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July 16, 2020

Community Update

by Tami Scott, Administrative Services Director

You’ve may have heard City Staff and City Council often refer to the City of Cathedral City being a post-proposition 13 City.  What exactly is Proposition 13 and how does it affect local finances?

In 1978, a simple majority of California voters approved Proposition 13, seeking property-taxpayer relief and uniformity, with far-reaching consequences, some unintended.  Proposition 13 reduced property revenues by more than half and effectively abolished any local control with regard to the property tax.  Local governments still have wide latitude on the spending of the remaining revenues they receive, but the allocation of the tax is controlled by the State Legislature.

Six Provisions of Proposition 13 Affecting Local Finance:

  1. One percent rate cap.  Proposition 13 capped, with limited exceptions, property tax rates at 1 percent of full cash value at the time of acquisition.  Prior to Proposition 13, local jurisdictions independently established their tax rates.
  2. Assessment Rollback.  Proposition 13 rolled back property values as determined for tax purposes to their Fiscal Year 1975-1976 level.
  3. Reassessment upon change of ownership. Proposition 13 replaced the practice of annually reassessing property at full cash value with a system based on cost at acquisition.  Under Proposition 13, property is assessed at market value for tax purposes only when it changes ownership.  Subsequent annual values are limited to this “base year” amount plus an annual growth factor of 2 percent or CPI, whichever is less.
  4. Responsibility for allocating property tax transferred to the state.  Proposition 13 gave state lawmakers responsibility for allocating property tax revenues among local jurisdictions.  Prior to Proposition 13, jurisdictions established their tax rates independently and their property tax revenues depended on the rate levied and the value of the property located within the boundaries of the jurisdiction.
  5. Voter approval for special taxes.  Proposition 13 requires two-thirds voter approval for property taxes raised by local governments for a designate “special” purpose.
  6. Taxes imposed by the State Legislature require a two-thirds vote of the Legislature. In order the change any provision of Proposition 13, it would have to go back to the voters.

Finally, the amount of property taxes allocated to local governments depends on state property tax allocation laws, principally Assembly Bill 8 (“AB 8”). The AB 8 system was designed, in part, to allocate property tax revenue in proportion to the share of property taxes received by a local government in the mid-1970s (those cities that were incorporated prior to the implementation of Proposition 13 in 1978). Under this system, local governments that received a large share of property taxes in the 1970s typically continue to receive a relatively large share of property taxes today. Although there have been changes to the original property tax allocation system contained in AB 8, the allocation system continues to be substantially based on the variation in property tax receipts in effect in the 1970s. This variation largely reflects service levels provided by local governments in the 1970s. Those Local governments providing many services generally collected more property taxes in the 1970s to pay for those services. As a result, those local governments received a larger share of property taxes under AB 8. For example, cities and counties that provided many government services, including police and fire protection, park and recreation programs, and water services, typically receive more property tax revenue than governments that relied on special districts to provide some or all of these services.  Local governments not yet incorporated by 1978, which Cathedral City did not incorporate until 1981, essentially fell victim to Proposition 13 and AB 8 and thus receive on average 60% less in property tax revenue than those cities incorporated prior to 1978. 

In practical terms all of this means that neighboring cities of a similar size (like Palm Springs and Cathedral City) may receive significantly different property tax allocations.  For example, in Fiscal Year 2019-20, Palm Springs was allocated $26.7 million dollars in property tax revenues while Cathedral City received only $4.7 million.  This makes it more difficult for Cathedral City as a post Prop 13 city to provide the same level of services as a similarly sized city that incorporated before Prop 13.

COVID-19 INFORMATION

COVID-19 Information
COVID-19-Business-Support

By the Numbers:

As of July 16, Cathedral City had a total of 1,062 confirmed COVID-19 cases and 11 reported deaths.  Other Coachella Valley cities are reporting the following:

Coachella - 1,553 cases, 15 deaths

Desert Hot Springs - 497 cases, 6 deaths

Indian Wells - 26 cases, 1 death

Indio - 2,061 cases, 46 deaths

La Quinta - 456 cases. 14 deaths

Palm Desert - 620 cases, 36 deaths

Palm Springs - 535 cases, 19 deaths

Rancho Mirage - 151 cases, 12 deaths

 

Riverside County has reported 28,177 COVID-19 cases, 585 deaths, and 10,271 recovered cases. 

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NEWS

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Mayor John Aguilar Lends His Support to a Valley Wide PSA to Mask Up

Mayor John Aguilar Lends His Support to a Valley Wide PSA to Mask Up

Thanks to the Greater Palm Springs Convention and Visitors Bureau (GPSCVB), the nine Coachella Valley mayors united together to film a new public service announcement encouraging everyone to wear a mask so we can get through this coronavirus pandemic together.  Cathedral City Mayor John Aguilar starts the 30 second video as the GPSCVB pledges its commitment to practice the latest …Read more.

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Coming to a Mailbox Nearest You – Mask Up to Protect Your Family

Coming to a Mailbox Nearest You – Mask Up to Protect Your Family

It is a priority of the City Council to protect the health and safety of our residents, especially during the COVID-19 pandemic.  Emergency Order 3A requires face masks and social distancing in public settings until September 30, 2020, unless extended or rescinded.   More and more studies point to the fact that wearing a facial covering, social distancing of at …Read more.

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New Video Demonstrates the Seriousness of COVID-19

New Video Demonstrates the Seriousness of COVID-19

Director of Public Health Kim Saruwatari of Riverside County demonstrates in this new video just how dangerous COVID-19 is just in the first six months of 2020.  She reports that COVID-19 is equally as serious as diabetes, stroke, and chronic obstructive pulmonary disease when measuring “years of life lost” due to the disease.  The methodology assumes that an average person …Read more.

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Have You Given Us Your Opinion Yet on Connect Cathedral City?

Have You Given Us Your Opinion Yet on Connect Cathedral City?

We need your help! Check out four upcoming projects in the City and let us know what you think. Connect Cathedral City, a joint initiative between the City and CVAG, aims to improve walking, biking, and driving low-speed vehicles like golf carts. Don’t miss your chance to learn more about these projects! https://bit.ly/_connect-cc   If Connect Cathedral City is approved …Read more.

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Bypass Road Being Constructed for the Ofelia Bringas Memorial Bridge

Bypass Road Being Constructed for the Ofelia Bringas Memorial Bridge

The project that has been in the works for years, the construction of the Ofelia Bringas Memorial Bridge, has begun.  Crews are creating a temporary bypass road around the area where a new bridge will eventually span across the Whitewater Wash on Cathedral Canyon Drive.  The bypass road will allow continuous flow of traffic while the bridge is being built. …Read more.

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S.C.R.A.P. Gallery of Cathedral City Featured on The Weather Channel

S.C.R.A.P. Gallery of Cathedral City Featured on The Weather Channel

Executive Director Karen Riley of S.C.R.A.P. Gallery located in Cathedral City appeared on The Weather Channel’s segment entitled, “America’s Science Lab” last Friday, July 10, 2020 to discuss the wonderful art that students have created even during the COVID-19 pandemic.  The segment showed a variety of projects that the gallery has been able to accomplish even though in person teaching …Read more.

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COVID-19 Medical Staffing an Important Factor to Consider

COVID-19 Medical Staffing an Important Factor to Consider

When it comes to reporting on the COVID-19 pandemic, we often read about the number of cases, the number of ICU beds available, the number of surge beds available, and the percentage of increased hospitalization rates.  However, one critical ingredient that is just as important is the number of medical professionals available to treat COVID-19 patients.  Eisenhower Health hospital in …Read more.

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Fifteen Daytime Cooling Centers Available in Riverside County

Fifteen Daytime Cooling Centers Available in Riverside County

As the summer heat reaches record levels, Riverside County has secured 15 Daytime Cooling Centers throughout the county including 4 centers in the Coachella Valley. The location closest to Cathedral City is Well in the Desert located at 441 S. Calle Encilla in Palm Springs.  The cooling center is open Monday through Sunday from 7:30 am to 4:00 pm.  For … Read more.

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Job Fair Announced for Agua Caliente Casino Cathedral City

Job Fair Announced for Agua Caliente Casino Cathedral City

Residents of Cathedral City, and from all around the Coachella Valley are invited to join Agua Caliente Casino Cathedral City for their job fair being held on Monday, July 27, from 8:00am to 1:00pm at Mary Pickford Theater in Cathedral City, CA.   Residents of the Valley are invited to join the job fair ready to show how they can …Read more.

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Knocks at the Door Start this Month – Complete Your 2020 Census

Knocks at the Door Start this Month – Complete Your 2020 Census

In March, homes across the country received invitations to complete the 2020 Census. We strongly encourage Cathedral City residents to respond to the 2020 Census online using a desktop computer, laptop, smartphone, or tablet today if you haven’t done so already. Completing the Census without having to leave your home is crucial to maintaining social distancing during the coronavirus outbreak. …Read more.

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Use La Mascarilla para Proteger a Su Familia

Use La Mascarilla para Proteger a Su Familia

La pandemia de la COVID-19 no ha pasado y continúa propagándose entre los distintos grupos etarios, no solo entre los adultos mayores. Debemos ralentizar el contagio. Para ello, es fundamental usar protectores faciales (tapabocas) para proteger a nuestras familias. A principios de junio, Cathedral City había registrado 165 casos confirmados de coronavirus. A fines de junio, esta cifra ascendió a …Read more.

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Record Single Day COVID-19 Case Counts and Deaths

Record Single Day COVID-19 Case Counts and Deaths

Earlier this afternoon, Governor Newsom ordered additional business sectors to close once again due to the increase in the number of COVID-19 cases in Riverside County and throughout the state.  Last Thursday, Riverside County reported a record single day increase of 1,377 coronavirus cases, only to set a new record on Friday with 1,431 cases.  There have been 25,748 confirmed …Read more.

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Governor Orders More Closures Effective Immediately Due to the Increase of COVID-19 Cases

Governor Orders More Closures Effective Immediately Due to the Increase of COVID-19 Cases

As the number of COVID-19 cases continue to increase and strain on our health care system with hospitalizations, Governor Newsom has ordered additional closures effectively immediately statewide and additional restrictions in counties that are on the state’s watch list.  Riverside County as well as most counties in Southern California are on the watch list.   Effective July 13, 2020, ALL … Read more.

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EVENTS

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Cathedral City Postpones Special Events Until Further Notice

Cathedral City Postpones Special Events Until Further Notice

On March 19, 2020, Governor Newsom signed an Executive Order (PDF) and Public Health Order (PDF) directed all Californians to stay home except to go to an essential job or to shop for essential needs.

The City of Cathedral City will suspend all special events until further notice.

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For Questions or Comments, Contact Chris Parman, Communications and Events Manager
cparman@cathedralcity.gov