Sales Tax Revenue Secured by Court Ruling
From left, City Manager Rico Landereos, Council members Diane McCall, Mayor Pro Tem Manny Minjares, Mayor Rick Neal, Doug Tucker, and Steve Conaway announce the successful settlement of the controversial Sales Tax Revenue Sharing Agreement. This agreement will assure that Fillmore will receive approximately $700,000 to $1 million each year until 2023. By Jean McLeod — Wednesday, June 26th, 2013
STRSA AGREEMENT California applies sales tax where the sale occurs, rather than where a product is delivered or stored. The State then rebates 1% of all sales taxes collected within municipalities and gives those cities a free hand in how those revenues are used. That allows cities to rebate a portion to retailers and other companies as a way to lure them to open facilities in their towns. The City of Industry, the City of Livermore, the City of Lathrop and the County of San Joaquin sued the City of Fillmore, Inspired Development, MTS Consulting and Owens & Minor alleging the establishment of sham sales / purchasing offices in Fillmore with the intention of diverting sales tax revenues from their cities and county where the products were warehoused. While the courts heard the cases the Board of Equalization froze all tax funds related to the sales and the STRSA until the courts and parties involved had come to a settlement. There is still a case pending with San Diego. There were past concerns over the cost of litigation and if the City could be made whole again once the court had made its decision. This final court decision will definitely put city finances back on track. Mayor Rick Neal responded to the news saying, "This is a great day for Fillmore and a big step forward." Council Member Steve Conaway, who was Mayor when litigation began and was confident the City would prevail believing the STRSA was a substantial benefit to the community. After hearing the good news, Conaway said he wanted to thank those who helped get this big win for the town and specifically wanted to thank the previous City Attorney Ted Schneider who was always confident these agreements were absolutely valid. Mayor Pro Tem Manuel Minjares added, "We do everything that we possibly can to get our budget in order....this is great news." BUDGET APPROVAL The Budget was approved but it is not written in stone and may be adjusted as needed. Conaway asked that the needed $7,000 to fund the Library the extra eight hours of operation be found somewhere and that $5,000 be place in the Budget to fund sound and video equipment for the Council Chambers. Council Member Douglas Tucker asked that the anticipated 3% increase in sewer and water rates be looked into and if it could be lowered to 2%. Council Member Diane McCall asked when the 3% increase would take affect and was told that it would be whenever the Council wanted it to start, meaning that it was not immediate. There were discussions of hiring new employees, two fulltime and two part-time. One full time Senior Maintenance; the person who filled the position is on permanent disability and will not be returning work. A fulltime Civil Engineer position is also in discussion. The two part-time jobs to be filled are a maintenance worker for graffiti abatement, and someone to work the counter at City Hall. There are discussions of hiring a Traffic Officer and Fire Engineer, but more details of cost and service have to be worked out. The Council approved the Budget but added that they are not implementing everything for three months to review some items and research what funds are available. SENIOR CENTER GRANT AQUATIC CENTER/YMCA DELINQUENT WATER/SEWER Minjares added, "I agree with Tucker, there are some improvements we could make on our collection process.....I don't want the public to think the time and effort to look into this has been wasted, we have gotten this far due to that effort." Conaway responded that he would like to see more accuracy in the billing system and more public notice. Mayor Neal said the City needs more due diligence to make sure the billings are correct and the proper persons are charged. CASA PRESENTATION PUBLIC COMMENT |