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RESOLUTION 18-13
A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF
LOS ALTOS HILLS SUPPORTING SENATE BILL 629—TAX EQUITY ALLOCATION
WHEREAS, when Proposition 13 passed in 1978, it decreased property taxes by assessing
property taxes at their 1975 levels and restricted annual increases of assessed value of real
property to an inflation factor, not to exceed 2%per year; and
WHEREAS, in 1979, the California State Legislature passed Assembly Bill (AB) 8, which
included a provision to bring all "no-low tax" cities share of the property tax up to 7%.; and
WHEREAS, subsequent legislation sponsored by Senator Vasconcellos reduced the share of the
AB 8 property tax distribution for the cities of Cupertino, Los Altos Hills, Monte Sereno, and Saratoga;
and
WHEREAS,AB 117 sponsored by Assembly Member Rebecca Cohn in 2006, restored a portion
of the Tax Equity Allocation(TEA)to the four cities; and
WHEREAS, this legislation changed the Educational Revenue Augmentation Fund (ERAF)
shares for Cupertino, Los Altos Hills, Monte Sereno, and Saratoga from .07 to .04 and these cities lost
their proportion share of ERAF based on what they received in property tax at that time; and
WHEREAS, the ERAF rate that the County was remitting was 47.7%, compared to the rate for
the four separate cities,which ranged from 7.53%to 17.05%; and
WHEREAS, all other no-and low-property tax cities received TEA allocations and were not
subject to ERAF deductions; and
•WHEREAS, Senate Bill 629 introduced by Senator Jim Beall, Jr., would finally resolve the
inequality of property tax allocations by treating Cupertino, Los Altos Hills, Monte Sereno, and Saratoga
like all other no-and low-property tax cities;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Los Altos
Hills endorses Senate Bill 629 introduced by State Senator Jim Beall,Jr.
The above and foregoing resolution was passed and adopted by the City Council of the Town of
Los Altos Hills at a regular meeting held on the 21St day of March, 2013 by the following vote:
AYES: Waldeck, Corrigan, Harpootlian, Larsen
NOES: None
ABSTAIN: None
ABSENT: Radford
BY:
Gary Waldeck, Mayor
Resolution 18-13 Page 1
•
AT-TEST:
,
Deborah=Padovan, City Clerk
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Resolution 18-13 Page 2