TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE
SUBJECT
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Adopt a Resolution Authorizing the County of San Bernardino to retain administration fees associated with the collection of City of Chino special taxes through the county property tax levy.
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RECOMMENDATION
Adopt Resolution No. 2026-059 authorizing the County of San Bernardino to retain administration fees associated with the collection of City of Chino special taxes through the county property tax levy; and authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
There is no fiscal impact to the general fund related to the adoption of this resolution. The County of San Bernardino assesses a $0.30 per parcel per fund administrative fee to cover the costs associated with the collection of special enrollments through the county levy. This fee is an existing fee which has been collected at the same rate in prior years. The County is simply requesting authority to continue this practice going forward.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
• Responsible Long-Range Planning
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BACKGROUND
The City of Chino collects all property tax revenues by participating in the county levy process, whereby all taxing jurisdictions within the boundaries of the County provide instruction for the collection of property tax by parcel and by fund to the county, which acts as a centralized point of collection. This process is completed for all enrollments except for ad valorem property tax. For the City of Chino, all special enrollments are for community facilities district (CFD) special taxes.
To recover the cost associated with levy compilation and tax collection, the County assesses a $0.30 per parcel per fund administrative fee on all taxing jurisdictions. This fee has historically been added to each individual enrollment and included in each parcel’s property tax bill. For the current levy year and going forward, the County of San Bernardino has elected to modify its process to display the administrative fee as a separate line item for each enrollment on the parcel tax bill instead of including this fee within the same line as the special tax. With this change, the County is requiring each taxing jurisdiction to authorize the collection of this administrative fee through an action approved by the jurisdiction’s governing body.
Ad valorem taxes are not subject to this administrative fee, so the entirety of enrollments sent to the County by the City of Chino are for CFD special taxes, and the associated administrative fees are paid for by revenues collected in CFD funds, which are custodial funds of the City. No administrative fees are paid from the City’s general fund.
ISSUES/ANALYSIS
For fiscal year 2026-27, the City has preliminarily enrolled $21,521,141 in special tax levies on 7,721 parcels to pay debt service for active community facilities districts and has preliminarily enrolled $5,620,014 on 7,199 parcels to pay for cost of CFD eligible services provided by the City. To ensure successful enrollment, collection, and distribution of these taxes, the City is required to authorize the County to retain administrative fees to cover the costs of these county services.
Approval of this resolution provides increased assurance of successful enrollment of its special taxes to allow the City to pay upcoming debt service and fund CFD eligible city services in the current fiscal year. Therefore, staff recommend the City Council adopt Resolution No. 2026-059 authorizing the County of San Bernardino to retain administration fees associated with the collection of City of Chino special taxes through the county property tax levy.
Attachment: Resolution No. 2026-059