TO: Board of Supervisors
FROM: Tracy Schulze, Auditor-Controller
REPORT BY: Raymond Francis, Property Tax Accountant-Auditor
SUBJECT: Teeter Plan Implementation
RECOMMENDATION
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Adopt a Resolution to authorize the issuance of the fiscal year 2023-24 promissory note for delinquent secured taxes and the continuance of the Teeter Plan for fiscal year 2024-25. (Fiscal Impact: $1,705,498 Revenue, Various Funds, Budgeted, Mandatory)
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BACKGROUND
The Napa County Board of Supervisors adopted Resolution No. 93-79 on July 13, 1993 to approve and implement the alternative method of property tax apportionment known as the Teeter Plan. This item authorizes the promissory note for Fiscal Year 2023-24 and the continuance of the Teeter Plan for Fiscal Year 2024-25.
The Auditor Controller’s Office has calculated the Fiscal Year 2023-24 Teeter Buyout, in the amount of $8,115,935, to fund payment of the delinquent secured taxes. The required Teeter 2023-24 Note Reserve amount is $243,478. In accordance with Revenue and Taxation Code 4703.2, the minimum balance for the Tax Loss Reserve is $4,123,978.
The County’s portion of the Teeter Buyout consists of $1,325,204 for General Fund, $116,902 for Fire Non-Structural, $155,538 for the County Library, and $107,854 for Fire Protection. The County total is $1,705,498.
Please see the attached memo, resolution and promissory note for the ongoing implementation of the Teeter Plan.
Requested Action: Adoption of the Resolution authorizing the continuance of the Teeter Plan for fiscal year 2024-25, authorize the issuance of a promissory note to fund payment of the Fiscal Year 2023-24 delinquent secured taxes, and authorize the Chair and the Clerk of the Board to sign said promissory note.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it Mandatory or Discretionary? |
Mandatory |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
The appropriate buyout is calculated by the Auditor-Controller every year, in accordance with Revenue and Taxation Code 4702 et seq. |
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Consequences if not approved: |
In accordance with Revenue and Taxation Code 4702 et seq, the county will forfeit the ability to use the Teeter Method if not approved through resolution by October 15 of the relevant tax year. The General fund and affected taxing entities will not receive their portions of the Teeter Buyout, reducing flexibility in available cash resources. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.