Title
RESOLUTION NO. 2015-194 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING ASSIGNMENT OF DELINQUENT TAX RECEIVABLES TO THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR PRIOR FISCAL YEARS, AND AUTHORIZING EXECUTION AND DELIVERY OF RELATED DOCUMENTS AND ACTIONS
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
Staff has identified a delinquent property tax program (the Program) being offered by the California Statewide Community Development Authority (a statewide joint powers authority sponsored by the League of California Cities and the California State Association of Counties) (the "CSCDA") under which qualified tax delinquencies will be advanced in full by the CSCDA, along with a 10% premium, in exchange for an assignment or sale of the rights to the payments later made by the property owners along with all penalties and interest thereon. This program is designed to be like a "Teeter Plan" for agencies that do not already participate in a Teeter Plan. The Teeter Plan (first enacted in 1949) provides California counties with an optional alternative method for allocating delinquent property tax revenues. The Teeter Plan allows counties to finance property tax receipts for local agencies by borrowing money to advance cash to each taxing jurisdiction in an amount equal to the current year's delinquent property taxes. In exchange, the counties receive the penalties (10%) and interest on the delinquent taxes when collected. The City does not participate in the Teeter Plan but is requesting authority to pursue the the Program for tax levies related to Community Facility Districts (CFD) and Assessment Districts (AD). The program will not include any General Fund property tax levies as the current practice of collecting 100% of the penalties and interest associated with delinquencies over a long period of time does not pose an administrative burden on the City nor does it create an issue wi...
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