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HomeMy WebLinkAboutReso - CC - 074-2020DocuSign Envelope ID: DCD5ABC8-AOA9-4586-ADCA-58DE3C5FE696 RESOLUTION NO.074-2020 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME AUTHORIZING THE MAYOR TO SEND A LETTER OF OPPOSITION REGARDING PROPOSED AMENDMENTS TO REVENUE & TAXATION CODE SECTION 97.2 IN EDUCATION OMNIBUS TRAILER BILL WITH MAY REVISION AMENDMENTS WHEREAS, certain Counties in California have been engaged in discussions with other Counties and their respective County offices of education with the goal of identifying a reliable, consistent, and mutually -understood methodology that could be used by all Counties, the State Controller, and other state agencies when calculating Educational Revenue Augmentation Fund (ERAF) entitlement to school districts; and WHEREAS, the State's Legislative Analyst's Office (LAO) issued a report in March 2020 titled, "Excess ERAF: A Review of the Calculations Affecting School Funding" purporting that these Counties' ERAF calculations failed to comply with State law; and WHEREAS, the Counties had a meeting scheduled to discuss these issues with the Department of Finance (DOF), the Department of Education (CDE), and the LAO in March 2020, but the meeting was cancelled after the COVID-19 pandemic impacted State and local operations; and WHEREAS, without notice to the counties involved, the DOF released a proposed trailer bill for inclusion in the State's May revision of the 2020-21 Fiscal Year Budget that would amend the Revenue and Taxation Code to impose civil penalties on counties whose ERAF calculations have been questioned by the DOF; and WHEREAS, the proposed Revenue and Taxation Code amendments would apply retroactively to FY 2018-19, and require local auditor -controller adherence to DOF "guidance" that did not exist at the time and still does not exist; and WHEREAS, the State Controller's Office is responsible for auditing the counties' allocation and apportionment of local property taxes, including reviewing excess ERAF calculations, and has not identified problems with the Counties' calculations in prior audits spanning many years; and WHEREAS, in contrast to the State Controller's Office and the fiduciary and independent responsibilities of county auditor -controllers, the DOF Director is appointed and holds office at the pleasure of the Governor; and WHEREAS, there is existing State oversight of county auditor -controllers' administration of property tax laws; and WHEREAS, the ERAF calculations at issue will not impact local school funding; at issue is whether that funding comes from the State's General Fund or the local ERAF. 1 DocuSign Envelope ID: DCD5ABC8-AOA9-4586-ADCA-58DE3C5FE696 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME RESOLVES THAT: The City of Burlingame opposes the proposed amendments to the Revenue & Taxation Code within the Education Omnibus Trailer Bill, and authorizes the Mayor to send a letter of opposition to the appropriate Legislators. DocuSigned by:� G� D066C125928D48D... Mayor, Emily Beach I, Meaghan Hassel -Shearer, City Clerk of the City of Burlingame, certify that the foregoing Resolution was adopted at a special meeting of the City Council held on the 9th day of June, 2020, by the following vote: AYES: COUNCILMEMBERS: BEACH, BROWNRIGG, COLSON, O'BRIEN KEIGHRAN, ORTIZ NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE EcuSigned by: nL�as, JH'�+iit� .S(ntarty UU84C3D80E7449... City Clerk, Meaghan Hassel -Shearer 2