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Home My WebLink About1991-02-26 - AGENDA REPORTS - NEGOTIATED PROPERTY TAX (2)AGENDA REPORT City Manager Approval Item to be presented by: Lynn M. Harris i%C CONSENT CALENDAR DATE: February 26, 1991 SUBJECT: Resolution No. 91-36, A Joint Resolution of Negotiated Property Tax Transfer for Annexation No. 1990-10 (Price Club). DEPARTMENT: Community Development BACKGROUND Annexation No. 1990-10 is a City -initiated proposal to annex approximately 56 acres of uninhabited territory to the City of Santa Clarita. The territory is located immediately adjacent and east of Sierra Highway, adjacent and south of proposed State Highway 126, and west of State Route 14. The territory .is bordered on three sides by the City of Santa Clarita, and is traversed east to west by Via Princessa. (See attached map for location.) The City Council adopted a resolution of application (Resolution No. 90-148) for this proposal on August 14, 1990, requesting that the Local Agency Formation Commission (LAFCO) begin annexation proceedings. The annexation was submitted to the LAFCO for approval on August 31, 1990. The attached resolution proposes a zero base transfer of property tax revenue to the City (based on the assessed value of the property in the current fiscal year), but provides five percent (5X) 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 $448 in property tax revenues, and further provides that 15.8 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 received by Road District No. 5 attributable to this area shall be transferred to the County of Los Angeles. Finally, it provides language pertaining to the adoption of any future redevelopment area which includes this territory. 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. Adopfed:4�1;��17 Agenda Item:_,.. ti 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 assessed valuation (AV) of the property in Annexation No. 1990-10 is approximately $12;506,410 (FY 89-90). While it is standard County policy to enter special negotiations for AVs which exceed ten million dollars, the County has agreed to forego extended negotiations, in favor of this proposed tax transfer, to accommodate the City's annexation schedule. The remaining provisions of the resolution reflect the County's standard "boilerplate" language for annexation. Under.this agreement, the tax revenue transfer would result in a loss to the City of approximately $6,000 of prospective property tax revenue in FY 90-91. Upon development of the property for commercial uses, however, a net increase in tax revenues to the City is anticipated in future years. It should 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 to a commercial area will be offset by property tax revenues received.by the City for the annexed property. Sales tax revenues from the area would also accrue to the City, generating a significant net gain in revenue. Upon adoption of Resolution No. 91-36 by the City and the County, proposed Annexation No. 1990-10 can be set for hearing before the Local Agency Formation Commission. RECOMMENDATION 1. Adopt Resolution No. 91-36, approving the property tax transfer for Annexation No. 1990-10. 2. Direct staff to submit Resolution No. 91-36 and eight certified copies to the Local Agency Formation Commission for action by the Los Angeles County Board of Supervisors. Location Map Resolution No. 91-36 RESOLUTION NO. 91-36 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. 1990-10" 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. 1990-10" 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. 1990-10" 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, no 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 Percent (5.0%) of the incremental tax growth attributable to the Santa Clarita "Annexation No. 1990-10" area shall be transferred from the County of Los Angeles to the city of Santa Clarita. 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. 1990-10" 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, Four Hundred Forty -Eight Dollars ($448) 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, Fifteen and Eight -Tenths Percent (15.88) of the annual tax increment attributable to the -2- Santa Clarita "Annexation No. 1990-10" 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- 0 0 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 ATTEST: • COUNTY.OF LOS ANGELES Chairman, Board of Supervisors LARRY J. MONTEILH, Executive Officer - Clerk of the Board of Supervisors By Deputy day of 1991 -5- _ 2860 AJ9'06'4S'w C6. sr9a' .t k N s i F SOJ't7'39 "W OFFICE OF THE CITY ENGINEER CITY OF SANTA CLARITA CHECKED BY: SCALE: 1'= 300' AREA: A-hLB. CS. mm S6.0 RC.+ 2842-6 FILED WITH THE COUNTY RECORDER 0=08'30'32' 03 ssrd3a9•E 231.30' < 3710)XF d=07'28'57' R • 1500 @2' z St. 14' x�l .v89'/2'27'E /9371' N0. REAR/N6 O/ST. O/ 546'40'30 f 500' 02 543'19'304W � n39'o6'06"✓w � S31.18'53"w 40.24' 04 1V35'SI'36'w 38.81' OS N013,54ri 412' 0.98' CS 03031130" 97.00' 546' C6 03.37'30" !0300' Soo' C7 4.312.16' 17.0o' 27 S9' R=95/07' Q G=/6631' ti V ti 0=51.37'23' R • 00' = 289110.2/' U d=08'1673' R= 47S. SO' C4 G 68.63' C J C. n007J'S8"w 86824' r � k N s i F SOJ't7'39 "W OFFICE OF THE CITY ENGINEER CITY OF SANTA CLARITA CHECKED BY: SCALE: 1'= 300' AREA: A-hLB. CS. mm S6.0 RC.+ 2842-6 FILED WITH THE COUNTY RECORDER 0=08'30'32' 03 ssrd3a9•E 231.30' < 3710)XF d=07'28'57' R • 1500 @2' z St. 14' x�l .v89'/2'27'E /9371' N0. REAR/N6 O/ST. O/ 546'40'30 f 500' 02 543'19'304W 38.49' 03 S31.18'53"w 40.24' 04 1V35'SI'36'w 38.81' OS N013,54ri 412' N0. OECTA Rows LEAGTN Cl 91002'29' 1700' 2701' C2 05044'58" 527.00' St 8B' Cl 06'15'37` 10300' 11.2S' C4 0003177M 97.00' 0.98' CS 03031130" 97.00' 546' C6 03.37'30" !0300' Soo' C7 93'A7'13' 17.0o' 27 S9' Lf6ENO """""""' ANNEXATION 801MARY ANNEXATION N0.1990-10 TO THE CITY OF SANTA CLARITA Iad:IC M