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HomeMy WebLinkAbout1990-04-17 - AGENDA REPORTS - AB 3002 POPULATION BASE (2)AGENDA REPORT City Manager Approval _ 111ilzI. Item to be presented by. NEW BUSINESS DATE: April 17, 1990 SUBJECT: Assembly Bill 3002 (Bader) DEPARTMENT: Finance Alp BACKGROUND Andrea Daroca Under existing law, the allocations of state subventions to new cities is based upon an estimated population of three times the number of registered voters at the time of incorporation. According to the Revenue and Taxation Code Section 11005.3, our incorporated City population base will be frozen for the first eight fiscal years. Under this interpretation, Santa Clarita's population will remain 147,228 until 1995, irrespective of the census of other agency population estimates. This would further not allow for any adjustments due to annexations. Assembly Bill 3002 authored by Bader would correct this situation by giving a City, incorporated after January 1, 1987, additional options for updating its population base. This legislation would allow a new City to either request a state controller's update to the City population via a special census or by utilizing the most recent Department of Finance estimates. AB 3002 also retains the option for a City to use its current population should it choose for the first eight years of incorporation. RECOMMENDATION That the City Council direct staff to prepare a letter for the Mayor's signature supporting AB 3002. ATTACHMENT Assembly Bill 3002 Letter in support - City of Hesperia ' ED Agenda Item: /., CA AB 3002 ASSEMBLY BILL 04/04/90 Introduced by Assembly Member Bader February 20, 1990 Page 1 An act to amend Section 11005.3 of the Revenue and Taxation Code, relating to vehicle license fee revenues. LEGISLATIVE COUNSEL'S DIGEST AB 3002, as introduced, Bader. Vehicle license fees: revenues: distribution. Existing law requires the Controller to distribute a specified percentage of the vehicle license fees collected by the state to each city and city and county in the proportion that the population of each city or city and county bears to the total population of all cities and the city and county. Existing law requires, in general, that the population research unit of the Department of Finance determine the population of newly incorporated cities and those with unincorporated territory, with certain exceptions. For cities incorporated after the 1980 federal census, the Controller is required, only until July 1, 1991, to ascertain the population by multiplying the number of registered voters by 3. For cities incorporated after January 1, 1987, the Controller is required, on and after July 1, 1991, to ascertain the population for 8 full fiscal years after incorporation by multiplying the number of registered voters by 3. This bill would require, in the case of unincorporated territory being annexed to a city subsequent to either the last federal census or a subsequent census validated by the Department of Finance, that the department's population research unit determine the population of the annexed territory by the use of any federal decennial or special census, or any estimate prepared pursuant to a specified section of the Streets and Highways Code. This bill would also provide, on and after July 1, 1991, that the legislative body of a city may request that the Controller determine the population of that city pursuant to specified provisions by adopting, and delivering a certified copy to the Controller of, a resolution electing to have the population determined according to those provisions. Vote:. majority. Appropriation: no. Fiscal committee: yes. &�wr I,W��4-CA AB 3002 04/04/90 Page 2 State -mandated local program: no. The people of the State of California do enact as follows: SECTION 1. Section 11005.3 of the Revenue and Taxation Code, as amended by Section 1 of Chapter 367 of the Statutes of 1988, is amended to read: 11005.3. (a) Notwithstanding subdivision (c) of Section 11005, in the case of a city which incorporated subsequent to the 1980 federal census, the Controller shall determine the population of the city by multiplying the number of registered voters in the city by three. On and after July 1, 1991, the Controller shall determine the population of the city pursuant to subdivision (c) of Section 11005. (b) <In the case of unincorporated territory being annexed to a > < city subsequent to either the last federal census or a later census > < validated by the Population Research Unit of the Department of > < Finance, the Population Research Unit shall determine the population > < of the annexed territory by the use of any federal decennial or > < special census, or any estimate prepared pursuant to Section 2107.2 of> < the Streets and Highways Code. > < (c) >This section shall become inoperative on June 30, 1991, and as of that date is repealed. SEC. 2. Section 11005.3'of the Revenue and Taxation Code, as amended by Section 2 of Chapter 367 of the Statutes of.1988, is amended to read: 11005.3. (a) Notwithstanding subdivision (c) of Section 11005, in the case of a city which incorporated on or after January 1, 1987, the Controller shall determine the population of the city for its first eight full fiscal years, and any portion of the first year in which the incorporation is effective if less than a full fiscal year, by multiplying the number of registered voters in the city by three. Thereafter, the Controller shall determine the population of the city pursuant to subdivision (c) of Section 11005. (b) <Notwithstanding subdivision (a), the governing body of a city > < may request the Controller to determine that city's population > < pursuant to subdivision (c) of Section 11005 by adopting, and > < providing to the Controller a certified copy of, a resolution electing> < to have the population of that city so determined. Upon receipt of the> < resolution, the Controller shall determine the population of that city> < pursuant to subdivision (c) of Section 11005. > < (c) In the case of unincorporated territory being annexed to a city> < subsequent to either the last federal census or a later census > < validated by the Population Research Unit of the Department of > < Finance, the Population Research Unit shall determine the population > < of the annexed territory by the use of any federal decennial or > < special census, or any estimate prepared pursuant to Section 2107.2 of> < the Streets and Highways Code. > CA AB 3002 04/04/90 Page 3 < (d) >This section shall become operative July 1, 1991. END OF REPORT 04/04/90 Page 1 CA AB 3002 AUTHOR: Bader TITLE: Vehicle license fees: revenues: distribution INTRODUCED: 02/20/90 COMMITTEE: Assembly Local Government Committee HEARING: 04/04/90 2:00 pm CODE SECTIONS: An act to amend Section 11005.3 of the Revenue and Taxation i Code, relating to vehicle license fee revenues. 12 SUMMARY: • Requires, in the case of unincorporated territory being annexed to a city subsequent to either the last federal census or a subsequent census validated by the Department of Finance, that ® the Department's Population Research Unit determine the population of the annexed territory by the use of any federal decennial or special census, or any estimate prepared pursuant to a specified section of the Streets and Highways Code. AB 3002, as introduced, Bader. Vehicle license fees: re.venues: distribution. Existing law requires the Controller to distribute a specified percentage of the vehicle license fees collected by • the state to each city and city and county in the proportion that the populationof each city or city and county bears to the total population of all cities and the city and county. Existing law requires, in general, that the population research unit of the Department of Finance determine the population of newly incorporated cities and those with unincorporated territory, with certain exceptions. For cities incorporated after the 1980 federal census, the Controller is required, only until July 1, 1991, to ascertain the population by multiplying the number of registered voters by 3. For cities incorporated after January 1, 1987, the Controller is required, on and after July 1, 1991, to ascertain the population for 8 full fiscal years after incorporation by multiplying the number of registered voters by 3. This bill would require, in the case of unincorporated territory being annexed to a city subsequent to either the last federal census or a subsequent census validated by the Department of Finance, that the department's population research unit determine the population of the annexed territory by the use of any federal decennial or special census, or any estimate prepared pursuant to a specified section of the • Streets and Highways Code. This bill would also provide, on and after July 1, 1991, that the legislative body of a city may request that the Controller determine the population of that city pursuant to specified provisions by adopting, and delivering a.certified copy to the Controller of, a resolution electing to have the population . determined according to those provisions. Vote: majority. Appropriation: no. Fiscal committee: yes. State -mandated local program: no. ® STATUS: 02/20/90 INTRODUCED. 12 LTa''sper�i City of Hesperia 15888 Main Street, Suite 213 • P.O. Box 2966 • Hesperia, California 92345 (619) 949-7000 March 12, 1990 Honorable JoAnne Darcy MAR 2.7 19901 Ma or CITY MANAGER'S OFFICE_ Y City of Santa Clarita CITY OF SANTA CLARITA 23920 Valencia Boulevard - Suite 300 Santa Clarita, CA 92355 Dear Mayor Darcy: Enclosed for your review and consideration is a copy of Assembly Bill 3002 (Bader), 4- which the City of Santa Clarita as a new city may have an interest. 1. F der existing law, the allocation for State Subventions to new cities (Motor Vehicle inu, Gas Tax, etc.) is based upon an estimate using the formula three times registered ers, at the time of incorporation. We have contacted the State Department of Finance as to a more equitable way to determine a new City's population which would be reflective of .r_ecent ro and or annexations. We have been informed, that under Revenue and Taxationectio`n it00'ur incorporated city population base will be frozen for the first eight fiscal years. Under this interpretation, Hesperia's population for State Subvention purposes will remain until 1996 at 59,745 irrespective of the. 1990 census or State Department of Finance estimates. We feel this approach is unfair and could seriously impact our city, as well as other newly incorporated cities by not allowing for any adjustments due to population or annexations. AB 3002 would correct this situation by giving a city, incorporated after January I, 1987, additional options for updating its population base. The legislation would allow a new city to either request the State Controller to update the City's population, via a special census, or by utilizing the most recent Department of Finance estimates. AB 3002 also retains the option for a city to use its current population base, should it chose, for the AB eight years of incorporation. We feel AB 3002 is important for new cities, and would encourage your active support. I have asked our Sacramento Advocates, Tim Egan and Pete Sandford, to contact you or Mr. George Caravalho next week to further review the legislation, and answer any questions or provide you with add itio_nal[af i:mation. In the meantime, please feel free to give me or our City Manager , -Robert -"all if we can be of any assistance. Sincerely yours, Bruce D. Kitchen Mayor cc: George Caravalho, City Manager,-/ Councitmembers Mayor Percy Bakker George M. Beardsley Bruce D. Kitchen Howard H. Roth M. Val Shearer MAR 2 1990 FINANCE DEPART sR,TA City Manager Robert A. Rizzo 16 04/90 Page 2 03/01/90 To ASSEMBLY Committee on LOCAL GOVERNMENT. END OF REPORT