HomeMy WebLinkAbout02/06_1/2001, C6 - AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO CONCERNING PROPERTY-TAX REVENUES FROM AERO VISTA ANNEXATION IN THE AIRPORT AREA counciL Meeri.gDe. Feb. 6, 04
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C I TY OF SAN LU IS O B I S P O
FROM: Ron Whisenand, Development Review Manage
Prepared By: Peggy Mandeville, Associate Planner
SUBJECT: AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO
CONCERNING PROPERTY-TAX REVENUES FROM AERO VISTA
ANNEXATION IN THE AIRPORT AREA
CAO RECOMMENDATION
Adopt resolution accepting the negotiated exchange of property-tax revenue and annual property-
tax increment for the Aero Vista annexation, under which the County would receive all property
taxes and the City would receive all sales taxes.
DISCUSSION
On August 15, 2000, the City Council recommended to the Local Agency Formation
Commission (LAFCo) that the 10 acre Aero Vista annexation area (ANNX 80-99) at 4451 Broad
Street be annexed to the City of San Luis Obispo (Attachment#1, Vicinity Map).
California law requires the City and the County to agree on division of the property taxes from
the territory proposed for annexation, which otherwise would go to the County (Revenue and
Taxation Code, Section 99). Staff has negotiated a draft agreement for presentation to the City
Council (Attachment #2). The Board is scheduled to consider this item during the day on
February 6, 2001. The agreement follows an overall City-County agreement for Airport Area
annexations, which was approved by both agencies in 1998. Under that agreement, for
nonresidential development, the County is to receive all property taxes from present and future
development, which otherwise would go to the County; the City is to receive all sales taxes that
the State returns to the jurisdiction within which the point of sale is located.
FISCAL IMPACT
Several costs and revenues change as the City annexes properties. A fiscal study for the 1994
General Plan update concluded that the City could maintain fiscal health if it annexes land shown
in the General Plan for residential, public, and other nonresidential uses. While the City would
forego some property taxes it could otherwise receive with this annexation, the property does
have the potential to generate some sales tax depending on the type of businesses.
ALTERNATIVES
The City and the County must agree on a revenue division before the annexation can be
completed. State law says that if the City and the County do not reach agreement within a 60-day
period (by February 19, 2001), the annexation process stops and would need to be re-initiated for
the annexation to occur. Council may direct staff to pursue a different revenue-division formula,
or may continue action for other reasons. Not approving the agreement within the interval set by
State law would require re-filing the LAFCo applications and returning at a future meeting to
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Council Agenda Report—tag sharing agreement
Page 2
Attachments: #1 -Vicinity map
92 -Draft resolution approving tax-sharing agreement
pmandevi\cc\tax sharing 80-99 Westpac
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Attachment 2
RESOLUTION NO. (2001 Series)
A RESOLUTION OF THE SAN LUIS OBISPO CITY COUNCIL ACCEPTING A
NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE AND ANNUAL TAX
INCREMENT BETWEEN THE COUNTY OF SAN LUIS OBISPO AND THE CITY,
FOR THE AERO VISTA ANNEXATION AT 4451 BROAD STREET
(ANNX 80-99)
WHEREAS, in the case of a jurisdictional change, other than a city incorporation or
district formation, which will alter the service area or responsibility of a local agency, Revenue
and Taxation Code Section 99(a)(1)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, when a special district is involved, the negotiations are conducted by the
Board of Supervisors of the County on behalf of the district or districts, unless otherwise
requested by said district or districts pursuant to Revenue and Taxation Code Section 99(b)(5);
and
WHEREAS, Revenue and Taxation Code Section 99(b)(6) requires that each local
agency,upon completion of negotiations, adopt resolutions whereby said local agencies agree to
accept the negotiated exchange of property tar 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 the County Auditor,and the County Auditor shall thereafter 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(a)(1) for the jurisdictional change designated as the Aero
Vista Annexation to the City of San Luis Obispo (ANNX 80-99); and
WHEREAS,the negotiating parties,to wit: Jim Grant, County of San Luis Obispo, and
Linda Asprion, City of San Luis Obispo, 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.
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Resolution No. (20ut Series) Attachment 2
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) No annual tax increment shall be transferred from the County of San Luis
Obispo to the City of San Luis.
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, if any,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 this
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 , 2001.
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
APPROV
J gens , Ci Attomey
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