$425-Million Jump in Property Taxes Projected

Property values in Los Angeles County have climbed to a record $346 billion and could generate $425 million more than last year in property tax revenues to be shared by cities, schools, special districts and a financially strapped county, Assessor John J. Lynch said Monday.

Lynch, in an unusual ceremony before 800 cheering employees in a pep rally atmosphere, turned over the county property roll to the Board of Supervisors and the auditor-controller and told them that the combined value of the county’s 2 million parcels had exceeded last year’s $314 billion figure by 10%.

“This is phenomenal,” Lynch said of the jump in property values--the second straight double-digit increase in as many years.

Lynch attributed the increase to new construction and to “the ongoing boom” in property sales. He also said that employees in the assessor’s office had tracked down about $20 billion in property this year that had either previously escaped notice or had been undervalued.

The result, Lynch said, is “found money” for the county and its 85 cities, as well as school districts, community redevelopment agencies and special districts that receive property-tax revenue.

According to Lynch, the $425 million more in revenues represents a 13% jump over the preceding fiscal year. Of the additional amount, school districts can expect $89 million more in tax revenue this fiscal year. Cities will receive another $81 million, community redevelopment agencies can expect $38 million more and special districts, such as flood control or fire protection, can look forward to an increase of $30 million.

Lynch added that the largest single chunk of anticipated revenues--$187 million--will go to the county, which is $50 million more than county officials had estimated when they put together their budget earlier this year and included program cuts, particularly in mental health services.

Although the property tax money must still be collected by the treasurer-tax collector, Board of Supervisors Chairman Deane Dana called Lynch’s projections “a major windfall” for the county.

“As you know, the board is under terrible stress in meeting its needs . . . and we are in financial trouble right at the present time,” Dana said Monday, adding that he remains hopeful that “a good portion of that $50 million will flow into the county general funds.”

However, Richard B. Dixon, the county’s chief administrative officer, disputed Lynch’s calculations of the county’s share of revenues.

“I’m absolutely confident that (the county share will be) significantly less than half of the $50 million,” Dixon said. “It may be as low as $7 million, but it will not be lower than that.”

Complex Regulations

Dixon said the disparity in projections arises because of a maze of complex regulations governing property tax collection, as well as uncertainty over the shares to be apportioned to community redevelopment agencies, cities and other public agencies. Whether a property falls within a redevelopment zone, for example, can make a difference how tax revenues are divided.

Los Angeles city, as it usually does, posted the largest combined property value among the county’s 85 cities--$135 billion for 731,145 parcels of property. The cities of Walnut and Palmdale tied for the title of fastest growing property values in the county, each reporting 25% gains.

FASTEST-GROWING ASSESSMENTS

These communities in Los Angeles County showed the greatest percentage change in assessment over the previous year. They are ranked by the percentage change. The county rolls showed a 10.2% increase.

% 1988 87-88 Change Assessment City 87-88 (in billions) Predominant Explanation Walnut 25.4% $1.11 Home construction and transfers Palmdale 25.0% $1.96 New apartments, condominiums, shopping centers Hidden Hills 17.3% $0.23 New large, high-value custom homes Bradbury 16.0% $0.82 New large custom homes Glendora 15.7% $1.57 New large, high-value custom homes Agoura Hills 15.3% $1.45 New large, high-value custom homes Hawaiian Gardens 15.2% $0.24 Significant condominiums, development north of Carson Street Lancaster 14.3% $2.36 New apartments, condominiums, shopping centers Carson 13.8% $5.05 Warehouse construction, intensified effort by the assessor to catch up on prior years Claremont 13.4% $1.12 New custom homes La Canada Flintridge 13.1% $1.22 New large, high-value custom homes Bellflower 13.0% $1.43 Significant construction activity, including neighborhood shopping centers, condominiums and homes Beverly Hills 12.9% 46.51 New construction, renovation of luxury homes Los Angeles 10.4% $134.78 New small businesses and increased property sales

WHERE THE MONEY GOES

Jurisdiction 1987 1988 Change % Change Los Angeles County $1.455 $1.642 $0.187 12.9% School Districts $0.694 $0.783 $0.089 12.8% Cities $0.628 $0.709 $0.081 12.9% Community Redevelopment $0.298 $0.336 $0.038 12.8% Special Districts $0.231 $0.261 $0.030 13.0%

Source: Los Angeles County Assessor