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HomeMy WebLinkAbout2011-12-13 - AGENDA REPORTS - PROPERTY TAX REVENUE (2)Agenda Item: 5 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Darren Hernandez DATE: December 13, 2011 SUBJECT: JOINT RESOLUTIONS OF THE CITY OF SANTA CLARITA CITY COUNCIL AND THE LOS ANGELES COUNTY BOARD OF SUPERVISORS APPROVING THE NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE RESULTING FROM THE SOLEDAD COMMONS AND COPPERSTONE ANNEXATIONS DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council: 1) Adopt a joint Resolution of Negotiated Exchange of Property Tax Revenue resulting from the proposed Soledad Commons Annexation. 2) Adopt a joint Resolution of Negotiated Exchange of Property Tax Revenue resulting from the proposed Copperstone Annexation. BACKGROUND On September 28, 2010, the City Council adopted Resolution No. 10-81, initiating annexation proceedings for the Soledad Commons Annexation with the Local Agency Formation Commission (LAFCO). On January 6, 2011, the application was submitted to LAFCO. On October 12, 2010, the City Council adopted Resolution No. 10-83, initiating annexation proceedings for the Copperstone Annexation with the Local Agency Formation Commission (LAFCO). On January 27, 2011, the application was submitted to LAFCO. ANALYSIS Following the City Council's approval of the joint tax resolutions, the Los Angeles County Board of Supervisors will schedule a hearing, most likely in January 2012, to adopt the resolutions. Subsequent final steps include two LAFCO hearings for each annexation. The first, a general r' (�kcoW -� public hearing anticipated for early 2012, followed by a "protest hearing," if necessary. The Soledad Commons and Copperstone Annexations may be complete by June 2012. ALTERNATIVE ACTIONS The City Council may direct staff to terminate annexation proceedings or direct other actions as determined by the City Council. FISCAL IMPACT Soledad Commons - The proposed Joint Tax Transfer Resolution provides for a transfer of $1,593 from the County to the City for fiscal years commencing on or after July 1, 2012, 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 the jurisdictional function of the area. In addition, the proposed resolution contains the standard language that for each fiscal year commencing on or after July 1, 2012, or the July 1 after the effective date of this jurisdictional change, whichever is later, 0.032988731, 0.031304087, and 0.032878967 percent of the annual property tax growth attributable to the annexation shall be transferred from the County of Los Angeles to the City for the respective tax rate area within the annexation area. The resolution also provides for the detachment from County Road District No. 5, the detachment from the County Public Library and transfer of the property tax revenue received by the County Public Library attributable to the Soledad Commons Annexation to the City of Santa Clarita Public Library Fund, and the withdrawal from County Lighting Maintenance District 1687 and subsequent annexation to Santa Clarita Streetlight Maintenance District No. 1. Copperstone - The proposed Joint Tax Transfer Resolution provides for a transfer of $93,006 from the County to the City for fiscal years commencing on or after July 1, 2012, 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 the jurisdictional function of the area. In addition, the proposed resolution contains the standard language that for each fiscal year commencing on or after July 1, 2012, or the July 1 after the effective date of this jurisdictional change, whichever is later, 0.059641048 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, the withdrawal from the County Public Library and the transfer of the property tax revenue received by the County Public Library attributable to the Copperstone Annexation to the City of Santa Clarita Public Library Fund, and the withdrawal from County Lighting Maintenance District 1687 and subsequent annexation to Santa Clarita Streetlight Maintenance District No. 1. The service expenditures related to these annexations are offset by the revenue being transferred to the City of Santa Clarita pursuant to these resolutions. These annexations are fiscally neutral and will not have a negative impact on the City of Santa Clarita. ATTACHMENTS Joint City -County Resolution for Soledad Commons Annexation Soledad Commons Annexation Map Joint City -County Resolution for Copperstone Annexation Copperstone Annexation Map _2__ 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 THE NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE RESULTING FROM THE ANNEXATION OF TERRITORY KNOWN AS ANNEXATION 2010-08 (SOLEDAD COMMONS) TO THE CITY OF SANTA CLARITA, WITHDRAWAL FROM COUNTY LIGHTING MAINTENANCE DISTRICT 1687, EXCLUSION FROM COUNTY LIGHTING DISTRICT LLA -1, UNINCORPORATED ZONE, DETACHMENT FROM COUNTY ROAD DISTRICT NO. 5, AND WITHDRAWAL FROM THE COUNTY PUBLIC LIBRARY SYSTEM WHEREAS, the City of Santa Clarita initiated proceedings with the Local Agency Formation Commission for Los Angeles County (LAFCO) for the annexation of territory identified as Annexation 2010-08 to the City of Santa Clarita; and WHEREAS, pursuant to Section 99 of the California Revenue and Taxation Code, for specified jurisdictional changes, the governing bodies of affected agencies shall negotiate and determine the amount of property tax revenue to be exchanged between the affected agencies; and WHEREAS, the area proposed for annexation is identified as Annexation 2010-08 and consists of approximately 8.3 acres of unincorporated territory known as "Soledad Commons" located south of Soledad Canyon Road and north of State Route 14, and north and west of the City of Santa Clarita boundary limits; and WHEREAS, the area is located within the boundaries of County Lighting Maintenance District 1687; and WHEREAS, the City of Santa Clarita hereby agrees to the withdrawal of the proposed annexation territory from County Lighting Maintenance District 1687 and annexation to Santa Clarita Streetlight Maintenance District No. 1; and WHEREAS, upon annexation of the proposed area to the City of Santa Clarita, the territory shall be withdrawn from County Lighting Maintenance District 1687 and annexed to Santa Clarita Streetlight Maintenance District No. 1; and WHEREAS, the annexation area is also located within County Lighting District LLA -1, Unincorporated Zone; and WHEREAS, pursuant to Section 22613 of the California Streets and Highways Code, whenever any territory of an assessment district is included within a city by annexation or incorporation, that territory is thereby excluded from the assessment district; and WHEREAS, upon annexation of the proposed area to the City of Santa Clarita, the territory will be automatically excluded from County Lighting District LLA -1, Unincorporated Zone; and HOA.844468.1 City of Santa Clarita Annexation 2010-08 (Soledad Commons) Page 2 of 5 WHEREAS, effective July 1, 2011, the City of Santa Clarita has withdrawn from the County Public Library system and therefore, all unincorporated territory annexed to the City of Santa Clarita after that date will also be withdrawn from the County Public Library system. WHEREAS, the Board of Supervisors of the County of Los Angeles, as governing body of the County and the County of Los Angeles Road District No. 5, County Lighting Maintenance District 1687, and County Lighting District LLA -1, Unincorporated Zone, and the City Council of the City of Santa Clarita, have determined the amount of property tax revenue to be exchanged between their respective agencies as a result of the annexation of the unincorporated territory identified as Annexation 2010-08, detachment from County Road District No. 5, withdrawal from County Lighting Maintenance District 1687, annexation to Santa Clarita Streetlight Maintenance District No. 1, exclusion from County Lighting District LLA -1, Unincorporated Zone, and withdrawal from the County Public Library system, is as set forth below: NOW, THEREFORE, BE, IT RESOLVED AS FOLLOWS: 1. The City of Santa Clarita agrees that it will bear the full responsibility for the street lighting and lighting maintenance services in the proposed annexation area upon the withdrawal of the annexation territoryfrom County Lighting Maintenance District 1687 and exclusion of the territory from County Lighting District LLA -1, Unincorporated Zone. 2. The negotiated exchange of property tax revenue between the County of Los Angeles and the City of Santa Clarita, resulting from Annexation 2010-08 is approved and accepted. 3. For fiscal years commencing on or after July 1, 2012, or the July 1 after the effective date of this jurisdictional change, whichever is later, property tax revenue received by County Road District No. 5, attributable to Annexation 2010-08, shall be transferred to the County of Los Angeles, and the County Road District No. 5 share in the annexation area shall be reduced to zero. 4. For fiscal years commencing on or after July 1, 2012, or the July 1 after the effective date of this jurisdictional change, whichever is later, the tax -sharing ratio received by County Lighting Maintenance District 1687 attributable to Annexation 2010-08, shall be transferred to the County of Los Angeles, and the County Lighting Maintenance District 1687 share in the annexation area shall be reduced to zero. 5. For fiscal years commencing on or after July 1, 2012, or the July 1 after the effective date of this jurisdictional change, whichever is later, property tax revenue received by the County Public Library, attributable to Annexation 2010-08, shall be transferred to the City -Santa Clarita Library Fund, and the County Public Library's share in the annexation area shall be reduced to zero. 5. For each fiscal year commencing on or after July 1, 2012, or the July 1 after the effective date of this jurisdictional change, whichever is later, One Thousand, Five Hundred, and Ninety -Three Dollars ($1,593) in base property tax revenue shall be transferred from the County of Los Angeles to the City of Santa Clarita. HOA.844468.1 City of Santa Clarita Annexation 2010-08 (Soledad Commons) Page 3 of 5 6. For fiscal years commencing on or after July 1, 2012, or the July 1 after the effective date of this jurisdictional change, whichever is later, the following ratios of annual property tax increment attributable to each respective Tax Rate Area in the Annexation 2010-08 territory shall be transferred from the County of Los Angeles to the City of Santa Clarita as shown below and the County's share shall be reduced accordingly: Tax Rate Area Annual Tax Increment Ratio Transfer to the Cit 00959 0.032988731 08586 0.031304087 09159 0.032878967 7. 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 the Redevelopment Agency of the City of Santa Clarita has diligently and in good faith complied with all applicable provisions of the .California Community Redevelopment Law, including but not limited to, Health & Safety Code Section 33670 or any other relevant provision of the law. Any ordinance approving a redevelopment project which does not comply with this paragraph shall be void and of no effect with regard to the subsequent allocation and distribution of taxes to the Redevelopment Agency. HOA.844468.1 City of Santa Clarita Annexation 2010-08 (Soledad Commons) Page 4 of 5 PASSED, APPROVED AND ADOPTED this day of , 20 by the following vote: AYES: ABSENT: NOES: - ABSTAIN: Mayor City of Santa Clarita, California ATTEST: City Clerk City of Santa Clarita / (Signed in Counterpart) HOA.844468.1 -6- City of Santa Clarita Annexation 2010-08 (Soledad Commons) Page 5of5 The foregoing resolution was on the day of , 20 , adopted by the Board of Supervisors of the County of Los Angeles and ex officio the governing body of all other special assessment and taxing districts, agencies and authorities for which said Board so acts. APPROVED AS TO FORM: ANDREA SHERIDAN ORDIN County Counsel BY Deputy HOA.844468.1 SACHI A. HAMAI, Executive Officer Clerk of the Board of Supervisors of the County of Los Angeles (Signed in Counterpart) Deputy 1S MOOVSN Add0d �O 02 g c`. 0 P' - SHADOW PINES W -VD � LL O j 5 ?U E��PaO ON VI i39V � l 3 "a 1S MOOVSN Add0d �O 02 g c`. 0 Oa VONnovtl 0,3 - SHADOW PINES W -VD � LL O j 5 ?U E��PaO ON VI i39V � P� v �J 3 "a G IzC S y C r t; 0i o m J ae 1S MOOVSN Add0d �O 02 g c`. € 1� iE. is � LL O j 5 ?U 3 VI IzC S y C r t; O^y N g ae Q L^ a gip' a C A 00 E O Esa � L 4 O o OP 2 4O - 0 - POFPY MEADOW SZ 0 z $ a U 2 5 N rR 4 d h U J ��❑ pry] U g c`. € C iE. is � LL O j U IzC S y a r t; N g ae CE ZqF gip' a u Esa � OP 2 4O - 0 - POFPY MEADOW SZ 0 z $ a U 2 5 N rR 4 d h U J ��❑ pry] U �V �O € is � LL O j U S y a r N r N a OP 2 4O - 0 - POFPY MEADOW SZ 0 z $ a U 2 5 N rR 4 d h U J ��❑ pry] U 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 THE NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE RESULTING FROM THE ANNEXATION OF TERRITORY KNOWN AS ANNEXATION 2010-10 (COPPERSTONE) TO THE CITY OF SANTA CLARITA, WITHDRAWAL FROM COUNTY LIGHTING MAINTENANCE DISTRICT 1687, EXCLUSION FROM COUNTY LIGHTING DISTRICT LLA -1, UNINCORPORATED ZONE, DETACHMENT FROM COUNTY ROAD DISTRICT NO. 5, AND WITHDRAWAL FROM THE COUNTY PUBLIC LIBRARY SYSTEM WHEREAS, the City of Santa Clarita initiated proceedings with the Local Agency Formation Commission for Los Angeles County (LAFCO) for the annexation of territory identified as Annexation 2010-10 to the City of Santa Clarita; and WHEREAS, pursuant to Section 99 of the California Revenue and Taxation Code, for specified jurisdictional changes, the governing bodies of affected agencies shall negotiate and determine the amount of property tax revenue to be exchanged between the affected agencies; and WHEREAS, the area proposed for annexation is identified as Annexation 2010-10 and consists of approximately 69 acres of unincorporated territory known as "Copperstone" located at the northeast corner of Copper Hill Drive and Decoro Drive, along the northerly boundary of the City of Santa Clarita; and WHEREAS, the area is located within the boundaries of County Lighting Maintenance District 1687; and WHEREAS, the City of Santa Clarita hereby agrees to the withdrawal of the proposed annexation territory from County Lighting Maintenance District 1687 and annexation to Santa Clarita Streetlight Maintenance District No. 1; and WHEREAS, upon annexation of the proposed area to the City of Santa Clarita, the territory shall be withdrawn from County Lighting Maintenance District 1687 and annexed to Santa Clarita Streetlight Maintenance District No. 1; and WHEREAS, the annexation area is also located within County Lighting District LLA -1, Unincorporated Zone; and WHEREAS, pursuant to Section 22613 of the California Streets and Highways Code, whenever any territory of an assessment district is included within a city by annexation or incorporation, that territory is thereby excluded from the assessment district; and WHEREAS, upon annexation of the proposed area to the City of Santa Clarita, the territory will be automatically excluded from County Lighting District LLA -1, Unincorporated Zone; and HOA.844464.1 - 9- City of Santa Clarita Annexation 2010-10 (Copperstone) Page 2 of 5 WHEREAS, effective July 1, 2011, the City of Santa Clarita has withdrawn from the County Public Library system and therefore, all unincorporated territory annexed to the City of Santa Clarita after that date will also be withdrawn from the County Public Library system. WHEREAS, the Board of Supervisors of the County of Los Angeles, as governing body of the County and the County of Los Angeles Road District No. 5, County Lighting Maintenance District 1687, and County Lighting District LLA -1, Unincorporated Zone, and the City Council of the City of Santa Clarita, have determined the amount of property tax revenue to be exchanged between their respective agencies as a result of the annexation of the unincorporated territory identified as Annexation 2010-10, detachment from County Road District No. 5, withdrawal from County Lighting Maintenance District 1687, annexation to Santa Clarita Streetlight Maintenance District No. 1, exclusion from County Lighting District LLA -1, Unincorporated Zone, and withdrawal from the County Public Library system, is as set forth below: NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. The City of Santa Clarita agrees that it will bear the full responsibility for the street lighting and lighting maintenance services in the proposed annexation area upon the withdrawal of the annexation territory from County Lighting Maintenance District 1687 and exclusion of the territory from County Lighting District LLA -1, Unincorporated Zone. 2. The negotiated exchange of property tax revenue between the County of Los Angeles and the City of Santa Clarita, resulting from Annexation 2010-10 is approved and accepted. 3. For fiscal years commencing on or after July 1, 2012, or the July 1 after the effective date of this jurisdictional change, whichever is later, property tax revenue received by County Road District No. 5, attributable to Annexation 2010-10, shall be transferred to the County of Los Angeles, and the County Road District No. 5 share in the annexation area shall be reduced to zero. 4. For fiscal years commencing on or after July 1, 2012, or the July 1 after the effective date of this jurisdictional change, whichever is later, the tax -sharing ratio received by County Lighting Maintenance District 1687 attributable to Annexation 2010-10 in the annexation area shall be reduced to zero. 5. For fiscal years commencing on or after July 1, 2012, or the July 1 after the effective date of this jurisdictional change, whichever is later, property tax revenue received by the County Public Library, attributable to Annexation 2010-10, shall be transferred to the City -Santa Clarita Library Fund, and the County Public Library's share in the annexation area shall be reduced to zero. 6. For each fiscal year commencing on or after July 1, 2012, or the July 1 after the effective date of this jurisdictional change, whichever is later, Ninety -Three Thousand and Six Dollars ($93,006) in base property tax revenue shall be transferred from the County of Los Angeles to the City of Santa Clarita. 7. For fiscal years commencing on or after July 1, 2012, or the July 1 after the effective date of this jurisdictional change, whichever is later, the following ratios of annual property tax increment attributable to each respective Tax Rate Area in the Annexation HOA.844464.1 /C) - City of Santa Clarita Annexation 2010-10 (Copperstone) Page 3 of 5 2010-10 territory shall be transferred from the County of Los Angeles to the City of Santa Clarita as shown below and the County's share shall be reduced accordingly: Tax Rate Area Annual Tax Increment Ratio Transfer to the Cit 14032 0.059641048 14033 0.059641048 14034 0.059641048 14035 0.059641048 14667 0.059641048 14668 0.059641048 8. 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 the Redevelopment Agency of the City of Santa Clarita has diligently and in good faith complied with all applicable provisions of the California Community Redevelopment Law, including but not limited to, Health & Safety Code Section 33670 or any other relevant provision of the law. Any ordinance approving a redevelopment project which does not comply with this paragraph shall be void and of no effect with regard to the subsequent allocation and distribution of taxes to the Redevelopment Agency. HOAM4464.1 /f - City of Santa Clarita Annexation 2010-10 (Copperstone) Page 4 of 5 PASSED, APPROVED AND ADOPTED this day of 20 by the following vote: AYES: ABSENT: NOES: ABSTAIN: Mayor City of Santa Clarita, California ATTEST: City Clerk City of Santa Clarita (Signed in Counterpart) HOA.844464.1 City of Santa Clarita Annexation 2010-10 (Copperstone) Page 5 of 5 The foregoing resolution was on the day of , 20 , adopted by the Board of Supervisors of the County of Los Angeles and ex officio the governing body of all other special assessment and taxing districts, agencies and authorities for which said Board so acts. APPROVED AS TO FORM: ANDREA SHERIDAN ORDIN County Counsel BY Deputy HOA.844464.1 SACHI A. HAMAI, Executive Officer Clerk of the Board of Supervisors of the County of Los Angeles By (Signed in Counterpart) Deputy . 5�'VOP * ® - °% ~�* � ■ 0 m \x . / c , D - I o . j - : 0 _ . . J r OX I a/\ o \ \k/a � 10/r1 \ -r3-( 0