By Patrick McCarran

With the recent upswing in homes values we have realized a growth in equity as well. This leaves many owners thinking that they may be stuck in an investment property? Whether you bought it as an investment or it was an owner occupied that went past you 3 year deferment period you have options. Maybe you would prefer an investment in a different city, region or even another state? Possibly you would like to combine many properties into few or few into many? The answer is a 1031 Tax Exchanges otherwise known as a Starker Exchange. This process allows real estate owners to defer taxes on capital gains resulting from the sale of investment real estate, often a sizable sum since combined Federal and State taxes can run as high as 38 percent.

In general terms to roll their profit into another property and defer the tax and preserve equity and cash flow.

To accomplish this, sellers need to engage a Qualified 1031 Intermediary to document the sale as an exchange and to receive the funds from the sale. I cannot stress the importance of a third party for the exchange. This does not mean a title or escrow company. By definition you can not have any direct control over the funds, which is not just in your pocket but anywhere within your reach

Central to a 1031 Exchange is the interpretation of like-kind property. While the common assumption is that like-kind implies land for land or a condominium for a condominium swap, the definition of like kind has become far less literal. Today it defines like kind as meaning that both the replacement and the original property must be used as an investment. So land, condominiums, single-family homes and motels can all be exchanged for one another as long as they are used in the exchanger’s business or held as an investment.

1031 Exchanges do have specific IRS requirements and a set time frame for performing. This is why it is very important that you contact an experience agent such as myself and engage the Intermediary BEFORE you close and ideally before you place the property for sale.

There are other options for example you can opt for a Reverse Exchange where you buy the replacement property first then sell the current property. An Improvement Exchange, allows you to build investment properties from the ground up or improve existing properties.

If you want more information on 1031 Exchange or have any questions feel free to contact myself or a real estate professional you know. Make sure that he or she is familiar not only with the process but also with the specific documentation and time frame mandated by the IRS.

This article is intended to inform readers, but does not constitute any financial or legal advice.

Patrick McCarran is a local Realtor/Broker and can be reached at (925) 899-5536 or www.CallPatrick.com. Berkshire Hathaway HomeServices Drysdale Properties an independently owned and operated franchisee of BHHS Affiliates, LLC. Equal Housing Opportunity.

Download the PDF, here. Rivertown Block Party flyer 6-17-15 Print out or email to your family and friends! Everyone is welcome.

By Felicia D. Purcell, Bay Area Sports Reporter

Antioch Herald

“I can do all things through Christ who strengthens me.”

That’s the scripture from Philippians 4:13 that Steph Curry has written on his shoes and one that’s on his Twitter page which also, in part reads: “Father, Son, Brother, Warrior and Wildcat” for all of his 2.4 million followers to see.

Curry, the 6-foot-3, 185 pound point guard for the Golden State Warriors, isn’t afraid to share his faith and he’s a young man who stayed the course in his life. He sends a signal up and giving credit to God, with his index finger in the air, after each basket he makes. When he knew he wanted to marry his wife, he prayed about it in his closet. Now he’s a World Champion and when asked during a TV interview following Tuesday night’s championship-winning game to what he gave the credit, Curry replied, “I give glory to God.”

After a dream record of 67-15 and only two losses at home during the regular season Curry is filled with his Faith along with other teammates like James McAdoo, Andre Iguodala, Draymond Green and Festus Ezeli.

Curry’s faith was challenged when he wasn’t heavily courted out of high school, when people said mean things to him for being the son of former NBA All-Star, Dell Curry and when his first two years were riddled with ankle injuries.

He was a lightweight, scrawny and had a horrible shot when he was younger but his faith got him through. He had supportive parents and a cool grandma who even served as his game announcer when he was a toddler playing with his Fisher-Price basketball set.

According to Merriam-Webster Dictionary, faith is a noun that means: (1) Belief and trust in and loyalty to God or (2) Something that is believed especially with a strong conviction.

His Under Armour slogan is ‘Charged by Belief’ which isn’t surprising. Curry was raised in North Carolina part of what’s known as the Bible Belt of the south, where a church is on every corner and worship music is played on the radio, daily.

I thought of how proud I was of this young, black man as I saw him lift the Larry O’Brien trophy Tuesday night, a feat that hasn’t been accomplished by the Warriors in 40-years.

As I watched him raise his MVP trophy in May, I thought about how far Curry, now 27, had come. I thought about how he kept his composure when everyone counted him out, when Monta Ellis was traded away, and how he apologized for calling me ma’am when I corrected him.

At a time when so many black men are being gunned down in the streets, Curry is a breath of fresh air. He has a beautiful wife, named Ayesha, who has her own YouTube cooking show, Little Lights Of Mine (www.ayeshacurry.com), where she whips up delicious meals, as her husband willingly awaits to taste his wife’s savory creations. They laugh, rap and dance in the clips, live in Orinda, have a beautiful daughter named Riley, who has become a star in her own right, at post-game press conferences and another baby girl on the way in July. Life couldn’t be sweeter for Steph Curry or his season more ordered or ordained.

I thought about how he’s one of the many black men who have done things in an order that the media does not portray: education, career, marriage, family.

During All-Star weekend in New York, this past February, Curry stopped a group of African-American teens and bought them all a pair of his Curry Ones. Just because.

Over the past six-years I’ve watched him patiently deal with questions meant to get under his skin and he’s kept his poise. While he didn’t come from the streets, Curry isn’t blind to the world around him and makes it his job to give back.

“That’s just the type of person he is,” said Davidson teammate Bryant Barr who was with Curry when he visited the White House, earlier this year to speak on Malaria in Africa, and who is also the godfather to Riley.

As part of its support of the Kia NBA MVP Award, Kia Motors America donated a 2016 Kia Sorento LX CUV to the East Oakland Youth Development Center, on behalf of Curry when he received MVP honors in early May.

“It’s very important to give back,” said Curry at the time who said it’s important for athletes to explore outside of their bubble and impact the life of others. “Four wheels can do a lot of good.”

As he got into the meat of his MVP speech, Curry broke down what he applies in his life and on the court: faith, passion, drive, and will.

“I wanted to use this opportunity to shed light on who I am and what drives me to play the way that I do,” he said. “I do a little sign on the court every time I make a shot or good pass, and I pound my chest and point to the sky, and that symbolizes that I have a heart for God. Something my mom and I came up with in college, and I do it every time I step on the floor as a reminder of who I’m playing for.”

Curry also took the time to thank each and every one of his 14 teammates, as well as the equipment manager and security.

He is the first player to win the MVP honor in the team’s history since they moved west. The last time was in 1960 while the Warriors were in Philadelphia and the player was someone named Wilt Chamberlain. Not bad company at all.

“People should know who I represent and why I am who I am, and that is because of my Lord and Savior,” Curry shared. “So, I can’t say that enough.”

According to a 2014 article in Decision magazine,

“In a column in 2013 for the Fellowship of Christian Athletes website, Steph wrote that he loves to point people toward ‘the Man who died for our sins on the cross. I know I have a place in Heaven waiting for me because of Him, and that’s something no earthly prize or trophy could ever top.’

Steph grew up a church kid, but points to a youth service when he was 13 as the time when he accepted Jesus as his personal Lord and Savior.

‘It was a big decision that my parents couldn’t make for me,’ he said. ‘It’s been a great walk since then. He means everything to me.’”

Another way he lives out his faith and gives back is through his Stephen Curry Foundation. His website, www.stephcurry30.com lists the charities Curry supports, including Nothing But Nets, which fights Malaria throughout the world, as well as the charity golf tournaments his foundation holds and he supports.

For all of the Charles Barkley-types who said a jump shooting team could never win a World Championship, in the words of Oscar winner Jamie Foxx in the Curry One TV commercial, “fall back.”

 By Allen Payton

A joint meeting of the Antioch City Council, Planning Commission and Economic Development Commission will be held, tonight, for public input on the Antioch General Plan, Land Use Element and Zoning Update.

The study session will include the following:

– Review the General Plan Land Use Element & Zoning Update preliminary work products

– Review and discuss the Focus Areas of the General Plan along with associated Zoning Designations and provide input on any changes that should be made

– Provide input on the General Plan and Zoning Update prior to formal consideration by the City Council on July 14, 2015.

The meeting will begin at 6:00 p.m. at the Nick Rodriguez Community Center, located at 213 F Street in Antioch’s historic downtown Rivertown.

To view the agenda, please click here.

Increased spending on education, social programs, pays down debt

Calls for two special sessions on transportation and health care financing

SACRAMENTO – Governor Edmund G. Brown Jr., on Tuesday, announced a budget agreement with Assembly Speaker Toni Atkins and Senate President pro Tempore Kevin de León, consistent with prudent May Revision revenue estimates, that saves billions of dollars and pays down debt, while directing more resources to schools and low-income Californians.

Governor Brown also announced that he is calling two special sessions to fix how California funds roads, highways and other infrastructure and the state’s core health program – Medi-Cal.

“This is a sound, well thought-out budget,” said Governor Brown. “Yet, the work never ends and in the coming months we’ll have to manage our resources with the utmost prudence and find more adequate funding for our roads and health care programs.”

Budget Agreement

Highlights of the budget agreement include:

More Money for Schools: The agreement makes significant investments in schools – $14.3 billion for the K-12 system and community colleges, including $6 billion to continue to implement the Local Control Funding Formula which targets increased resources to students who face the greatest challenges.

Counteracting the Effects of Poverty: The agreement implements the first-ever California Earned Income Tax Credit ($380 million) to help the state’s poorest working families.

Paying Down Debt: The agreement pays down billions in debts, including completely paying off school deferrals ($1 billion) and debts owed to local governments since 2004 ($765 million). The agreement also completely retires $15 billion in Economic Recovery Bonds used to cover budget deficits as far back as 2002, as well as $3.8 billion in mandate debt owed to K-14 schools.

Saving for a Rainy Day: The agreement saves $1.9 billion in the state’s Rainy Day Fund as required by Proposition 2, bringing the balance to $3.5 billion.

The budget agreement maintains the fiscal framework of the May Revision, including the General Fund revenue forecast, overall spending levels, a $1.1 billion operating reserve, Proposition 2 debt payments and Rainy Day Fund deposits. By redirecting spending and using identified savings, including a reform of the Middle Class Scholarship program and correcting an error in the estimate for Medi-Cal, the budget agreement can afford additional spending, including:

• $40 million to expand Medi-Cal to cover all low-income undocumented children effective May 1, 2016 ($132 million when fully implemented).

• $265 million to fund 7,000 additional preschool slots and 6,800 child care slots, plus a rate increase for all providers.

• $97 million over the January budget for the California State University to expand enrollment and focus on increased success.

• $226 million on a one-time basis to restore the 7 percent reduction in service hours for In-Home Supportive Services.

• $500 million (Proposition 98) for a one-time teacher effectiveness block grant.

Special Sessions

Fixing California Roads, Highways and Other Infrastructure

Caltrans, the state’s Transportation Department, maintains 50,000 lane-miles of highway and nearly 13,000 state-owned bridges. While the repair, maintenance and efficient operation of the state’s highway system are vital to the state’s continued economic growth, current funding fails to adequately fund this necessary work. The state’s current fuel excise tax is sufficient to fund only $2.3 billion of work—leaving $5.7 billion in unfunded repairs each year.

The Governor proposes that the Legislature enact permanent and sustainable funding to maintain and repair the state’s transportation and critical infrastructure, improve the state’s key trade corridors and complement local infrastructure efforts.

Shoring Up Health Care Financing

The Governor also called a special session to address the financing of the state’s core health program – Medi-Cal. The state’s recent expansion of health care coverage under the Affordable Care Act has resulted in more than four million additional Californians receiving coverage through Medi-Cal.

Since 2005, the state has levied a tax on Medi-Cal managed care plans. The revenues are matched by the federal government and used to both increase payments to Medi-Cal providers and offset health care costs that would otherwise be paid from the General Fund. This funding mechanism has helped the state pay for the increased number of Californians receiving coverage under federal health care reform.

The state’s current managed care organization (MCO) tax structure fails to comply with new federal requirements that such a tax be broad-based and not limited narrowly to Medi-Cal plans. The current structure, which expires at the end of fiscal year 2015-16, generates $1.1 billion. The Governor’s January budget proposed a modified MCO tax that would be levied on a per-enrollee basis and cover most health care plans regulated by the Department of Managed Health Care.

In the special session, the Governor proposes that the Legislature enact permanent and sustainable funding to provide at least $1.1 billion annually to stabilize the state’s General Fund costs for Medi-Cal, sufficient funding to continue the restoration of the 7 percent of In-Home Supportive Services hours and funding for additional rate increases for providers of Medi-Cal and developmental disability services. The funding could come from the proposed MCO tax and/or alternative sources and is necessary to prevent over $1 billion in program cuts next year.

Full text of the special session proclamations on infrastructure and health care financing are available here and here.

On Monday, June 15, 2015, Assemblyman Jim Frazier (D-Oakley) made the following statement regarding the Legislature’s approval of the 2015-16 Budget:

“After months of hard work and collaboration between the Legislature and the Governor, I am pleased to see the 2015-16 Budget reflect California’s commitment to fiscal prudence and responsibility.

As Chair of the Assembly Transportation Committee, I will continue to work diligently towards an innovative and comprehensive plan to address our state’s most critical transportation needs. Looking into the 2015-16 year, my top legislative priority will focus on building a rational, long-term transportation funding solution that will invest in California and put our state back in business.”

To contact Assemblymember Jim Frazier please visit his website or call his District Offices at 707-399-3011 or 925-513-0411.

Follow Assemblyman Jim Frazier on Facebook and “Like” him for updates on events and happenings in the 11th AD.

By Acting Lieutenant Tom Fuhrmann, Antioch Police Investigations Bureau

On Wednesday, June 17, 2015 at approximately 12:27 AM, Antioch Police Officers responded to a report of a shooting in the 1800 block of Cavallo Road. When officers arrived they found an adult female and an adult male deceased from apparent gunshot wounds. A third victim was also located on scene. The third victim was also an adult female and had sustained a non life threatening gunshot wound and was transported to an area hospital to be treated. This case is being investigated by the Antioch Police Department Investigations Bureau. We are in the preliminary stages of the investigation and no further information will be released at this time.

Anyone with information regarding this case is encouraged to call Det. Colley with the Antioch Police Department at (925) 779-6922. You may also text a tip to 274637 (CRIMES) using key word ANTIOCH.

Dear Editor,

Here is my response to Ms. Zivica’s column published on the Herald website, June 15, 2015.

Barbara, you begin by quoting Sir Francis Bacon. I’m not going to quote some obscure Sixteenth Century Philosopher. But I will quote the Eagles from 1974.

“Just remember this, my girl, when you look up in the sky You can see the stars and still not see the light.”

So, let us begin. Again Ms. Zivica offers no solution or suggestions as to how we should all address the unfunded retirement liability for the City of Antioch. This should not be about pointing fingers, laying blame or frightening the citizens. We are where we are with this problem. Problems need solutions and Ms. Zivica offers none. But she is not alone. Neither does the City Manager or the current Council Members. Silence is not golden in finance.

Yes, Barbara, Charter Cities have a much greater degree of latitude in how they address issues or seat Council Members. That does not mean that an approved Charter has to largely move away from our current General Law governing outline. It simply can allow a funding mechanism for the approximate amount due of $150,000,000.00.

Barbara, where do you suggest we generate the necessary amount? If we don’t get very serious about this matter quickly, within five years it is possible that we will have funds for about fifty police officers and nothing else. No finance department, no building department, no code enforcement, no animal services, nothing. A major amount of funds will be mandated to pay for employees’ current and retired financial obligation.

I am not suggesting that the funds charged in transfer fees created by a Charter City be delivered to the General Fund. That would be a mistake because it would rely on the staff and Council to promise they would only use the money to pay off the debt. Obviously we have seen too many promises made and not kept in this town. Additionally, we could, as part of the Charter, sunset the transfer fee implemented upon the full payment of the unfunded CalPERS amount, if it was the will of the majority.

All said, the complete terms and conditions of the city Charter can be clearly stated and defined before the approval of the citizens. What is wrong in presenting the matter to the voters? Let democracy work.

Barbara, you mention that the citizens are over taxed and over burdened.

Measure C was sold to the citizens by the Mayor and Council to hire additional police officers. I believe the number was twenty two more. Effectively we have almost a zero net gain. Here you are correct. It was a General Fund measure and, well, the money isn’t really being used for what it was intended; additional police. Another broken promise by the Council and Administrative Staff. Most likely there will be no extension of this additional sales tax. I know I won’t vote for it again. Will you?

Measure O is different. Here you misstate the facts. Measure O is not a burden to most of the citizens of Antioch. And, of no burden to you since, you don’t own residential rental property. I supported and voted for the ballot measure and pay the fee, multiple times over. Not because I like taxes but because most of the rental property in Antioch is owned by non-resident landlords who don’t care about our city and who pay almost nothing to improve the quality of life here in town. They needed to begin paying their fair share. Period.

You also mention schools. School bonds are generally for students and schools. Should we stop educating our children? Should we let Antioch High fall in on the classrooms? Really? Are you really that short sighted? I attended Antioch public schools and graduated from Antioch High and UC Davis. Both of my daughters attended Antioch public schools and one graduated from Antioch High and the other from Deer Valley. One is a graduate of UC Santa Cruz and the other is attending UC Davis in the fall. I can only say to the faculty and staff; job well done. Thank you.

You also state Barbara, that it is the State of California’s fault that the retirement accounts at CalPERS were underfunded. The City was just following the lead of the State. Really? So if the City Manager leads the City off a bridge and you follow then it is really his fault you are dead? You’re not smart enough to know falling off a bridge isn’t a very good idea?

Look, the CalPERS “pay as you go” plan was not and is not a good system and it has created a monster of a problem not just for Antioch but all cities who participated and made minimum payments. But, when your City Council tells you they have hired the best in staff; educated in government accounting and finance, and you get to a point of no return, then it is time to take responsibility for your mistakes, as a city. Blaming someone or something else, the State of California, is no solution.

And, so in conclusion let me end with effectively the same question. What is your solution Barbara?

Mark Jordan, Antioch