Where do cities get money from? Here is a useful glossary of terms to help answer that very question....
- Secured - Current Year
Tax levied on secured property pursuant to the revenue and taxation code.
- Unsecured - Current Year
Tax levied on all personal property not secured by real property held in title by the same owner. Due to the transitory nature of unsecured property, a tax is levied immediately after assessed values are determined.
- Prior Year Uncollected
Taxes paid in the current year which were due in a prior year.
- Interest and Penalties
Interest and penalties charged for the late payment of property taxes.
- Sales and Use Tax
Of the 7% sales tax levied by the State of California, the City receives 1% of the amount collected within the city limits.
- Transient Occupancy Tax
These revenues are received on a monthly basis from the hotels in the City.The hotels are required to pay a 10% tax based on the amount of their room rental revenues.
- Franchise Fees
Companies are granted special privileges for the continued use of public property, such as city streets.Such companies usually involve elements of monopoly and may require regulation. The Franchise Fees are the amounts required for the continued granting of these privileges.Franchises currently granted within the City are Electric, Gas, Cable TV, Bus Benches, and Street Sweeping.
FINES AND FORFEITURES
- Vehicle Code Fines
Amounts derived from traffic citations and fines for violations occurring within the city limits.
- Court Fines and Forfeitures
Fines collected by the county courts for city code violations other than traffic, which are shared with Los Angeles County.
- Impound Fees
Fines collected upon the release of vehicles, which have been impounded/stored by the Sheriff's Department.
- MiscellaneousOther fines and forfeitures not included above.
LICENSES AND PERMITS
- Building Fees
Building Fees are collected in accordance with the Uniform Building Code.The revenues from these fees are used to cover the cost of providing building inspections to insure compliance with building codes.
CURRENT SERVICE CHARGES
- Planning and Engineering Fees
These fees are levied to cover costs of special plan checks, inspections, etc. which maybe necessary in conjunction with new construction or improvements being made by contractors.
- Recreation Fees
These fees are collected by the City's recreation department to cover the cost of providing recreation programs such as activity classes, Tiny Tot programs, excursions, and adult athletics.
- Motor Vehicle In-Lieu Tax (VLF)
The Motor Vehicle In-Lieu fee is equivalent to 2% of the market value of motor vehicle fees imposed annually by the state in lieu of local property tax.
- Gas Tax Section 2106
Section 2106(a) of the Streets and Highways Code provides that each city shall receive a fixed monthly apportionment of $400; Section 2106(c) provides for distribution on a per capita basis.
- Gas Tax Section 2107
A sum equal to .00725 cents per gallon is distributed monthly to the cities on a formula based per the Streets and Highways Code, Section 2107; with calculation predicated on a per capita apportionment - 8.98 x population.
- Gas Tax Section 2107.5
This account represents a fixed amount of revenue received from the state based on population.
- Gas Tax Section 2105
This newly enacted Section of the Streets and Highways Code provides for the collection and distribution of special gas tax to fund improvements for regional transportation needs.
- Intermodal Surface Transportation Efficiency Act (ISTEA)
These funds are Federal funds administered by CalTrans, which are allocated to the City for improvement of streets and roadways.These funds are held in trust until qualified projects are identified.
- Prop A - Transit Tax
The City receives twenty-five percent of the 1/2% Prop A Sales tax (approved by voters in 1980).These funds are distributed by the L.A. County Metropolitan Transportation Authority (MTA), and are distributed to Los Angeles County cities on a proportional population basis.The funds are to be used for the development of transit programs within the guidelines established by the MTA.
- Prop C - Transit Tax
The City receives twenty percent of the 1/2% Prop C sales tax (approved by voters in 1990).These funds are distributed by the L.A. County Metropolitan Transportation Authority (MTA), and are distributed to Los Angeles County cities on a proportional population basis.The funds are to be used the improving, expanding and maintaining public transit services. These expenditures must be consistent with the County's Congestion Management Program.
- Prop A - Safe Parks Program
Funds transferred to the City as a result of the 1992 L.A. County Safe Neighborhood Parks Act.These funds are to be used to improve, preserve and restore parks.
- State TDA
The Transportation Development Act provides this source of funding.Derived from statewide sales tax, and allocated by formula to the County Transportation Commission, allocations are deposited in each regional entity's State Transit Assistance Fund.
- SB821 - Bike and Pedestrian Paths
SB821 allows the City to request specifically allocated monies for the purpose of constructing bike and pedestrian paths.
- State Parks - Roberti-Z'Berg
The California State Legislature enacted the Roberti-Z'Berg Urban Open Space and Recreation Program which provides funds to certain political subdivisions for acquiring land and developing facilities.
- County TDA
The Transportation Development Act provides this source of funding.Derived from state sales tax and allocated by formula to the County Local Transportation Fund, allocations are available to operators for the support of public transportation systems.
- Prop A - Transit Discretionary Funds
A 35% apportionment of the one-half cent sales tax distributed to Los Angeles County Transportation Commission and is set aside at their discretion; City's apportionment is based upon meeting performance criteria established by the Commission.
- Community Development Block Grant (CDBG)
The federal government provides funds for metropolitan areas whose population exceeds 50,000.The funds are based upon a federal formula and are to be used only within low and moderate-income census tracts and/or to benefit low and moderate-income persons.
- Local Law Enforcement Block Grant (LLEBG)
The purpose of the LLEBG Program is to provide funds to local governments to underwrite projects to reducing crime and improving public safety. The LLEBG Program is a formula program based on a jurisdiction’s number of Uniform Crime Reports (UCR) Part I violent crimes reported to the Federal Bureau of Investigation (FBI).
OTHER FINANCING SOURCES
- Proceeds from Sale of General Fixed Assets
Proceeds from the sale of fixed assets (used by governmental funds only).
- Damage to City Property
Reimbursement to City for repairing willful or accidental damage to city property.Generally these are associated with automobile accidents.
OPERATING TRANSFERS IN
- Operating Transfers
InIncludes monies transferred from one fund to another.Transfers are income to recipient fund.
USE OF MONEY AND PROPERTY
- Interest Earnings Investments
Inactive City funds are pooled and invested on a continuing basis in certain types of investments that are state approved such as time certificate of deposits, money market accounts, local agency investment fund, and bankers' acceptances.