Laserfiche WebLink
City of San Leandro <br />Meeting Date: September 28, 2020 <br />Resolution - Council <br />Agenda Section:File Number:20-422 CONSENT CALENDAR <br />Agenda Number: <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:City Council <br />FINANCE REVIEW:Not Applicable <br />TITLE:RESOLUTION of the City of San Leandro City Council to Support Passage of <br />Proposition 15, also known as the California Schools and Local Communities <br />Funding Act of 2020 <br />Whereas, California local public agencies, including cities, counties, schools, and special <br />districts, levy property taxes on property owners based on the value of their property. Property <br />taxes raise around $65 billion annually for local governments, about $2 billion of which is <br />attributable to business personal property; and <br />Whereas, about 60 percent of statewide property tax revenue is allocated to cities, <br />counties, and special districts, while the remaining 40 percent is allocated to schools and <br />community colleges; and <br />Whereas, county assessors determine the taxable value of property, county tax collectors <br />bill property owners, and county auditors distribute the revenue among local government; and <br />Whereas, each property owner’s annual property tax bill is equal to the taxable value of <br />their property multiplied by their property tax rate. Property tax rates are capped at 1 percent plus <br />smaller voter approved rates to finance local infrastructure. A property’s taxable value generally is <br />based on its purchase price. When a property is purchased, the county assessor assigns a value <br />to the property, typically its purchase price. Each year thereafter, the property’s taxable value <br />increases by 2 percent or the rate of inflation, whichever is lower. This process continues until the <br />property is sold and again is taxed at its purchase price. In most years, the market value of most <br />properties grows faster than 2 percent per year. As a result, under this system the taxable value of <br />most properties is less than their fair market value; and <br />Whereas, partially as a result of the current property tax system cities and counties in <br />California have experienced underinvestment and significant budgetary challenges over the past <br />four decades that have impacted the critical services and infrastructure that residents rely upon; <br />and <br />Page 1 City of San Leandro Printed on 9/23/2020 <br />157