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HomeMy WebLinkAbout4.12 ERAF Case CITY CLERK File 0660-40 AGENDA STATEMENT CITY COUNCIL MEETING DATE: JUNE 20, 2000 SUBJECT: Amicus Support - ERAF Case County of Sonoma v. California Department of Finance (Report prepared by Elizabeth H. Silver, City Attorney) ATTACHMENTS: None RECOMMENDATION: _ .~tho~e City Attorney to add City of Dublin as amicus ~ ~/¢~in suPport of the County of Sonoma in County of Sonoma ' ~/v - v. California Department of Finance FINANCIAL STATEMENT: There is no cost to the City. DESCRIPTION: In the early 1990's, the State Legislature created the Educational Revenue Augmentation Fund (ERAF). Property tax revenues which previously had gone to the City and other taxing entities were diverted to the ERAF fund. The monies in the ERAF fund were then allocated to the different school districts within the same tax rate area. The County of Sonoma filed a law suit alleging that the State was obligated to reimburse cities and other taxing entities which lost property tax revenues to ERAF. The County's argument is that ERAF constituted a reimbursable state mandate within the meaning of Article 13B, §6 of the California Construction (adopted in 1979 as Proposition 4). The Superior Court concluded that the ERAF "shift" of property tax dollars was a reimbursable state mandate because it compelled local agencies to accept financial responsibility for schools. The State has appealed the decision to the Court of Appeal. The League of California Cities has authorized preparation of an amicus brief in support of the County's position, and highlighting the importance of Proposition 4's reimbursement requirement. This case is important to all cities in California which lost property tax revenues to ERAF and continue to lose such revenues to ERAF. Recommendation: Staff recommends that the Council authorize the City Attorney, on behalf of the City of Dublin, to join in the amicus brief. J:\WPDLMnrsw\l 14\00 l~2000XAgenda~amicus-ERAF_620.doc EHS:rja