Available from Solano Press The most comprehensive treatment of local government finance in any
state
that I have ever seen. This guide will prove useful to elected and appointed local government officials, business leaders, reporters, students, faculty, and
others who are struggling to understand the highly complex world of local government finance in California.
~ Chris McKenzie,
Exec.Dir. League of Calif Cities 1999-2016
Available from The League of California CitiesThe California Municipal Revenue Sources Handbook, NEW! Fifth Edition by Michael Coleman. The definitive resource on municipal funding for city and county managers, finance officers, academics and other professionals
engaged in the complex world of municipal finance in California.
You Pay Taxes - Where Does it Go? A presentation from the
California taxpayers' perspective showing common taxes,
emphasizing how much cities receive. Oct'16 (PDF)
Brief Glossary of Financial Management Terms; This glossary, available in English and
Spanish, is designed to help non-finance experts understand some of the terminology used in public agency financial management. Institute for Local
Government.
Proposition 13: Some Unintended Consequences . Jeffrey I.
Chapman, Public Policy Institute of California 1998. Proposition 13
had three unanticipated consequences: 1) the fiscalization of land
use, 2) the growth of arcane finance techniques, and 3) the increase
of state control over local government finance. (PDF)
Patterns in
California Government Revenues Since Proposition 13. Michael A.
Shires, Public Policy Institute of California 1999. This report
examines the changes that have occurred in state and local public
finance between the passage of Proposition 13 in 1978 and 1995,
addressing three questions: 1) How has the share of locally
controlled revenues changed? 2) How has the spending flexibility of
state and local revenues changed? 3) How has the composition of
state and local revenues changed?
Has
Proposition 13 Delivered? The Changing Tax Burden in California . Michael A. Shires, John Ellwood, and Mary Sprague, Public Policy
Institute of California 1998. One question that has arisen in the
debate over public finances is whether Proposition 13 has succeeded
in reducing the tax burden of Californians. This report shows that
it has.
Proposition 13: A Look Back. KPBS San Diego's Feb 2010 well
done review of Proposition 13 and its legacy. [Video]
No-Property-Tax Cities After Propositon 13. Bob Leland, Assembly Revenue and Taxation Committee and Julie Nauman,
Assembly Local Government Committee, Sacramento, November 1980.
Proposition 26 and 218 Implementation Guide. A thorough guide to California Constitution Articles XIIIC
and XIIID by the League of California Cities Legal
Issues Committee. May 2017.
Proposition 1A (2004) and Proposition 22 (2010): Protection of Local Government Revenues
In November 2004, the voters of California approved Proposition 1A,
an amendment to the California state constitution intended to
restore predictability and stability to local government budgets.
Note: Proposition 1A does not contain the provisions of the
"VLF-for-Property-Tax-Swap of 2004" nor the ERAF III local
government contributions. These were part of the State Budget
Act of 2004.
In November 2010, the voters of California approved Proposition 22,
an amendment to the California state constitution which added additional protections for revenues allocated to local governments.
Proposition 22. A summary of the provisions of
Proposition 22.
In June 2018, the voters of California approved Proposition 69,
an amendment to the California state constitution which provides consitutional protections for revenues allocated by SB1 (2017), the Road Repair and Accountability Act of 2017.
Proposition 69. A summary of the provisions of
Proposition 22.
City Incorporations and the New Public
Finance. An outline of how changes to the VLF and property
tax in lieu of VLF effect the finances of future city
incorporations. By staff to the California State Senate Local
Government Committee (PDF)
City Annexations and the New Public Finance. An outline of how changes to the VLF and property tax in lieu of VLF
effect the finances of future annexations. By staff to the
California State Senate Local Government Committee (PDF)
The California Municipal Financial Health Diagnostic
Get the Diagnostic for cities here: Excel versionPDF version
January 2016 revision. The January 2016 version adds a new indicator: "#3 Capital Asset Condition," makes various minor edits and improvements, and adds a checklist for important financial
management policies.
...or for Counties ... the California County Municipal Financial Health Diagnostic. August 2016 revision. Excel version
Educational Revenue Augmentation Fund (ERAF): Property Tax Shifts
In 1992, facing a serious deficit position, the State of California
began shifting local property tax revenues from cities, counties and
some special districts into these funds to reduce the cost of education
to the state general fund.
ERAF facts. A concise explanation of ERAF with tables and
charts showing historic and projected ERAF losses and mitigations
for cities, counties and special districts. Aug'12 (PDF)
ERAF loss by city, county and special district.
For each city and county and for special districts grouped by
county: estimated ERAF loss, estimated ERAF loss net of mitigations
(including Proposition 172 and COPs), estimated cumulative historic
ERAF loss. PDF files:
Proposition 172 Facts. A concise
explanation of Proposition 172, the half-cent sales tax for Public
Safety adopted by voters as a partial mitigation for ERAF.
(PDF)
Frozen property tax allocations may not be the most efficient or preferred allocation now. Inefficiencies persist due to the fragmentation of policy and finance among too many local authorities and the decline of general purpose
government policy making authority.
SSTP California Board
of Governance representing California on the Streamlined Sales
Tax Project pursuant to SB157 (Chapter 702, 2003) including meeting
agendas and reports.
There have been more than a dozen
task forces, commissions, studies and proposals on local government
finance reform over the last decade alone. Here are some articles on the
problem, ideas, and analyses of recent proposals. It is important to note that, in 2004,
two important changes occurred in the state-local fiscal relationship:
the passage of Proposition 1A of 2004, and the swap of $4 billion of
state Vehicle License Fee backfill payments to cities and counties for
greater shares of local property tax revenues. These major changes
make obsolete some of the recommendations in pre-2004 reports.
"Reforming Property Tax Allocation and Authority." Remarks by Michael Coleman before the Little Hoover Commission hearing "Special Districts: Relics of the Past or
Resources for the Future?" August 2016
California Commission on Tax
Policy in the New Economy. Final Report 2003. Established by SB
1933 (Vasconcellos, 2000), to review the state's revenue programs in
light of the "new economy" and to propose structural reforms.
(PDF)
AB1221 (Steinberg/Campbell)
(2003-04) "The most significant legislative proposal affecting
California city finance since the turn of the century," (- League of
California Cities) AB1221 was intended by its authors to encourage
cities and counties to "make land use decisions based on the best
interests of their communities and not simply based on what
generates the most sales tax." Bill text and legislative committee
analyses.
Funding the Golden Years in the
Golden State: An Overview of Public Employee Post-Employment
Benefits and Recent Concerns About How to Provide and Pay for Them.
Grant Boyken. California Research Bureau. April 2007
Property Tax
The largest source of revenue for city
and county government, the complex machinations of California property
tax assessment, collection and allocation are understood by few.
California Property Tax: An Overview. A comprehensive guide
to the mechanics of California's Property Tax. California State
Board of Equalization. 2012
Chapter 4: Local Property Tax from the Revenue and Taxation
Reference Book 2015. Page 163. Assembly Committee on Revenue and Taxation.
Thorough review of the history, rules, administration, collection
and allocation of California's property tax.
Property Tax Data. Assessed Values, tax levies by year and by city, county and government sector, exemptions, assessors workload data. FY201-20 through FY2012-13.
Property Tax by city.
Historic revenues from the local property tax, revenues per
capita, summary statistics. Through FY17-18. August'20 (Excel)
Assessed Valuation of Property by
city . Historic Assessed Valuation, land, improvements, personal property, HOPTR, exemptions, state assessed, total net AV per capita,
summary statistics. Through FY18-19.
August'20 (Excel)
Significant Features of the Property Tax. An
online database of property tax information for all 50 states
prepared by the Lincoln Institute of Land Policy and the George
Washington Institute of Public Policy.
Tax Expenditure Reports. California Department of
Finance. Includes description and value of property tax exemptions.
Reforming Property Tax Allocation and Authority Remarks by Miochael Coleman before the Little Hoover Commission hearing "Special Districts: Relics of the Past or Resources for the
Future?" August 2016
No-Property-Tax Cities After Propositon 13. Bob Leland, Assembly Revenue and Taxation Committee and Julie Nauman,
Assembly Local Government Committee, Sacramento, November 1980.
Measuring Shares
Statewide Property Tax Shares - Cities, Counties, et al . A
discussion by Michael Coleman of how (and how not) to
calculate the relative typical and statewide shares of property tax
revenues among cities, counties and other local governments.
VLF Adjustment Amounts:
FY04-05 True-Up and FY05-06 Calculations. State Controller's
Office calculations of true-up of city and county FY04-05 Property
Tax in Lieu of VLF amounts (column F) and FY05-06 Property Tax in
Lieu of VLF amounts (column K). These are the amounts that
county auditors will transfer in FY05-06. State Controller's Office.
Oct14,'05 (PDF).
NOTE: Property Tax in Lieu of VLF, also called Vehicle License Fee Adjustment Amount (VLFAA) is Property Tax, not VLF. It should be budgeted, accounted for, and reported as property tax, not VLF
and not intergovernmental. To avoid confusion, it should be called "Property Tax in Lieu of VLF" and not "VLF."
The second largest source of
general purpose revenue for cities statewide and the largest for some
California cities, the sales and use tax faces a tenuous future.
The local component of the sales and use tax is distributed to cities
and counties primarily on point-of-sale.
Overviews and Explanations
Local and District Taxes. Information for jurisdictions, sellers and purchasers from the California Department of Tax and Fee Administration (CDTFA).
Detailed Description of the Sales & Use Tax Rate. California Department of Tax and Fee Administration. Breakdown of the allocation of the basic 7.5% sales and use tax rate (includes 0.25% additional voter approved rate
effective 1/1/2013 ending 12/31/16. Does not include local district transactions and use taxes.
California City
and County Sales & Use Tax Rates. California Department of Tax and Fee Administration. Schedules and tables including composite rates
by locality and a list of those jurisdictions with district tax
rates (add-on transactions and use taxes).
Proposition 172 Facts . A concise
explanation of Proposition 172, the half-cent sales tax for Public
Safety adopted by voters as a partial mitigation for ERAF. (PDF)
Tax Expenditure Reports. California Department of
Finance. Annual reports detailed stipulated tax exemptions with costs (expenditures) and history of relevant legislative actions.
Local Sales & Use Tax Revenues (CDTFA & BOE).
Historic annual revenue distributions (1998-99 through FY2018-19) to cities
and counties from the 1% Local Bradley Burns rate, revenues per
capita, revenues as a percentage of general revenues. Compiled from
California BOE and CDTFA reports. Includes RDA allocations. Per capita and per general revenue ratios. (Excel)
Local Sales & Use Tax Revenues (SCO).
Historic revenues by city from the 1% Local Bradley Burns rate, revenues per
capita, summary statistics as reported by local agencies to the
State Controller. Through FY11-12. August'14 (Excel) Caution: may or may not include add-on rates, triple flip reimbursements. BOE statistics (above) are more reliable.
District Taxes (Sales and Use Taxes).
Important implentation on Transactions and Use Taxes (referred to as "District Taxes" by the CDTFA and BOE) California Department of Tax and Fee Administration. April 2018
California City
and County Sales & Use Tax Rates. California Department of Tax and Fee Administration. Schedules and tables including composite rates
by locality and a list of those jurisdictions with district tax
rates (add-on transactions and use taxes).
Estimated Sales and Use Tax Compensation Fund Allocations. State
Department of Finance estimated sales and use tax compensation fund amounts (triple flip compensation) for cities
and counties including prior year settle-up amounts.
Via HdL Companies.
Flips, Swaps & Settle-Ups: The New In-Lieu Property Taxes. Presentation by Michael Coleman and Vallejo Asst Finance Director Susan Mayer from the Dec 2, 2005 League of California Cities
Financial Management Seminar in Monterey, CA (PDF)
Federal Aviation Administration (FAA) Rule on Use of Revenues
SSTP California Board
of Governance representing California on the Streamlined Sales
Tax Project pursuant to SB157 (Chapter 702, 2003) including meeting
agendas and reports.
Utility User Tax Facts. Key facts
about Utility User Taxes in California. revised January '21 (PDF)
Utility User Tax by city through
FY18-19. Current rates. Historic revenues, revenues per
capita, revenues as % of general revenues, summary statistics. Feb '21 (Excel)
Other Locally Adopted Revenues: Business Tax, Hotel Tax and Others.
General Revenues by city. Historic revenues, summary statistics. Through FY18-19. Nov'20 (Excel)
Local Taxes - Other than Property Tax, Sales Tax, Utility User Tax
Transient Occupancy Tax by city.
Current rates, revenues, per capita, and % of general revenues and summary statistics. Through FY18-19.
Nov'20 (Excel)
Administration of TOT:
County Tax Collectors Reference Manual - Chapter 1300 Transient Occupancy Tax. California State Controller 2012. NOTE: TOT is
administered by each individual city and county but the State Controller Manual provides guidelines for best practices.
Franchise Revenues by city.
Historic annual revenues, summary statistics. Including solid waste, telecommunications and other franchises. Through FY18-19.
Nov'20 (Excel)
Resources for Ballot Measure Activities. Explainations of the restrictions on using public resources (including staff time, agency supplies and other resources paid
for with taxpayer dollars) for ballot measure activities. Institute for Local Government.
VLF: The Motor Vehicle In-Lieu Tax
Established in 1935 as a
uniform statewide tax, the VLF is a tax on the ownership of a registered
vehicle in place of taxing vehicles as personal property. By law,
all revenues from the VLF fund city and county services, but the state
legislature controls the tax rate and the allocation among local
governments. In 2004, the Legislature permanently reduced the VLF
tax rate and eliminated state general fund backfill to cities and
counties. Instead, cities and counties now receive additional
transfers of property tax revenues in lieu of VLF.
Property Tax in Lieu of VLF, also called Vehicle License Fee Adjustment Amount (VLFAA) is Property Tax, not VLF. It should be budgeted, accounted for, and reported as property tax, not VLF and not intergovernmental.
To avoid confusion, it should be called "Property Tax in Lieu of VLF" and not "VLF."
City VLF Revenues. An update on current VLF revenues with
brief history and detailed estimates of the annual loss of VLF for
each city due to SB89(2011).
Updated January 30, 2012
Proposition 172 Facts. A concise
explanation of Proposition 172, the half-cent sales tax for Public
Safety adopted by voters as a partial mitigation for ERAF.
(PDF)
Disability Access and Education Fee. Senate Bill (SB) 1186 (Chapter 383, Statutes of 2012) created Government Code Section 4467. Among other things, this
statute requires a one-dollar additional fee to be paid by any applicant for a local business license, permit or similar instrument when it is issued or renewed.
Homeowners' Exemption. Assembly Committee on Revenue and Taxation Revenue and Taxation Reference Book 2006 Chapter 6E.
The Future of California Transportation Revenue. A brief history of transportation revenue policies and potential futures in California. Martin Wachs, Hannah King, Asha Weinstein Agrawal. Mineta Transportation Institute Publications (2018).
Transportation For Economic Development. A study of the potential economic benefits of transportation improvements to impoverished areas of California by Cambridge Systematics, Inc. under a contract with the CalTrans. (2003)
Transportation Funding Sources
Local Streets and Roads Funds including Highway Users Tax (Motor Vehicle Fuel Tax) and Road Maintenance and Rehabilitation Account (from RRAA of 2017)
California Transportation Commission: Local Streets and Roads Funding - Annual Reporting Guidelines
The California Transportation Committee (CTC) has formally adopted their Local Streets and Roads Annual Reporting Guidelines on August 16. These guidelines outline the process for cities to submit their project lists and
expenditure reports to the CTC to establish eligilbilty for recieving SB 1 funds.
Highway Users Tax allocations. Detailed records of
recent payments to cities and counties of state motor vehicle fuel
tax (gasoline excise tax) under Streets and Highways Code Sections
2104-2107.5. State Controller's Office.
Road Maintenance and Rehabilitation Account - Cities. Records of
recent payments to cities of state motor vehicle fuel
tax (gasoline excise tax) from SB1, the Road Repair and Accountability Act of 2017 through the Road Maintenance and Rehabilitation Account (RMRA) under Streets and Highways Code Sections
3290. State Controller's Office.
Road Maintenance and Rehabilitation Account - Counties. Records of
recent payments to counties of state motor vehicle fuel
tax (gasoline excise tax) from SB1, the Road Repair and Accountability Act of 2017 through the Road Maintenance and Rehabilitation Account (RMRA) under Streets and Highways Code Sections
3290. State Controller's Office.
Highway User Tax historic city by
city revenues. City by city historical data and summary
statistics on the allocation of state motor vehicle fuel tax
(gasoline excise tax) to cities and counties under Streets and
Highways Code Sections 2104-2107.5. Through FY13-14.
October'15 (Excel)
Streets Spending by City.
Historic operating, total and net spending for streets, roads, storm drains, street lighting and street landscaping
services and programs by cities. Per capita and percent of general
revenue comparisons and summary statistics. Through FY13-14.
October'15 (Excel)
Proposition 1B - Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006 ($19.925B):
Appropriations Limits by city.
Historic Gann Limits and appropriations subject to limit. Through
FY16-17. Nov'19 (Excel)
City Expenditures by Category. Total expenditures, salary & benefits, contracts, materials &
supplies. Percent of total expenditure comparisons and summary
statistics. Through FY18-19. February'21 (Excel)
City Service Responsibilities.
California Cities have differing funding responsibilities and
methods of providing services. Per Capita spending and
reported service method by city. Aug'10
(Excel)
--------
Fire Spending by City. Historic
operating, total and net spending for fire and emergencey medical services by cities. Per
capita and percent of general revenue comparisons and summary
statistics. Through FY18-19. Feb'21 (Excel)
Fire and Emergency Services Spending by City. Historic
operating, total and net spending for fire and emergencey medical services by cities. Per
capita and percent of general revenue comparisons and summary
statistics. FY2016-17 hrough FY2018-19. Feb'21 (Excel)
Fire Staffing by City.
Historic paid and volunteer firefighters. Total budgeted staffing and
per capita by city. FY1991-92 through FY2018-19. Feb'21 (Excel)
Fire - Who Provides Services? Not all California cities are financially responsible for fire services and some of those who are contract with another public agency.
Police Spending by City. Historic
operating, total and net spending for police services by cities. Per capita and percent of general revenue comparisons and summary
statistics. FY2016-17 hrough FY2018-19. Feb'21 (Excel)
Police Staffing by City.
Historic budgeted police officers, total police staffing, volunteers and per capita officers by city. FY1991-92 through FY2018-19. Feb'21 (Excel)
Funded police sworn and non-sworn, jail and non-jail, by local agency 1991-2018. California Department of Justice. June'20 (Excel)
Police - Who Provides Services? All California cities are financially responsible for law enforcement services but some provide police services with city employees, some via contract with the county sheriff or another public agency.
Crime in California. California Deparment of Justice. Statewide Crime and related statistics including statewide totals (all agencies) of criminal justice personnel by category.
Library Spending by City. Historic
operating, total and net spending for library services and programs by
cities. Per capita and percent of general revenue comparisons and
summary statistics. FY2016-17 through FY18-19. Feb'21 (Excel)
Parks & Recreation Spending by City.
Historic operating, total and net spending for parks and recreation
services and programs by cities. Per capita and percent of general
revenue comparisons and summary statistics. FY2016-17 through FY2018-19. Feb'21 (Excel))
Streets Spending by City.
Historic operating, total and net spending for streets, roads, storm drains, street lighting and street landscaping
services and programs by cities. Per capita and percent of general
revenue comparisons and summary statistics. FY2016-17 through FY2018-19. Feb'21 (Excel))
California Debt Issuance Primer.
Extensive, comprehensive guidebook on municipal debt financing in
California. On-line version is regularly updated. California Debt
and Investment Advisory Commission, Office of the State Treasurer.
March 2006. 660 pages (PDF).
The California Infrastructure
and Economic Development Bank (I-Bank). Located within the
California Business, Housing and Transportation Agency, I-Bank
finances public infrastructure and private investments that promote
economic growth, revitalize communities and enhance the quality of
life throughout California.
The California
Debt and Investment Advisory Commission (CDIAC). CDIAC
provides information, education and technical assistance on public
debt, investments, and economic development financing tools to local
public agencies and other public finance professionals.
California Statewide
Communities Development Authority (CSCDA). CSCDA is a
joint powers authority sponsored by the California State Association
of Counties and the League of California Cities to provide local
governments and private entities access to low-cost, tax-exempt
financing for projects of public benefit.
Next-Ten's California Budget
Challenge. Roll up your sleeves and create your own state budget
for the next 10 years. Informative and well crafted. You'll also find quick facts and briefing sheets on major state financial issues.
US Department of Housing and Urban Development
"State of the Cities Data System" Data for individual
metropolitan areas, central cities, and suburbs. Detailed demographic
and economic characteristics of the population; unemployment rates;
information on jobs, business establishments, and average pay in the
1990s; and FBI crime data.
The State Controller's Office suspended publication of annual reports in print or PDF form after 2011-12. Data from subsequent years is available through the "By The Numbers" portal below.
ByTheNumbers.sco.ca.gov. City, County and Special District financial data from annual reports submitted to the state controller 2003-2018.
NOTE: Data files on CaliforniaCityFinance.com (also from State Contoller reports) provide detail by city back to 1991, per capita calculations and more. See for example Transient Occupancy (Hotel) Tax by city.