IN THE NEWS - FINANCIAL INFORMATION
Proposition 13 Inflation Factor for 2016-17
The State Board of Equalization is directing county assessors to use 1.525 percent as the Proposition 13 inflation adjustment factor for Fiscal Year 2016-2017. This is less than the 2 percent that is usually used to index assessed values under the acquisition values assessment. Proposition 13 provides for assessed value each year to be the lower of:
- Actual market value
- Prior year’s assessed value, indexed by 2 percent
- Prior year’s assessed value, indexed by the change in the California Consumer Price Index
The State Board of Equalization determined that the California CPI increased by 1.525 percent from October 2014 to October 2015. This is the tenth year since the passage of Proposition 13 that the inflation adjustment factor has been less than the full 2.00 percent authorized in the law.
The Proposition 13 inflation adjustment factor is applied to all parcels that have not been reduced under Proposition 8 due to the economic downturn. The significance of the reduced inflation factor is that it will reduce the property tax revenues from growth in value for parcels that have not otherwise been reassessed between Fiscal Year 2015-2016 and Fiscal Year 2016-2017.
Property Tax Update
Property tax is the top source of revenue for the City of Newport Beach. It represents almost half, 45.8 percent, of all General Fund revenues. FY 2016 property taxes as a whole are budgeted to come in at $87.8 million, which is 4.3 percent, or $3.7 million, higher than FY15 receipts. As the economy continues to improve it is expected that prior year penalties and interest receipts will continue their downward trend. Click here to read more.
Q3 2015 Newport Beach Sales Tax Update
Newport Beach’s receipts from July through September sales were flat compared to the same quarter one year ago. Actual sales activity rose 2.1% after accounting anomalies were factored out. Accounting events inflated gains from fine dining, grocery stores and some categories within the business and industry group, including medical-biotech. Adjusted for aberrations, taxable sales for all of Orange County grew 3.1% over the same time period; Southern California regional totals were up 3.6%. Click here to read more.
Fed Kicks Off Next Rate Cycle
Today’s action by the Federal Open Market Committee (FOMC) to raise the target federal funds rate for the first time in nine years sets a new course for the financial markets.
As expected, the FOMC established a new target range for the federal funds rate of ¼ to ½ percent, up from 0 to ¼ percent, where it was set exactly seven years ago on December 16, 2008. Click here to read more.
Q2 2015 Newport Beach Sales Tax Update
Newport Beach’s receipts from April through June were 2.1% above the second sales period in 2014. Strong sales for new motor vehicle dealers, auto leases and several categories of the business and industry sector were primarily responsible for the current increase. Recent additions helped boost revenues from casual dining restaurants. Click here to read more.
In the News Archive
The City Council of the City of Newport Beach will hold a public meeting to review the ANNUAL REPORTING ON DEVELOPMENT IMPACT FEES & DEVELOPMENT AGREEMENTS pursuant to the Mitigation Fee Act (Government Code Section 66000, et seq.). The meeting will take place on Tuesday, November 24, 2015, at 7:00 p.m. Please click on the document names to access the Development Impact Fee Report and the Development Agreements Report documents.