1 week Ago By Alexis Espinoza [email protected]
Now that the former Kings County Courthouse has been sold, the city is faced with the decision on how to move forward with the money owed from having to cover its operational costs. The Courthouse Fund has owed a balance to the city’s general fund since 2006 when operational costs began to exceed the revenue collected from the historical buildings tenants. The debt has continued to accumulate over the years and is currently at $1,250,706, and is no longer a revenue-generating entity for the city as it was sold on Nov.
5 to Barrelhouse Brewing Company for $1. According to the staff report attached to Tuesday night’s council agenda, “Because the courthouse’s necessary improvements exceed the value of the property and the sale of the courthouse will only generate $1, it is proposed that the outstanding debt of $1,250,706 owed by the courthouse be written off (absorbed) by the General Fund.” This means that, if the council approves the debt forgiveness, the city’s General Fund will decrease by over $1.
25M and the Courthouse Fund would become an inactive fund. The city anticipates the courthouse sale to be finalized within the month. City staff is recommending that the council approve the General Fund absorption of the Courthouse Fund debt.
Measure H Implementation and Oversight Board Also on Tuesday night’s agenda is a study session to inform the council and the community on the process of formally adopting the new sales tax rate, seeing as the voters of Kings County have approved the Measure H initiative. In order to implement the new tax rate the city must do several things. First the city must adopt Measure H, the Transactions and Use Tax Ordinance of 2024 and the Sales and Use Tax Accountability Measures Ordinance.
The city must also submit the proper documentation to the California Department of Tax and Fee Administration (CDTFA). “Measure H was unofficially approved by approximately 60% ‘yes’ vote (50%+1 vote required) during the Nov. 5, 2024 election, that authorizes the City to implement a 1% local transactions and use tax,” reads the staff report attached to the study session item.
The Transactions and Use Tax ordinance will establish the local 1% tax rate increase which is aimed to provide an additional $19 million funds for the city. The Accountability Measure ordinance will “ensure transparency and responsible allocation of the tax proceeds.” Once the ordinances are adopted the city must submit the required documents to CDTFA in order to collect the tax revenues.
The proposed timeline for CDTFA submittal is to adopt both ordinances by Dec. 3, submit the documents to CDTFA by Dec. 11, wait for processing by the CDTFA through the first of the new year, and begin collection of Measure H revenues on April 1, 2025.
If the timeline is adhered to, the City could see the first round of tax revenue by July 2025. In addition to the ordinance and documentation submittal process, the city will also begin looking at establishing a Measure H Oversight Board in the first month of next year. Applications to sit on the board are tentatively scheduled to open in January, with board members chosen in February.
Civic Centennial Celebration A second study session will be held Tuesday to discuss how the council would like to proceed for the 100th anniversary celebration of the historic Civic Auditorium this coming spring. Construction of the Civic Auditorium was completed in the spring of 1925, and the city is determined to spotlight the building’s presence in the community. “Over the past few years, renovation projects have prepared this majestic building for its big day,” said city staff.
“In many ways, the Civic exemplifies Hanford’s historical and storied past.” The auditorium is mostly used for community events and group meetings, but city staff is asking how the building can be celebrated on a larger scale. A centennial celebration is in discussion and a few dates have been presented for such an occasion — May 10, June 7, and June 21.
City staff suggested the council consider June 7, which is the same day as the annual Carnegie Car Show, as it would offer an opportunity to show off both the historic building and vintage vehicles. City staff is also looking for direction regarding the celebration’s theme, entertainment, food and agenda. To help make these decisions easier for the council, the city is recommending that the council consider forming a Civic celebration subcommittee made of city staff and community members who can bring spirited recommendations to the council regarding the event in March 2025.
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