PROPERTY TAX MANAGERS’ SUB-COMMITTEE
Minutes
Wednesday February 4, 2015
Radisson Ontario Airport
2200 E. Holt Blvd., Ontario, CA 91761
8:30 – 9:00
Sign-In/Registration
9:00 – 9:10
Welcome by Mr. Larry Walker, Auditor-Controller/Treasurer-Tax Collector,
San Bernardino County
9:11 – 9:15
Opening Remarks/Introductions and recognition of Auditor-Controller’s at the
meeting today: Larry Walker, San Bernardino; Dave Houser, Butte County;
Bob Campbell, Contra Costa; Marcia Salter, Nevada County; Roberta Allen,
Plumas, Jay Wilverding, San Joaquin; Richard Eberle, Yuba County.
9:15 – 9:30
Sub-Committee Business:
Review & Approval of October 2014 Meeting Minutes: Pam Elias, Riverside
County - The minutes were reviewed and approved from the October
meeting. They will be posted to the CALSACA website soon.
Treasurer’s Report: Darlene Hoang, Los Angeles County. Darlene presented
the report of the counts of attendees for the October 6 & 7 meetings at 87
and 86 respectively and counties attended were 44 and 42. Also, the report
of funds was read. The estimated balance after this February meeting is
$14,900.
9:30 – 10:30
Updates were provided as follows:
 Property Tax Manual: Roxanne Nored, Placer County. There are
updates in progress. More items are available if others want to sign
up.
 Legislative: Ed Price, Santa Barbara County. Ed talked about the
legislative process is just beginning. He addressed several bills:
AB2, 3, 103,139,168,183,204, and SB2, 8, 25, 45, and 69. He also
mentioned that Jean Hurst is no longer with CSAC.
 Technology: Kim-Anh Le, Santa Clara County. Santa Barbara and
Riverside County both provided updates of their new systems.
 Unitary in ERAF: Kim-Anh Le, Santa Clara County
 Qualified Property Apportionment: Kim-Anh Le, Santa Clara County
 PACE Assessments by Frank Davies. Frank provided some
background that the process started in November 2008 with AB811.
WRCOG has taken on many cites as associate members. He also
FRANK DAVIES, PRESIDENTCHRISTY REDFORD, 1ST VP LINDA SANTILLANO, 2NDVP
PAM ELIAS, SECRETARY  DARLENE HOANG, TREASURER
PROPERTY TAX MANAGERS’ SUB-COMMITTEE

talked about an article written by Ron Kingston about how PACE
financing affects realtors and he also addressed the issue of the
Federal Housing Finance Agency restrictions by Freddie Mac and
Fannie Mae. Frank will post the articles.
State Dept. of Fish & Wildlife Payments In-Lieu of Taxes (PILT) –
Payments are coming from the State. Discussion ensued about the
proper methodology for the distribution and whether ERAF should
receive a share. The State plans to distribute to schools.
10:45– 11:00
Break
11:00 – 12:00
RDA Dissolution Process – Governor’s Proposed Changes
Chris Hill, Derk Symons – DOF. Derk provided some statistics as follows:
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18 Former Redevelopment Agencies dissolved
383 Active Successor Agencies
337 Finding of Completions have been issued
305 Long Range Property Management Plans have been submitted (of which
200 approved by DOF and 105 currently in review)
Finance has received the first ROPS 15-16A submission more than two
months before the March 3rd deadline.
Chris then addressed the newly proposed legislation would be available later
today on their website and he spoke about some of the reasons for the
legislation. Basically he indicated about 99% of the Successor Agencies are
complying with the requirements of the true-up, finding-of-completions, due
diligence reviews, transfers of housing etc. They hope the legislation will
pass by June 2015.
Here is the link to the legislation proposed for the RDA simplification process:
http://dof.ca.gov/budgeting/trailer_bill_language/local_government/documents
/701RDADissolutionSimplification_000.pdf
The legislation is proposing several changes; one is to make it mandatory for
the Auditors to process with the prior period adjustments. Chris also said
they still are of the opinion that the tax increment caps do not apply which is
to be addressed in the legislation. There will be language to address the last
100 days of the SA (Successor Agency), last and final ROPS and the staffing
for the consolidated Oversight Board. Chris stated that if there is a last and
final ROPS the SA can still come back to the State two times to make
revisions. The annual ROPS will be operating on a two year basis. In August
of 2015 the last and final ROPS can start to be submitted.
12:10 – 1:00
Lunch
FRANK DAVIES, PRESIDENTCHRISTY REDFORD, 1ST VP LINDA SANTILLANO, 2NDVP
PAM ELIAS, SECRETARY  DARLENE HOANG, TREASURER
PROPERTY TAX MANAGERS’ SUB-COMMITTEE
Minutes, continued
Wednesday February 4, 2015
Radisson Ontario Airport
2200 E. Holt Blvd., Ontario, CA 91761
1:00 – 2:00
County Offices of Education: Roles & Responsibilities
Dr. Wendy Benkert/Chris Lombardo – OC Department of Education
They talked about the roles and responsibilities of the Office of Education.
Some offices have an elected Superintendent and some are appointed. They
described the Local Control Funding Formula (LCFF) and how it differs from
the revenue limit formula. They also talked about basic aid funded districts (or
community funded or excess tax districts) which are not under LCFF. See
handout
2:00 – 2:45
Servant Leadership/Leadership Lessons
Laree Brommer, Orange County Public Works
Laree had a presentation about the manager versus the leader. We are all
leaders. It is important to be open to change. It is good to have challenges.
Words to lead by: look, deal, vision, study past, have action not position.
2:45 – 3:00
Break
3:00 – 3:50
Sales Tax/Triple Flip Wind Down
Bobby Young – HDL
Bobby talked about forecasting not being an exact science. There are three
methods: using scenarios, trends and a dart board. HDL gets 98% of the
statewide sales tax data quarterly from clients and non-clients. They are
watching the Senate Bill 8 by Senator Hertzberg which would expand the
sales tax base.
The sales tax triple flip wind down is anticipated to have the bonds paid off by
July 2015. The HDL presentation listed the wind down procedures by month
from July 2015 through May 2016 (see the handout). The effects of the wind
down will include a one-time bump up in cash in FY 15-16. The cash flow will
go back to monthly instead of semi-annually which should allow more funds
being available sooner and more interest to be earned.
FRANK DAVIES, PRESIDENTCHRISTY REDFORD, 1ST VP LINDA SANTILLANO, 2NDVP
PAM ELIAS, SECRETARY  DARLENE HOANG, TREASURER
PROPERTY TAX MANAGERS’ SUB-COMMITTEE
3:50 – 5:00
Internal Controls
Dr. Peter Hughes, Internal Audit Department, Orange County
He talked about the complexity of jobs today. We are all becoming masters
of our trades. It is important to have controls in our processes which are like
a backstop to minimize errors and the time between errors. It is important to
assess internal controls. Conduct a drill by listing three major goals,then
determine what are the biggest hindrances to completing those goals.
Finally, determine what we can do to reduce or eliminate the obstacle(s).
It is important to deal with stress. The number one ingredient for stress is the
not knowing how to handle it. Peter said to use the backstop method to
remove the stress. The number one source of illness is stress. The number
one cause of stress is work.
5:00
Adjourn & announcements of the afterhours event.
FRANK DAVIES, PRESIDENTCHRISTY REDFORD, 1ST VP LINDA SANTILLANO, 2NDVP
PAM ELIAS, SECRETARY  DARLENE HOANG, TREASURER
PROPERTY TAX MANAGERS’ SUB-COMMITTEE
Minutes
Thursday February 5, 2015
Radisson Ontario Airport
2200 E. Holt Blvd., Ontario, CA 91761
8:00 – 8:30
Sign-in
8:30 – 8:35
Welcome and introductions
8:35 – 9:15
AB 2109 Update of “Parcel Tax” reporting to the SCO by Sally Zutter, El
Dorado County (see handout)
The Government Code Section added as a result of this bill was GC 12463.2.
The bill also addresses the reimbursement to local agencies and schools in
Section 2 of Part 7 (commencing with Section 17500) of Division 4 of Title 2
of the Government Code. Schools will not be on the report. User charges
are not considered a tax.
9:15 – 9:45
Mileage Authorization & Reimbursement System (MARS)
Jesse Conde/John Howieson, Los Angeles County
The County of Los Angeles received a Golden Eagle award for MARS. Jesse
and John demonstrated the use of the new system. The system was
designed to replace the old system which had redundancies in reporting, was
time consuming, had no automation, lacked standardization and had the
potential for fraud.
9:45 – 10:25
Redevelopment Legislation/Infrastructure Finance District Financing
Elizabeth W. Hull - Best Best & Krieger (see handout)
She began the presentation with a background of the redevelopment
dissolution legislation. She talked about where we are today and some 2014
legislative bills that were introduced AB628, AB 229, and AB2292. She
talked about Infrastructure Finance Districts (IFD) and Enhanced
Infrastructure Finance Districts (EIFD). EIFDs required a 55% vote and IFDs
required a 2/3 vote. EIFDs were used for development at Legoland and San
Francisco. They had a lot of limitations. AB 628 attempted to address those
issues. In the 2015 legislation there is AB204 for Los Angeles County. With
the new proposals from the Governor regarding RDA there are lots of
concerns of things such as with the last and final ROPS. Also, with the
section on the Auditors being the staff for the consolidated Oversight Boards.
This will require a lot of staff time.
FRANK DAVIES, PRESIDENTCHRISTY REDFORD, 1ST VP LINDA SANTILLANO, 2NDVP
PAM ELIAS, SECRETARY  DARLENE HOANG, TREASURER
PROPERTY TAX MANAGERS’ SUB-COMMITTEE
To consolidate to one board is not appropriate, the law should extend it out
one year at least. There are still many agencies that have a lot of properties
which still need to be liquidated. Counties will be overburdened.
10:25 – 10:40
Break
10:40 – 11:00
Teeter Program
Claire Moynihan, Orange County CEO Public Finance Accounting
Claire provided some history of the Teeter program. She also addressed the
Teeter Tax Losses Reserve Fund in R&T 4703 & 4703.2 which allows the
County to credit amounts in excess of the statutory limit to the general fund.
There are two different formulas. In 4703 it is 1% of all Secured delinquent
taxes and assessments levied and in 4703.2 it is 25% of all Secured
delinquent taxes and assessments for Teeter participants. The County of
Orange analyzed this and went to their Board to begin using R&T 4703.2
instead which provided them a onetime bump of funds.
11:00 – 11:50
Debt Financing
Joe Aguilar - Vavrinek, Trine, Day and Company, LLP (see handout)
Joe stressed the importance of having information. “Information is power”.
He provided information on many issues related to debt financing such as
arbitrage, certificates of participation (COPS), debt compliance tracking,
different types of bonds (i.e. COPS, Mello-Roos, Revenue Bonds, Lease
Backed, Redevelopment, Tax and Revenue Anticipation Notes (TRANS), and
Finance Authority Bonds (Mark Roos Bonds)).
It is important to get the financing package from the underwriter. It will
include many important and informative documents such as debt service
schedules and projections). For bond refinancing there is a verification report
that needs to be kept on file for the life of the loan.
Never start with an underwriter. Fiscal Agents are the manager of the
finances. The Bank Trustee has a fiduciary responsibility to the Bond holders
and with legal counsel. If you have a bond indenture then you have a bank
trustee. The trustee does not have to agree with County Counsel. It is
important to get a good bank trustee.
Read the bond documents. Sometimes mistakes will be in the documents on
purpose to see if you are reading them. They want to ensure the due
diligence has been performed.
In the bond world some bonds are simple and some are complicated.
FRANK DAVIES, PRESIDENTCHRISTY REDFORD, 1ST VP LINDA SANTILLANO, 2NDVP
PAM ELIAS, SECRETARY  DARLENE HOANG, TREASURER
PROPERTY TAX MANAGERS’ SUB-COMMITTEE
Obligatory debt is where the County is on the hook (i.e. jail) as opposed to
non-obligatory (i.e. assessment district where the property owners are on the
hook.) If it is a variable rate debt, pay attention.
11:50 – 12:00
State P.I.L.T. by Christy Redford, Napa
The State has not paid Fish & Wildlife PILT in over a decade. They owe
unpaid PILT of over $18 million to 36 counties Fish & Game Code §1504
directs the State to make payment but doesn’t specify how it is allocated.
The Property Tax Managers Manual recommends distribution to taxing
jurisdictions on the billing year AB8 factors at the TRA level. The SCO
Accounting Standards & Procedures for Counties says payments distributed
based on AB8 factors. Some counties are apportioning to the County
General Fund. Susan from Los Angeles County said, if we use AB8, we
need to be aware that the State is already apportioning to schools so we
have to be careful not to duplicate the school funding.
12:00 – 1:00
Lunch
1:00 – 1:35
Redevelopment Long Range Management Plans
Joe Aguilar -Vavrinek, Trine, Day and Company, LLP
There is a lot of unfinished business for the Long Range Management Plans.
There is the toxic waste from the old gas stations which is especially a
problem in smaller counties (large counties expanded their roads from 2 to 4
lane highways on top of the waste).
A lot needs to be considered i.e., debt management, cash, assets,
transitions, unchartered waters.
Trustees have the power because of the indenture (which comes with the
legal opinion that needs to be available the life of the loan).
It is important to plan for cash deficits. Things need to be sorted out with
legislation. Joe plans to talk to Michael Coleman too. We may want to have
discussions with our CEO or CAO.
Someone else will need to get involved with the city loans now. Some of the
biggest challenges are with the trustees and the bond indentures.
As for the Auditor’s office staff becoming staff for the Oversight Boards there
are not enough resources. (Joe said he agrees that the county should be the
oversight Board, but right now is not a good time.). It is not realistic. There
are lots of missing parts and complications. It is particularly a risk for small
and medium size counties. Cash flow may be an issue. Riverside County
FRANK DAVIES, PRESIDENTCHRISTY REDFORD, 1ST VP LINDA SANTILLANO, 2NDVP
PAM ELIAS, SECRETARY  DARLENE HOANG, TREASURER
PROPERTY TAX MANAGERS’ SUB-COMMITTEE
may be an exception since it set up the County projects by Supervisorial
area.
1:35 – 1:45
Get To Know Fresno County – Alan Cade
1:45 – 1:50
County of San Diego Lawsuit update by Jon Baker
Jon provided an update of the RPTTF residual lawsuit in which the cities
challenged the distribution methodology of H&S 34183/34188. The lawsuit
was filed January 2014. The court date is set for March 27, 2015. The cities
filed papers last week; the county has until the end of the month to file their
papers.
1:50 – 2:30
Change: How To Deal With It by Christi Page, PERC, San Bernardino County
Our brains have two main areas that deal with change: the prefrontal cortex
and the basal ganglia. The prefrontal is smaller and more finite. It is glucose
generated and crashes when it runs out of glucose. It is the area that deals
with frustration and anger. The other, basal ganglia, has a larger storage
capacity. It stores hard wired habits so we don’t have to think. However, it is
content with the way we have always done things. Its way is predictable and
familiar.
Change and resistance: The prefrontal engages then burns up and the basal
doesn’t want to give up cruise control. Therefore it is necessary to counteract
the resistance. Tools to counteract are: Neoscience (repeat 10 times);
Nutrition (optimum glucose, smaller more frequent meals, low glycemic, add
omega 3 fats, and other foods that work for you); Change Management
(value change, train on new process, provide reassurance for support).
Think, write and read what you wrote for a triple trifecta. Knowledge is
power.
2:30 – 2:45
2:45 – 3:23
Break
Jurisdictional Changes by Arounsy Phommasa/Bang Quan/Eliseo Gillamac,
Orange County (see handout)
LAFCO (local agency formation commission) involved in annexations,
detachments, reorganizations, dissolutions, incorporations, consolidations
and formations.
LAFCO is not involved in school, redevelopment, CSAs and zone of
Benefits changes.
FRANK DAVIES, PRESIDENTCHRISTY REDFORD, 1ST VP LINDA SANTILLANO, 2NDVP
PAM ELIAS, SECRETARY  DARLENE HOANG, TREASURER
PROPERTY TAX MANAGERS’ SUB-COMMITTEE
Jurisdictional changes involve the Board of Equalization, AuditorController, ATEs (affected taxing agencies), and LAFCO
State contacts: TASS@BOE.CA.GOV or
Anna Price email: anna.price.boe.ca.gov
Other resources: Property Tax Manual
3:23 – 4:00
Open Discussion/Other Issues/Last Thoughts
R&T 75.31 & 75.43 – Proposed Changes by Sally Zutter, El Dorado County
Sally provided a handout on the issue. The Tax-Collector’s office is trying to
change R&T 75.43 (a). Sally has been looking into the issue and does not
want the change because it appears they are reading the code incorrectly.
The supplemental refunds are a function of the Auditor’s office. The codes in
question are 75.31 (e), 75.43 (a), 75.43 (c). All three of these codes are not
saying the same thing. The legislation was not repeating itself. In 75.43 (a),
the cash flow of supplemental refunds from supplemental collections are not
to be co-mingled with the 601 roll. Section 75 is a standalone process unless
it says otherwise. In 75.43(c) property cannot have net negative taxes for
the year but the Tax Collector reads that (a) and (c) are the same. In 75.31
the Assessor is required to provide the notice of supplemental assessment. It
has nothing to do with us. Also, supplemental refunds must be done within
90 days. After 30 days we owe interest (per R&T 5151).
Date of enrollment is another issue up for debate. Some counties interpret it
is when the Assessor enrolls and some interpret it is when the Tax-Collector
enrolls. However a county interprets the date of enrollment the clock for
refunds starts ticking at that date.
Where do we go from here?
4:00
Adjourn – Safe Travels!
Upcoming:
Property Tax Manual Committee Meeting – Monday May 11, 2015 – Sacramento
Property Tax Managers’ Sub-Committee Meeting – Tuesday May 12, 2015– Sacramento
Property Tax Managers’ Sub-Committee Meeting/Training – Date TBD – Sacramento
Property Tax Managers’ Sub-Committee Meeting/Training – Date TBD – Sacramento
FRANK DAVIES, PRESIDENTCHRISTY REDFORD, 1ST VP LINDA SANTILLANO, 2NDVP
PAM ELIAS, SECRETARY  DARLENE HOANG, TREASURER
PROPERTY TAX MANAGERS’ SUB-COMMITTEE
FRANK DAVIES, PRESIDENTCHRISTY REDFORD, 1ST VP LINDA SANTILLANO, 2NDVP
PAM ELIAS, SECRETARY  DARLENE HOANG, TREASURER