1996 AGN OCT I14 - Laserfiche WebLink

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r4l� CITY OF COLTON POTENTIAL IMPACTS OF PROPOSITION 218 COMMUNITY FACILITIES DISTRICTS The City has five Community Facilities Districts. The Community Facilities District special tax will not be affected by this proposition pursuant to sections 5 (b) and/or (d). Section 5(b) exempts existing assessments that were imposed pursuant to petition signed by the owners of the parcels at the time the assessment was initially imposed. Section 5(d) exempts any assessment that received majority voter approval from the voters in an election. LIGHTING AND LANDSCAPE MAINTENANCE DISTRICT This assessment will not be affected by this proposition in as much as assessments are a benefit assessment and are calculated and levied by zone. This is not a general tax. There is a specific direct benefit to the property owners being assessed in each zone. Therefore, this assessment is validated under section 4 of the proposition. NPDES ASSESSMENT This is a city-wide assessment. It does not provide a specific direct benefit to each assessed property owner. Therefore, this assessment constitutes a general tai. Section 2c of the proposition states that any general tax imposed without voter approval on or after January 1, 1995, shall continue to be imposed only if approved by a majority vote of the voters at a general election. Therefore, this assessment will need voter approval at the next general election, November 1998. The 1996-97 assessment totals $535,316. BUSINESS LICENSE TAX The Business License Tar is a general tax and has not been increased since 1991. The original tax was not voted on. Although it does not appear the original tax is subject to the proposition, the language in section 2c is unclear. If the original tax is affected, the impact would be an approximate $570,000 annual loss of revenue to the general fund. 1��►I.�1_i]�IL�ZKKi17:\�[�l'�11I:`:1 The transient occupancy tax is a general tae. The current rate is 10% and has not been increased since 1992. The original tax was not voted on. Although it does not appear the original tax is subject to the proposition, the language in section 2c is unclear. If the original tax is affected, the impact would be an approximate $114,500 annual loss of revenue to the general fund. FRANCHISE FEES The City provides Water, Sewer and Refuse to its residents. The General fund collects a 5% Franchise Fee based on these services. Sections 6(b)(1)(2) state that revenues derived from fees and charges shall not exceed the amount required to provide the property related service and shall not be used for any other purpose than that for which they were imposed. Normally, the franchise fee is considered a cost of doing business, but the wording in Sections 6(b)(1)(2) is unclear as to whether this covers franchise fees. The potential impact would be an approximate $352,000 �,, annual loss of revenue to the general fund.