Politics & Government

City Report: Where Your Taxes Go

The City of San Marino released a report Friday that details how much the City receives from property, public safety, utility users and sales taxes paid by residents and other entities.

Upon the request of Vice Mayor and San Marino residents, the that details how much the City receives from property, public safety, utility users and sales taxes and where some of that money goes.

Four categories of taxes exist for San Marino residents: property taxes, the , utility users tax and sales and use tax. Property taxes comprise the main source of revenue, Finance Director Lisa Bailey said at Friday’s adjourned regular meeting.

Huntington Paying Little in Taxes

The report pointed out that the is paying flat rates for certain taxes that are far less than the institution would pay if the same formula for others were applied. In particular, the Huntington pays $151,022 less for the public safety tax and $66,500 less for the utility users tax.

City Manager Matt Ballantyne said the City is looking into what exemptions exist for entities in the City (schools, churches and others) so any exemptions or changes in taxes can be applied consistently.

See the figures below and check back for more on taxes for the Huntington.

TAX REVENUE REPORT BREAKDOWN

Here’s a rough breakdown of the City’s tax revenue report, which can be found in the Feb. 24 City Council adjourned regular meeting agenda here.

Property taxes

San Marino receives $10 million in property taxes annually.

A graph breakdown performed by Hinderliter, de Llamas & Associates (attached to this article) shows that for every tax dollar paid by residents and businesses:

  • The County receives about 27 cents
  • The City receives about 24 cents, which funds general city programs like police and , administration and , according to Bailey.
  • The receives about 19 cents
  • The Educational Augmentation Fund Impound receives about 18 cents
  • The Educational Revenue Augmentation Fund* receives about 8 cents
  • Pasadena Area Community College receives about 3 cents
  • 10 other sources including County School Service Fund (San Marino) and LA County Flood Control Maintenance receive about 4 cents total

*According to the Los Angeles County Auditor-Controller:

The Educational Revenue Augmentation Fund is a mechanism, enacted in July of 1992 by the State Legislature to shift local tax revenues from cities, counties, and special districts to a State controlled fund (Educational Revenue Augmentation Fund). The state uses this fund to reduce its obligation to the schools. ERAF funds have been used by the State to help school and community college districts to meet minimum funding requirements.

Find out what's happening in San Marinowith free, real-time updates from Patch.

Public Safety Tax

  • City receives $2.6 million annually
  • Pays for police, fire and paramedic services
  • Covers about 28% of City’s operating budget
  • Average of $592 per residential parcel; $1,516 per business parcel
  • Churches pay $1392 per parcel
  • Huntington Library pays in lieu payment of $18,978

If the Huntington Library were assessed based on their 206 acres, they would pay about $170,000.

Utility Users Tax

Find out what's happening in San Marinowith free, real-time updates from Patch.

  • City receives $1.6 million annually
  • Pays for capital projects throughout the city like changing city street lights from high to low voltage, according to Bailey
  • Applies to natural gas, electricity, telephone, water and cable
  • Allows for up to 6% of utility charges; currently at 5%
  • Average Utility User’s tax for a business/home is $360 annually.
  • Scheduled to sunset in June 2017, as approved by voters

The Huntington Library pays $7,000 annually in lieu of UUT. Based on the Huntington Library’s financial statements, they spent $1.467 million on utilities in 2010. This would equal approximately $73,350 in utility users’ taxes at 5%.

Sales and Use Tax

  • Generates $300,000 per year
  • City receives 14 cents on every dollar of taxes
  • Pays for San Marino General Fund expenses like public safety and public works, said Bailey
  • Assessed by merchants and distributed by state


Does anything in the City’s tax revenue report surprise you? Tell us in the comments.


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