City of Santa Barbara Harbor Operations Are Boat Owners' Property Taxes Slipping Away?

Conclusions 1

• CL1
  http://www.santabarbaraca.gov/civicax/filebank/blobdload.aspx?BlobID=12166 5 Ibid. 6 https://www.dmv.ca.gov/portal/dmv/detail/boatsinfo/boatreg CITY OF SANTA BARBARA HARBOR OPERATIONS The 2015-16 Santa Barbara County Grand Jury found that the collection of property taxes on boat slips at the City of Santa Barbara Harbor is being done in compliance with applicable state law. State law and internal policies are being followed concerning vessel registration. Lastly, it was found that city staff is following Santa Barbara Municipal Code TITLE 17, Harbor, and its internal policies concerning the operability of vessels and live-aboard permits. Under California Penal Code Section 933.05 this report does not require a response. CITY OF SANTA BARBARA HARBOR OPERATIONS Appendix A Effective: July 1, 2015 CITY OF SANTA BARBARA WATERFRONT DEPARTMENT SLIP FEE CHART Slip Size Rate per Boat Monthly Security (in feet) Foot Rent NOTES: Length Deposit Transfer Fee Total 8.43 20 20 $ 168.60 $ 337.20 $ 4,000.00 S 4,505.80 Note 1: Transfer fees are $200 per foot for 20' 8.43 slips, $350 per foot for 25' slips. All other slips @ 20 21 $ 177.03 $ 354.06 $ 4,200.00 $ 4,731.09 20 8.43 22 $ 185.46 $ 370.92 $ 4,400.00 $ 4,956.38 $400 per foot 25 8.83 25 $ 220.75 $ 441.50 $ 8,750.00 $ 9,412.25 25 8.83 26 $ 229.58 $ 459.16 $ 9,100.00 $ 9,788.74 Note 2: All side-ties with power and water are 25 8.83 27 $ 238.41 $ 476.82 $ 9,450.00 $ 10,165.23 subject to the rates on the slip fee chart. 25 8.83 28 $ 247.24 S 494.48 $ 9,800.00 $ 10,541.72 28 9.05 28 $ 253.40 $ 506.80 $ 11,200.00 $ 11,960.20 28 9.05 29 $ 262.45 $ 524.90 $ 11,600.00 $ 12,387.35 Note 3: All side-ties without power and water are 9.05 28 543.00 $ 12,000.00 30 S 271.50 S $ 12,814.50 $7.35 per foot per month (length of boat). 28 9.05 31 $ 280.55 $ 561.10 $ 12,400.00 $ 13,241.65 30 9.25 30 $ 277.50 $ 555.00 $ 12,000.00 $ 12,832.50 30 9.25 31 $ 286.75 $ 573.50 $ 12,400.00 $ 13,260.25 Note 4: Fisherman's floats are $4.90 per foot per 9.25 30 32 $ 296.00 $ 592.00 $ 12,800.00 $ 13,688.00 month. 9.25 30 33 $ 305.25 $ 610.50 $ 13,200.00 $ 14,115.75 35 9.66 35 $ 338.10 $ 676.20 $ 14,000.00 $ 15,014.30 9.66 35 36 $ 347.76 $ 695.52 $ 14,400.00 $ 15,443.28 35 9.66 37 $ 357.42 S 714.84 $ 14,800.00 $ 15,872.26 35 9.66 38 S 367.08 S 734.16 $ 15,200.00 $ 16,301.24 40 10.05 40 $ 402.00 S 804.00 $ 16,000.00 $ 17,206.00 40 10.05 Note 5: All rates are based on the SLIP size. If a 41 $ 412.05 $ 824.10 $ 16,400.00 $ 17,636.15 40 10.05 42 $ 422.10 $ boat is 28' in length, but is assigned to a 25' slip, it 844.20 $ 16,800.00 $ 18,066.30 40 10.05 43 $ 432.15 $ 864.30 $ 17,200.00 $ 18,496.45 is to be assessed at the rate for a 25' slip with a 28' 43 10.30 43 $ 442.90 $ 885.80 $ 17,200.00 $ 18,528.70 43 10.30 44 $ 453.20 $ 906.40 $ 17,600.00 | $ 18,959.60 10.30 43 45 $ 463.50 $ 927.00 $ 18,000.00 $ 19,390.50 43 10.30 46 $ 473.80 $ 947.60 $ 18,400.00 $ 19,821.40 Live-aboard $140.00 45 10.47 45 $ 471.15 $ 942.30 $ 18,000.00 $ 19,413.45 T/C Live-aboard 50% 45 10.47 46 $ 481.62 963.24 $ 18,400.00 S $ 19,844.86 45 10.47 47 S 492.09 S 984.18 $ 18,800.00 $ 20,276.27 45 10.47 48 S 502.56 $ 1,005.12 $ 19,200.00 $ 20,707.68 50 10.85 50 S 542.50 $ 1,085.00 $ 20,000.00 $ 21,627.50 50 10.85 51 $ 553.35 $ 1,106.70 $ 20,400.00 $ 22,060.05 50 10.85 52 $ 564.20 $ 1,128.40 $ 20,800.00 $ 22,492.60 50 10.85 53 $ 575.05 $ 1,150.10 $ 21,200.00 $ 22,925.15 60 11.79 60 $ 707.40 $ 1,414.80 $ 24,000.00 $ 26,122.20 60 11.79 719.19 $ 1,438.38 $ 24,400.00 $ 26,557.57 61 $ 60 11.79 62 $ 730.98 $ 1,461.96 $ 24,800.00 $ 26,992.94 60 11.79 63 $ 742.77 $ 1,485.54 $ 25,200.00 $ 27,428.31 70 12.79 Note: All slips over 70' will need to be calculated 70 $ 895.30 $ 1,790.60 $ 28,000.00 $ 30,685.90 80 13.87 80 $ 1,109.60 $ 2,219.20 $ 32,000.00 $ 35,328.80 individually when determining transfer fees and CITY OF SANTA BARBARA HARBOR OPERATIONS Appendix B P.O. BOX 579 SANTA UNSECURED HARRY E. HAGEN, CPA 2015-2016 BARBARA, CA 93102-0579 TREASURER-TAX COLLECTOR PROPERTY TAX STATEMENT (805)568-2920 SANTA BARBARA COUNTY OF SANTA BARBARA (805)346-8330 SANTA MARIA FOR FISCAL YEAR 07/01/2015 - 06/30/2016 FEDERAL TAX ID#95-6002833 BILLNUMBER ASSESSEE ON JANUARY 1ST LIEN DATE Unsecured Property Number 2015-5008629 INTENTIONALLY OMITTED 0f28 -002-6 TAX RATE AREA NUMBER TAX RATE PERCENT ASSESSED VALUE AS THE OWNER ON JANUARY 1st, THIS IS YOUR LAND/MINERAL RIGHTS 56,141 002-042 1.04840 RESPONSIBILITY. SALE OR DISPOSAL DOES NOT RELIEVE IMPROVEMENTS 6,237 THIS OBLIGATION. PERSONAL PROPERTY 0 TRADE FIXTURES 0 MAILTO GROSS TOTAL 62.378 0280026 20155006629 UNSEC INTENTIONALLY OMITTED HOME OWNERS EXEMPTION 0 OTHER EXEMPTION 0 NET TOTAL 62,378 TAX AMOUNTS BASIC PROPERTY TAX 653.98 SPECIAL DISTRICTS 0.00 FIXED CHARGES 0.00 DESCRIPTION OF PROPERTY TOTAL TAX 653.98 10% DELINQUENT PENALTY 0.00 C - Harbor Slip COST 0.00 HARBOR 0-F-28 1.5% MONTHLY PENALTY 0.00 SANTA BARBARA CA LESS APPLIED PAYMENTS 653.98 TOTAL TAXES DUE 0.00 DELINQUENT PENALTIES ADDED 08/31/2015 IF NOT PAID BY TAX DISTRIBUTION BY AGENCY AMOUNT TAX DISTRIBUTION BY AGENCY AMOUNT BASIC PROPERTY TAXES: $623.78 0000 Basic 1% (Prop 13/AB8) Taxes 568-2124 8251 SB Unified High Bond 2000 963-4338 $8.10 8252 SB Unified Elem Bond 1995 963-4338 $1.14 8254 SB Unified High Bond 2010 963-4338 $4.35 8255 SB Unified Elem Bond 1998 963-4338 $6.84 8256 SB Unified Elem Bond 2010 963-4338 $4.47 9621 SBOC Bond 2008 965-0581 $5.30 TOTAL BASIC PROPERTY TAXES: $653.98 TOTAL TAXES $653.98 ALL DELINQUENT BILLS ARE SUBJECT TO A $50.00 COLLECTION FEE IN ADDITION .... TO LATE PENALTIES. INSTALLMENT PAID 2015-2016 TOTAL TAX 653.98 10% DELINQUENT PENALTY 0.00 UNSECURED PROPERTY TAX COST 0.00 1.5% MONTHLY PENALTY 0.00 STATEMENT FEES 0.00 LESS APPLIED PAYMENTS 653.96 PAYMENT STUB NUMBER TOTAL TAXES DUE 0.00 WHEN PAYING , DETACH THIS STUB 2015-2015-5006629-1 RETURN THIS STUB WITH YOUR REMITTANCE PAY ONLINE: WWW.SBTAXES.ORG PROPERTY NUMBER INTENTIONALLY OMITTED 0f280026-026-6 MAKE PAYMENT TO: HARRY E. HAGEN TREASURER-TAX COLLECTOR COUNTY OF SANTA BARBARA DELINQUENT PENALTIES 08/31/2015 ADDED IF NOT PAID BY P.O. BOX 579 CHECK THIS BOX FOR ADDRESS CHANGES ON REVERSE SANTA BARBARA, CA 93102-0579 010120150000201550066298201508310000000000000000000115394 CITY OF SANTA BARBARA HARBOR OPERATIONS P.O. BOX 579 SANTA UNSECURED HARRY E. HAGEN, CPA 2015-2016 BARBARA, CA 93102-0579 TREASURER-TAX COLLECTOR PROPERTY TAX STATEMENT (805)568-2920 SANTA BARBARA COUNTY OF SANTA BARBARA (805)346-8330 SANTA MARIA FOR FISCAL YEAR 07/01/2015 - 06/30/2016 FEDERAL TAX ID#95-6002833 BILL NUMBER ASSESSEE ON JANUARY 1ST LIEN DATE Unsecured Property Number INTENTIONALLY OMITTED 2015-5011483 CF0450PM-001-3 TAX RATE AREA NUMBER TAX RATE PERCENT ASSESSED VALUE AS THE OWNER ON JANUARY 1st. THIS IS YOUR LAND/MINERAL RIGHTS 0 1.04159 008-020 RESPONSIBILITY. SALE OR DISPOSAL DOES NOT RELIEVE IMPROVEMENTS 0 THIS OBLIGATION. PERSONAL PROPERTY 10,500 TRADE FIXTURES 0 MAIL TO GROSS TOTAL 10,500 CF0450FM0013 20155011483- UNSEC INTENTIONALLY OMITTED HOME OWNERS EXEMPTION 0 OTHER EXEMPTION 0 NET TOTAL 10,500 TAX AMOUNTS BASIC PROPERTY TAX 109.36 SPECIAL DISTRICTS 0.00 FIXED CHARGES 0.00 DESCRIPTION OF PROPERTY TOTAL TAX 109.36 10% DELINQUENT PENALTY 0.00 B - Boat COST 0.00 7760 HOLLISTER AVE 1.5% MONTHLY PENALTY 0.00 GOLETA CA LESS APPLIED PAYMENTS 109.36 0.00 TOTAL TAXES DUE DELINQUENT PENALTIES ADDED 08/31/2015 F NOT PAID BY TAX DISTRIBUTION BY AGENCY AMOUNT TAX DISTRIBUTION BY AGENCY AMOUNT BASIC PROPERTY TAXES: $105.00 0000 Basic 1% (Prop 13/AB8) Taxes 568-2124 6851 Goleta Union Bond 1996 681-1200 $1.38 8251 SB Unified High Bond 2000 963-4338 $1.36 8254 SB Unified High Bond 2010 963-4338 $0.73 9621 SBOC Bond 2008 $0.89 965-0581 TOTAL BASIC PROPERTY TAXES: $109.36 TOTAL TAXES $109.36 --- ALL DELINQUENT BILLS ARE SUBJECT TO A $50.00 COLLECTION FEE IN ADDITION TO LATE PENALTIES. INSTALLMENT PAID 2015-2016 109.36 TOTAL TAX 10% DELINQUENT PENALTY 0.00 UNSECURED PROPERTY TAX COST 0.00 1.5% MONTHLY PENALTY 0.00 STATEMENT FEES 0.00 LESS APPLIED PAYMENTS 109.36 PAYMENT STUB NUMBER TOTAL TAXES DUE 0.00 WHEN PAYING , DETACH THIS STUB 2015-2015-5011483-1 RETURN THIS STUB WITH YOUR REMITTANCE PAY ONLINE: WWW.SBTAXES.ORG PROPERTY NUMBER INTENTIONALLY OMITTED CF0450PM-001-3 MAKE PAYMENT TO: HARRY E. HAGEN TREASURER-TAX COLLECTOR COUNTY OF SANTA BARBARA DELINQUENT PENALTIES 08/31/2015 ADDED IF NOT PAID BY P.O. BOX 579 CHECK THIS BOX FOR ADDRESS CHANGES ON REVERSE SANTA BARBARA, CA 93102-0579 0101201500002015501146332015063100000000000000000000060939

Observations 1

• OB1
  The Waterfront Department (Department) of the City of Santa Barbara (City) is operated as an enterprise fund and includes three divisions: the Waterfront Business Management Division (Business), the Waterfront Facilities Management Division (Facilities), and the Waterfront Harbor Management Division (Harbor). As an enterprise department, all expenses incurred by the Department must be paid out of revenue brought in by the Department. No operating expenses are paid out of the general fund of the City, and all funds generated must be kept within the Department. For Fiscal Year 2015, the Department realized a net operating gain of $252,178 between total department operating revenue of $15,106,278 and total department operating expenses of $14,854,100. According to staff, any net operating gains are put into the Department's CITY OF SANTA BARBARA HARBOR OPERATIONS capital fund each year. $4,810,766 of the Department's operating revenue, or approximately 32%, was derived from slip fees and slip transfer fees. The Jury noted in its review that one required project has a positive effect on the Department's budget every year. Twice a year, in the spring and fall, the Federal Channel at the entrance to the harbor must be dredged. Because the Harbor is designated as a "harbor of safe refuge", the Army Corps of Engineers (Corps) has performed this work at no cost to the City of Santa Barbara or its citizens. Historically, the Corps has allocated approximately $2,500,000 per year for dredging the Federal Channel, including bathymetric surveys, biological surveys, permitting, and other dredging related activities. Department staff expects that the City would incur these expenses if it had to take over dredging the Federal Channel from the Corps. The Jury also learned about another source of revenue for the Department, the revenue derived from cruise ships ($5 per person including crew). Within the last few years, the number of cruise ships approved to dock at Santa Barbara increased from four or five per year to almost thirty. The Waterfront Director decides how many cruise ships will visit and includes the number in the Department's budget presentation to the City Council each spring. No cruise ship visits are approved during the busy summer season, May to September. Department staff stated that they have not received complaints about the cruise ships and encouraged any interested citizen to request the topic be added as an agenda item at City Council or Harbor Commission meetings. In addition to the City Council of Santa Barbara, the Department is overseen by the Harbor Commission (Commission), which is a volunteer advisory board. The Commission consists of seven commissioners appointed by the city council. The Commission is responsible for making recommendations to the city council on all matters pertaining to the operation of vessels and water craft within the Harbor and the Department including, but not limited to, rules and regulations, rates and fees, budgets, equipment, facilities, materials and supplies. In the rare case of a slip contract termination, the Commission has the final word. Payment of Property Taxes on Boat Slips In addition to transfer fees and monthly slip rents, amounts that can often add up to thousands of dollars1, complainants questioned why the County of Santa Barbara can collect property taxes on the slips, as they are owned by the City of Santa Barbara. It is general knowledge that state and local governments are exempt from property taxation.2 Why is it, then, that the City can rent out its property (the slip) and require the slip holder to pay property taxes? The jury learned that when the boat owner rents a slip at the harbor, he or she obtains a private interest in government owned property. Because he or she has the exclusive right to that slip by renting it from the City, he or she must pay unsecured3 property taxes. This is in accordance with the regulations of the California State Board of Equalization, which define "taxable possessory interests" to include the right to "actual physical occupation" of publicly-owned property "pursuant to rights not granted to the general public," "such as ... a permit to use a berth at a 1 Appendix A is the current City of Santa Barbara Waterfront Department Slip Fee Chart, based on City Council Resolution No. 15-055, June 24, 2015. 2 http://www.boe.ca.gov/lawguides/property/current/ptlg/ccp/XIII-3.html 3 https://www.countyofsb.org/ttcpapg/taxcoll/glossary.aspx CITY OF SANTA BARBARA HARBOR OPERATIONS harbor" (California Code of Regulations, title 18, section 20). Each slip has a parcel number. Every January, Harbor staff sends the County Assessor's office a list of slip numbers and the name(s) of the people who rent them. This information is used to generate tax bills (see Appendix B for sample tax statements). Operability of Vessels The Jury looked into questions raised concerning the operability of vessels in the Harbor. It was found that operability is regulated by Santa Barbara Municipal Code (SBMC) TITLE 17 Section 17.20.255 (B). titled "Moored Vessels Must be Operable"4. The Harbor enforces operability in several ways. When the vessel is put into the slip, and when/if it is sold, operability is proved. If a complaint is received from other vessel owners or the public, Harbor staff investigates and follows up to prove operability. In addition, "Marina 1" is currently undergoing renovation. (A marina, in this case, being the "finger' where smaller boats are docked in slips.) As it is renovated, all vessels are required to relocate to other areas of the harbor, thus proving their operability. Lastly, staff makes numerous visual observations of vessels daily. Live-Aboard Permits Complainants to the Jury expressed concerns with the perception that there are more people living on their vessels than are permitted by city regulations. SBMC TITLE 17, Chapter 17.185 contains the rules for people living on their vessels (commonly known as "live-aboards"). Up to 113 permits may be issued by the Harbor at any given time. Per Department staff, 100 live-aboard permits were active at the writing of this report. Besides the applicant (who must be the current slip permittee), up to four other occupants may be added to the live-aboard permit. In addition to following up on any complaints, staff monitors live-aboards during the thousands of foot patrols they conduct in the harbor throughout the year. In fact, staff informed the Jury that they appreciate the live-aboard population because they are "the eyes and ears" of the harbor, and are often the first to observe and report fires and other safety issues. Vessel Registration The Jury learned that the Department of Motor Vehicles (DMV)6 of California requires that every vessel not documented by the U.S. Coast Guard be registered with the DMV. With a few exceptions, every sail powered vessel over eight feet in length and every motor driven vessel regardless of length, must be registered and have a CF (vessel registration) number provided by the DMV. This is the vessel equivalent of automobile registration. The CF number must be on the bow of the vessel and include a current registration sticker. It is the policy of Harbor staff, beginning in January, to go through the entire harbor once a year, and verify that all vessels are registered and are in the correct slip. Violators are given a phone call, a letter, and/or a posting on their vessel. Ultimately, tickets are issued if the CF stickers are not current.

No Responses Found 1

Government entities assigned to respond to this report. No response documents have been linked in our database.