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HomeMy WebLinkAbout2004-02-10 - AGENDA REPORTS - WHITNEY CYN ANNEX PROPERTY TAX (2)CONSENT CALENDAR Agenda Item: �— CITY OF SANTA CLARII'i AGENDA REPORT City Manager Approval: Item to be presented by: DATE: February 10, 2004 SUBJECT: JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA AND THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE RESULTING FROM THE WHITNEY CANYON ANNEXATION DEPARTMENT: Planning and Building Services RECOMMENDED ACTION City Council adopt a Joint Resolution of Negotiated Exchange of Property Tax Revenue resulting from the proposed Whitney Canyon Annexation to the City of Santa Clarita consisting of 545.27 acres, located east of State Route 14, east of the terminus of San Fernando Road and adjacent to and outside of City of Santa Clarita incorporated boundary (see attached vicinity map). BACKGROUND On February 11, 2003, the City Council adopted Resolution 03-27, amending the City's General Plan Land Use Element and Map and Prezone the Whitney Canyon Annexation area to OS (Open Space) with a MOCA (Mineral Oil Conservation Area) overlay. On February 25, 2003, the City Council adopted Resolution No. 03-30, initiating annexation proceedings and amendment to the Sphere of Influence for the Whitney Canyon Annexation (Annexation No. 02-003) with the Local Agency Formation Commission (LAFCO). On April 18, 2003, an annexation application was submitted to LAFCO to formally request annexation of the Whitney Canyon Annexation area. Adopted: + F oy- 17 ANALYSIS Pursuant to State law, distribution of property tax revenue derived from an annexation must be negotiated and approved by a joint resolution of the City of Santa Clarita and the County of Los Angeles. The Santa Clarita Watershed Recreation and Conservation Authority (SCWRCA), a joint powers between the City of Santa Clarita and the Santa Monica Mountains Conservancy, owns all parcels within the project area. Although the property is publicly owned, at the time of the preparation of the attached resolution property tax revenue is attributable to this annexation. Subsequently, the proposed resolution provides for a transfer of the base property tax funds of $2,048.00 from the County to the City for fiscal years commencing on or after July 1, 2005, or the July 1 after the effective date of the annexation, whichever is later. These funds are the base property tax transfer that would result in the City of Santa Clarita taking over jurisdictional function of the area. In addition, the proposed joint resolution contains the standard language that for each fiscal year commencing on or after July 1, 2005, or the July 1 after the effective date of this jurisdictional change, whichever is later, .059000 percent of the annual property tax growth attributable to the annexation shall be transferred from the County of Los Angeles to the City. The resolution also provides for the detachment from County Road District No. 5. Therefore, the portion San Fernando Road within the annexation maintained by the County of Los Angeles would be maintained by the City of Santa Clarita upon annexation instead of Los Angeles County. The adoption of the joint tax transfer resolution by the City Council is the final step the City is involved in with regards to the annexation of Whitney Canyon. After the City Council signs the joint resolution, the Los Angeles Board of County Supervisors schedules a hearing to complete the tax transfer joint resolution. The Board of Supervisors would sign the resolution on March 9, 2004. Once both the City of Santa Clarita City Council and the Los Angeles Board of County Supervisors have signed the joint tax transfer resolution, the Local Agency Formation Commission (LAFCO) schedules a hearing, one month after the resolutions are received. The annexation would be completed no later than May of 2004. ALTERNATIVE ACTIONS Council may direct staff to terminate annexation proceedings. FISCAL IMPACT The Santa Clarita Watershed Recreation and Conservation Authority (SCWRCA), ajoint powers between the City of Santa Clarita and the Santa Monica Mountains Conservancy, is sole owner of all parcels within the Whitney Canyon Annexation area, and as such already incurs all municipal service expenses for the unincorporated project area. In addition, at this time, an assessment is levied on the property at this time by the Los Angeles County Assessor. On March 3, 2003, the Santa Clarita Watershed Recreation and Conservation Authority (SCWRCA), filed a written consent to the Local Agency Formation Commission to waive proceedings such as the stormwater election. However, the annual Storm Drainage Utility Fee for the annexation would be $3,247.62. This will be a new annual expense to the City's General Fund (paid out of account 5504-7322), a prerequisite to annexation. ATTACHMENTS Resolution Vicinity Map