CCP 10-28-2002 - Laserfiche WebLink

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1 Response: The state should maintain current law and not change the city fiscal year . 2 to coincide with the state fiscal year. 3 4 FF-IO. Payments for Services to Tax-Exempt Property (GC) 5 6 Issue: Taxable property in many cities is being acquired by nonprofit and government 7 entities. Converting the property to tax-exempt status can lead to serious tax base erosion without 8 any corresponding reduction in the service needs created by the property. 9 10 Response: Cities should have the authority to collect payments from statutorily 11 exempt property owners to cover costs of service as cities have with special assessments. 12 13 FF-l1. Truth-in-Taxation Process (GC) 14 15 Issue: Cities must set a preliminary levy by Sept. 15, which, by law, becomes the 16 maximum that cities can levy the following year. In recent years, cities have not received 17 complete tax base and aid information in a timely manner. As a result, cities often either set a 18 preliminary levy that is artificially high or they are unable to budget for unforeseen needs that 19 arise after Sept. 15. 20 21 Response: The League supports changes to the Truth-in-Taxation process to provide 22 more meaningful information to citizens, including the exemptions enacted in 2001 for 23 cities that propose levy increases less than the implicit price deflators. However, this . 24 calculation should account for the impact of state aid cuts on proposed levies. Cities should 25 have the authority to increase the final levy from the preliminary levy to meet unforeseen 26 and uncontrollable needs. 27 28 FF-12. State Administrative Deductions from State Aid (GC) 29 30 Issue: State administrative costs are deducted from the LGA appropriation. This reduces 31 the property tax relief provided by LGA and creates hidden appropriations for state agencies. 32 33 Response: All appropriations from LGA resources that fund state operations 34 should be repealed. 35 36 FF-13. Reporting Requirements (GC) 37 38 Issue: Budget and financial reporting requirements imposed on cities by the state often 39 result in duplication and additional costs. 40 41 Response: Requirements for reporting and advertising [mancial and budget 42 information should be carefully weighed to balance the validity of the state's need for 43 additional information with the costs and burdens of compiling and submitting this 44 information. In addition, all state agencies should be aware of the information already . 45 required by others to avoid duplication of reporting requirements. 4