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HomeMy WebLinkAbout2012-08-28 - AGENDA REPORTS - TAX EXCHANGE SAND CYN ANNEX (2)Agenda Item: 14 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: - Item to be presented by: Darren Hemdndez DATE: August 28, 2012 SUBJECT: JOINT RESOLUTIONS APPROVING AND ACCEPTING THE NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE RESULTING FROM THE PROPOSED ANNEXATION OF SOUTH SAND CANYON TO THE CITY OF SANTA CLARITA AND TO THE GREATER LOS ANGELES COUNTY VECTOR CONTROL DISTRICT DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council: 1) adopt a Joint Resolution Approving and Accepting the Negotiated Exchange of Property Tax Revenue for the annexation of the South Sand Canyon area to the City of Santa Clarita; and 2) adopt a Joint Resolution Approving and Accepting the Negotiated Exchange of Property Tax Revenue for the annexation of the South Sand Canyon area to the Greater Los Angeles County Vector Control District. BACKGROUND On November 8, 2011, the City Council adopted Resolution No. 11-80, initiating Sphere of Influence amendment and annexation proceedings for the South Sand Canyon Annexation area with the Local Agency Formation Commission (LAFCO). On December 14, 2011, the application was submitted to LAFCO. Joint Tax Transfer Resolution —Annexation to the City of Santa Clarita Upon approval by the City Council of the joint resolution, the Los Angeles County Board of Supervisors will schedule a hearing to consider the joint resolution. Subsequent final steps include up to two LAFCO hearings for the annexation. The first, a general public hearing anticipated for Fall 2012, followed by a "protest hearing," if necessary. This process is anticipated to be completed by December 1, 2012. The proposed joint resolution provides for a transfer of property tax revenue from the County to the City in the amount of $10,912.00 for the first fiscal year. For each fiscal year thereafter, the proposed joint resolution provides for the transfer of specified ratios of annual property tax increment attributable to each of the 4 respective Tax Rate Areas. Joint Tax Transfer Resolution —Annexation to the Greater Los Angeles County Vector Control District Upon approval by the City Council of the joint resolution between the Board of Supervisors of the County of Los Angeles, the City Council of the City of Santa Clarita, and the Governing Bodies of the Greater Los Angeles County Vector Control District, the South Sand Canyon area would be annexed to the Vector Control District and will be covered by all services provided by the District. The proposed joint resolution provides for a transfer of property tax revenue to the Greater Los Angeles County Vector Control District as calculated by the Auditor -Controller of Los Angeles County, beginning the year after filing of the statement of boundary change for the South Sand Canyon Annexation. Next Steps Upon approval of the joint resolutions by the City Council, the Los Angeles County Board of Supervisors, along with the Governing Bodies of the Greater Los Angeles County Vector Control District, Santa Clarita Valley Sanitation District of Los Angeles County, Castaic Lake Water Agency, and Newhall County Water District, LAFCO will schedule the applicable hearings necessary to sign and accept the joint resolution. Subsequent final steps include as many as two LAFCO hearings for the annexation including a public hearing and a "protest hearing" on the annexation. This process is anticipated to be completed in mid to late November. 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 service expenditures related to this annexation are offset by the revenue to be collected from within the annexation area. This annexation is fiscally neutral and will not have a negative fiscal impact on the City of Santa Clarita. ATTACHMENTS Joint City -County Resolution for South Santa Clarita Annexation to City Joint City -County Resolution for South Santa Clarita Annexation to Vector Control 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 2011-26 (SOUTH SAND 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 2011-26 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 2011-26 and consists of approximately 692 acres of unincorporated territory known as "South Sand Canyon" generally located south of Placerita Canyon Road, and west and south of Sand Canyon Road; 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 County Public Library, 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 2011-26, 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 2011-26 is approved and accepted. 2. For the fiscal year commencing in the year after the filing of the statement of boundary change for Annexation 2011-26 with the Board of Equalization pursuant to Government Code sections 54902 and 57204, and every fiscal year thereafter, property tax revenue received by County Road District No. 5, attributable to Annexation 2011-26, 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 the fiscal year commencing in the year after the filing of the statement of boundary change for Annexation 2011-26 with the Board of Equalization pursuant to Government Code sections 54902 and 57204, and every fiscal year thereafter, property tax V City of Santa Clarita Annexation 2011-26 (South Sand Canyon) Page 2 of 4 revenue received by the County Public Library, attributable to Annexation 2011-26, 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. 4. For the fiscal year commencing in the year after the filing of the statement of boundary change for Annexation 2011-26 with the Board of Equalization pursuant to Government Code sections 54902 and 57204, and every fiscal year thereafter, Ten Thousand, Nine Hundred, and Twelve Dollars ($10,912) in base property tax revenue shall be transferred from the County of Los Angeles to the City of Santa Clarita. 5. For the fiscal year commencing after the filing of the statement of boundary change for Annexation 2011-26 with the Board of Equalization pursuant to Government Code sections 54902 and 57204, and every fiscal year thereafter, the following ratios of annual property tax increment attributable to each respective Tax Rate Area in the Annexation 2011-26 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 City 02486 0.056859799 09130 0.061978910 09151 0.043019540 09161 0.050734822 City of Santa Clarita Annexation 2011-26 (South Sand 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 (Signed in Counterpart) 661 City of Santa Clarita Annexation 2011-26 (South Sand 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: JOHN F. KRATfLI County Counsel BY Deputy SACHI A. HAMAI, Executive Officer Clerk of the Board of Supervisors of the County of Los Angeles By (Signed in Counterpart) Deputy I JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, AND THE GOVERNING BODIES OF THE GREATER LOS ANGELES COUNTY VECTOR CONTROL DISTRICT AND CASTAIC LAKE WATER AGENCY, APPROVING AND ACCEPTING THE NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE RESULTING FROM "GREATER LOS ANGELES COUNTY VECTOR CONTROL DISTRICT ANNEXATION NO. 2011-26" WHEREAS, pursuant to Section 99 of the 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 Board of Supervisors of the County of Los Angeles, as the governing body of the County, Consolidated Fire Protection District, Road District No. 5, and Flood Control District, the City Council of the City of Santa Clarita, and the governing bodies of the Greater Los Angeles County Vector Control District and Castaic Lake Water Agency have determined the amount of property tax revenue to be exchanged between their respective agencies as a result of the "Greater Los Angeles County Vector Control District Annexation No. 2011-26" 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, Greater Los Angeles County Vector Control District, City of Santa Clarita, and Castaic Lake Water Agency resulting from Annexation No. 2011-26 is approved and accepted. 2. For the fiscal year commencing in the year after the filing of the statement of boundary change for Annexation No. 2011-26 with the Board of Equalization pursuant to Government Code sections 54902 and 57204, and every fiscal year thereafter, .000165423 of the annual property tax growth, as specified in Attachment I for Tax Rate Area 02486, .000161157 of the annual property tax growth, as specified in Attachment II for Tax Rate Area 09130, and .000149014 of the annual property tax growth, as specified in Attachment III for Tax Rate Area 09161, shall be transferred to the Greater Los Angeles County Vector Control District as a result of Annexation No. 2011-26 to the District. The other taxing entities' share of property taxes in the affected Tax Rate Area shall be adjusted as specified in the Attachment. 3. There shall be no additional transfer of property taxes as a result of Annexation No. 2011-26. Joint Resolution Greater Los Angeles County Vector Control District Annexation No. 2011-26 Page 2 of 5 4. If at any time after the effective date of this resolution, the calculations used herein to determine initial property tax transfers or the data used to perform those calculations are found to be incorrect thus producing an improper or inaccurate property tax transfer, the property tax transfer shall be recalculated and the corrected transfer shall be implemented for the next fiscal year, and any amounts of property tax received in excess of that which is proper shall be refunded to the appropriate agency, PASSED, APPROVED AND ADOPTED this day of 2012 by the following vote: AYES: ABSENT: NOES: ABSTAIN: ATTEST: Secretary Greater Los Angeles County Vector Control District Signature Print Name and Title Date (Signed in Counterpart) Joint Resolution Greater Los Angeles County Vector Control District Annexation No. 2011-26 Page 3 of 5 4. If at any time after the effective date of this resolution, the calculations used herein to determine initial property tax transfers or the data used to perform those calculations are found to be incorrect thus producing an improper or inaccurate property tax transfer, the property tax transfer shall be recalculated and the corrected transfer shall be implemented for the next fiscal year, and any amounts of property tax received in excess of that which is proper shall be refunded to the appropriate agency. The foregoing resolution was on the day of , 2012, 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: JOHN F. KRATTLI County Counsel 0 Deputy SACK A. HAMAI, Executive Officer Clerk of the Board of Supervisors of the County of Los Angeles STA (Signed in Counterpart) Deputy Joint Resolution Greater Los Angeles County Vector Control District Annexation No. 2011-26 Page 4 of 5 4. If at any time after the effective date of this resolution, the calculations used herein to determine initial property tax transfers or the data used to perform those calculations are found to be incorrect thus producing an improper or inaccurate property tax transfer, the property tax transfer shall be recalculated and the corrected transfer shall be implemented for the next fiscal year, and any amounts of property tax received in excess of that which is proper shall be refunded to the appropriate agency. PASSED, APPROVED AND ADOPTED this day of 2012 by the following vote: AYES: ABSENT: NOES: ABSTAIN: ATTEST: City Clerk City of Santa Clarita Mayor City of Santa Clarita (Signed in Counterpart) 10 Joint Resolution Greater Los Angeles County Vector Control District Annexation No. 2011-26 Page 5 of 5 4. If at any time after the effective date of this resolution, the calculations used herein to determine initial property tax transfers or the data used to perform those calculations are found to be incorrect thus producing an improper or inaccurate property tax transfer, the property tax transfer shall be recalculated and the corrected transfer shall be implemented for the next fiscal year, and any amounts of property tax received in excess of that which is proper shall be refunded to the appropriate agency, PASSED, APPROVED AND ADOPTED this day of 2012 by the following vote: AYES: ABSENT: NOES: ABSTAIN: ATTEST: Secretary Castaic Lake Water Agency Signature Print Name and Title Date (Signed in Counterpart)