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Staff Report Adopt Resolution Supporting, Measure B, A Los Gatos Union School District Parcel TaxCOUNCIL AGENDA REPORT DATE: March 25, 2002 TO: MAYOR AND TOWN COUNCI FROM: DEBRA FIGONE, TOWN MANAGER SUBJECT: MEr, TING DATE: 3/25/02 ADOPT RESOLUTION SUPPORTING, MEASURE B, A LOS GATOS UNION SCHOOL DISTRICT PARCEL TAX RECOMMENDATION: Adopt resolution supporting Measure B, a Los Gatos Union School District Parcel Tax. BACKGROUND: On January 8, 2002, the Los Gatos Union School District (LGUSD) adopted a resolution to conduct a special election on Tuesday, April 9, 2002, to allow District voters to consider approving a parcel tax of $290 dollars per parcel for a period of six (6) years. The District has requested that the Town officially endorse its 2002 Parcel Tax via resolution. This staff report will present a historical overview of the parcel tax and a summary of the proposed parcel tax, including special parcel tax conditions and exemptions, and parcel tax revenue uses. - DISCUSSION: Historical Overview In 1990, a LGUSD Parcel Tax was approved by District voters for $180 dollars per parcel for a period of four (4) years. The purpose of the parcel tax was to support the implementation and maintenance of four specific goals: • Class size reduction; • Provision of enhanced instructional programs and services; • Provision of support specialists for children with specific needs; and • Maintenance of school buildings. PREPARED BY: JENNY HARUYAM Administrative Analy N:' 4GRUHaniyama\Stafl'Reportsllgudparceltax.wpd Reviewed by: ' Jlt' Attorney 5C4'inance Revised: 3/22/02 8:58 am Reformatted: 7/14/99 i PAGE: 2 SUBJECT: ADOPT RESOLUTION SUPPORTING MEASURE B, A LOS GATOS UNION SCHOOL DISTRICT PARCEL TAX DATE: March 25, 2002 In 1994, the LGUSD Parcel Tax was renewed and approved by District voters for $180 dollars per parcel for approximately four (4) years. Later, in 1998, voters again approved the parcel tax with an increase of $70 dollars, making the cost of the tax $250 dollars per parcel for a period four (4) years. This year, the District proposes to increase the tax from $250 dollars to $290 dollars per parcel for a period of six (6) years to maintain the programs discussed earlier. The purpose of the subsequent parcel taxes approved in 1994 and 1998 were to provide funding to support the program goals established through the 1990 parcel tax. Purpose of Parcel Tax According to the District, a special parcel tax in the amount of $290 dollars per parcel for a period of six (6) years was placed on the April 2002 ballot to provide funding to support a number of its existing programs. Specifically, the special parcel tax is designed to improve the quality of education in the District through the following actions: • Low Class Size. Approximately sixteen (16) additional classroom teachers are funded through the parcel tax. Without the parcel tax, the average class size in grades 4-8, currently at 26 students, would be increased to 30 students. • • Enhanced Instruction. The parcel tax currently provides additional science and literacy teachers, and a number of academic programs in the area of science, literacy, art, and music. Specifically, the parcel tax allows the District to provide quality music programs from elementary through middle school; a District Science Resource Teacher, which supports all schools with enhanced instruction in science; comprehensive art instruction through an Art Docent Program; and literacy resource teachers at each elementary school to assist in reading skills at all grade levels. Student Support Services. The parcel tax currently provides for school nurses, including health clerks, and essential support personnel such as psychologists, school counselors, library staff, and school secretaries. School Classrooms and Facilities Maintenance. The parcel tax provides an additional three and one-half (3 Y2) custodians and one (1) maintenance worker to maintain school classrooms and facilities. Parcel Tax Conditions and Exemptions If approved, the proposed parcel tax would replace the special tax approved by voters in 1998, and require property owners located within the boundaries of the Los Gatos Union School District to pay an annual tax of $290 per parcel. In addition, an exemption would be granted annually on any parcel owned by one or more persons 65 years old or over who occupies the parcel as a principal residence. Further, exemptions may be granted annually for owners of multiple parcels, which are contiguous and constitute one economic unit, meaning they have the same primary purpose as the principal parcel and are not separate and distinct properties, and for property owners whose properties are PAGE: 3 SUBJECT: ADOPT RESOLUTION SUPPORTING MEASURE B, A LOS GATOS UNION SCHOOL DISTRICT PARCEL TAX DATE: March 25, 2002 extensively damaged by a natural disaster. Parcel Tax Revenue Uses It is anticipated that the parcel tax will generate approximately $2.5 million annually for the District. The proceeds of the parcel tax would only be applied to the specific purposes identified earlier on page 2. Additionally, the proceeds of the tax would be deposited into a fund, which would be kept separate and apart from all other District funds. No later than January 1 of each year, while the tax is in effect, the District would prepare and file with the School Board of Trustees, a report which details the amount of funds collected and expended, as well as the status of any project authorized to be funded by the proposed parcel tax. FISCAL IMPACT: If the parcel tax is approved, Los Gatos property owners located within the Los Gatos Union School District would pay an annual tax of $290 per parcel for approximately six (6) years. It is anticipated that the parcel tax will generate approximately $2.5 million annually for the District. Currently, the existing parcel tax generates approximately $2.2 million annually for the District. It is important to note that the approval of the parcel tax would not reduce annual property tax revenues currently received by the Town. Attachment: Attachment 1: Resolution Supporting Measure B, a Los Gatos Union School District Parcel Tax Distribution: Department Heads Mary Ann Park, Los Gatos School Union District, 15766 Poppy Lane, Los Gatos, CA 95030-3228 RESOLUTION NO. RESOLUTION BY THE TOWN OF LOS GATOS SUPPORTING MEASURE B, A LOS GATOS UNION SCHOOL DISTRACT PARCEL TAX WHEREAS, the Los Gatos Union School District ("District") is committed to offering a high -quality educational program to all students in the District, and due to inadequate state funding, increased local revenues are necessary to meet this goal; and WHEREAS, California Constitution, Article XIIIA, section 4 and Government Code sections.50075 et seq. authorize school districts, upon approval of 2/3rds of the electorate, to levy qualified special taxes on property in the District for the purposes of providing quality educational programs in the District and other lawful purposes of the District; and WHEREAS, the voters of the District in 1990, 1994 and 1998 overwhelmingly approved, supported and continued the levy of a special tax for these purposes; and WHEREAS, the current special tax of $250 per parcel has become insufficient to meet the stated goals of the special tax, and the Board has studied the matter and determined to seek voter approval to replace the prior tax with a new parcel tax at a higher rate; and WHEREAS, an adequately funded and well -developed public education program provides numerous benefits and advantages to all of the residents of the community. NOW, THEREFORE, BE IT RESOLVED that the Town Council of Los Gatos hereby supports Measure B, a Los Gatos Union School District Parcel Tax. PASSED AND ADOPTED at a meeting of the Town Council of the Town of Los Gatos, California, held on the day of , 2002 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA RESOLUTION 2002 - 34 RESOLUTION BY THE TOWN OF LOS GATOS SUPPORTING MEASURE B, A LOS GATOS UNION SCHOOL DISTRACT PARCEL TAX WHEREAS, the Los Gatos Union School District ("District") is committed to offering a high -quality educational program to all students in the District, and due to inadequate state funding, increased local revenues are necessary to meet this goal; and WHEREAS, California Constitution, Article XIIIA, section 4 and Government Code sections 50075 et seq. authorize school districts, upon approval of 2/3rds of the electorate, to levy qualified special taxes on property in the District for the purposes of providing quality educational programs in the District and other lawful purposes of the District; and WHEREAS, the voters of the District in 1990, 1994 and 1998 overwhelmingly approved, supported and continued the levy of a special tax for these purposes; and WHEREAS, the current special tax of $250 per parcel has become insufficient to meet the stated goals of the special tax, and the Board has studied the matter and determined to seek voter approval to replace the prior tax with a new parcel tax at a higher rate; and WHEREAS, an adequately funded and well -developed public education program provides numerous benefits and advantages to all of the residents of the community. NOW, THEREFORE, BE IT RESOLVED that the Town Council of Los Gatos hereby supports Measure B, a Los Gatos Union School District Parcel Tax. PASSED AND ADOPTED at a special meeting of the Town Council of the Town of Los Gatos, California, held on the 25th day of March, 2002 by the following vote: COUNCIL MEMBERS: AYES: Steven Blanton, Sandy Decker, Steve Glickman, Joe Pirzynski, Mayor Randy Attaway. NAYS: ABSENT: ABSTAIN: ATTEST: None None None SIGNED:/s/ Randy Attaway MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA TOWN OF LOS GATOS CALIFORNIA TOWN COUNCIL SPECIAL MEETING March 25, 2002/Minutes TOWN COUNCIL The Town Council of the Town of Los Gatos met in the Council Chambers of the Town Hall, 110 East Main Street, at 6:00 p.m., Monday, March 25, 2002, in special session. ROLL CALL Present: Steven Blanton, Sandy Decker, Steve Glickman, Joe Pirzynski, and Mayor/Chairman Randy Attaway. Absent: None. PLEDGE OF ALLEGIANCE Given by all in attendance. VERBAL COMMUNICATIONS Ray Davis, resident, spoke concerning the General Plan and the need of the Council to uphold the plan they have adopted. He related his comments to the Sobrato development. LOS GATOS UNION SCHOOL DISTRICT PARCEL TAX/RESOLUTION 2002-34 (01.28) Ray Davis, resident, spoke in support of adopting this resolution. Motion by Mr. Blanton, seconded by Mr. Glickman, that Council adopt Resolution 2002-34 entitled, RESOLUTION OF THE TOWN OF LOS GATOS SUPPORTING MEASURE "B" A LOS GATOS UNION SCHOOL DISTRICT PARCEL TAX.. Carried unanimously. ADJOURNMENT Mayor Attaway closed this evening's meeting at 6:06 p.m. ATTEST Petra Baker Deputy Town Clerk TC:D13:MM032502