Riverside Co/Tax Distribution Modification MOU (SB2882) 90CITY OF INDIAN WELLS
44.950 Eldorado Drive '
Indian Wells, CA 92210 -7497 w
MEMORANDUM Telephone (619) 346 -2489
FAX (619) 346 -0407 •-
DATE July 2, 1990
TO : All Interested Parties
FROM Authorized Representatives of the County of Riverside,
City of Palm Desert, City of Rancho Mirage, City of
Indian Wells, and City of La Quinta
SUBJECT: Memorandum of Understanding Regarding Senate Bill 2882
(Modification of Tax Distribution Between the County
of Riverside and No and Low Tax Cities)
The following are the eleven (11) points of agreement be-
tween the authorized agents of the above mentioned agencies. The
points of agreement will require ultimate authorization by the
respective legislative bodies of the various agencies:
1. The property tax rate of each of the agencies shall be set
at two percent (2 %) of the tax rate or current rate, which-
ever is higher.
2. There shall be a full structural fire tax credit or return
of fire tax to the cities at the cities' option. Any agen-
cies not exercising this option shall have the authority to
do so at any point in the future.
3. All of the library tax shall be credited or returned to the
cities or an equivalent offset of equal value to non library
taxing cities.
4. There shall be modifications to the Redevelopment Agency
Pass Through Agreements to make up any differences or use of
equivalent mechanisms to assure that the cities will remain
whole with terms provided for in Assembly Bill 1197.
5. The County of Riverside will agree to provide the same fire
services and contract formulas and responsibilities provided
for in the current contracts and current practices from this
point forward. This will remain in effect for as long as
the individual cities remain a part of the County's fire
system.
6. The legislation shall provide that Structural Fire Taxes,
Library Taxes, and Redevelopment Pass Through Funds shall be
considered as General Funds subject to the City Councils'
discretionary appropriation of the funds.
Memorandum of Understanding
July 2, 1990
Page 2
7. The start date of the full Structural Fire Tax credit or the
return of the Structural Fire Tax credit to the cities shall
be effective during the 1990 -91 fiscal year.
8. The trial court funding formula or an equivalent amount of
money shall remain in effect until all aspects of this
agreement have become in effect.
9. This agreement shall not void current annexation agreements.
10. No parties shall seek unilateral changes to this legisla-
tion.
11. All parties agree to have SB 2882 withdrawn if there is not
full and unanimous agreement on all issues by August 6,
1990.
Because of the limited time available in order to assure
that the bill remains valid, the parties agree to negotiate the
final language to implement the eleven (11) points outlined in
this agreement. If agreement is not ratified by the legislative
bodies, then the provisions provided for in AB 1197 shall remain
in effect.
Respectfully,
Co nt
&OR wide
City of Palm Desert
City of Ranchck Mirag
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