HomeMy WebLinkAboutItem 14 - COUNCIL READING FILE_b_Master Tax Sharing AgreementJ<., ... T RESOLUTION NO. 01-96
A RESOLUTION OF THE CITIES
OF SAN LUIS OBISPO COUNTY ESTABLISHING
A COUNTYWIDE POLICY FOR PROPERTY
TAX EXCHANGE UPON ANNEXATION
WHEREAS, changing governmental fiscal relationships have required a modification to
the earlier approach to determining property tax exchange between cities and the County
upon annexation; and ·
WHEREAS, ttieextent and nature of this modification has been agreed upon through a
process of negotiation between the cities and the County based upon a shared goal of
producing a countywide tax exchange agreement that is fairto all parties; and
WHEREAS, a fair agreement is one that respects the following two principles: (1) that
the County should not "profit" from annexations, nor should annexations result In a net
fiscal loss to the County; (2) that tax exchange practices should not undermine good
land use planning by discouraging cities from pursuing logical and appropriate
annexations; and
WHEREAS, in order to provide objective data upon which to develop an equitable
agreement, the cities commissioned an independent fiscal study of the impact of
annexation and development of vacant lands around cities on County government; and
WHEREAS, the results of this study assisted in the development of a new countywide
tax exchange. agreement; and
WHEREAS, upon adoption· of the agreement, the County and the cities will continue to
collaborate on related matters of shared importance, including: (a) following adoption by
the Board of Supervisors, reconsidering a countywide development impact fee program,
which may include appropriate city impact fees for county development occurring. in the
unincorporated fringe of cities for which a clear City impact can be determined; and (b)
support existing policies which encourage urban-like development within theboundariesofcities. · · ··
NOW, THEREFORE, BE IT RESOLVED by the City Councils ofthe Cities of San Luis
Obispo County:
1.For "raw land" annexations prezoned commercial or industrial, the County.
retains the existing proper ty tax base and all of the future propertytaxincrement. .
2.For annexations prezoned residential, the County retainstheexistingpropertytaxbaseandtwo-thirds (66%) of the future propertytaxincrement. ·
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3. For commercial and industrial annexation areas already substantially
developed, tax exchange will be negotiated on a case-by-case basis
between the annexing city and the County to determine an appropriate
property tax-sharing arrangement, based upon the principle of fiscal
neutrality for the County.
4. For annexations prezoned agricultural, the County retains the' existing
property tax base and all of the future property tax increment.
5. The County and the cities agree to re-examine the above policies at five-
year intervals to assure that they remain appropriate and current for all
parties.
PASSED AND ADOPTED by the City Councils of the Cities of San Luis Obispo County
at a special joint meeting thereof held on the 25th day of April, 1996.
MAYOR OF ARROYO G ND
ATTEST:
a
CI CLEAK
MAYOR OF ATASCADERO
ATTEST: Not adopted)
CITY CLERK
MAYOR OF GR VER BEACH
ATTEST:
r ,
CITY CLERK
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Resolution No. J01-96 Macage 3
MAYOR OF MORRO BA
ATTEST:
CITY CLER
MAYOR OF PASO ROBLES
ATTEST:
Not participating)
CITY CLERK
MAYOR OF PISMO BEACH
ATTEST: Not participating)
CITY CLERK
MAYO OF SAN LUIS OBISPO
ATTEST:
CLE
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