No fiscal impact related to the workshop presentation. However, the Sheriff's Office is proposing the addition of three positions funded by CSA P-6 Zone revenue; one Sergeant (represented) and two Sheriff's Specialist (represented) positions to serve in the Community Services Unit. The annual cost of these positions is $497,846, of which $129,384 is attributable to employer pension costs. There would be no net county cost associated with these positions.
On October 7, 2014, the Board of Supervisors referred to the Public Protection Committee a general review of County Service Area P-6. The County Administrator's Office worked with multiple departments to collect data and review the current administration of CSA P-6. At the March 9, 2015 Public Protection Committee meeting, staff presented a general overview of CSA P-6, including its history, administration and funding. Staff invited representatives from the Sheriff's Office and Conservation and Development Department to attend the meeting to assist the Committee with the discussion. Staff requested that the Committee provide direction regarding next steps for the referral. Following the discussion, the Committee referred the item to the Board of Supervisors for review and discussion.
Formation and Structure:
On July 19, 1983, the Board of Supervisors approved formation of County Service Area (CSA) P-6 to provide for additional financial resources for the provision of police protection services in the unincorporated area of the County with the exception of the Kensington Community Services District. CSA P-6 is a special district authorized by the County Service Area Law commencing with Government Code section 25210 and is governed by the County Board of Supervisors. The District is administered by the Sheriff's Office with legal counsel provided by County Counsel and Clerk of the Board services provided by Contra Costa County.
Funding:
The District is funded by two primary revenue sources:
1. Ad Valorem Property Tax: A portion of the 1% ad valorem property taxes paid by landowners residing within the boundaries of the District is allocated to the District to fund operations. The percent share of the 1% ad valorem property tax varies depending on the Tax Rate Area (TRA) in which the parcel resides within the boundaries of the District. TRA information is publicly available on the Auditor-Controller's website. For fiscal year 2013/14, the District received $4.9 million. Traditionally, a portion of the ad valorem revenue has been budgeted in the Sheriff's Office operating budget to fund unincorporated County Patrol operations.
2. Special Tax revenue from Zones: On August 11, 1992, the Finance Committee of the Board of Supervisors recommended and the full Board approved a policy update to expand current tax policy effective in the East County area of CSA P-6 to the entire CSA P-6. The policy provides for the establishment of a Zone (as authorized by Government Code section 25217) within CSA P-6 as a condition of approval (COA) on new subdivisions within the unincorporated area. On August 8, 1995, the tax policy was modified by the Board to create different conditions of approval for major and minor subdivisions with regard to funding for police services.
Under the new policy, minor subdivisions (those proposed to develop four or fewer lots) would pay a one-time police mitigation fee of $1,000. Major subdivisions (those proposed to develop five or more lots) would continue to have a COA requiring establishment of a CSA P-6 zone.
Currently, there are 115 active zones in the County, which generated $1.6 million in FY 2013/14. The oldest Zone on record was established in 1989 and currently levies $384.86, which reflects 25 years of CPI increases.
Zone Establishment and Administration Process:
The following steps illustrate the process for establishing and administering a CSA P-6 Zone. Note that this process has changed slightly over the years.
Step 1: DCD sets condition of approval to establish a Special Police Services Tax District for major subdivisions of five or more lots. Sheriff’s Office assigns a zone number. The proposed special tax district would fund an increase in the level of police protection services that is provided in the unincorporated area.
Step 2: The Board adopts a resolution of intent to form a new zone, as required by Government Code Section 25217, subdivision (b). The formation of the zone provides the County of Contra Costa with a method of financing an increased level of police protection services to the area within the zone if the tax measure is approved by voters at the ballot. The resolution includes information regarding the name and boundaries of the zone, the different level of services to be provided, and the method by which the increased level of service is to be funded. The resolution also directs the Clerk of the Board to publish and mail notice of a public hearing regarding the proposed zone formation.
Step 3: The Board opens the hearing on the proposed zone formation. If at the conclusion of that public hearing the Board determines that more than 50% of the total number of voters residing within the proposed zone have filed written objections to the formation, Government Code section 25217.1, subdivision (b)(1) would require the Board to determine that a majority protest exists and to terminate the proceedings. If there is no majority protest and the Board elects to proceed with the formation of the zone, the Board adopts a second resolution establishing the zone of County Service Area P-6 subject to voter approval of a special tax to fund police protection services within the zone.
Step 4: The Board opens a second public hearing to consider the approval of, and adopt, the special tax ordinance which would authorize the levy of a special tax for police protection services on all taxable parcels in the area of the zone if a special tax ballot measure is approved by a two-thirds majority of the registered voters in the zone area, pursuant to Government Code section 50077, subdivision (a). If the Board adopts the ordinance, adoption of a third resolution sets forth appropriate ballot language, and directs the County Clerk, Elections Division to conduct the election.
Step 5: Following the election, the Board accepts the canvass of votes for the special election, showing that the measure for police services in the zone passed or failed. If the measure passes, the project developer will have complied with the condition of approval for the project. When all conditions of approval are met, the developer will be able to record the Final Map for the subdivision.
Step 6: In July of each calendar year, the Board sets the special tax levy for the fiscal year for police services Zones in County Service Area P-6 based on the April CPI-U indicator released by the Bureau of Labor Statistics (BLS). The action fixes the tax rates per parcel in the P-6 Zones as outlined in their respective ordinances. The taxes are on the annual Property Tax Roll. The Sheriff’s Office adds newly authorized zones to the tax roll and initiates the creation of the fund with the Auditor-Controller’s Office.
The following attachments are included to support information referenced in the staff report:
Attachment A - Government Code Sections
The attachment includes:
- Government Code Sections 25210-25217.4 regarding County Service Areas
- Government Code Sections 50075-50077.5 regarding Voter-Approved Special Taxes
- Government Code Sections 53978 regarding Procedures for Voter Authorization of Special Tax
Attachment B – Board Actions Establishing Current CSA P-6 Tax Policy
The attachment includes:
- 1992 Board action amending the County policy on the establishment of special taxes for police services from subdivisions in East County to apply to the entire unincorporated area (P-6)
- 1995 Board action establishing a one-time police services mitigation fee on minor subdivisions of four lots or less to replace the annual tax of $225 per lot.
Attachment C – Sample Zone Formation Case File - Zone 2903
The attachment includes:
- Conditions of Approval (COA) for Major Subdivision 9174 (See Condition 14 Police Service District.)
- Board action to form a new P-6 Zone
- Board hearing and adoption of resolution to establish P-6 Zone subject to voter approval
- Board hearing and adoption of ordinance authorizing the levy of a special tax for police protection services in the P-6 Zone, and a resolution authorizing an election in the P-6 Zone
- Board accepts the canvass of votes
- Sheriff’s recommendation to Board to set the special tax levy for police services in P-6 Zones for the fiscal year
Attachment D - Sample Condition of Approval Language for Major and Minor Subdivisions
The following are informational attachments that are included for reference if needed during the discussion:
The following additional information was requested by the Public Protection Committee to supplement today's discussion:
- CSA P-6 Zone Maps with Sheriff Beat Boundaries
- Legal Analysis - Use of Zone Funding
- 5 Year History of Transfers of CSA P-6 Zone Revenue to the Sheriff's Helicopter Program
- FY 2013/14 Field Enforcement Recommended Budget
- CSA P-6 Zone Fund Balance by Supervisorial District
The workshop component is informational only.
Speakers: Sharon Burke, resident of Alamo.
CONDUCTED the workshop; and advised staff of the particular details and additional information they wish to see to expand upon the information provided in today's maps and charts.