ITEM:		ACTION ITEM
14.	CONSIDER AUTHORIZING STAFF TO CONTRACT WITH A PROPERTY TAX CONSULTANT FOR MEASURE J/LAFCO PROCESS
Meeting Date:			May 17, 2021	Budgeted:	No
From:			David J. Stoldt	Program/
			General Manager	Line Item No.:	N/A
Prepared By:			David J. Stoldt	Cost Estimate:	To Be Discussed
General Counsel Approval: N/A
Committee Recommendation: None
CEQA Compliance: Action does not constitute a project as defined by CEQA

SUMMARY:  The District’s proposal to LAFCO to activate latent powers does not supplant any local agency’s provision of services. However, the change from an investor-owned utility (Cal-Am) to a publicly owned utility (the District) has tax implications for the State, County, cities, special districts within Monterey County, and individual property owners within the various K-14 schools districts. As a publicly owned utility, the District would not be required to pay such taxes. In the analysis the District showed in its LAFCO application, the District assumed a proportionate share of impacts based on communication with the County Auditor-Controller’s office in January. Recently, we were informed that the calculations are more complex than the earlier direction provided.

Cal-Am properties are not subject to the California State Board of Equalization state-wide "unitary" assessed value process. Instead, the County Assessor locally assesses each Cal-Am owned property. As of 2019-20, Cal-Am was the County’s sixth largest property tax source. County auditors allocate property tax revenues from Cal-Am to all tax-receiving jurisdictions in proportion to their share of Cal-Am within the tax receiving jurisdiction. Such taxes would be “lost” to the jurisdictions if the District as owner no longer pays property taxes. Getting an accurate estimate of the impact is complex and LAFCO has recommended that the District contract with a property tax consultant to obtain a third-party analysis. At the time of the writing of this staff note, an estimate of cost was not yet obtained and will be discussed at the Board meeting.

RECOMMENDATION: It is recommended the Board authorize staff to contract a property tax consultant to assist with the Measure J/LAFCO application in an amount not to exceed $_____________ (to be discussed May 17, 2021.)

EXHIBIT

None

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