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Home My WebLink About1990-06-12 - AGENDA REPORTS - ANNEX 1985-05 PPTY TAX TRANSF (2)AGENDA REPORT City Manager Approval Item to be presented by: Lynn M. Harris CONSENT CALENDAR DATE: June 12, 1990 SUBJECT: Resolution No. 90-37, A Joint Resolution of Negotiated Property Tax Transfer for Annexation No. 1989-05 DEPARTMENT: Community Developmentcf- BACKGROUND Annexation No. 1989-05 is a City -initiated proposal to annex approximately 569 acres of uninhabited territory to the City of Santa Clarita. The territory is located in the Canyon Country area, easterly of Abelia Road, at the northeastly extremity of proposed Annexation No. 1988-01. The property does not currently abut the City, but would do so upon the -successful completion of Annexation 1988-01. The City Council adopted a resolution of ap ,ation (Resolution No. 90-02) for this proposal on January 9, 1990, requesting that the Local Agency Formation Commiss o1n--CO begin annexation proceedings. The annexation was submitted to the LAFCO for approval.in January, 1990. The attached resolution provides for the transfer to the City of property tax revenue in the amount of $893, plus 5.8 _percent of the annual tax increment (ATI) attributable to the Tax Rate Area 9125; 4.6 percent for Tax Rate Area 9133;-5.4 percent for Tax Rate Area 9142; 4.8 percent for Tax Rate Area 9143; and, 4.6 percent for Tax Rate Area 9960, all attributable to the annexation area. It provides for the transfer from the City to the Consolidated Fire Protection District (CFPD) of $1,090 in property tax revenues, plus 17 percent of the ATI commencing on and after July 1, 1991, or after the effective date of this jurisdictional change, whichever is later. It further provides that all property tax revenue received by Road District No. 5 attributable to this area shall be�. transferred to the County of Los Angeles. It also provides 1 , pertaining to the adoption of any future redevelopment area wh ch includes this territory. In addition to the foregoing transfers of property tax revenue, the i attached resolution provides for the transfer of incremental tax growth attributable to territory which was annexed to the CFPD, correcting a County staff omission which occurred during the City's incorporation in 1987. Agenda Item: + Pursuant to state law, distribution of property. tax revenues derived from the area must be negotiated and approved by a joint resolution of the affected agencies, in this instance the City and the County. The tax split proposed herein is not the result of City -County negotiations, but is derived from a mathematical formula agreed to in 1979 by the County and the California League of Cities. County policy is to use this formula when the assessed valuation (AV) of the property to be annexed does not exceed ten million dollars ($10,000,000), and to enter special negotiations only for AVs which exceed this amount. The AV for the property in Annexation No. 1989-05 is approximately $979,200 (FY 89-90). The remaining provisions of the resolution reflect.the County's standard "boilerplate" language for annexation. Under this agreement, and excluding the ATI percentage transfer, which is difficult to estimate from year to year, the proposed tax revenue transfer would result in a net loss to the City of at least $197 in FY 90-91. It should also be noted that an incremental increase in the demand for City services would occur as a result of this annexation. Typically, the cost of such services would not be offset by property tax revenues received by the City for the annexed property. Using a generalized fiscal analysis of the cost to the City to provide services (approximately $71/unit/year, FY 88-89), staff estimates a net cost to the City of approximately $48,000 annually upon project buildout. RECOMMENDATION 1. Adopt Resolution No. 90-37, approving the property tax transfer for Annexation No. 1989-05. 2. Direct staff to submit Resolution No. 90-37 and eight certified copies to the Local Agency Formation Commission for action by the Los Angeles County Board of Supervisors. ATTACHMENTS Location Map Resolution No. 90-37 r-1 RESOLUTION NO. 90-37 0 JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES AND THE CITY COUNCIL OF THE CITY OF SANTA CLARITA APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE RESULTING FROM "ANNEXATION NO. 1989-05" TO THE CITY OF SANTA CLARITA (ANNEXATION TO CONSOLIDATED FIRE PROTECTION DISTRICT) WHEREAS, pursuant to Section 99 of the Revenue and Taxation Code, prior to the effective date of any jurisdictional change the governing bodies of all agencies whose service areas or service responsibilities would be altered by such change must determine the amount of property tax revenue to be exchanged between the affected agencies and approve and accept the negotiated exchange of property tax revenues by resolution; but if the affected agency is a special district, the Board of Supervisors must negotiate on behalf of the district; and WHEREAS, the Board of Supervisors of the County of Los Angeles and the City Council of the City of Santa Clarita have determined that the amount of property tax revenues to be exchanged between their respective agencies .as a result of the annexation of unincorporated territory to the City of Santa Clarita entitled "Annexation No. 1989-05" is as set forth below; NOW, THEREFORE, BE IT RESOLVED as follows: 1. The negotiated exchange of property tax revenues between the County of Los Angeles and the City of Santa Clarita resulting from "Annexation No. 1989-05" is approved and accepted. n LJ 0 2. For fiscal years commencing on and after July 1, 1991, or after the effective date of this jurisdictional change, whichever is later, Eight Hundred Ninety -Three Dollars ($893) in property tax revenue shall be transferred from the County of Los Angeles to the City of Santa Clarita. In addition, for each fiscal year commencing on and after July 1, 1991, a portion of the annual tax increment attributable to the Tax Rate Areas within the.Santa Clarita "Annexation No. 1989-05" area, as set forth below, shall be transferred from the.County of Los Angeles to the City of Santa Clarita, and the County's share of incremental tax growth shall be reduced accordingly: Tax Rate Area % of ATI 9125 5.8 9133 4.6 9142 5.4 9143 4.8 9960 4.6 3. For fiscal years commencing on and after July 1, 1991, or after the effective date of this jurisdictional change, whichever is later, all property tax revenue received by Road 'District No. 5 attributable to the Santa Clarita "Annexation No. 1989-05" area shall be transferred to the County of Los Angeles. -2- 0 0 4. For fiscal years commencing on and after July 1, 1991, or after the effective date of this jurisdictional change, whichever is later, One Thousand Ninety Dollars ($1,090) in property tax revenue shall be transferred from the City of Santa Clarita to the Consolidated Fire Protection District, said amount constituting a portion of the City of Santa Clarita's share of property tax revenue. In addition, for each fiscal year commencing on and after July 1, 1991, or after the effective date of this jurisdictional change, whichever is later, Sixteen and Seven -Tenths Percent (16.7%) of the annual tax increment attributable to the Santa Clarita "Annexation 1989-05" area shall be transferred to the Consolidated Fire Protection District from the County of Los Angeles, and the County of Los Angeles' share of incremental tax growth shall be reduced accordingly. 5. In addition to the foregoing transfers of property tax revenue, the County of Los Angeles and the City of Santa Clarita wish to provide for the transfer of incremental tax growth attributable to territory.which was annexed to the Consolidated Fire Protection District when the City incorporated on December 15, 1987. Accordingly, for fiscal years commencing on and after July 1, 1991, Sixteen and Seven -Tenths Percent (16.70) of the annual tax increment attributable to that portion of the City of Santa Clarita which was annexed to the District as a result of the city incorporation, shall be transferred from the County of Los Angeles to the Consolidated Fire Protection District, and the County's share of incremental tax growth shall be reduced accordingly. -3- 6. In the event that all or a portion of the annexation area is included within a redevelopment project pursuant to California Community Redevelopment Law, Health & Safety Code Sections 33000 et seq., the City of Santa Clarita shall not adopt the ordinance approving.the redevelopment plan with respect to the annexed area until such time as a report of the Fiscal Review Committee has been prepared pursuant to Health & Safety Code Section 33353.5, the report has been reviewed, and the Redevelopment Agency of the City of Santa Clarita and the County have diligently and in good faith negotiated for the allocation of tax increment revenues for the project area. Agency and County shall begin negotiations on the allocation of tax increment revenues within fifteen (15) days after receipt by the County of the preliminary report from the Agency pursuant to Health & Safety Code Section 33344.5 and shall meet not less than once each month thereafter until agreement is reached on an allocation formula or litigation is filed with respect to the redevelopment project. Any ordinance approving said redevelopment project which does not comply with this procedure in every respect shall be void and of no effect.with regard to the subsequent distribution of taxes to.the redevelopment agency. THE FOREGOING RESOLUTION WAS ADOPTED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES AND BY THE CITY COUNCIL OF THE CITY OF SANTA CLARITA. SO i • PASSED, APPROVED AND ADOPTED this day of 1990. Jo Anne Darcy, MAYOR ATTEST: George Caravalho, CITY CLERK I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 1990, by the following vote of the Council: AYES: COUNCILMEMBERS: NOES: ABSENT: George Caravalho, CITY CLERK c6c 0 0 ADOPTED BY THE BOARD OF SUPERVISORS OF LOS ANGELES -COUNTY this day of 1990. Chairman, Board of Supervisors ATTEST: LARRY J. MONTEILH, Executive Officer - Clerk of the Board of Supervisors By Deputy min 1 Y i NT OP Y 2eE1N.wG p0,1 / n0. ANYGyi.Oe[ I 2 O9EQl y I 9FCTIwa G 1 1 � \ SENTEP OF I T44,R 1 / <4,MM, / LINE CNAR.T3 EW!•BFA4i4G QSTAN[F 2 N )5. 32 13• E 25. D' 3 N G' OTW. IWCC, 5 N. Ir G• 22 22i• ' eE. A Cw G' 5 u CY• a' 56.8. 12310' 6 u b' 2G' 1-w u 9s' H1 7. u. G3• ' PW. m it la, CC' d3 8 N. EB• 56' Ii"K. 2Msi A V • 03 ll -L. .50- l0, N.0•96'1E•E ZS GT E KT. 12. N. I4•w K4W ' OvOG• W e1.w 13. N. 01• FG' WE 6616T 11 S. PB• 13' OWE. 850' 13. 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