HomeMy WebLinkAbout4.05 PtyTxConsultCoren&Cone
~
,"
.
.
CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: April 24, 1995
SUBJECT
Property Tax Consultant / Audit Services Agreement With HdL
Coren & Cone
~ (Prepared by: Paul S. Rankin, Assistant City Manager)
EXHIBITS ATTACHED
/1.
Proposed Agreement
,/.. 2. Scope of Services Property Tax Management
/
/3.
RECOMMENDATION rl
California Property Tax Summary Prepared By HdL
Companies
Authorize the Mayor to execute the agreement substantially in the
form attached.
FINANCIAL STATEMENT: 1994/95 Services are estimated at $1,375. Annual expense beginning
1995/96 are estimated at $5,500 per year. In the event that the firm identifies misallocations of taxes the
new revenues could offset some of the initial cost. Adequate funds are available in the 1994/95 budget. In
the event that any misallocations are identified the Contractor will receive a one-time payment equal to
25% of the new revenue generated for the City. This would not occur until Fiscal Year 1996/97.
DESCRIPTION The City of Dublin has contracted with HdL to provide sales tax
reporting and audit services. The service has been a valuable tool to obtain current economic data as
well as assuring that retail sales tax transactions are properly reported. This has been very cost effective
given the limited number of personnel available in the City Finance Department. The contract
Consultant also has the specialized knowledge required to identify misallocations and work with the State
Board of Equalization on correcting the error. HdL has a related Company which offers similar services
for Property Tax Revenues.
Staff has evaluated the specific aspects of the services offered which would be of most interest to the City
of Dublin. Included in the basic services will be an analysis of potential Allocation Errors. The City will
also obtain reporting of the sales transactions occurring and the estimated Documentary Transfer Tax
owed. The City is currently provided with no supporting data from Alameda County, which would
provide verification that the Transfer Tax paid relates correctly to sales within the City.
The City has noted that the growth in the property tax revenue has slowed as real estate markets have
changed and some owners have requested reassessments of their property value. At the same time the
County has experienced significant financial constraints which may impact the staffing available in both
the tax collector and the assessor functions. Given the leveling off of this revenue source and the fact that
Property Taxes represent approximately 28% of the City General Fund Revenue, it is prudent for the
City to obtain independent review that the allocations are correct. It ~hould be noted that at this time
there are no known discrepancies in the amounts paid by the County of Alameda. However, this
statement must be made without having access to adequate documentation to verify accuracy. In the
event that an error is identified and it would have affected prior year revenues the Consultant will also
seek correction of any misallocated revenues within the time period allowed by law.
Compensation to the Consultant for work associated with the identification of misallocations is based
upon 25% of any new revenue generated for the City. If the Consultant does not identify any errors the
City will not owe any fees for these services. The City would not make a payment for these services until
ITEM NO. !1- .Ij
COPIES TO: Paula Cone, HdL Coren & Cone
CITY CLERK
FILE D6loloH31ol
.
.
the City receives the revenue. The Consultant anticipates proceeding with the audit work as soon as
authorization is granted. The County Assessor typically imposes a correction cut off date of December
31st. Therefore, any corrections which are identified would not affect City revenues until Fiscal Year
1996/97. The City would not pay the audit compensation until that date.
As described in Exhibits 2 and 3 there are numerous uses for the data available from the County Assessor
if it is formatted in the correct manner. One difficulty experienced by City Staff is that the reports
available from Alameda County are extremely limited and they are not very useful. HdL Coren & Cone
would provide Staff with summarized information in a useable format. The firm will also be able to
report to the City data on a Project Area basis, which will be helpful in revIewing Eastern Dublin Specific
Plan Area revenues as well estimates of projected revenue on any annexation or development proposals.
The data will be helpful with Planning and Economic Development activities. The Planning Department
currently subscribes to a data service which produces property sales information in bound books. The
HdL service will be more useful as it will be limited to Dublin and will be in a computer format. The firm
will also provide quarterly reports which will summarize key changes in the Assessor's records. Property
owner information available in the data base will also allow the Planning Department to better serve
Planning Permit applicants, who must provide mailing labels for properties within 300 feet. Currently
the applicant must find their own source such as a title company since the City does not have the
information in any form other than microfiche. Staff also believe that the agreement would provide
consultation on unique property tax issues faced by the City. For example, the City has significant land
which is exempt from property taxes at Camp Parks but may have other uses subject to a possessory
interest tax. It is a benefit to have access to professionals who understand the technical issues involved
with Property Tax Administration and have presented information from a municipal perspective.
Staff recommends that the City Council authorize the Mayor to execute the Agreement (Exhibit 1)
substantially in the form attached and for Staff to proceed with the Consultant to prepare the necessary
reports.
APR-20-95 THU 9:15
HdL COMPANIES
.
FAX NO. 9098617726
.
P. 02
This Agreement is made and entered into as of the ---.lS.I day of APRIL , 1995, by
and between the CITY OF DUBLIN a municipal corporation hereinafter called CITY, and
HdL Coren & Cone, a California Corporation hereinafter called CONTRACTOR.
RECITALS
WHEREAS, property tax revenues can be verified and potentially increased through a
system of continuous monitoring, identification and reconciliation to Los Angeles County
(hereinafter called County) records; and
WHEREAS, an effective program of property tax management will assist the CITY in
fiscal, economic and community development planning; and
WHEREAS, CITY desires the property tax data based reports and data analysis required
to effectively manage the CITY's property tax base and identify and recover revenues
misallocated within the CITY, redevelopment project area(s). or to other jurisdlctions;and
WHEREAS, CONTRACTOR has the programs, equipment. data and personnel required
to deliver the property tax services referenced herein~
NOW, THEREFORE, CITY and CONTRACTOR, for the consideration hereinafter
described, mutually agree as follows:
DEFINITIONS
Agency: Speci~ Taxing Entity
Data Base: A computerized listing of property tax. parcels and infonnation
provided by County
Property Tax Roll: The assessed values of parcels on the lien date as reported by
County.
Project Area: A redevelopment or otherwise designated project area
TRA: Tax Rate Area
~)(k~~,\- .1.
APR-20-95 THU 9:16
HdL COMPANIES
.
FAX NO. 9098611126
.
p, UJ
SERVICES
The CONTRACTOR shall perform the following services:
A. ANNUALLY, after the Property Tax Roll is available:
1, CONTRACTOR shall establish a Data Base for CITY and install on
a personal computer or network
2. Utilizing the Data Base, CONTRACTOR will provide
a. A listing of the major property owners in the CITY and
each Project Area, including the assessed value of their
property
b. A listing of the major property tax payers, including an
estimate of the property taxes
c. A listing of property tax transfers which occurred since the
prior lien date,
d. A listing of parcels that have not changed ownership since
the enactment of Proposition XDIA
e. A comparison of property within the CITY and each Project
Area by county~use code designation
f. A listing by parcel of new construction activity utilizing city
building department data, including building permits with
assessor parcel numbers and project completion dates, to
identify non-residential parcels with new construction
activity and to provide reports for use in the CITY's
preparation of Proposition 4 and 111 State Appropriation
Limit c~culations.
g. A listing of multiple owned parcels
h. A listing of absentee owner parcels
i. Calculate an estimate of property ta; revenue and tax
increment anticipated to be received for the t1scal year by
the CITY and the Redevelopment Agency, respectively.
This estimate is based upon the initial information provided
by tpe County and is subject to modification. This estimate
APR-20-95 THU 9:16
HdL COMPANIES
.
FAX NO. 909811ii26
P. 04
shall not be used to secure the indebtedness of the CITY or
the Redevelopment Agency. To the extent infonnarion is
provided by the CITY, CONTRActOR shall provide a
llFlow of Fundsll as an extension of the tax increment
projection. The.Flow of Funds will reflect tax increment
revenues diverted for low and moderate income housing
set-asides, Fine Arts set~asides, tax-sharing agreements with
other taxing entities and developer tax increment guarantees
j. For each Project Area, CONTRACTOR shall provide
Project Area base year values by TRA
k. Upon written request, analyses based on geo areas
designated by the CITY to include assessed valuations and
square footage computations for use in redevelopment and
community development planning.
B. QUARTERLY
1. A listing of property tax appeals filed on properties in the CITY and
Project Areas (to the extent data is available in County.)
2. A listing of property transfers that have occurred since the last
report.
3, An update of computer program parcel transfer data.
C. ANALYSIS AND IDENTIFICATION OF MISALLOCATION ERRORS
1. In the first year of this Agreement, and as necessary thereafter but
not less than once every three years, CONfRACTOR shall conduct
an analysis to identify and verify. in both the CITY and Project
Areas, parcels on the secured Property Tax Roll which are not
properly attributed to a CITY or Project Area TRA, and will
provide the correct TRA designation to the proper County agency.
Typical errors include parcels assigned to incorrect TRAs within
the CITY or an adjacent city, TRAs allocated to wrong taxing
agencies and parcels missing from Project Areas.
2. CONTRACTOR shall reconcile the annual auditor-controller
assessed valuations report to the assessor's lien date rolls and
identify discrepancies.
APR-20-95 THU 9:17
HdL COMPANIES
.
FAX NO. 9098~26
P. 05
3. CONTRACfOR shall review pm-eels on the unsecured Property
Tax Roll to identify inconsistencies such as value variations. values
being reported to a mailing address rather than the situs address,
and errors involving TRAs.
4, Property transfers and new construction completions will be
tracked to determine whether reassessment is performed within a
reasonable time. The CITY will be notified of parcels which bave
failed to be reassessed.
D. ON-GOING CONSULTATION ~ During the term oftrus Agreement,
CONTRACTOR will serve as the CITY's resource staff on questions
relating to property tax and assist in estimating current year propeny tax
revenues for proposed Project Areas. On-going consultation would
include, but not be limited to, inquiries resolved through use of the City's
data base, and advice and consultation on the City's preparation of required
redevelopment reports, such as statements of indebtedness, annual reports,
and low and moderate income housing requirements.
E. OPTIONAL SERVICES ~ The following services are available on a time
and materials basis:
1. Generation of specialized data-based reports which would require
additional programming or the purchase of additional data not
necessary to carry out services outlined'in Sections A, Bl and C.
2. Any research with County agencies for which CONTRACTOR
does not have a current database.
3. Redevelopment Financial Services including but not limited to:
a. Tax Increment Projections
b. Feasibility Studies
c. Agency or Project Area cash flows
d. Low and moderate income housing set~aside calculations.
findings and consultations
e. Fiscal impact studies
f. Legislative analysis
APR-20-95 THU 9:17
HdL COMPANIES
.
FAX NO. 9098617726
.
P. 06
g. Redevelopment plan adoption and amendment, financial
feasibility studies and fiscal review
F. BOND SERVICES - Bond services are available for a fIxed feel including
1. Tax Allocation Bonds fIScal consultant reports
2. Mello-Roos Special Tax studies
3. Independent redevelopment and financial consultant reports, such
as escrow release reports and additional bond tests.
CONSIDERATION.
A. CONTRACTOR shall provide the services described in Services ~ Sections
A, B. C and D above, for an annual fee of $5,500 invoiced quarterly.
B. Contractor shall be paid 25% of misallocated revenue identified in the
audit. Contractor shall separate and support said reallocation and provide
City with an itemized invoice showing all amounts due as a result of
revenue recovery or re2l1oc~on. City eh311 pay Q.udit feeo nfter
Contractor's submittal of evidence that corrections have been made by the
appropriate agency. Payment to Contractor shall be made after City
receives its f'ust remittance advice during the fiscal year for which the
correction applies.
C. Fees for Optional Services as outlined in Services ~ Section E above shall
be billed at the following hourly rates:
Principal
Senior Associate
Associate
Senior Analyst
Analyst
$135 per hour
$100 per hour
$ 85 per hour
$ 70 per hour
$ 5S per hour
Hourly rates are exclusive of expenses, which are billed at 1.15 times actual
incurred costs.
D. Fees for Bond Services will be determined depending upoQ the complexity
of the bond issue and the time available for completion of the task. The
following are the ranges of price: '
1. Tax Allocation Bonds $10,000.. 20.000
APR-20-95 THU 9:18
HdL COMPANIES
.'
FAX NO. 9098617726
.
P. 07
2. Special Tax Reports $7 ,500 ~ 20,000
3.
Independent Consultant Reports
$2,500 - 7,500
E. Except for fees billed under Section C above, all sums billed shall
constitute full reimbursement to CONTRACTOR for all direct and indirect
expenses incurred by CONTRACTOR in performing analyses and audits
including the salaries of CONTRACToR's employees, and travel expenses
connected with contacting appropriate County department representatives.
CITY l\1A TERIALS AND SUPPORT
CITY agrees to provide the following information:
A. Current CITY map and zoning map;
B. A copy of reports received by the CITY annually from the Auditor-
Controller's office detailing Assessed Values (Secured, Unsecured and
Utilities), as well as Unitary Values for reconciliation analysis;
C. Parcel listing and maps of CITY or redevelopment parcel annexations since
the lien date roll;
D. Parcel listing and maps of redevelopment Project Areas;
E. A listing of completed new construction projects with Assessor's mapbook,
page and parcel (APN) numbers for proper identification and tracking for
two years prior to the date of the agreement. If the data does not include
the APN information, CONTRACTOR will research this infonnation at an
additional cost; based on the schedule detailed in Consideration Section
"C".
F. A listing of the CITY levied assessment districts and direct assessments;
G. Redevelopment agreements including current redevelopment plans, fiscal
agreements, development agreements, and all other information critical to
understanding the obligations of parties involved in projects within the
Agency.
UNDEPENDENTCONTRACTOR
CONTRACTOR shall perform the services hereunder as an independent CONTRACfOR
and shall furnish such services in his own manner and method, and under no circwnstances
,
APR-20-95 THU 9:19
HdL COMPANIES
.
FAX NO. 9098~26
P. 08
or conditions shall any agent, servant, or employee of CONTRACTOR be considered as
an employee of CITY.
NON"ASSIGNl\fENT
This Agreement is not assignable either in whole or in part by CONTRACTOR without
the written consent of CITY.
ATTORNEY'S FEES
In the event a legal action is commenced to enforce any of the provisions of this
Agreement, the prevailing party shall be entitled to recover its costs and reasonable
attorney's fees.
NON"DISCLOSURE CLAUSE
In perfonning its duties under this agreement, CONTRACfOR will produce reportS,
technical information and other compilations of data to CITY. These reports, technical
information and compilations of data are derived by CONfRACTOR using
methodologies I formulae, programs, techniques and other processes designed and
developed by CONTRActOR at a substantial expense. CONTRACfOR'S reports,
technical infonnationl compilations of data, methodologies, formulae, programs.
teclutiques and other processes designed and developed by CONTRAcrOR shall be
referred to as Proprietary Information. CONTRACTOR'S Proprietary Infonnation is not
generally known by the entities with which CONTRACfOR competes.
CONTRACTOR desires to protect its proprietary Information. Accordingly, CITY agrees
that neither it nor any of its employees, agents, independent contractors or other persons
or organizations over which it has control, will at any time during or after the term of this
Agreement, directly or indirectly use any of CONTRAcrOR~S Proprietary fuformation
for any purpose not associatec;l with CONTRACTOR'S activities. Further. CITY agrees
that it nor any of its employees, agents. independent contractors or other persons or
organizations over which it has control, will disseminate or disclose any of
CONTRACTOR'S Proprietary Information to any person or organization not connected
with CONTRACTOR1 without the express written consent of CONTRACTOR. The
CITY also agrees that it will undertaRe all necessary and appropriate steps to maintain the
proprietary nature of CONTRACTOR'S Proprietary Infonnatlon. NOTHING IN THIS SECTION
SHALL PRECLUDE THE CITY FROM THE REL~ASE DF DATA AS REQUIRED TO DO SO BY LAW.
CONTRACTOR SHALL BE ADVISED OF ANY SUCH REQUESTS FOR PUBLIC INFORMATION.
APR-20-95 THU 9:19
HdL COMPANIES
.
FAX NO. 9098~726
p, 09
GOVERNING LAW
The laws of the State of California shall govern the rights, obligations, duties and liabilities
of the parties to this Agreement and shall also govern the interpretation of this Agreement.
TERMINATION
,
This Agreement may be terminated by either party giving 30 days written notice to the
other of such termination and specifying the effective date thereof. Upon the presentation
of sllch notice, CONTRACTOR may continue to work through the date of termination.
Upon tennination as provided herein, CONTRACTOR shall be paid the value of all tax
analysis and reporting work performed less payments previously made by CITY. In
ascertaining the value of the work perfonned up to the date of tennination, consideration
shall be given to amounts due for any unpaid invoices, and to parcels identified by
CONTRACTOR which may result in increased or reallocated revenues after the
termination of this Agreement. After CITY receives said tax payments, CONTRACTOR
shall be paid for the percentage work as previously authorized and satisfactorily perfonned
at the times provided in the preceding section entitled "Consideration".
INDEl\1NIFICATION
CONTRACTOR hereby agrees to, and shall hold CITY, its elective and appointive
boards, officers, agents and employees, hannless from any liability for damage or claims
for damage for personal injury, including death, as well as from claims for breach of
confidentiality or property damage which "may arise from CONTRACTOR'S willful Or
negligent acts, errors or omissions or those of its employees or agents. CONTRACTOR
agrees to and shall defend CITY and its elective and appointive boards, officers, agents
and employees from any suits Or actions at law Or in equity for damages caused, Or alleged
to have been caused, by reason of any of the aforesaid willful or negligent acts, errors or
omissions. CITY hereby agrees to, and shall hold CONTRACTOR, its officers, agents
and employees, hannless from any liability for damage or claims for damage for personal
injury, including death as well as from claims for breach of confidentiality or property
damage which may arise from CITYIS negligent acts, errors or omissions under this
Agreement. CITY agrees to and shall defend CONTRACTOR and its officers, agents and
employees from any suits or actions at law or in equity for"damage caused, or alleged to
have been caused, by reason of any of the aforesaid negligent acts, ~rrot's Or omissions.
APR-20-95 THU 9:20
HdL COMPANIES
.
FAX NO. 9098li1i26
NOTICE
All notices required by this Agreement shall be given to CITY and CONTRACTOR in
writing, by personal delivery or first class mail postage prepaid, addressed as follows:
City: City of Dublin
100 Civic Plaza
P. O. Box 2340
Dublin, California 94568
Contractor: HelL COREN & CONE
1340 Valley Vista Drive, Suite 200
Diamond Bar, California 91765
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
on the date first above written by their respective officers duly authorized in that behalf.
CITY OF DUBLIN
~ayor GUY s. HOUSTON
ATTEST:
City Clerk KAY KECK
CONTRACTOR:
HdL COREN & CONE
A California Corporation
APPROVED AS TO FORM:
City Attorney
p, 10
SCOPE OF SERVICES .
MANAGEMENT
1. Fevenlle Recovery
HdL Coren and Cone will perform an analysis to identify and verify, in both the City and within
Redevelopment Project Areas, parcels which are mlsassigned by Tax Rate Area and we will
further supply the correct TRA designation. This review will be completed for the city by
utilizing County Assessor Tapes, real estate data from commercial sources, microfiche map
research, redevelopment documents and field audits.
HdL Coren and Cone will reconcile the annual Auditor/Controller Assessed Valuations Report
will be furnished with a breakdown of assessed values city-wide by both Taxing Agency and Tax
Rate Area. Redevelopment Project Areas will be reviewed independently and, after factoring for
base year values, net valuations and tax increment projections will be provided.
We will identify parcels on the unsecured roll which have been mis-coded and will identify
missing parcels, missing tax rate areas, or misallocations where the 'unsecured value for a parcel
is not being received by the City or RDA. Notification of inconsistencies and requests for
corrective action will be made to the appropriate county agency.
Property transfers and building completions will be tracked and parcels flagged for review to
verify that reaSSessment by the Assessor's office is performed within a reasonable time frame.
Building completions from the prior two (2) years will be matched with parcels to determine if
reassessment has been performed, with the provision that building records, with assessor's parcel
numbers, be furnished by the city. The city will be notified of parcels which have failed to be
reassessed.
2. t\nalvtical Services and Data Base Development
Economic DeveJooment Based Reoorts
Trend' analysis of property transfers to assist staff in tracking turn-over patterns. Data
will be provided by location, llse type, saleA price and with data pertinent to the
transferred parcel.
Listings of multiple-owned parcels by both single owners and/or by owner grouping with
use type, tax rate area, a."lsessed value and taxes levied.
Infonnation regarding parcels which are coded vacant on the county rolls as well as
listings of tax exempt parcels which bave no tax levies will be provided for City review,
Repolts detailing the parcels remaining in the Pre-Prop 13 assessment pool, (parcels with
no activity since 1978) with the annual percentage turn-over of the. parcels in this pool A
by~product of this analysis will be the development of a growing historical data base of
the status of Pre~Prop 13 parcels.
Parcel listings developed by assessed value and by taxes levied for the largest tax payers
and for property owners wIth the largest collective number of parcels for use in economic
development planning.
Reports specific to parcel information such as building square footage by use type, year
built, parcels with pools, parcels with mobile home designations and other characteristic
data Can be prepared. .
H~ Coren and Cone can assemble City parcels in any area designated by staff to create
an Independent geographic database for review and analysis of values, tax revenues use
code data, top owner and tax payer information in addition to comparing one n~wly
created area to another. ,
-.._--
t.~ t\ ~Q. IT ;;t
.
Financial Planni,ng Based Revorts
Allalysis and reconciliation of County Auditor Controller Assessed Valuation reports and
Remittance Advices to assist with financial tracking and validation of propelty values
and tax receipts.
.
Computed value of the City's share of the 1 % General Tax Levy and of Voter Improved
Indebtedness by tax rate area to verify short-falls in county reporting and assist with
budget projections.
A listing of non-owner occupied parcels (absentee~owned) for use in impro~ing city
business license revenue collection for residential rental units and/or commercIal rental
space.
Assistance with and verification of non~resldential new constuction duta for USe in
preparation of Prop 4 and 111 State Appropriation Limit calculations.
plann,iug and Building Deomtment Based Report~
Tracking of parcel reassessments which are due as a result of the completion of new
construction and a review of building department infofmation will be performed to
ensure a more timely posting of building changes.
Listings of non-owner occupied parcels prepared by USe t)l~, ta}l rute area, assessed
value, and taxes levies fOf planning infonnation.
Where data is available and reliable, parcel listings will be developed with building and
planning data including various comparative analyses incorporating lot size square
footage, building area, and land/improvement/total assessed valuation comparisons will
be provided. Report specific information designated by the city will be solicited in the
development of these reports.
Redese100ment Project Areas
Review of Redevelopment Areas, independent of the city-at-Iarge analysis, including
parcel-by.parcel verification to ensure accuracy in the county's coding of property within
each redevelopment project area,
Redevelopment Area parcel examination will be performed to verify secured. unsecured
and SBE stated values and to identify missing values or parcels. The City will be
notified of corrective actionss to be made On behalf of the RDA.
Historical tracking of taxable worth, base year values, annual percentage change and the
calculation of tax increment are a part of this featured service.
Executive Svnunarv Reoot:t~
~unun.ary information includin& ~omprehensive listing os se?ured proterty tax data
tnclud1n~, top tax payer summanes, top assessed value summanes, parcel characteristic
information. multiple owner listings, parcel listings by use type, absentee OWners by use
type, and unsecured parcel Owner information will also be available.
3. Ongoina SUDPort
During the teml of ~he contract, we will serve as the city"s resource staff on questions relating to
property tax. This mcludes being "on~ca1I" to assist in estimating property tax. issues related to
proposed redevelopment project areas,.
-- -.- ..........
.
.
Revenue J\tll.1llugelllcllL fiJI' Locul (;ovcI'IIlllenL
Hinderliter. de Llamas & Associates
HdL Coren & Cone
CALIFORNIA PROPERTY TAX SUMMARY
Much of the law pertaining to taxation of property is prescribed in Article XIII of the state
Constitution and in Article XIIIA which was adopted by the voters as Proposition 13 in 1978. All
real and tangible personal property in the state of California is generally subject to taxation in
proportion to its value. Proposition 13 limited the tax on property to 1 percent of its taxable value
plus the rate necessary to payoff yearly amounts due on voter approved indebtedness.
Most real property taxes are .secured. which means they constitute a lien on real property owned
by the taxpayer which cO.uld be sold to satisfy delinquent tax payments. Real property includes
land, improvements, mines and minerals rights and possessory interests.
Personal property of taxpayers who do not own real property in the county on which a lien can be
placed, are not secured by real property and is considered to be .unsecured. property. Examples
of unsecured personal property include machinery and equipment, office furniture and tools and
supplies. Airplanes and boats are also on the unsecured roll.
Public utilities are assessed by the' State Board of Equalization because a utility often spans more
than one county. Properties assessed by the State include all property owned or used by railroads,
gas, electric, telephone companies, pnvately owned intercounty pipelines, canals, ditches and
aqueducts and certain other public utilities. These State assessed properties are reported as a
~unitary. value to counties and are distributed to cities based on each city's property tax share of
the countY, total.
Liens for property taxes are attached on March 1st preceding the fiscal year for which they are
levied. The unsecured roll is taxed at the prior year's secured roll tax rate. This is because the
- unsecured roll tax bills are sent out early in the fiscal year, before local agencies have had time to
set the tax rate for the current year.
Three county agencies are involved in the administration of the property tax function: the Assessor,
the Auditor.Controller, and the Tax Collector. The Assessor's primary responsibility is to determine
annually the full taxable value of each property so that each property owner is assured of paying
the proper amount for the support of local government. The assessed value for most property is
the prior year's assessed value adjusted for inflation limited to a maximum of 2 per cent. If there
has been a change in ownership or the completion of new construction, the new assessed value
will be the market value of the property that changed ownership or of the new construction. The
, Auditor-Controller receives the assessment roll from the Assessor, extends the taxes and then
delivers the roll to the Tax Collector who prepares and distributes the tax bills. After taxes are
received by the county, the Auditor.Controller apportions to the city its6hare of the 1% general tax
levy, direct assessments and any voter approved tax levies. .
'E.:~.." :t~1:'- S
1340ValleyVIstaDrlve I Suite 200 I DlamondBar.CA 191765 119091861-4335 I F^X 1909J 861.7726
.
.
COMMON PROPERTY TAX ERRORS
"
Parcel values and taxes being misallocated to incorrect tax rate areas or taxing
agencies
Parcels encoded to the wrong city resulting in the tax proceeds being misallocated
Parcels missing from redevelopment project areas
Property transfers and new construction completions failing to be reassessed
Unsecured values and taxes misallocated to mailing address tax rate areas
instead of situs address tax rate areas.
Incorrect base year values used for redevelopment project areas. tax increment
projections
UTILIZATION OF HdL COREN AND CONE PROPERTY TAX REPORTS
Reconciliation of the County Assessor's lien date tapes for secured and unsecured
values with the Auditor-Controller's annual assessed valuation report.
Analysis of the city by tax rate area and taxing agency.
Identification of coding errors within the city and within redevelopment project
areas on both the secured and, unsecured tax rolls
Review of all city parcels by use code including compos~e land and building
square footage figures for planning, and building department use.
Tracking of property ownership transfers and completed construction projects
Executive reports detailing the top 10, 25, 100 property tax payers and property
owners
Absentee owner parcels for use in business licensing of commercial and
residential rental unit owners
Analysis of properties remaining in the pre Prop.13 real estate pool.
Improved budget projections through the use of accurate assessed values and
verified tax levy data bases.
Notification of assessment appeals, where available, and their impact on future
revenues.
HdL Coren and Cone
1340 Valley Vista Drive, Suite 200
Diamond Bar, Califomia91765
(909) 861-4335