AgdaPkt 2004-03-22 - Laserfiche WebLink

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�A� 1� TRIPL.E FLIP from page 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _. The 'triple flip' suspends one-quarter of the January of the following year. Since ttie sales tax Bradley-Bums sales and use tax, replaces the lost compensation adjustrnent estimates are based on revenues on a dollarv for-doilar basis with funds set prior year sales piculated in August of the current aside from the couMy�vide property 4�x revenues year, the likelihood of differences is high. (primarily ERAF), and ii.creases the S:ate's sales and use tax by onet�uarter percent with the State increase dedicated to repayment of the bond Cleanup Legisiation Discussed measure. Are there any remediesl Since last August, the League has been working with Cal'rfomia State Though a lawsuit has been filed challenging Association of Counties (CSAC), county auditors the reduction in the Bradley-Bums sales tax, the and municipal revenue consuttants to understand triple flip is set to go into effect on July 1, 2004. the implications of the "triple flip" and recommend soluGons to ease the cash flow burden. The Implementing the Triple Flip working group has also discussed concems with the STate Board of Equalization, which also has What will be the impact to cities? Though the some implementation issues, the Department of "triple flip" is set to start on July 1, 2004, the State Finance and legislative staff. Preliminary cleanup Board of Equalization will distribute the full pay- draft legislation has been discussed. The worlvng ments of sales and use tax on the second calen- group will corrtinue to seek legislative remedies dar quarter of 2004 in July and August with the through discussions with legislative and adminis final second quarter reconciliation amount paid in trative staff. Please contact Frances Medema September. Starting wifh September, monthly (medemafCDcacities.orq or 916l658-8218) with any distributions of third calendar year quarter 2004 questions. sales tax revenues will start at the lower amount. — In September, the Department of Finance will � TME �GUE C�N�� provide wunty auditors with the total amount of funds to set aside from the countywide Education RESOURCE HELP YOU PLAN YOUR Revenue Augmentation Fund (ERAF) properly g�p�� FOR MEETINGS AND taxes to compensate the county and every city within the county for the reduced sales tax TRAINING IN 2004 a,TOUnts for the current June — July fiscal year. This amount will be based on prior year sales and Visit the League�s website use tax revenues. County auditors will make yyWyy.caCities Qrg/gr� fOr a Complete payments from the property tax set asides for the reduced sales tax revenues in January and May. SChedule Of upCOmin9 meeti�95. View dates, locations and pricing information At the end of the fiscal period, the Department up to a year in advance. Not only can you of Finance will provide the county auditors wfth the actual amount of reduced sales tax revenues for register online or view the Current pro- the county and each city in the counry after the gram or outline for these meetings, you end of the fiscal year. Any adjustments as a resutt tan use this information to help plan of the difference between the amounts paid each your meeting schedule and budget ex- jurisdiction and the actual amounts wiii be settled � in the next fiscal year. The sign�cance for cities penses for the upcoming year. New 2004 is that there will be a cash flow delay as one- meeting information is currently avail- quarter of the sales and use tax revenues that are able and continuously updated. received monthly will not be paid in January and , May and in some instances may be delayed into PAGE 8/PRIORITY FOCUS Visit the league's Official Web Site••www.cacities.org