16250-16251

GOVERNMENT CODE
SECTION 16250-16251




16250.  (a) Out of the amount appropriated by Section 16100, there
shall be allocated to the cities in this state, for the 1978-79
fiscal year only, two hundred fifty million dollars ($250,000,000) to
be distributed as provided in subdivisions (b), (c), and (d) of this
section.
   (b) (1) For each city the amount of property taxes collected plus
the amount of homeowners' and business inventory exemption
reimbursement in 1977-78 shall be determined by the Controller.
   (2) From the amount determined pursuant to paragraph (1), there
shall be subtracted the amount determined for each city in 1978-79
pursuant to Section 26912.1.
   (3) The remainder determined pursuant to paragraph (2) shall be
aggregated for all cities in the state.
   (4) The Controller shall then determine what the percentage of the
amount computed for each city pursuant to paragraph (2) is of the
total statewide amount computed pursuant to paragraph (3).
   (5) The percentage determined pursuant to paragraph (4) shall be
applied to the two hundred fifty million dollars ($250,000,000) to
determine each city's dollar share of the surplus allocation.
   (c) From each city's dollar share of the total allocation, there
shall be subtracted an amount equal to one-third of the amount by
which the city's general fund reserve balance on July 1, 1978, as
defined in subdivision (e), exceeds 5 percent of the city's 1977-78
total revenues. However, this subdivision shall not apply to a city
formed during or after fiscal year 1977-78.
   (d) The amount determined in paragraph (5) of subdivision (b)
minus the amount determined in subdivision (c) shall be distributed
to each city by the Controller in accordance with the following
schedule:
   33 percent--on August 31, 1978, or a subsequent date if the
information needed by the Controller is not available by this date.
   33 percent--on December 10, 1978.
   34 percent--on May 10, 1979.
   (e) For the purposes of this section, "General Fund reserve"
includes the unappropriated fund balance as of June 30, 1978 of the
General Fund. "General Fund reserves" shall not include:
   (1) Noncash assets such as stores, inventory, property and
buildings, or other investments purchased prior to June 6, 1978.
   (2) Any amounts for self-insurance, for contractual obligations,
or for reserves established by law or a governing board policy
adopted prior to June 6, 1978.
   (3) Any amounts restricted by law or court order.
   (4) Any amounts committed to a capital outlay project approved
prior to June 6, 1978, by the city council.
   (f) For the purpose of this section, the amount of property tax
collected pursuant to existing law for the purpose of making annual
payments for the interest and principal on outstanding general
obligation bonds or other indebtedness approved by the voters prior
to July 1, 1978, shall be excluded from all calculations.
   (g) Funds distributed under this section shall be distributed
first for police and fire protection programs in order not to
jeopardize the health and safety of the community. The legislative
body shall ensure that the level of police and fire protection
programs actually provided in the 1977-78 fiscal year shall be
continued in the 1978-79 fiscal year. However, this subdivision shall
not apply to a city formed during or after fiscal year 1977-78.
   Nothing in this section shall prevent the legislative body from
reviewing and establishing its police and fire protection program in
the 1978-79 fiscal year in a manner which will make such program more
efficient and effective.
   Any determination by a city council implementing this section is
hereby declared to be a legislative act.
   (h) The Controller shall make any necessary reconciliation no
later than August 30, 1979.
   (i) Notwithstanding any other provision of law, out of the amount
appropriated by Section 16100, there shall be allocated to cities
formed during or after fiscal year 1977-78, the sum of two hundred
twenty-one thousand dollars ($221,000) to be distributed by the
Controller on May 10, 1979, as follows:
   (1) The sum of seventy-seven thousand dollars ($77,000) to the
City of La Habra Heights.
   (2) The sum of one hundred forty-four thousand dollars ($144,000)
to the City of Grand Terrace.



16251.  No action or proceeding shall be commenced to contest any
determination of the governing body pursuant to this chapter, unless
such action or proceeding shall have been brought within 90 days
after the governing body's determination.