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<br />4826-7904-2280v7/200434-0005
<br />City. The City participated in the California Statewide Communities Development Authority securitization
<br />program and received the shifted funds in two equal installments on January 15, 2010 and May 3, 2010.
<br />On November 2, 2010, State voters approved Proposition 22, which: (i) prohibits the State of California
<br />from shifting or delaying the distribution of funds from special districts to schools and community colleges;
<br />(ii) eliminates the authority to shift property taxes temporarily during a severe financial hardship of the State;
<br />and (iii) restricts the State’s authority to use fuel tax revenues to pay debt service on transportation bonds, to
<br />borrow or change the distribution of fuel tax revenues or to use vehicle license fee revenues to reimburse local
<br />governments for state-mandated costs.
<br />Despite the passage of Proposition 22, there can be no assurance that 1% ad valorem property tax
<br />revenues which the City currently expects to receive will not be temporarily shifted from the City or reduced
<br />pursuant to State legislation enacted in the future. If the property tax formula is permanently changed in the
<br />future, it could have a material adverse effect on the receipt of its share of 1% property tax revenues by the City.
<br />Set forth in the table below are the secured and unsecured assessed valuations for property in the City
<br />for the Fiscal Years 2012 through 2021.
<br />TABLE 13
<br />City of Santa Ana
<br />Assessed Valuation History (Dollars in Thousands)
<br />Fiscal
<br />Year Secured Value
<br />Unsecured
<br />Value Exemptions(1)
<br />Total Assessed
<br />Value % Increase
<br />2012 $18,509,578 $1,591,287 $(172,181) $19,928,684 N/A
<br />2013 18,829,929 1,432,409 (168,762) 20,093,576 0.8%
<br />2014 19,579,938 1,539,745 (164,260) 20,955,423 4.3
<br />2015 20,432,992 1,642,391 (161,264) 21,914,119 4.6
<br />2016 21,528,909 1,484,318 (159,727) 22,853,500 4.3
<br />2017 22,436,846 1,449,280 (157,732) 23,728,394 3.8
<br />2018 23,719,049 1,513,465 (155,807) 25,076,707 5.7
<br />2019 25,027,024 1,493,217 (153,329) 26,366,912 5.1
<br />2020 26,373,249 1,570,712 (152,527) 27,791,434 5.4
<br />2021 27,590,592 1,480,607 (149,395) 28,930,805 4.1
<br />
<br />(1) Basic levy (Proposition 13) for county, city, schools and districts (apportioned by County Auditor). Proposition 13 in effect
<br />eliminated the property rates for cities, exclusive of voted authorizations for which a rate may be established for debt service
<br />on debt authorized by the voters prior to July 1, 1978
<br />Source: County of Orange Auditor-Controller’s Officer.
<br />Teeter Plan. In 1949, the California Legislature enacted an alternative method for the distribution of
<br />property taxes to local agencies. This method, known as the “Teeter Plan,” is found in Sections 4701-4717 of
<br />the California Revenue and Taxation Code. Upon adoption and implementation of this method by a county
<br />board of supervisors, local agencies for which the county collects property taxes and certain other public agencies
<br />and taxing areas located in the county receive annually 100% of their shares of property taxes and other levies
<br />collected on the secured roll. While the county bears the risk of loss on unpaid delinquent taxes, it retains the
<br />penalties associated with delinquent taxes when they are paid. In turn, the Teeter Plan provides participating
<br />local agencies with stable cash flow and the elimination of collection risk.
<br />Once adopted, a county’s Teeter Plan will remain in effect in perpetuity unless the Board of
<br />Supervisors orders its discontinuance or unless, prior to the commencement of a fiscal year, a petition for
<br />discontinuance is received and joined in by resolutions of the governing bodies of not less than two-thirds of the
<br />participating districts in the county. An electing county may, however, decide to discontinue the Teeter Plan
<br />with respect to any levying agency in the county if the board of supervisors, by action taken not later than July
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