Take action! Tell County to stop catering to special interests

At the August 16, 2016 Board of Supervisors meeting, the Chief Administrative Officer (CAO) presented a new Prop 90 report to the Supervisors.  The report clearly showed that the County will lose money by extending Prop 90.  This is the same conclusion from reports by previous CAO’s.

So why did 3 of 5 Supervisors vote to extend Prop 90 for 5 more years?  Those 3 Supervisors seemed more concerned about Lennar Homes selling homes to folks from L.A. and the Bay Area at a good profit margin than with protecting our County’s budget.

Should existing residents be burdened with the added cost of services needed for “affluent” seniors coming from other Counties?

Shiva-Frentzen-150x150Supervisor Shiva Frentzen tackles that question in an opinion piece posted today, August 23, 2016, on the Lake Tahoe News website:  Opinion: EDC caters to special interests

To date, Prop 90 has caused El Dorado County to lose a total of $3,246,664 in funding to the County’s General Fund (used for services and road maintenance) and to the County’s Special Districts:

Prop 90 Cumulative Calculation to General Fund

Prop 90 Cumulative Calculation to Special Districts

If Prop 90 was allowed to expire on September 30, 2016, and no more houses were allowed in the program, the County will still continue to lose annual funding:

Prop 90 Cumulative Calculation to General Fund 5 more years

Prop 90 Cumulative Calculation to Special Districts 5 more years

El Dorado County CANNOT afford to extend Prop 90 for another 5 years and add more houses to the program.

Take action and flood the the Supervisors with emails and let them know that they should be focused on finding ways to fix our budget, not catering to special interests.

And show up on August 30, 2016 to put the Supervisors on notice that they are charged with protecting the County’s financial well-being.

This item is on the Consent Calendar.  The public has the right to make comment on the Consent Calendar items:

Tuesday, August 30, 2016 at 9:00am
Building C Hearing Room  (Temporary location during construction)
2850 Fairlane Court
Placerville, CA

To send in your comments via email, send to:

Supervisor Mikulaco <bosone@edcgov.us>,
Supervisor Frentzen <bostwo@edcgov.us>,
Supervisor Veerkamp <bosthree@edcgov.us>,
Supervisor Novasel <bosfive@edcgov.us>,
The BOSFOUR <bosfour@edcgov.us>,
Clerk of the Board <edc.cob@edcgov.us>

Subject: Prop 90, File # 16-0777, Agenda Item #3

If you would also like to make phone calls, here is that information:

Ron Mikulaco, Supervisor District I, (530) 621-5650
Shiva Frentzen, Supervisor District II, (530) 621-5651
Brian Veerkamp, Supervisor District III, (530) 621-5652
Michael Ranalli, Supervisor District IV, (530) 621-6513
Sue Novasel, Supervisor District V, (530) 621-6577
Please forward this email/post to everyone you know who is concerned about the financial health of El Dorado County.
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Attend Board Meeting to Stop Property Tax Giveaway

UPDATE:  More detailed data was provided and used to tabulate the following projections of lost revenue:

Prop 90 Cumulative Calculation
As the number of Prop 90 recipients increases each year, the annual amount of lost revenue also increases.
Prop 90 Annual Calculation
The County staff report states that each Prop 90 recipient receives between $2,500 and $3,000 savings per year.

ORIGINAL POST:

On Tuesday, June 28, 2016, at 3:00 pm, the El Dorado County Board of Supervisors will review whether or not they will extend Prop 90, which is a tax-break incentive for senior citizens to move into El Dorado County.  Prop 90 allows homeowners to transfer their tax base value when selling their house in the Bay Area and Southern California, which significantly lowers their property taxes on the house they subsequently purchase in El Dorado County.

Former Chief Administrative Officers have advised the Supervisors to reject Prop 90 because of the lost revenues to the County;  however, past Boards of Supervisors have extended Prop 90 due to pressure from the El Dorado County Association of Realtors.

Statements from the Chief Administrative Officer and Assessor from a 1989 memorandum:

Upon review of the proposition (copy attached) and material submitted by County Assessor John Thorne, I can see no value for El Dorado County in opting into the program authorized by Proposition 90. Not only is there no benefit to El Dorado County, the program would actually place a disservice on those citizens who currently own homes in the county and would exacerbate the inequity of property taxes already occurring in El Dorado County and the remainder of California. If adopted, the effect of such an ordinance in El Dorado County would be to reduce property tax revenues with no correlating reduction in demand for services from those citizens moving into our communities.

As you can see, it appears that counties such as ours would suffer a considerable economical loss, as the majority of people coming into our county are from more costly areas within the state.

Here are diagrams showing the calculations of lost revenue to El Dorado County due to Prop 90:

Prop 90 Annual Calculation
Lost revenue calculation per house, per year
Prop 90 Cumulative Calculation
Cumulative lost revenue calculation

The above calculations were made from information in staff reports from the El Dorado County website:

2014 Report by El Dorado County Assessor Karl Weiland
2016 Report by Director of Economic Development Jeff McLaughlin

Please attend the public hearing to voice your concerns about extending Prop 90.

Tuesday, June 28, 2016 at 3:00 pm
El Dorado County Board of Supervisors
330 Fair Lane, Building A
Placerville, CA 95667

To send in your comments via email, send to:

Supervisor Mikulaco <bosone@edcgov.us>,
Supervisor Frentzen <bostwo@edcgov.us>,
Supervisor Veerkamp <bosthree@edcgov.us>,
Supervisor Novasel <bosfive@edcgov.us>,
The BOSFOUR <bosfour@edcgov.us>,
Clerk of the Board <edc.cob@edcgov.us>

Subject: Prop 90, File #09-0992, Agenda Item #52