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Home My WebLink About2012-01-10 - AGENDA REPORTS - NEGOTIATED PROPERTY TAX (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: Agenda Item: 7 CITY OF SANTA CLARITA . AGENDA REPORT City Manager Approval: Item to be presented by January 10, 2012 Darren Herndndez JOINT RESOLUTION 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 PROPOSED ELSMERE CANYON ANNEXATION Administrative Services RECOMMENDED ACTION City Council: Adopt a joint Resolution of Negotiated Exchange of Property Tax Revenue resulting from the proposed Elsmere Canyon Annexation. BACKGROUND On April 12, 2011, the City Council adopted Resolution No. I1-18, initiating annexation proceedings for the Elsmere Canyon Annexation with the Local Agency Formation Commission (LAFCO). On June 20, 2011, the application was submitted to LAFCO. ANALYSIS Following the City Council's approval of the joint tax resolution, the Los Angeles County Board of Supervisors will schedule a hearing to adopt the resolution. Subsequent final steps include two LAFCO hearings for the annexation. The first, a general public hearing anticipated for early 2012, followed by a "protest hearing," if necessary. The Elsmere Canyon Annexation may be complete by July 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 The proposed Joint Tax Transfer Resolution provides for a transfer of $1,898 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 Elsmere Canyon 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, 0.048398837, 0.047066537, 0.044164383, 0.058512993, 0.044586348, 0.046929826, 0.058297211, 0.058502531, and 0.044490714 percent of the annual property tax increment 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, and the detachment from the County Public Library and transfer of the property tax revenue received by the County Public Library attributable to the Elsmere Canyon Annexation to the City of Santa Clarita Public Library Fund. The service expenditures related to this annexation is offset by the revenue being transferred to the City of Santa Clarita pursuant to this resolution. This annexation is fiscally neutral and will not have a negative impact on the City of Santa Clarita. ATTACHMENTS Elsmere Canyon Joint Tax Transfer Resolution Elsmere Cayon Annexation Map 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 2011-03 (ELSMERE CANYON) TO THE CITY OF SANTA CLARITA, 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 2011-03 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 2011-03 and consists of approximately 807 acres of unincorporated territory known as "Elsmere Canyon" located east of State Route 14, south of Whitney Canyon, west of the Angeles National Forest, and north of the City of Los Angeles boundary limits; and 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, 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 2011-03, detachment from County Road District No. 5, and withdrawal from the County Public Library system, is as set forth below: NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. The negotiated exchange of property tax revenue between the County of Los Angeles and the City of Santa Clarita, resulting from Annexation 2011-03 is approved and accepted. 2. 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 2011-03, 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. 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 the County Public Library, attributable to Annexation 2011-03, 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. 3 City of Santa Clarita Annexation 2011-03 (Elsmere Canyon) Page 2 of 4 4. 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, Eight Hundred, and Ninety -Eight Dollars ($1,898) in base property tax revenue shall be transferred from the County of Los Angeles to the City of Santa Clarita. 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, the following ratios of annual property tax increment attributable to each respective Tax Rate Area in the Annexation 2011-03 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 00287 0.048398837 01439 0.047066537 01631 0.044164383 01634 0.058512993 06592 0.044586348 06615 0.046929826 06625 0.058297211 06711 0.058502531 10680 0.044490714 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 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. City of Santa Clarita Annexation 2011-03 (Elsmere Canyon) Page 3 of 4 PASSED, APPROVED AND ADOPTED this day of , 20 by the following vote: AYES: ABSENT: NOES: ABSTAIN: ATTEST: City Clerk City of Santa Clarita Mayor City of Santa Clarita, California (Signed in Counterpart) 11 City of Santa Clarita Annexation 2011-03 (Elsmere Canyon) Page 4 of 4 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 go Deputy SACHI A. HAMA[, Executive Officer Clerk of the Board of Supervisors of the County of Los Angeles am (Signed in Counterpart) Deputy C , X A, F = p i U Co m z �► c = Q Af - - --.-----� U ! AA _ a f J ,IIi lk � *ti `S-figg, ;"4 4`tl''5 7