Sunday, December 15, 2013

Pacifica Sales tax growth, but not enough local property tax for school funding

Pacifica Tribune/Jane Northrop, Staff, 12/10/13.  "Pacifica's sales tax update shows growth."

Just another city insufficiency 
....  "Food and hotels come in second for generation of revenue. Gas stations still are number one, however, this source of income may decrease due to the very welcome drop in gas prices. The fact that six out of 25 top generators of revenue are eateries show our strength in being a destination for both the Bay Area residents and tourists.

"The negative side is the continued and ongoing drop in the category of ERAF Funds and the city/county share totals approximately $140,000 this quarter with an annual loss of more than $500,000 on an annual basis." 

The top 25 producers in town, in alphabetical order:  Beacon Oil, City Arms, Denny's, Dollar Tree, Eddie's Union 76, Fairmont Chevron, Linda Mar Ace Home Center, Lucky, McDonalds, Moonraker, Nick's Restaurant, O'Reilly Auto Parts, Pacifica 76, Pacifica Chevron, Puerto 27, Quick Stop Market, Rite Aid, Ross, Safeway, Shell Station, Surf Spot, Taco Bell, Usman A. Syed, Valero, Walgreens."  Read article.   


Just another snowball to catch...
look out down below
Related -  Fix Pacifica Reprint article, "Cities lose annualized State of CA ERAF revenue, from January, 2014", Pacifica Tribune/Jane Northrop", Staff 2/5/13. "City Council challenged by unexpected loss of $1.4 million over next two years." 

Reference -  State of CA, Legislative Analyst's Office (LAO), Mac Taylor, Legislative analyst, "Insufficient Educational Revenue Augmentation Fund (ERAF),  Examining a recent issue in local government finance." 12/18/12. Pdf, 16 pages. "Over the last two years, a small number of cities and counties did not receive enough local property tax revenue to offset two complex state-local financial transactions: the triple flip and vehicle license fee (VLF) swap. This funding insufficiency, commonly called “insufficient ERAF” (Educational Revenue Augmentation Fund), requires state action if the affected local governments are to receive complete payment. Insufficient ERAF Probably Is a Limited Issue. To date, insufficient ERAF has affected local governments in only two counties—Amador and San Mateo—and resulted in total VLF swap funding shortfalls of less than $2 million. Insufficient ERAF may grow somewhat over the next few years. In the longer term, however, insufficient ERAF likely will be limited to a small number of cities and counties—or not occur at all in some years"  

Reference -  California city finance, City vehicle license fee revenues, 1/30/12, "Loss of city vehicle license fee (VLF) revenues due to SB89 (2011) estimated FY 2011-12 impact," page 8, pdf 17 pages.  California city finance, SB 89, 7/10/11, "The vehicle license fee (motor vehicle in-lieu tax):  background," pdf 4 pages.  California city finance, Letter to Hon. John Chaing, CA State Controller, 5/15/07, from Irwin Bornstein, Director, Finance Officers Department, League of CA cities, 5/15/07, "The sales tax triple flip and the vehicle license fee swap", pdf 4 pages. 

Note photographs:  Man with umbrella from Investment News, snowball rolling down hill, from The 

Posted by Kathy Meeh

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