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Home My WebLink About10/22/1996, C-8 - CITY ACCEPTANCE OF AN AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO ON THE PROPERTY TAX REVENUES AND ANNUAL TAX INCREMENT FOR THE EL CAPITAN ANNEXATION (850 EL CAPITAN). 4 council i j apenaa REpom I�N..hw c CITY OF SAN LUIS 0 B I S P 0 0 FROM: Arnold Jonas, Community Development Director Prepared By: Judith Lautn r, Associate Planner SUBJECT: City acceptance of an agreement with the County of San Luis Obispo on the property tax revenues and annual tax increment for the El Capitan Annexation (850 El Capitan). CAO RECOMMENDATION Adopt a resolution accepting the negotiated exchange of property tax revenues and annual tax increment that is required as a prerequisite to any jurisdictional change by the Revenue and Tax Code Section 99. DISCUSSION Situation/Previous Review On August 6, 1996, the City Council adopted an ordinance prezoning about four acres adjacent to the present city limits, about 800'south of Tank Farm Road and adjacent to and including El Capitan Way, to Medium-Density Residential, Specific Plan and Planned Development (R-1-SP-PD), and to Service Commercial, Specific Plan and Special Considerations (C-S-SP-S), consistent with the Land Use Element designations of Medium-Density Residential and Services and Manufacturing. At the same meeting, the Council also approved a resolution requesting that the Local Agency Formation Commission (LAFCo) approve the annexation. On October 8, 1996, the San Luis Obispo County Board of Supervisors initiated a 30-day period (October 8 to November 7) for negotiation of exchange of property tax revenues and annual tax increment for the El Capitan Annexation.Prior to final LAFCo action on the El Capitan Annexation, the City Council needs to adopt a similar resolution acknowledging the negotiated agreements between the City and the County related to property tax revenues and annual tax increment. The terms of the proposed tax exchange incorporate the standard agreement principles adopted by the County and incorporated cities last spring. Because of the combination of residential and non- residential uses planned in this annexation area, a "blended" tax rate of 9.96809 percent, before calculation of the Educational Revenue Augmentation Fund (ERAF), was devised. This rate is equivalent to the County retaining all of the future incremental tax increase for the non-residential portion of the site(0.66 acre)and approximately one-third ofthat generated by the residential portion (2.83 acres). Council Agenda Report- El Capitan Tax Revenue Sharing Agreement Page 2 FISCAL EMPACT The property tax exchange will provide revenue from the newly-annexed area that will help pay for expected services(police and fire, and after development, sewer and water). ALTERNATIVES The Council may continue action. Direction should be given to staff. The Council may direct staff to negotiate further with the County over desired terms of the property tax revenue distribution associated with the annexation. Attachments Draft Resolution C- �a2 RESOLUTION NO. (1996 Series) A RESOLUTION OF THE CITY COUNCIL OF SAN LUIS OBISPO ACCEPTING A NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE AND ANNUAL TAX INCREMENT BETWEEN THE COUNTY OF SAN LUIS OBISPO AND THE CITY OF SAN LUIS OBISPO FOR THE EL CAPITAN ANNEXATION AT 850 EL CAPITAN (SLO COUNTY ANNEXATION#45) (CITY FILE#ANNEX 46-96) R'HEREAS, in the case of a jurisdictional change which will alter the service area or responsibility of a local agency,Revenue and Taxation Code Section 99(b)requires that the amount of property tax revenue to be exchanged, if any, and the amount of annual tax increment to be exchanged among the affected local agencies shall be determined by negotiation; and WHEREAS,when a city is involved,the negotiations are conducted between the City Council and the Board of Supervisors of the County; and WHEREAS,Revenue and Taxation Code Section 99(b)requires that each local agency, upon completion of negotiations, adopt resolutions whereby said local agencies agree to accept the negotiated exchange of property tax revenues, if any, and annual tax increment and requires that each local agency transmit a copy of each such resolution to the Executive Officer of the Local Agency Formation Commission; and WHEREAS, no later than the date on which the certificate of completion of the jurisdictional change is recorded with the County Recorder, the Executive Officer shall notify the County Auditor of-the exchange of property tax revenues by transmitting a copy of said resolution to him and the County Auditor shall therefore make the appropriate adjustments as required by law, and WHEREAS,the negotiations have taken place concerning the transfer of property tax revenues and annual tax increment between the County of San Luis Obispo and the City of San r Resolution No. (1996 Series) Page 2 San Luis Obispo pursuant to Section 99(b) for the jurisdictional change designated as Annexation No. 45 to the City of San Luis Obispo (El Capitan Annexation); and WHEREAS, the negotiating parties, to wit: Paul Hood, Principal Administrative Analyst, County of San Luis Obispo, and Ken Hampian, Assistant City Administrative Officer, have negotiated the exchange of property tax revenue and annual tax increment between such entities as hereinafter set forth; and WHEREAS, it is in the public interest that such negotiated exchange of property tax revenues and annual tax increment be consummated. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo, as follows: 1. That the recitals set forth above are true, correct, and valid. 2. That the City of San Luis Obispo agrees to accept the following negotiated exchange of property tax revenues and annual tax increment: (a) No base property tax revenue shall be transferred from the County of San Luis Obispo to the City of San Luis Obispo. (b) Annual tax increment in an amount to be determined by the County Auditor, based upon the following percentage agreed to by the negotiating parties, 9.96809 percent, shall be transferred from the County of San Luis Obispo to the City of San Luis Obispo in the fiscal year 1997-98 and each fiscal year thereafter. 3. Upon receipt of a certified copy of this resolution and a copy of the recorded certificate of completion, the County Auditor shall make the appropriate adjustments to property tax revenues and annual tax increments as set forth above. Resolution No. (1996 Series) Page 3 4. That the City Clerk is authorized and directed to transmit a certified copy of the resolution to the Executive Officer of the San Luis Obispo Local Agency Formation Commission, who shall then distribute copies in the manner prescribed by law. On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was passed and adopted this day of , 1996. Mayor ATTEST: City Clerk APPROVED: *tltoey MEETING AGENDA �lp DATE &j.1"9� ITEM # ( - MEMORANDUM TO: Mayor and City Council VIA: John Dunn, City administrative Officer FROM: Arnold Jonas, Community Development Director DATE: October 22, 1996 SUBJECT: Agenda Item#8 Amended Staff Report It has come to my attention that the staff report for agenda item number eight, the County tax sharing agreement for the El Capitan Annexation, mis-states the County retained incremental property tax increase. The correct proportion should be two-thirds rather than one-third, as shown corrected on the attached sheet. The remaining statements in the staff report are correct. !t,OUNCIL ?CAO ❑ FIN DiR Q"ACAO ❑ FIRE CHIEF �TTORNEY ❑ PSN DIR LERWOM0, ❑ POLICE CHF ❑ MG1W T£AN,I 0 REC DIR 0 ' C4 D-F!'__ L U T L DIR Council ad�o_ acEn6a nEpoptIL CITY OF SAN LUIS O B 1 S P O 0 FROM: Arnold Jonas, Community Development Director. Prepared By: Judith Lautn r,Associate Planner SUBJECT: City acceptance of an agreement with the County of San Luis Obispo on the property tax revenues and annual tax increment for the El Capitan Annexation (850 El Capitan). CAO RECOMMENDATION Adopt a resolution accepting the negotiated exchange of property tax revenues and annual tax increment that is required as a prerequisite to any jurisdictional change by the Revenue and Tax Code Section 99. DISCUSSION Situation/Previous Review On August 6, 1996, the City Council adopted an ordinance prezoning about four acres adjacent to the present city limits, about 800'south of Tank Farm Road and adjacent to and including EI Capitan Way,to Medium-Density Residential, Specific Plan and Planned Development (R-1-SP-PD), and to Service Commercial, Specific Plan and Special Considerations (C-S-SP-S), consistent with the Land Use Element designations of Medium-Density Residential and Services and Manufacturing. At the same meeting, the Council also approved a resolution requesting that the Local Agency Formation Commission (LAFCo) approve the annexation. On October 8, 1996, the San Luis Obispo County Board of Supervisors initiated a 30-day period (October 8 to November 7) for negotiation of exchange of property tax revenues and annual tax increment for the El Capitan Annexation. Prior to final LAFCo action on the El Capitan Annexation, the City Council needs to adopt a similar resolution acknowledging the negotiated agreements between the City and the County related to property tax revenues and annual tax increment. The terms of the proposed tax exchange incorporate the standard agreement principles adopted by . the County and incorporated cities last spring. Because of the combination of residential and non- residential uses planned in this annexation area, a "blended" tax rate of 9.96809 percent, before calculation of the Educational Revenue Augmentation Fund. (ERAF), was devised. This rate is equivalent to the County retaining all of the future incremental tax increase for the non-residential portion of the site(0.66 acre)and approximately on of that generated by the residential portion (2.83 acres). ? _. I