finance Director
Title
Request City Council to Adopt Resolution No.7752 Setting the Fiscal Year 2021/2022 Tax Rate for PERS Retirement Cost at $0 (zero).
Body
BACKGROUND
Since 1958, the City of Rialto has had the authority to levy a voter approved tax rate on the property tax roll for the Public Employee Retirement System (PERS) expenditures. The City originally calculated the rate by dividing the projected costs associated with the PERS programs by the taxable assessed valuation within the City. Pursuant to subsequent State law, the rates levied cannot exceed whatever rate the City had in place for fiscal year 1982/83. The rate levied in 1982/83 was $0.1506 per $100 of assessed valuation. Utilizing fiscal year 2021 assessed valuations, this rate could generate revenues of approximately $16.5 Million in fiscal year 2022.
ANALYSIS/DISCUSSION
Upon voter approval of the Utility Users Tax on June 3, 2003, the City annually sets the PERS retirement tax levy at $0 (zero) for each $100 of assessed valuation. In addition, Rialto voters had the opportunity to vote on Measure RR on June 8, 2010. Although the Measure was advisory in nature, over 73% of the electorate voted “no” regarding reinstating the tax.
Attached is a resolution adopting this year’s tax rate of $0 (zero). The County of San Bernardino requires the resolution setting the tax rate before the County Auditor/Controller can update the tax rolls.
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA).
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsible manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report.
FINANCIAL IMPACT
Operating Budget Impact
Setting the tax rate at zero results in zero revenue generated from this tax. Other City revenues will cover ongoing General Fund costs for employee retirement system expenditures.
Capital Improvement Budget Impact
There is no impact to the Capital Improvement Budget.
Licensing
A business license is not required as part of this action.
RECOMMENDATION
Staff recommends that the City Council approve the attached Resolution setting the 2021/2022 Property Tax Rate for Retirement Cost at $0 (zero) per $100 of assessed valuation.