Resolution No. 2024-014RESOLUTION NO. 2024-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
DETERMINING THE WAREHOUSE SPECIAL PARCEL TAX LEVIED FOR
FISCAL YEAR 2024-2025 PURSUANT TO VERNON MUNICIPAL CODE
SECTION 3.20.010
SECTION 1. Recitals.
A.Vernon Municipal Code Section 3.20.010 authorizes a special parcel tax (Tax) on
warehouses, truck terminals, freight terminals, and railroad facilities or other distribution
facilities to fund: 1) construction, improvement and maintenance of streets, bridges, and
other public rights-of-way, including acquisition of land; and 2) police and fire protection
services.
B.Vernon Municipal Code Section 3.20.010(E) requires that the City Council
determine, for each fiscal year, by ordinance or resolution, the amount of the Tax to be
imposed on each parcel subject to the Tax, which shall not exceed the maximum special
tax rate established in Section 3.20.010(C) as adjusted by Vernon Municipal Code
Section 3.20.010(D) but may be imposed at a lower rate.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF VERNON AS FOLLOWS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines
that the above recitals are true and correct.
SECTION 3. The City Council of the City of Vernon hereby determines the Tax
for Fiscal Year 2024-2025 shall be $40.081 per 100 square feet of gross area of land (or
0.40081 per square foot of gross area of land). A list of parcels subject to the Tax, as
well as the amount of the Tax to be levied upon each for Fiscal Year 2024-2025, is
attached hereto as Exhibit A and is hereby approved.
SECTION 4. The tax shall be collected in the same manner as ad valorem property
taxes are collected and shall be subject to the same procedure, sale and lien priority in
case of delinquency as is provided by ad valorem taxes.
SECTION 5. The Deputy City Clerk, or designee, is hereby directed to transmit a
copy of this resolution, together with such other information as may be required for
placement of the tax on the County property tax bills, to the Department of Auditor-
Controller of the County of Los Angeles.
SECTION 6. The City Administrator, or designee, is hereby authorized to amend
the aforesaid list to add any parcel subject to the Tax omitted therefrom, with said Tax
calculated at the rate of $40.081 per 100 square feet of gross area of land (or $0.40081
DocuSign Envelope ID: 7F1B7598-77BE-426B-B510-1E3048544E74
Resolution No. 2024-14
Page 2 of 11 _______________________
per square foot of taxable parcel area of land), and to delete any parcel erroneously
included.
SECTION 7. The Deputy City Clerk shall certify the passage and adoption of this
resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED June 18, 2024.
JUDITH MERLO, Mayor
ATTEST:
YONNIE PARKER, Deputy City Clerk
seal)
APPROVED AS TO FORM:
ZAYNAH N. MOUSSA, City Attorney
I CERTIFY THAT RESOLUTION NO. 2024-14 was passed and adopted by the City
Council of the City of Vernon at the Regular Meeting on June 18, 2024, by the following
vote:
AYES: 5 Council Members: Larios, Lopez, Rivera, Ybarra, Merlo
NOES: 0
ABSENT: 0
ABSTAIN: 0
YONNIE PARKER, DEPUTY City Clerk
seal)
DocuSign Envelope ID: 7F1B7598-77BE-426B-B510-1E3048544E74
City Council Agenda Report
Meeting Date:June 18, 2024
From:Jessica Alcaraz, Financial Services Administrator
Department:Finance
Submitted by:John Lau, Accountant
Subject
Warehouse Special Parcel Tax Rate for Fiscal Year 2024-25
Recommendation
A. Adopt Resolution No. 2024-14 determining the Warehouse Special Parcel Tax levied for Fiscal
Year (FY) 2024-25 pursuant to Municipal Code Section 3.20.010; and
B. Approve and authorize the Financial Services Administrator to execute an Agreement for
Billing of Direct Assessments (Warehouse Special Parcel Tax) with the County of Los Angeles
Auditor-Controller’s Office, in substantially the same form as submitted, for the collection and
distribution of the Warehouse Special Parcel Tax for FY 2024-25.
Background
Ordinance No. 1057 was submitted to the electorate and duly approved at the April 14, 1998
Municipal Election, authorizing a special parcel tax to be levied on all parcels improved with a
warehouse, truck terminal, freight terminal, and other distribution facilities at $1.00 per 100
square feet of gross land area. On November 16, 1999, the electorate duly approved Ordinance
No. 1076 establishing a new maximum tax rate for the Warehouse Special Parcel Tax
(Warehouse Tax) at $20.00 per 100 square feet of gross land area, adjusted annually based
upon increases in the Consumer Price Index for All Urban Consumers (CPI-U), All Items Index,
Los Angeles-Anaheim-Riverside Area (1982-84=100) (CPI) for the twelve-month period ending
March 31 of each year. Proceeds of the Warehouse Tax may be expended only on: (i)
construction, improvement and maintenance of streets, bridges and other public rights-of-way,
including acquisition of land, and; (ii) police and fire protection services. The electorate expanded
the use of the proceeds to include police and fire protection services at an election on August 31,
2010, which was adopted and ratified by Resolution No. 2010-133. The provisions for the
Warehouse Tax imposed by the aforementioned Ordinances are codified in Vernon Municipal
Code (VMC) Section 3.20.010.
The Warehouse Tax is collected annually for each parcel, or part of a parcel, in Vernon that is
subject to the Warehouse Tax as an assessment in the Los Angeles County property tax bill.
However, the City Council sets the rate of the Warehouse Tax each year at a rate that does not
exceed the maximum tax rate for the fiscal year. For FY 2023- 24, Resolution No. 2023-14 set
the Warehouse Tax rate at $37.020 per 100 square feet of gross area of land.
FY 2024-25 MAXIMUM WAREHOUSE TAX RATE CALCULATION
Applying the CPI (Attachment 3) in the manner required by Section 3.20.010(d)(2) of the VMC,
staff calculated the maximum Warehouse Tax rate for FY 2024-25 to be $40.08 per 100 square
feet of gross area of land.
The calculations are as follows:
Multiply the tax rate ($20.00) by a fraction, the numerator of which is the CPI on the adjustment
date and the denominator of which is the CPI for the period ending March 31, 1999.
CPI March 31, 1999 = 165.00
CPI March 31, 2024 = 330.671
$20(330.671/165.0) = $40.081 per 100 square feet of gross area of land or $0.40081 per square
foot of gross area of land. The maximum Warehouse Tax rate for FY 2024-25 is an approximate
increase of 100.41% over the 1999 rate and approximately 4.03% over the FY 2023-24 maximum
rate. For FY 2024-25, staff recommends that City Council impose a rate of $40.081 per 100
square feet of gross area of land, an increase of approximately 8.27% over the previous year’s
rate.
Pursuant to VMC Section 3.20.010(j), the tax is collected on the County of Los Angeles property
tax bill. An agreement is required by the County of Los Angeles Auditor-Controller's Office for the
City of Vernon to use the County's collection services. Pursuant to VMC Section 3.32.110 et seq.,
competitive bidding and competitive selection are not required because the services are provided
by a government entity, and because the entity is the sole service provider. The Agreement for
Billing of Direct Assessments (Warehouse Special Parcel Tax) was reviewed and approved as
to form by the City Attorney's Office.
Staff recommends that the City Council adopt the resolution setting the Warehouse Tax at the
rate of $40.081 per 100 square feet of gross area of land for FY 2024-25 and approve and
authorize the Financial Services Administrator to execute an Agreement for Billing of Direct
Assessments with the County of Los Angeles Auditor-Controller's Office for the collection and
distribution of the Warehouse Special Parcel Tax for FY 2024-25.
Fiscal Impact
Based on the proposed CPI-adjusted rate of $40.081 per 100 square feet of gross area of land,
implementing the recommended action would increase the City's Warehouse Tax revenue from
approximately $13.9 million to approximately $15.2 million, providing an additional $1.3 million
for the FY 2024-25 budget.
The County of Los Angeles Auditor-Controller charges $0.25 per assessment per parcel, plus a
$50 processing fee for FY 2024-25. Corrections of direct assessments will be charged at a rate
of $13 per parcel. Direct assessment billing charges are deducted from revenues forwarded by
the County to the City on the December 20th advanced distribution. The estimated total cost,
based upon the parcels subject to the Warehouse Tax is $174.75.
Attachments
1. Resolution No. 2024-14
2. Agreement for Billing of Direct Assessments
3. Bureau of Labor Statistics Data
Finance Department
4305 Santa Fe Avenue, Vernon, CA, 90058
CityofVernon.org
DA Account #: 276.40, 276.41
AGREEMENT FOR BILLING OF DIRECT ASSESSMENTS
This agreement is made and entered into between the Los Angeles County Auditor-Controller and City
of Vernon to provide the service of placement of direct assessments on the Secured Tax Roll and
distribution of collections to City of Vernon.
I. PROPERTY TAX SERVICES
Los Angeles County will place direct assessments on the Secured Tax Roll and distribute
collections to City of Vernon at the same time and in the same manner as Los Angeles County
property taxes are collected and distributed. City of Vernon will adhere to the policies and
procedures established by the Los Angeles County Auditor-Controller as outlined in the Direct
Assessment Submission Procedure Manual.
Fee for Billing Services
For billing of direct assessments, the Los Angeles County Auditor-Controller shall collect the
following charge:
DA Original Submission $0.25 per assessment per parcel
For correction of direct assessments requested by City of Vernon after extension of the tax roll,
the Los Angeles County Auditor-Controller will collect $13.00 per correction.
The Los Angeles County Auditor-Controller will charge an additional fee for extended services
provided to City of Vernon that are outlined in the Auditor-Controller Direct Assessment
Submission Procedure Manual.
II. COLLECTION OF AUDITOR-CONTROLLER FEES
Direct Assessment billing charges are collected once a year, on the December 20th advance
distribution. Any additional charges are deducted on the next available distribution of monies.
Agreement for Billing of Direct Assessments
Page 2
Page 2 of 3
III. ACCOUNTING SERVICES
The Los Angeles County Auditor-Controller has available a report of direct assessments levied
for the tax year by parcel and will be provided to City of Vernon. Accounting Services beyond
this will be considered extended services and will be subject to additional charges and fees.
IV. MODIFICATION OF COLLECTION FEES AND CHARGES
The Los Angeles County Auditor-Controller reserves the right to increase or decrease any
charges herein provided, in proportion to any changes in costs incurred by the Auditor-Controller
in providing the services described herein, provided that written notice of any increase or
decrease in charges is given to City of Vernon.
V. AUTHORITY FOR LEVY AND COMPLIANCE WITH LAW
The authority for such levy, (i.e. resolution, ordinance or election), shall accompany requests for
the levy of direct assessments. City of Vernon warrants that the taxes, fees, or assessments
imposed by City of Vernon and collected pursuant to this Agreement comply with all
requirements of state law, including but not limited to Articles XIIIC and XIIID of the California
Constitution (Proposition 218).
City of Vernon hereby releases and forever discharges Los Angeles County and its officers,
agents and employees from any and all claims, demands, liabilities, costs and expenses,
damages, causes of action, and judgments, in any manner arising out of City of Vernon
responsibility under this agreement or other action taken by City of Vernon in establishing a
special tax, fee, or assessment and implementing collection of special taxes, fees, or
assessments as contemplated in this agreement.
City of Vernon agrees to and shall defend, indemnify and hold harmless Los Angeles County
and its officers, agents and employees (“indemnified parties”) from any and all claims, demands,
liabilities, costs and expenses, damages, causes of action and judgments, in any manner arising
out of any of City of Vernon responsibility under this agreement, or other action taken by City
of Vernon in establishing a special tax, fee, or assessment and implementing collection of
special taxes, fees, or assessments as contemplated in this agreement.
City of Vernon agrees that Los Angeles County may offset the amount of any claims, demands,
liabilities, costs and expenses, damages, causes of action and judgments, in any manner
arising out of any of City of Vernon responsibility under this agreement, or other action taken
by City of Vernon in establishing a special tax, fee, or assessment and implementing
collection of special taxes, fees, or assessments as contemplated in this agreement incurred
or paid by Los Angeles County or by any indemnified party, from any monies collected by Los
Angeles County on City of Vernon behalf, including property taxes, special taxes, fees, or
assessments. Los Angeles County may, but is not required to, notify City of Vernon of its intent
to implement any offset authorized by this paragraph.
Agreement for Billing of Direct Assessments
Page 3
Page 3 of 3
VI. TERMS OF AGREEMENT
All existing agreements between Los Angeles County Auditor-Controller and City of Vernon
pertaining to the collection of direct assessments shall be terminated upon the execution of this
agreement. This agreement shall continue from year to year and shall be subject to cancellation
by either party by giving a thirty-day written notice to the other party of cancellation.
VII. COUNTERPARTS AND ELECTRONIC SIGNATURES AND REPRESENTATIONS
This agreement may be executed in two or more counterparts, each of which will be deemed an
original but all of which together will constitute one and the same agreement. The facsimile,
email or electronic signature of the parties will be deemed to constitute original signatures, and
facsimile or electronic copies hereof will be deemed to constitute duplicate originals.
The Los Angeles County Auditor-Controller and the City of Vernon hereby agree to regard
electronic representations of original signatures of authorized officers of each party, when
appearing in appropriate places on records required by the Los Angeles County Auditor-
Controller for providing the services described herein (e.g., i.e. resolution, ordinance, election
records, agency information sheet, or data transmittal) and received via communications
facilities (facsimile, email or electronic signature), as legally sufficient evidence that such legally
binding signatures have been affixed to agreement.
AUTHORIZED SIGNEE:
☐ Director of Finance ☐ Manager ☐ Authorized Consulting Agent
☐ Other (please specify Title): ______________________________
Authorized Signature: ____________________________________ Date: _____________
Authorized Name: ____________________________________
PRINT NAME
___________________________________________________________________________
For Auditor-Controller Use Only
Approved Signature: ____________________________________ Date: _____________
SECTION MANAGER
Approved Name: ____________________________________
PRINT NAME
WAREHOUSE SPECIAL PARCEL TAX
CPI - MARCH
A
BASE
B
INCREASE FROM INCEPTION
(A/B)-1
%CPI % Increase from
Previous Year
Maximum Tax Rate
$.20*(CPI/Base CPI)
Proposed Tax Rate Increase from Previous Year %
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
330.671
317.873
306.679
282.648
276.589
271.311
264.158
254.525
247.873
243.738
242.491
239.995
165 1.004067
0.926503
0.858661
0.713018
0.676297
0.644309
0.600958
0.542576
0.502261
0.477200
0.469642
0.454515
100.41%
92.65%
85.87%
71.30%
67.63%
64.43%
60.10%
54.26%
50.23%
47.72%
46.96%
45.45%
4.026136%
3.650071%
8.502094%
2.190615%
1.945369%
2.707849%
3.784697%
2.683632%
1.696494%
0.514246%
1.040022%
1.288928%
0.40081
0.38530
0.37173
0.34260
0.33526
0.32886
0.32019
0.30852
0.30045
0.29544
0.29393
0.29090
0.40081
0.37020
0.35716
0.34260
0.33526
0.32886
0.32019
0.30852
0.30045
0.29544
0.29393
0.29090
0.08269
0.03650
0.04250
0.02191
0.01945
0.02708
0.03785
0.02684
0.01696
0.00514
0.01040
0.01288
8.269100%
3.650071%
4.250000%
2.190615%
1.945369%
2.707849%
3.784697%
2.683632%
1.696494%
0.514246%
1.040022%
1.288301%
165
165
165
165
165
165
165
165
165
165
165
PUBLIC SAFETY SPECIAL PARCEL TAX
CPI - MARCH
A
BASE
B
INCREASE FROM INCEPTION
(A/B)-1
%CPI % Increase from
Previous Year
Maximum Tax Rate
0.03683*(CPI/Base CPI)
Proposed Tax Rate Increase from Previous Year %
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
330.671
317.873
306.679
282.648
276.589
271.311
264.158
254.525
247.873
243.738
242.491
239.995
317.873
317.873
239.995
239.995
239.995
239.995
239.995
239.995
239.995
239.995
239.995
239.995
0.040261
0.000000
0.277856
0.177725
0.152478
0.130486
0.100681
0.060543
0.032826
0.015596
0.010400
0.000000
4.03%
0.00%
27.79%
17.77%
15.25%
13.05%
10.07%
6.05%
3.28%
1.56%
1.04%
0.00%
4.026136%
3.650071%
8.502094%
2.190615%
1.945369%
2.707849%
3.784697%
2.683632%
1.696494%
0.514246%
1.040022%
0.000000%
0.03831
0.03683
0.03834
0.03533
0.03457
0.03391
0.03302
0.03182
0.03098
0.03047
0.03031
0.03000
0.03831
0.03683
0.03683
0.03533
0.03457
0.03391
0.03302
0.03182
0.03098
0.03047
0.03031
0.03000
0.04026
0.00000
0.04250
0.02191
0.01945
0.02708
0.03785
0.02684
0.01696
0.00514
0.01040
0.00000
4.026136%
0.000000%
4.250000%
2.190615%
1.945369%
2.707849%
3.784697%
2.683632%
1.696494%
0.514246%
1.040022%
0.000000%