HomeMy WebLinkAbout0574.093November 10, 1993
HONORABLE CITY COUNCIL
PALO ALTO, CALlFOru.~A
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Members o~ the Council:
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Just northwest of the City's northerly boundary, within the county
0% San Mateo, the City of Palo Alto owns 232482 acres of ~etlands
wildlite refuqe4 This property is commonly referred to as the
Faber/LaWleister tract. "!'he County of san Mateo Tax Assessor is
proposing a four-ye3r retroactive tax reassessment, resulting in a
tax bill of $63,595~ The annual tax bill .ill qo up 900 percent,
fro. $1,439 to $14,395. The City. is appealing the aS6eS&ment but
re.co-.ends l in the interim as part of the appeal procESS 1 the taxes
be paid.
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On June 21, 1993 1 the City received official notice from the county
of San Mateo Tax Assesso~'s Office that an error had been made in
the !lsaessment of City-owned land ~nown as the Faber/LaUllleister
tract~ Under the authority ot Section 1840 of the Revenue and
Taxation Code, a proposed increase in the net taxable value for the
two parcels has. been made. The County's action raises the assessed.
va1ue on the two parcels from $25,864 to $1 1 236 /000 and from $3#333
to $160#000, respectively. On October 16, 1993 the City received
the new tax bill. The total annual ~ount due on both parcels had
increased from a 1992-1993 tax of $1,440 to a 1993-1994 tax of
$14,3954 In addition to the increase in taxes ror 1993-94, the
Assessor has also retroactively increased the taxes for the
previous four years --1989-90, 1990-1991, 199~-~2, and ~992-93.
The total amount due for all five years (1989-90 through 1993-1994)
is $63,S95~ The first installment ($31,798) is due November 1 and
will be delinquent on December 10-, 1993.
CHR:574:93
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The City Attorney filed an adl'l'lo~.-_strative appea.l under the state
Board of Equalization (SBOE) 'Within t.he time period required by
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The county of San Mateo Tax Assessor has used a fair market value
ot $6,000 per acre as a basis for the nell/' assessIfI.Qnt. The City
arques that the fair market value of $6,000 per acre is not
applicable to this property~ If SBOE rules in the City'S favor,
the assessment will be changed and the paid amount plus interest
will be refunded automatically. If SBOE Goes not rule in the
City's favor, the City will be responoible for the entire
reassessed value for this year and the past four years.
Budget amen4aebt Or4inanc.
Thila attached Budqet Amendment Ordinance will provide the funds
needed to pay the assessed and retroactive taxes. The proposed
ordinance will transfer $63,595.04 from the General Fund Budget
stabili:tation Reserve to Community Services Recreation Division
Open space Budget.
Staff recommends that council adopt the Budget Amendment ordinance
in order to pay the current and retroactive taxes under protest.
Respectfully submitted,
aJ.!4wrtIP. t~
WILLIAX W. FELUIAN
Jlanaqer, Real ftz'operty
AttaChments: Budget Amendment ordinance
CMR:574,93 2
ORDINANCE NO.
ORDINANCE OF THE cowelL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1991-~4
TO PROVIDE AN ADDITIONAL APPROPRIATION rOR
A PROPERTY TAX lliCRF;ASE AND FOUR-YEAR RETROACTIVE TAX ASSE3SM£liT
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the council on JU.l'le
21, 1992 did adopt a budget for fiscal year 1993-94; and
WHEREAS, just northwest of the City's northerly boundary
vithin the county of Sa~ Mateo lies 232.82 acres of ~he City's wet
lands wildlife refuqe ar~ai and
WHEREAS, this property is cOznrr:!only referred to as the
Faber/Laumeister tract; and
WlfEREAS, on June 21, 15193, the City of Palo Alto received
of-ticial notice frolll thE!" county of San Mateo Tax Assessor of a
proposed increase in the net taxable value for the tvo parcels; and
WHEREAS, in addition to the increase in taxes for fiscal year
1993-94, the assessor haE also retroactively increased the taxes
for the previous four fiscal years; and
WHEREAS ... the total amount due for all .five fiscal years is
$63 .. 595; and
WlfEREAS" the city Attorney is. in the process of appealinq the
assesSllient but recommends, in the interim, that as part o£ the
appeal process the taxes be paid;
NOW, THEREFORE, th~ Council of the City of Palo Alto does
ORDAIN as follvws:
SECTION 1. The sum of sirt y Three ~housand Five Hundred
Ninety Five Dollars ($63,595) is her~by appropriated to General
~penBe in the Real Estate Divisicn~ Finance Department, and the
Budget Stabilization Reserve is correspondingly reduced~
SECTION 2. This transaction will reduce the Budget Stabili
zation Reserve from $11,195 1 365 to $11,131,770 as of OCtober 31,
1993 •
. ~~. As specified in Section 2.2S.0aO(a) of the Palo
Alto Municipal Code, ~ t'W'o-thirds vote of the city Counci 1 is
required to adopt this ordinance.
SECTIQN-i. The Council of the City of Palo Alto hereby finds
that the enactment of this ordinance is not a project under the
California Environmental Quality Act and, therefore, no environmen
tal impact assessment is necessary~
SECTIQ~ 5,
Municipal Code,
adoption.
As provided in section 2~04.375 of the Palo Alto
this ordinance ahall become effective upon
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
city Clerk Mayor
APPROVED AS TO PORM:
Sr. Asst. Clty Attorney
APPROVED:
Cl..ty Manaqer
Director of Finance
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