HomeMy WebLinkAbout07/15/1997, C-13 - CITY ACCEPTANCE OF AN AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO FOR SHARING THE PROPERTY TAX REVENUES AND ANNUAL TAX INCREMENT FOR THE PREFUMO CREEK HOMES ANNEXATION (1855 PREFUMO CANYON ROAD). conn ck Mectio�D.le
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CITY OF SAN LUIS OBISPO
FROM: Arnold Jonas, Community Development Director
Prepared By: Ronald Whisenand, Development Review Manager
SUBJECT: City acceptance of an agreement with the County of San Luis Obispo for sharing
the property tax revenues and annual tax increment for the Prefumo Creek Homes
Annexation (1855 Prefumo Canyon Road).
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/PreviousSituation/Previous Review
On April 1, 1997, the City Council took a series of actions related to the annexation of property
at 1855 Prefumo Creek Road. The Council certified the project EIR, adopted an ordinance that
prezoned the property to Single Family Residential with Special Considerations overlay (R-1-S)
and Conservation Open Space(C/OS400), and adopted a resolution amending both the maps and
texts of the City's General Plan. At the same meeting, the Council also approved a resolution
requesting that the Local Agency Formation Commission (I.AFCo) approve the annexation.
On June 17, 1997, the San Luis Obispo County Board of Supervisors initiated a 30-day period
(June 17 to July 17, 1997) for negotiation of exchange of property tax revenues and annual tax
increment for the Prefumo Creek Homes Annexation. Prior to final LAFCo action on the
annexation, both the City Council and Board of Supervisors need to adopt similar resolutions
acknowledging the negotiated agreements between the City and the County related to property tax
revenues and annual tax increment. A proposed resolution for City Council adoption is attached.
The terms of the proposed tax exchange incorporate the standard agreement principles adopted by
the County and incorporated cities last spring, whereby the property tax increment will be split
two-thirds, one-third between the County and City respectively.
FISCAL IMPACT
The property tax exchange will provide revenue from the newly-annexed area that will help pay
for expected General Fund services after development. 38 homes with an estimated market value
of$350,000 each will result in an annual tax increment to the City of approximately $16,000.
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1
Prefumo Creek Homes Annexation Property Tax Excfiange
1855 Prefumo Creek road
Page 2. -
ALTEI NATIM
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 ievenue distribution.associated With the.annexation.
Attachments
Draft Resolution
County Tax Sharing Worksheet
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RESOLUTION NO. (1997 Series)
A RESOLUTION OF THE CITY COUNCIL OF SAN LUIS OBISPO
ACCEPTING A NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE AND
ANNUAL-TAX INCREl1 M BETWEEN THE:COUNTY OF SAN LUIS OBISPO
AND THE CITY OF SAN LUIS.O.BISPO FOR THE.PREFUMO CREEK HOMES
ANNEXATION AT 1855 PREFUMO CANYON ROAD
(SLO COUNTY ANNEXATION #48)
(CITY FILE# ANNEX 26-95)
WHEREAS, 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 Luis Obispo pursuant to Section 99(b) for the jurisdictional change designated
as Annexation No. 48 to the City of San Luis Obispo (Prefumo Creek Homes 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.
Resolution No. (1997 Series)
Page 2
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 base 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,
12.54287 percent, shall be transferred from the County.of San Luis Obispo to the City of San
Luis Obispo in the fiscal year 1998-99 and each fiscal year thereafter.
(c) After the"City portion is transferred, all annual tax increment for
the County Road Fund shall be transferred to the County General Fund.
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.
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 , 1997.
Mayor Allen Settle
613#
Resolution No. (1997 Series)
Page 3
ATTEST:
City.Clerk
APPROVED:
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PROPOSED ANNEXATION
FOR
CITY OF SAN LUIS OBISPO
(Prefumo Creek Homes)
TRA 112-002' COUNTY % 37.62108 Before ERAF
RATIO COUNTY CITY
ACREAGE BREAKDOWN % TO TOTAL TO COUNTY % RETAINS RECEIVES
RESIDENTIAL 17.8 Na 0.00000% (A) 66.67% 33.34%
UNDEVELOPED 366.2 n/a 0.00000% 100.00% 0.00000
COMMERCIAL 0 N/A N/A
TOTAL 384.0 0.0000% 37.62108%
RESIDENTIAL PORTION OF COUNTY'S % 37.62108
CITY PORTION OF INCREMENT PER RESOLUTION 33.34%
CITIES INCREMENTAL% 12.54287
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