April 2, 2010



MinutesFriday May 6, 2016Hilton Sacramento – Arden West2200 Harvard Street, Sacramento, CA 958158:30 – 9:00 Check-In/Registration9:00 – 9:10 Welcome/Introductions9:10 – 9:20Sub-Committee Business:Sally Zutter provided a summary of the February 2016 minutes. First approval from Barbara Godwin, second from several people. 100% Ayes; 0 Nayes. Approved. Treasurer’s Report by Darlene Hoang, Los Angeles CountyProperty Tax Managers’ Subcommittee Annual Report for 2015 - Frank Davis talked about the Annual report he submitted CALSACA in April 2016 at the CALSACA Spring conference. Included the following:Average # attendees = 91Average # counties represented = 42Cash balance as of 3/31/16 = $20,042.06A summary of the topics presented during the yearSacramento is a good location for meetings since close to SCO/SBE/etc.White paper of Property Tax Issues for SCO Betty Yee.Annually receive $7,500 scholarship from CALSACA9:20 – 10:10Updates:Legislative – Bob Campbell, Contra Costa County (see handout)AB2032, we are sponsoring for disincorporationAB2149, medical marijuana and its effect on keeping mass quantities of cash in the County Treasury safe.AB2691, monthly collection by T/C (similar to how someone would pay their mortgage monthly)AB2748, heavy equipmentThere are 62 bills being watched right now.SCAx5 split roll = nothing significant recently. CALSACA thinks very highly of the Property Tax Division Managers. Scholarship money was reduced and redirected to the other Auditor-Controller divisions in an effort to generate the same strength in them as what we have.Property Tax Manual – Roxanne Nored, Placer CountySummary of the draft changes made yesterday :Two new chapters: overview for levy process and ERAF for some countiesPlease join the committee. It is a good way to learn and provide input/support for such an important resource.Technology - Kim-Anh Le, Santa Clara CountyMatt Slaughter, San Mateo (used to be with SCO) spoke. They did an RFP and received two full responses for the Assessor, and two for the Tax Collector. Only one response crossed over to all three areas. There were two vendor presentations, but it did not look like either would “do it all”. They are still working with both vendors to see if they can work on pricing, workflow, capabilities, etc.Kim’s system for Santa Clara is requiring data patches.Pam’s system for Riverside not going live in July 2016.Other Items discussed:AB2109 -- The property tax group and the reporting group may need to work together for the reporting group to accomplish the parcel tax report.Qualified Electric Public Facilities by Kim - Situation is at a stalemate with the SCO. SCO wants to bring ERAF into the allocation factors.10:10 – 10:35LAO Update – Carolyn ChuBlog series at LAO’s website for “where do property taxes go” in which property tax managers from some counties assisted with the process. They are not doing a recent series because the LAO is busy with the budget and working on a bigger property tax report.They have been contacting County Assessor’s to get trends and differences, in what is maintained on property tax assessment side. They are using an intern to look at commercial property and change in ownership; Assessment practices (and their workload); and the comparisons to the current assessed valuation to their base year value (using census data).State Budget - May revision coming up for budget. April collections are down primarily due to personal income taxes. Governor will make some adjustments. It may affect large infrastructure projects, and what had been originally budgeted to put “extra” set aside for rainy day (beyond statutory requirements).10:35 – 10:40Future Meetings DiscussionSee handout.Christy would like additional feedback.Christy will look at options.10:40– 10:55Break10:55 – 11:43California Real Estate Market – Ron KingstonSee handout.There may be legislation to add “conservation efforts” to the list of possible “improvements” that qualify for PACE loans.Split roll initiatives continue to try to gain traction.A number of bills out there to change Prop 13 via special tax legislation.California housing Market & Forecast. See handout.Nationally:GDP is paltry at 1.4% for 2015 Q4. It is not a good performing number for the U.S.5% Unemployment is ok, but not great. It is not illustrative of what unemployment really is, due to changes in methodology for capturing data now, (it is not a true picture since they remove those who gave up or work only part time).Job Growth is very shaky at 1.9%. Should be twice that.Greater San Francisco (SFO) area:Unemployment in SFO area = 3.2%. Very low. Added 25k technology jobs, but nothing added for housing sector creating social strife. San Jose/Santa Clara area similar.$3,275 for 2BR unit in SFO, while $950 for same in Sacramento.Consumer confidence index = 96.2% in March 2016. But not good in the housing sector due to high cost housing issues.CA economic outlook:There has been approximately 40 million in growth, which is primarily in pockets of coastal communities and higher employment areas.CA housing marketSales of detached single-family residences = similar over to past 20 years. People stay put, unless they have to move.Because of housing prices, growth is not sustainable for long term. Discussions now by cities/counties regarding unemployment and delivery of operations.Housing inventoryVery lowPeople refinancing rather than movingFewer trade upsDrop in ownership rates particularly in 35-44, 45-54 and 55-64 age groups. The 55-64 age group is the highest owner % -- What will happen when they sell?11:44 – 12:30DOF Update – Derk Symons, Todd Vermillion, Jared SmithReceived from RDA to date since dissolution:$1.7 billion to cities$2 billion to counties$692 million to special districts$6 billion to K-141st annual ROPS just completedIf anyone needs meet and confer list, call himSB107 delayed to 18/19, so took it out of the templateRemoved DDA payments from ROPS templateAdded line 35 to identify insufficient amounts and it will be sent out next week. Examples include if the Successor Agency needs $100k, but only $70k available from RPTTF, then $30k would go to line 35.DOF interprets that they approve annual ROPS and can increase amount in the “A period” to help pay the B period deficiency. Auditor does not have to adjust but can. They will get the code section to Carol Orth. Bob Campbell said they had been told to input a “reserve amount” in this situation for the following period if it is going to happen.Can’t amend 16/17A ROPS, but can 16/17B Annual ROPS letterMajor change to incorporate A&B into letterTweak on the admin partAdmin cost allowance (ACA) table on the ROPS letter is now shorter.Last and final ROPSSample letter shown Amended annual ROPSAlmost at point where they can do and can only do once and has to be done by Oct. Has to be only B period and only things already on ROPS (no new items). Thus, ROPS S that was understated can be made up in ROPS B.Different template2 years in arrears for adjustments.12:31 – 1:14Lunch1:15 – 2:00Cyber Security in Public Institutions – Dr. Larry Gilbert, Vice President & CIO, Information Resources & Technology Sacramento State UniversityBasis for discussion is the California Information Security Act of 1977 as it revolves around the CollegesAudit reports to their board of trusteesComprehensive security policy and each campus has supplemental security policy.President can only delegate one layer down “for risk” of information security. Therefore, a department head cannot say, “hey, it’s good enough”.HackersHackers look for weakest link. Target (the store) was hacked by hackers getting into the HVAC company who had the HVAC installed I Target and then got in from the HVAC computer at the Target store and then into all of Target stores.Most attacks occur from outside the organization, but we do have to watch for internal because they already “have the keys”.Way to hack:Credentials (try to get user ID and password)SpywareFishingMalware70-90% is specific to your domain of tax and finance (they spoof accounts logos, etc.…)They often have 24 hours to finish their hack and withdraw money.“People” are often the common denominator (e.g. the one in a millionth person who will click the bad link).What groups are hit the most often:First hit = Banking/finance/accounting departmentsLast hit = system administratorsPhishing is increasingly dangerousObsolete and abandoned systems (e.g. Windows 2000 or Windows 2003) offer opportunities to be hacked.What to do:Malware = don’t click linkAwareness is keyApply appropriate resources immediatelyMonitor logs, email, behaviorLockdown as neededContact MS/SCCATrain staffAssess riskIdentify high risk usersIdentify abandoned systemsIdentify level/data (eg. bank account/driver’s license #)2:00 – 2:15CSAC Update – Dorothy HolzemState Budget - May revise coming upThe prior year was alphabetized. This year is prioritized by themesBudget stability, not all counties sharing in the economic recovery.Economic development in needed communities includes affordable housing, greenhouse gas reductions, election reform.Infrastructure (roads, bridges, jails)$2.3 billion is CSAC’s request for the general fund. Also, requesting Special Fund funding.April revenues are $1 billion shy of expectations.But have rainy day fund of $1.6 billion, and so far a good budget for ernor wants aggressive savings (+$2 billion on top of $1.6 billion).She does not think counties will be affected too much by the $1 billion shortage.Big press conference upcoming4th track affects budget (4th track = the ballot)SB97 contingent on ballot passing$60 million to county general fund for elections. Governor signed claim. Instructions are coming out soon.2:15 – 2:35Get To Know San Diego County – Jon BakerVery interesting presentation from Jon Baker on historical and current aspects of San Diego County.2:35 – 2:45Timber Tax by Ken Thompson and Joe MelletKen Thompson:Timber YieldWhat timber yield is: “Prop tax in lieu” in 1976Has changed over the years.No longer on property tax rollsThe goal was to keep trees growingThen Prop 13 came along (3 years after timber yield tax was done in 1976), which would have made the fix to the problem on its own.R&T §431(c) Timber Advisory Committee Program at SBE is as low as it can go. Youngest person is 50 and they are trying to recruit.JULY 14 should be the date the State’s roll is finalized!2:45 – 3:00Break3:00 – 3:25Timber Tax (continued) Joe Mellet, Humboldt CountyPresented tables showing history of various timber yields and dollars.Apportionment factors from back in 70’s and they do not change.Question was asked about what happens to a district’s share of timber yield tax if the district is dissolved.3:25 – 4:00Roundtable/Discussion ItemsLong range plansBy RDAs done for the most part. If you want to develop it in the future, then have to do an agreement. This is an insurance policy to prevent RDA from saying that is their plan and then selling the property to private party later and keeping the dollars.Auditor says not their responsibility is to administer and DOF agrees.Question as to whether counties were planning to administer.If they were planning to administer, then there were questions as to whether it is a TRA level vs jurisdictional level.Bob Campbell recommended upfront payment plan to make up for tax increment lost down the road.4:00AdjournSafe travels! Have a great summer, see you in the fall. ................
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