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Home My WebLink About1991-05-28 - AGENDA REPORTS - JOINT RESO PROPERTY TAX (2)AGENDA REPORT City Manager Approval Item to be presented cby: 7 �f�/ n � Lynn M. Harris �J�' " CONSENT CALENDAR DATE: May 28; 1991 SUBJECT: Resolution No. 91-76, A Joint Resolution of Negotiated Property Tax Transfer for Annexation No. 1990-03 (Oak Springs Canyon) located in the Sand Canyon area, south of the Southern Pacific Railroad, and east and south of Oak Springs Canyon Road. DEPARTMENT: Community Development BACKGROUND Annexation No. 1990-03 is a proposal to annex approximately 128 acres of inhabited land located in the Sand Canyon area, south of the Southern Pacific Railroad, and east and south of Oak Springs Canyon Road. The area is generally rural residential in character with an estimated population of 109 persons residing in approximately 35 dwelling units. (See attached map.) Annexation is requested by the property owners within the area, who cite a desireforCity representation, services and permit . . processing. There are no known persons or organizations opposed to this proposal, and the annexation is -supported by a majority of area residents. The City also seeks annexation of the property in order to eliminate a "County island" within the City's corporate limits which was created with the completion of Annexation No. 1988-02 on March 5, 1991. When the Local Agency Formation Commission (LAFCO) approved neighboring Annexation No. 1988-02 on January 9, 1991, it also expanded the City's Sphere of Influence in the area to include proposed Annexation No. 1990-03. The City Council adopted a resolution of application (Resolution No. 90-134) for this proposal on August 14, 1990, requesting that the LAFCO initiate annexation proceedings. Additionally, on January 4, 1991; the City Council adopted Ordinance No. 90-201, approving Prezone 90-003 and related environmental documents. The annexation was submitted to the LAFCO for approval on January 14, 1991. 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 agenciesf in this instance the City and the County. Adopted:_.: ,�i Agenda Item: The tax transfer proposed herein is the result of City -County agreement, and is generally based on a formula agreed to in 1979 by the County and the California League of Cities. The provisions of the resolution reflect the County's standard language for annexation. Specifically, the attached resolution provides for the transfer of property tax revenue to the City in the amount of $4,977 for fiscal years commencing on and after July 1, 1992, and 5.8% of the annual tax increment (ATI) for the area annually thereafter. It provides for the annual transfer from the City to the Consolidated Fire Protection District (CFPD) of $12,408 in property tax revenues, and provides that 16.6 percent of the ATI from the area shall be transferred annually from the County of Los Angeles to the Consolidated Fire Protection District. It further provides..that all property tax revenue currently received by County Road District No. 5 attributable to this area shall be transferred to the County of Los Angeles. Finally, the resolution contains language pertaining to the adoption of any future.redevelopment area which includes this territory. 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 $7,431 in FY 91-92, and each year thereafter. It should also be noted that an increase in the demand for residential City services would occur as a result of this annexation. Although, the cost of such services over the long-term would not be offset by property tax revenues received by the City for the annexed property, the elimination of an exisitng "County island" would promote orderly growth and sound planning beneficial to the entire community. Upon adoption of Resolution No. 91-76 by the City and the County, proposed Annexation No. 1990-03 can be set for hearing before the Local Agency Formation Commission. 1. Adopt Resolution No. 91-76, approving the property tax transfer for Annexation No. 1990-03. 2. Direct staff to submit Resolution No. 91-76 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. 91-76 ANNX: 161 RESOLUTION NO. 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. 1990-03" 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. 1990-03" is as set forth below. NOW, THEREFORE, BE IT RESOLVED as follows: 1. The negotiated exchange of property tax revenues between the County of Las Angeles and the City of Santa Clarita resulting from "Annexation No. 1990-03" is approved and accepted. 2. For fiscal years commencing on and after July 1, 1992, or after the effective date of this jurisdictional change, whichever is later, Four Thousand Nine Hundred Seventy -Seven Dollars ($4,977) 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, 1992, or after the effective date of this jurisdictional change, whichever is later, Five and Eight -Tenths Percent (5.8%) of the incremental tax growth attributable to the Santa Clarita "Annexation No. 1990-03" area shall be transferred to the City of Santa Clarita and the County of Los Angeles' share of incremental tax growth shall be reduced accordingly. 3. For -fiscal years commencing on and after July 1, 1992, 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. 1990-03" area shall be transferred to the County of Los Angeles. 4. For fiscal years commencing on and after July 1, 1992, or after the effective date of .this jurisdictional change, whichever is later, Twelve Thousand Four Hundred Eight Dollars ($12,408) in property tax revenue shall be transferred from the City of Santa Clarita to the Consolidated Fire Protection District of Los Angeles County. In addition, for each fiscal year commencing on and after July 1, 1992, Sixteen and Six -Tenths Percent (16.6%) of the annual tax increment attributable to -the -2- Santa Clarita "Annexation No. 1990-03" area shall be transferred from the County of Los Angeles to the Consolidated Fire Protection District. 5. 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. -3- 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. ATTEST: City clerk day of 1991 CITY OF SANTA CLARITA -4- Mayor a t r - COUNTY OF LOS ANGELES Chairman, Board of Supervisors ATTEST: LARRY J. MONTEILH, Executive Officer - Clerk of the Board of Supervisors By Deputy day of 1991 —5— qi RR. / /7717/7 TT/�----------- j l S LY. LN S.P. R.R. R/W /I /I A I Q PROPOSED J U ANNEXATION ti Z W'LY. LN SEC. PRN N0. 1988-X ANNEXATION —ELY. LN. W.1/2 N.w 1/4,SEC24 NO. 1990- 03 o� / N'LY. LN S.W. 1/4,SEC.24 CTR. 1' /f SEC.24 U , T.4N.,R 7y-- 7-7-7-7-1-777-117-1 ---- SLY. LN NW.1/q, / SEC. 24 PROP. W ..LNE.!/2, / W. %2,SW.1/q SEC ,at�SW 4 , SW. 1/q , SEC24 s e� U LEGEND: SW. ,SEC24 a ,,,ANNEXATION BDRY. 0 ----EXIST CITY BDRY. �. r'FICE OF THE CITY ENGINEEI CITY OF SANTA CLARITA (CHECKED BY. (SCALE: I I"=400' Ac, FILED WITH THE CO. RECORDER ti U N0. E'LY. LN W.1/2,E•t�,SW %q, SEC24 S'LY. LN 0,,S�,S•W %4' ANNEXATION NO. 1990-03 TO THE CITY OF SANTA CLARITA