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DATE: |
February 25, 2025 |
06 |
SUBJECT
Title
NOTICED PUBLIC HEARING:
APPROVING A TRANSFER OF PROPERTY TAX REVENUES FROM THE COUNTY OF SAN DIEGO AND INCREASING THE PROPERTY TAX ALLOCATIONS FOR THE VALLEY CENTER AND DEER SPRINGS FIRE PROTECTION DISTRICTS (DISTRICT: 5)
Body
OVERVIEW
On October 8, 2024 (9), the Board of Supervisors (Board) received several options for increasing financial resources to the Deer Springs Fire Protection District (DSFPD) and the Valley Center Fire Protection District (VCFPD) to provide for additional fire protection and emergency response services. The Board directed the Chief Administrative Officer to pursue an increase in the DSFPD and VCFPD property tax allocation to 6%, effective Fiscal Year 2025-26, reducing the funding in the existing Memorandum of Agreement with DSFPD, return to the Board with a resolution and take other necessary steps to complete a property tax reallocation.
The DSFPD Board of Directors and VCFPD Board of Directors held hearings on December 11, 2024, and December 19, 2024, respectively, to take action on how the districts intend to utilize the additional property tax funding. Today’s actions include the Board of Supervisors adopting resolutions that satisfy the specific requirements in California Government Code Section 99.02 for a transferring agency to increase the property tax allocations for Deer Springs and Valley Center from approximately 2% to 6% effective Fiscal Year 2025-26.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Find the adoption of the property resolutions of increased property tax allocations is not subject to the California Environmental Quality Act (CEQA) pursuant to state CEQA Guidelines Section 15378(b)(4) because the proposed actions involved government fiscal activities that do not involve any commitment to any specific project that may result in potentially significant physical impact on the environment.
2. Pursuant to Section 99.02(e) of the California Revenue and Taxation Code, hold a public hearing to consider the effect of the proposed transfers of property tax revenue allocable between the County of San Diego and the Deer Springs and Valley Center Fire Protection Districts on fees, charges, assessments, taxes, or other revenues.
3. Adopt the Resolution entitled: A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO REGARDING A TRANSFER OF PROPERTY TAX REVENUES FROM THE COUNTY OF SAN DIEGO AND INCREASING THE PROPERTY TAX ALLOCATION FOR THE DEER SPRINGS FIRE PROTECTION DISTRICT (Attachment A)
4. Adopt the Resolution entitled: A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO REGARDING A TRANSFER OF PROPERTY TAX REVENUES FROM THE COUNTY OF SAN DIEGO AND INCREASING THE PROPERTY TAX ALLOCATION FOR THE VALLEY CENTER FIRE PROTECTION DISTRICT (Attachment B)
EQUITY IMPACT STATEMENT
The Deer Springs and Valley Center Fire Protection Districts receive lower property tax allocations than all other fire protection districts in the region. Increasing the share of property taxes to these districts increases the financial resources to both agencies and allows them to maintain and/or increase services. Additional firefighting personnel improves service levels for all residents during an emergency.
SUSTAINABILITY IMPACT STATEMENT
Additional property tax revenue to the Deer Springs and Valley Center Fire Protection Districts supports resilience in both unincorporated communities and improves resources to chronically under-resourced fire protection districts.
FISCAL IMPACT
There is no fiscal impact in Fiscal Year 2024-25. The requested action from Recommendation 2 will result in a decrease of the County’s share of available General Purpose Revenue by approximately $1.3 million annually beginning in FY 2025-26, plus approximately 3.9% of the annual growth within the Deer Springs Fire Protection District. The requested action from Recommendation 3 will result in a decrease of the County’s share of available General Purpose Revenue by approximately $1.6 million annually beginning in FY 2025-26, plus approximately 3.8% of the annual growth within the Valley Center Fire Protection District. There will be no change in General Fund costs and no additional staff years.
BUSINESS IMPACT STATEMENT
N/A
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
In 1978, California voters approved Proposition 13 which significantly changed how property taxes are assessed in California. At the time the measure passed, independent special districts that received a portion of property tax revenue would continue receiving their allocation at the same rate as was in place at the time, which ranged from 6.4% to 32.3%. Fire protection districts established after 1978 had to negotiate with the County of San Diego (County) for a portion of the property tax allocation. The Deer Springs Fire Protection District (DSFPD) and Valley Center Fire Protection District (VCFPD) were established after Proposition 13 and their property tax allocations are approximately 2% of the revenue within their districts.
On July 16, 2024 (4), the Board of Supervisors (Board) directed the Chief Administrative Officer (CAO) to review the level of resources, funding, and sustainability of fire protection and emergency response services in the communities of Valley Center and Deer Springs, among other things. On October 8, 2024 (9), the Board received several options for increasing financial resources to DSFPD and VCFPD to provide for more equitable fire protection and emergency response services. The Board directed the CAO to pursue an increase in the DSFPD and VCFPD property tax allocation to 6% effective Fiscal Year 2025-26, reducing the funding in the existing Memorandum of Agreement with DSFPD, return to the Board with a resolution and take other necessary steps to complete a property tax reallocation.
California Government Code Section 99.02 establishes the process for transferring property tax revenue and adjustment of the property tax allocation between two local government agencies that have overlapping tax rate areas when jurisdictional boundaries are not changing. The transferring agency (County) and receiving agencies (DSFPD and VCFPD) are required to hold public hearings that determine the impact of the property tax adjustment on fees, charges, assessments, taxes, or other revenues. The hearing is to be noticed in one or more newspapers of general circulation within each affected agency. Once the hearing is completed, a resolution by the governing body is to be adopted.
On November 13, 2024, the DSFPD Board of Directors gave direction to staff to update the Operating Revenue and Expenses Forecast based on the Board of Supervisors action in October. On December 11, 2024, the DSFPD Board of Directors approved the updated forecast for Fiscal Years 2025-2026 through 2029-2030, which included construction of a permanent station 2 and fire apparatus replacement.
On December 19, 2024, the VCFPD Board of Directors approved a resolution on an adjusted increase in property tax allocation. The district intends to utilize this increase in property tax allocation to establish a third fire station, renovate current fire facilities, purchase new fire apparatus on a capital equipment replacement schedule, expand community risk reduction programs, enhance pay and benefits any additional operational expenditures, including an increase in daily staffing to adequately staff three fire stations.
Now that DSFPD and VCFPD have both held public hearings, the Board of Supervisors may move forward with satisfying the conditions of California Government Code Section 99.02. As part of today’s actions, the Board is holding a public hearing is to consider the effect of the proposed transfer on fees, charges, assessments, taxes, or other revenues. The Board is also being asked to adopt separate resolutions that satisfy the conditions in Section 99.02(c) and (f), which include the conditions that the transferring agency determines that revenues are available for this purpose, that the transfer will not result in any increase in the ratio between the amount of revenues of the transferring agency that are generated by regulatory licenses, use charges, user fees, or assessments and the amount of revenues of the transferring agency used to finance services provided by the transferring agency, and the transfer will not impair the ability of the transferring agency to provide existing services. The CAO has determined that the conditions for transferring property tax revenue and increasing ATI for the Deer Springs Fire Protection District and Valley Center Fire Protection District to six (6) percent as outlined in California Government Code Section 99.02(f), have been met. Should the Board approve the resolutions, the Auditor and Controller will adjust the property tax allocations for Deer Springs and Valley Center beginning in Fiscal Year 2025-26.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed actions support the Community Initiative of the County of San Diego’s 2025-2030 Strategic Plan by supporting communities with resources for fire protection and emergency response services.
Respectfully submitted,
ebony n. shelton
Chief Administrative Officer
ATTACHMENT(S)
Note: Due to the size of the attachments, the documents are available online through the Clerk of the Board's website at www.sandiegocounty.gov/content/sdc/cob/bosa.html. <http://www.sandiegocounty.gov/content/sdc/cob/bosa.html>
Attachment A- A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO REGARDING A TRANSFER OF PROPERTY TAX REVENUES FROM THE COUNTY OF SAN DIEGO AND INCREASING THE PROPERTY TAX ALLOCATION FOR THE DEER SPRINGS FIRE PROTECTION DISTRICT
Attachment B- A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO REGARDING A TRANSFER OF PROPERTY TAX REVENUES FROM THE COUNTY OF SAN DIEGO AND INCREASING THE PROPERTY TAX ALLOCATION FOR THE VALLEY CENTER FIRE PROTECTION DISTRICT
Attachment C-Minute Order for Deer Springs Fire Protection District Board of Directors Meeting for December 11, 2024
Attachment D-Minutes Order for Valley Center Fire Protection District Board of Directors Meeting for December 19, 2024
Attachment E-Notice of Public Hearing