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Home My WebLink AboutAgenda Report - April 15, 2020 C-20AGENDA ITEM c-?o Crry or Lonr Couxcn CovrMUNrcATroN TM AGENDA TITLE MEETING DATE: PREPARED BY: Receive Report Regarding Communication Pertaining to Retaining April 10 Property Tax Deadline April 15,2020 City Clerk RECOMMENDED ACTION Receive report regarding communication pertaining to retaining April 10 property tax deadline. BACKGROUND INFORMATION: The City received a request for communication from the League of California Cities regarding retaining the April 10 property tax deadline. There was a need to send a letter of support immediately The Governor's office has received requests to delay the collection of property taxes for an additional 60 to 90 days. Local agencies are urging the Governor to retain the April 10 deadline for property tax payments and allow local officials to forgive penalties for property owners who are unable to pay by that date due to the pandemic, as authorized by law. The attached letterwas sent on March 24,2020. A copy of the initial request is also attached. This report is provided for informational purposes only, pursuant to policy. FISCAL IMPACT:Not applicable FUNDING AVAILABLE: Not applicable Pah4/a'?44. f=d/r2L Pamela M. Farris Assistant City Clerk APPROVED ffi?q Steve s¿hwabà6r {Apr 8,2020) Stephen Schwabauer, City Manager \\cvcfì1v01\administration$\Administration\CLERK\Council\COUNCOM\LeagueReceiveReport_PropertyTax.doc CITY COUNCIL DOUG KUEHNE, Mayor ALAN NAKANISHI, Mayor Pro Tempore MARK CHANDLER JOANNE MOUNCE CITY OF LODI 2015 "Wine Region of the Year" CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODt, CALTFORNIA 95241 -1910 (209) 333-6702 t FAX (209) 333-6807www.lodi.oov cityclerk@lodi.qov March 24,2020 The Honorable Gavin Newson Governor, State of California State Capitol Building Sacramento, CA 95814 Re: Retaining the April 10 Property Tax Deadline Dear Governor Newson, California's local agencies are working diligently to maintain essential services and infrastructure during this unprecedented public health emergency related to the Coronavirus and the disease it causes, COVID-19. Our City is urging you to retain the April 10 deadline for property tax payments and allow local officials to forgive penalties for property owners who are unable to pay by that date due to the pandemic, as authorized by law. LocalAgencies Rely on the Timing of Payments Unlike nearly every other tax, including the income tax and sales tax, property tax revenues are not distributed throughout the fiscal year. lnstead, nearly all funds - over $140 billion - are received in the days before the two payment deadlines of December 10 and April 10. Extending the deadline by 60 or g0 days would have a dramatic impact on local funding, as almost all local agencies rely on the property tax for the majority of their generalfunds. Local agencies are on the front lines of responding to the pandemic. From county public health departments to public hospitals and health systems, to the sharp pivot school districts are making to deliver food and distance learning to homebound students, local agencies are in need of at least the usual level of funding. Delaying such a large infusion of general funds for two to three months would have a serious impact on their ability to provide these services. Furthermore, because both the timing and amount of the property tax ís highly predictable, schools, counties, cities, and special districts structure their borrowing for TRANs and bonds accordingly. Extending the deadline would put repayment of those debts at risk. As you know, even one agency defaulting could negatively impact bond ratings and interest rates for all agencies for years to come. With the municipal bond market in turmoil and many planned deals being postponed indefinitely, it is exactly the wrong time to roil the situation further. Many Property Owners Have Already Paid Their Banks For mortgagers whose property tax payments are escrowed as part of their monthly housing payment, extending the deadline would provide them no relief. lnstead, it would STEPHEN SCHWABAUER City Manager PAMELA M. FARRIS Assistant City Clerk JANICE D. MAGDICH City Attorney Governor Gavin Newson Retaining the April 10 Property Tax Deadline March 24,2020 Page2 simply benefit the handful of companies that hold this money until the last minute before the deadline. While these companies provide a service that many mortgagers appreciate by breaking their property tax payment into manageable monthly amounts, there is no public benefit to allowing them to hold the money for an additional 60 or g0 days. While the amount varies by county, payments from these companies represent roughly half of all expected revenue. Current Law Allows Local Officials to Waive Penalties While we must retain the April 10 deadline for property tax payments, local officials are already authorized to waive penalties, costs, and other charges resulting from tax delinquency due to reasonable cause and circumstances related to this crisis. This includes scenarios where a taxpayer cannot physically pay their taxes on April 10 due to quarantine, illness, or closure of the tax collector's office as a result of COVID-19. ln such cases, the tax collector will utilize their authority pursuant to Revenue and Taxation Code Sections 2619 and 4985.2 to waive interest or penalties that would othenrise be imposed or collected with respect to a delinquent second installment of property taxes levied for the 2019-2020 fiscal year on residential real property. We appreciate the close partnership we have had with you and your Administration throughout this crisis. Together, for all Californians, we are meeting this moment to protect our communities. Sincerely, Doug Kuehne Mayor City of Lodi Cc:The Honorable Betty Yee, State Controller The Honorable Toni Atkins, Senate President pro Tempore The Honorable Anthony Rendon, Assembly Speaker The Honorable Holly Mitchell, Chair, Senate Committee on Budget and Fiscal Review The Honorable Phil Ting, Chair, Assembly Committee on the Budget The Honorable Antonio Yazquez, Chair, Board of Equalization The Honorable Mike Schaefer, Vice Chair, Board of Equalization The Honorable Malia M. Cohen, Board of Equalization The Honorable Ted Gaines, Board of Equalization Keely Bosler, Director, Department of Finance Nicolas Maduros, Director, Department of Tax and Fee Administration 03/26/2020 THU tL:07 FAX Øoot ********************* *** F.¡$( rx r¿F:PoRT *** ********************* TR,A}TS¡{ISSÍON OK JOB NO. DEPI. ID DESÍINASION AÐDRESS SUBADDRESS DESTINATTON ID ST. TI!{E fXlRX TIME PGS. RESULT 0710 L0L 9r.9r65583160 Govorr\D/> o(Y-c-ø 03/26 LLr06 00'56 2 OK crTY couNcrt DOUG KUEHNE, Mayor ALAN NAKANISHI, Mayor Pro Tompore MARK CHANDLER JOANNË MOUNCE CITY OF LODI 2015 "Wlne Reglon of the Year" CITY HALL, 221 WEST PINE STREET P.O, BOX 3006 LOO|, CALTFORNTA 95241.1 9.10 (209) 333.6702 t FAX (209) 333-6807 www.lodi, qov cltvclerk(O lodi, oov March 24,2020 The Honorable Gavin Newson Governor, State of California State Capitol Building Sacramento, CA 95814 Re: Retaining the April 10 Property Tax Deadline Dear Governor Newson, California's local agencies are working diligently to maintain essential services and infrastructure during this unprecedented public health emergency related to the Coronavirus and the disease it causes, COVID-19. Our City is urging you to retain the April 10 deadline for properly tax payments and allow local offícials to forgive penalties for property owners who are unable to pay by that date due to the pandemic, as authorized by law, Local Agencles Rely on the Tlming of Payments unlike nearly every other tax, including the income tax and sales tax, property tax revenues are not distributed throughout the fiscal year. lnstead, nearly all funds - over $140 billion - are received in the days before the two payment deadlines of Docember 10 and April 10, Extending the deadline by 60 or g0 days would have a dramatic impact on local funding, as almost all local agencies rely on the property tax for the maJority of their general funds. Local agencies are on the front lines of responding to the pandemic, From county public health departments to public hospitals and health systems, to the sharp pivot school districts are making to deliver food and distance learning to homebound students, local agencies are in need of at least the usual level of funding, Delaying such a large infusion of general funds for two to three months would have a serious impact on their ability to orovide these seruices. STEPHEN SCHWABAUER City Manager PAMELA M. FARRIS Assistanl City Clork JANICË D. MAGDICH City Attorney 03/26/2020 THU 1L:39 FA)<Øoo r ********************* *** F,¡Ð( rx IìEPORT *** ********************* TRANSMISSION OK ,ïoB NO. DEPT. ID DESTINATION ADDRESS SUBAÐDRESS DESTINATTON ID ST. TIME TXIRX TIME PGS. RESULT 0 711 101 9L9L63224044 Õs¿Júq \uu'. ottl-e 03 / 26 LL-. 37 0L'10 2 OK CITY COUNCIL DOUG KUEHNE, Mayor ALAN NAKANISHI. Mayor Pro Tempore MARK CHANOLER JOANNE MOUNCE CITY OF LODI 2015 "Wlne Reglon of the Year" CITY HALL, 221 WEST PINE STREET P,O, BOX 3006 LODr, CALTFORNTA 95241.1 91 0 (209) 333-6702 t FAX (209) 333.6807www.lodi,gov cityclerk@lodi,gov March 24,2020 STEPHEN SCHWABAUER City Manager PAMELA M. FARRIS Assistant City Clork JANICE D. MAGDICH City Attornoy The Honorable Gavin Newson Governor, State of California State Capitol Building Sacramento, CA 95814 Re: Retaining the April 10 Property Tax Deadline Dear Governor Newson, California's local agencies are working diligently to maintain essential seruices and infrastructure during this unprecedented public health emergency related to the Coronavirus and the disease it causes, COVID-19. Our City is urging you to retain the April 10 deadline for property tax payments and allow local officialê tı forgive penalties for property owners who are unable to pay by that date due to the pandemic, as authorized by law, Local Agencles Rely on the Timing of payments unlike nearly every other tax, including the income tax and sales tax, property tax revenues are not distributed throughout the fiscal year, lnstead, nearly all funds - over $140 billion - are received in the days before the two payment deadlin-es of December 10 and April 10. Extendlng the deadline by 60 or g0 days would have a dramatic impact on local funding, as almost all local agencies rely on the property tax for the majority of their general funds. Local agencies are on the front lines of responding to the pandemic. From county public health departments to public hospitals and health systems, to the sharp pivot schiról districts are making to doliver food and distance learning to homebound students, local agencies are in need of at least the usual level of funding, Delaying such a large infusion of general funds for two to three months would have a serious impãct on their ãOitity toprovide these services. 03/26/2020 [IlU 1].:4L FAX Øoot ********************* *** F.¡U( fix REPORT *** ********************* TRANS!,ÍISSION OK JOB NO. DEPT. ID DESTINATION ADDRESS SUBADDRESS DESSINAÍION ID ST. TIME TXIRX TTME pcs. RESULT 07L2 101 919166514939 Jrrrq G-!.Jû-n s'5 eú"FLa- 03/26 LLt 40 01'09 2 OK CITY COUNCIL DOUG KUEHNE, Mayor ALAN NAKANISHI, Mayor Pro Tompore MARK CHANDLER JOANNE MOUNCE CITY OF LODI 2016 "Wlne Reglon of the Year" CITY HALL, 221 WEST PINE STREET P,O, BOX 3006 LOD|, CALTFORNTA 95241-1 91 0 (209) 333-6702 / FAX (209) 333-6807www.lodl,oov cltyclerk@lodi,qov March 24,2020 The Honorable Gavin Newson Governor, State of California State Capitol Building Sacramento, CA 95814 Re: Retaining the April 10 Property Tax Deadline Dear Governor Newgon, California's local agencies are working diligently to maintain essential services and infrastructure during this unprecedented public health emergency related to the Coronavirus and the disease it causes, COVID-19. Our City is urging you to retain the April 10 deadline for property tax payments and allow local officials to forgive penalties for property owners who are unable to pay by that date due to the pandemic, as authorized by law. Local Agencles Rely on the Tlmlng of Payments unlike nearly every other tax, including the income tax and sales tax, property tax revenues are not distributed throughout the fiscal year. lnstead, nearly all funds - over $140 billion - are received in the days before the two payment deadlines of December 10 and April 10. Extending the doadline by 60 or g0 days would have a dramatic impact on local funding, as almost all local agencies rely on the property tax for the majority of their general funds. Local agencies are on the front lines of responding to the pandemic. From county public health departments to public hospitals and health systems, to the sharp pivot school districts are making to deliver food and distance learning to homebound students, local agencies are in need of at least the usual level of funding, Delaying such a large infusion of general funds for two to three months would have a serious impact on their abílity to provide these services. STEPHEN SCHWABAUER City Mânag€r PAMELA M. FARRIS Asslstant City Clork JANICE D. MAGDICH City Attornoy 03/26/2020 rHU LL:44 FA)(Øoor ********************* *** FlÐ< Íx REPORI *** ********************* TRANSMISSION OK JOB NO. DEPT. ID DESTINATION ADDRESS SUBADDRESS DESTÏNATION ID Sf. TIlt{E TXIRX TIME PGS. RESULT 0 713 101 919r63r_92163 N^*t *y fZonônn 5 03/26 LL.43 00'57 2 OK CITY COUNCIL DOUG KUEHNE, Mayor ALAN NAKANISHI, Mayor Pro Tempore MARK CHANOTER JOANNE MOUNCE CITY OF LODI 2015 "Wlne Reglon of the Year" CITY HALL, 221 WÊST PINE STREET P,O, BOX 3006 LODt, CALTFORNTA 95241-1910 (209) 333.6702 / FAX (209) 333-ô807www.lodi,oov cltvclerk@lodi.oov March 24,2020 The Honorable Gavin Newson Governor, State of California State Capitol Building Sacramento, CA 95814 Re: Retaining the April 10 Property Tax Deadline Dear Governor Newson, California's local agencies are working diligently to maintain essential services and infrastructure during this unprecedented public health emergency related to the Coronavirus and the disease it causes, COVID-19. Our City ís uiging you to retain the April 10 deadline for property tax payments and allow local officials to iorgive penalties for property owners who are unable to pay by that date due to the pandemic, as authorized by law, LocalAgencies Rely on the Timing of Payments unlike nearly every other tax, including the income tax and sales tax, property tax revenues are not dístributed throughout the fiscal year. lnstead, nearly allfunds - over $140 billion - are received in the days before the two payment deadlin-es of Decemþer 10 and April 10, Extending the deadline by 60 or 90 days would have a dramatic impact on local funding, as almost all local agencies rely on the property tax for the majoritf of theirgeneral funds. Local agencies are on the front lines of responding to the pandemic, From county public health departments to public hospitals and health systems, to the sharp pivot schóól districts are making to deliver food and dístance learning to homebound students, local agencies are in need of at least the usual level of funding, Delaying such a large infusion of general funds for two to three months would have a serious impãct on their ãOitity toprovide these services. STEPHEN SCHWABAUER City Manager PAMELA M. FARRIS Asslstânt Clty Clerk JANICE D. MAGDICH Clty Attorney 03/26/2020 THU 11:46 FA:<Øoor JOB NO. DEPT. ID DESÍTNAÍTON ADDRESS SUBADDRESS DESTTNATION ID ST. TIME Tx/Rx TIME PGS. RESULT ********************* *** Flu( IX RFTPORT *** ********************* TRANSMISSION OK YYtllchl-t 'l I c"by- 07 L4 10L 9 r.9 r.6 6 5149 3 0 03/26 L]-t45 01'09 2 OK CITY COUNCIL DOUG KUEHNE, Mayor ALAN NAKANISHI, Mayor Pro Tempore MARK CHANOLER JOANNE MOUNCE CITY OF LODI 2015 "Wlne Reglon of the Year" CITY HALL, 221 WEST PINË STREET P.O. BOX 3006 LOD|, CALTFORNTA 95241.1910 (209) 333-6702 / FAX (209) 333-6807 www,lod l, oov cityclerk@ lod i. oov March 24,2020 The Honorable Gavin Newson Governor, State of California State Capitol Building Sacramento, CA 95814 Re: Retaining the Apríl 10 Property Tax Deadline Dear Governor Newson, California's local agencies are working diligently to maintain essential services and infrastructure during this unprecedented public health emergency related to the Coronavirus and the disease it causes, COVID-19. Our City is urging you to retain the April 10 deadline for property tax payments and allow localofficials to forgive penalties for property owners who are unable to pay by that date due to the pandemic, as authorized by law, LocalAgencies Rely on the Timing of Payments Unlike nearly every other tax, including the income tax and sales tax, property tax revenues are not distributed throughout the fiscal year, lnstead, nearly all funds - over $140 billion - are received in the days before the two payment deadlines of December 10 and April 10. Extending the deadlíne by 60 or 90 days would have a dramatic impact on local funding, as almost all local agencies rely on the property tax for the majority of their general funds. Local agencies are on the front lines of responding to the pandemic, From county public health departments to public hospitals and health systems, to the sharp pivot school districts are making to deliver food and distance learning to homebound students, local agencíes are in need of at least the usual level of funding. Delaying such a large infusion of general funds for two to three months would have a serious impact on their ability to provide these services. STEPHEN SCHWABAUER Clty Manager PAMELA M. FARRIS Assistant City Clork JANICE D, MAGDICH City Attorney Kavlee Clayton From: Sent: To: Subject: Attachments: Kaylee Clayton City of Lodi Administrative Clerk - Confidential kclavton(ôlodi.gov (209) 333-6702 extensi on 27 87 Kaylee Clayton Thursday, March 26,2020 L2:03 PM 'Alex.Wal ker@asm.ca.gov';' mike.schaefer@ BOE.ca.gov' Retaining the April L0 Property Tax Deadline Retaining the April L0 Property Tax Deadline.pdf ?-,fv"r, - I rn c1'> *bt-çØd '¡r{r-tco-- Sunc^rye {: 1 03/26/2020 rHU LL:50 FAX Øoor JOB NO. DEPT. ID DESTINATION ADDRESS SUBADDRESS DESTTNATION ID ST. TIME rxlRx TTME PGS. RESULT TRANSMTSS]ON OK o-i,L}r/.,Lu U515'-, ********************* *** F¡U( TX REPORT *** ********************* 07 L6 t 01 9L9L63232869 03/26 l.L:.49 00'59 2 OK CITY COUNCIL DOUG KUEHNE, Mayor ALAN NAKANISHI, Mayor Pro Tempore MARK CHANDLER JOANNE MOUNCE CITY OF LODI 2016 "Wlne Roglon of the Year" CITY HALL, 221 WEST PINE STREET P,O, BOX 3006 LODt, CALTFORNTA 95241-1910 (209) 333-6702 t FAX (20e) 333-6807www.lodi.qov cityclerk,@ lodi. gov, March 24,2020 STEPHEN SCHWABAUER City Managor PAMELA M. FARRIS Assistant City Clerk JANICE D. MAGDICH City Attorney The Honorable Gavin Newson Governor, State of California State Capitol Building Sacramento, CA 95814 Re: Retaining the April 10 Property Tax Deadline Dear Governor Newson, California's local agencies are working diligently to maintain essential services and infrastructure during this unprecedented public health emergoncy related to the Coronavirus and the disease it causes, COVID-19. Our City is wging you to retain the April 10 deadline for p.roperty tax payments and allow local officials tı forgive penalties for property owners who are unable to pay by that date due to the pandeñric, äs authorized by law, LocalAgencles Rely on the Tlmlng of payments unlike nearly every other tax, including the income tax and sales tax, property tax revenues are not distributed throughout the fiscal year. lnstead, nearly all funds - over $140 billion - are received in the days before the two payment deadlines of December 10 and April 10, Extending the deadline by 60 or g0 days would have a dramatic impact on local funding, as almost all local agencies rely on the property tax for the majority of their general funds. Local agencies are on the front lines of responding to the pandemic. From county publíc health departments to public hospitals and health systems, to the sharp pivot schıól distrícts are making to deliver food and distance learning to homebound students, local agencies are in need of at least the usual level of funding, Delaying such a large infusion of general funds for two to three months would have a serious impãct on their ãUitity toprovíde these services, 03/26/2020 THU 1t:56 FAX Øo or ********************* *** FAX PX REPORT *** ********************* ÎRANSMISSION OK JOB NO. DEPT. ID DESÎINATION ADDRESS SUBADDRESS DESTINATTON ID ST. TIME TX,/RX TIME PGS. RESULT 07r.8 L0t_ 9L9L63242087 YI/þr.* Cuho.¡n': t&** Q3/26 LL¡54 00'59 2 OK CITY COUNCIL DOUG KUEHNE, Mayor ALAN NAKANISHI, Mayor Pro Temporo MARK CI.IANDLER JOANNE MOUNCE CITY OF LODI 2015 "Wlne Reglon of the Year" CITY HALL, 221 WESÎ PINE STRÉET P.O. BOX 3006 LOD|, CALTFORNTA 95241-1910 (209) 333-6702 t FAX (209) 333-6807www,lodl,oov citvclerk@lodl,oov March 24,2020 STEPHËN SCHWAEAUER City Manager PAMELA M, FARRIS Assistant City Clerk JANICE D, MAGDICH City Attornoy The Honorable Gavin Newson Governor, State of California State Capitol Building Sacramento, CA 95814 Re; Retaining the April 10 Property Tax Deadline Dear Governor Newson, California's local agencies are working diligently to maintain essential services and infrastructure during this unprecedented public health emergency related to the Coronavirus and the disease it causes, COVID-19, Our City is urging you to retain the Apríl 10 deadline for property tax payments and allow local officials tı forgive penalties for property owners who are unable to pay by that date due to the pandemic, äs authorized by law, Local Agencies Rely on the Timlng of Payments unlike nearly every other tax, including the íncome tax and sales tax, property tax revenues are not distributed throughout the fiscal year, lnstead, nearly ail funds - ovêr $140 billion - are received in the days before the two payment deadlines of December 10 and April 10. Extending the deadline by 60 or g0 days would have a dramatic impact on local funding, as almost all local agencies rely on the property tax for the majoritf of their general funds. Local agencies are on the front lines of responding to the pandemic, From county public heallh departments to public hospitals and health systems, to the sharp pivot sctróôt districts are making to deliver food and distance learning to homebound students, local agencies are in need of at least the usual level of funding. Delaying such a large infusion of general funds for two to three months would have a serious impãct on their ãOitity toprovide these services. 03/26/2020 THU Ll:59 FAX ø 001 ********************* *** F:U( TX REPORI' *** ********************* TRANSMISSION OK JOB NO. DEPT. ID DESTINASTON ADDRESS SUBADDRESS DESTINAÍÏON ]D ST. TTME TX/RX TIME PGS. RESULT 07L9 10l_;)¿d. [þuu,rıi GfiIq-p,9]-9L6327 4003 03/26 tLt58 00'57 2 OK CITY COUNCIL DOUG KUEHNE, Mayor ALAN NAKANISI.II, Mayor Pro Temporo MARK CHANDLER JOANNE MOUNCE CITY OF LODI 2016 "Wlne Reglon of tho Year" CITY I.IALL. 221 WEST PINE STREET P,O, BOX 300ô LOD|, CALTFORNTA 95241.1910 (209) 333.6702 / FAX (209) 333.6807 www.lodi. gov citvcle¡K.lp lodi, gov March 24,2020 The Honorable Gavin Newson Governor, State of California State Capitol Building Sacramento, CA 95814 Re: Retaining the April 10 Property Tax Deadline Dear Governor Newson, California's local agencies are working diligently to maintain essential services and infrastructure during this unprecedented public health emergency related to the Coronavírus and the disease it causes, COVID-19, Our City is urging you to retain the April 10 deadline for property tax payments and allow localofficiali tı iorgive penalties for property owners who are unable to pay by that date due to the pandemic, às authorized by law. Local Agencies Rely on the Tlmlng of payments unlike nearly every other tax, including the income tax and sales tax, property tax revenues are not distributed throughout the fiscal year. lnstead, nearly all funds - over $140 billion - are received in the days before the two payment deadlines of Decembor 10 and April 10, Extending the deadline by 60 or 90 days would have a dramatic impact on local funding, as almost all local agencies rely on the property tax for the majority of their general funds. Local agencies are on the front lines of responding to the pandemic. From county public health departments to public hospitals and health systems, to the sharp pivot schóól districts are making to deliver food and distance learning to homebound students, local agencies are in need of at least the usual level of funding. Delaying such a large infusion of general funds for two to three months would have a serious impãct on their ãOitity toprovide these services. STEPHEN SCHWABAUER City Mânager PAMELA M, FARRIS Assistant City Clork JANICE D. MAGDICH City Attornoy Kaylee ClaWon From: Sent: To: Subject: Attachments: Kaylee Clayton City of Lodi Ad ministrative Clerk - Confidential kclavton@lodi.sov (209) 333-6702 extensio n 27 87 Kaylee Clayton Thursday, March 26,202011:32 AM ' Keely.Bosler@ DO F.ca.gov';' nicolas.mad u ros@cdtfa.ca.gov' Retaining the April 10 Property Tax Deadline Retaining the April 10 Property Tax Deadline.pdf S S1f*o YL e¡tß:SI S L-a- 1