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Home My WebLink About02/21/1995, C-5 - CITY ACCEPTANCE OF AN AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO REGARDING THE PROPERTY TAX REVENUES AND ANNUAL TAX INCREMENT FOR THE TK ANNEXATION (154 SUBURBAN ROAD). IIIIII��`I cit Of san LUIS oBispo MEETING�ATE: �uN�llpl� nil SO COUNCIL AGEITEM NDA REPORT NUMBERe� FROM: Arnold B. Jonas, Community Development Director o By: Whitney Mcllvaine, Associate Planner SUBJECT: City acceptance of an agreement with the County of San Luis Obispo regarding the property tax revenues and annual tax increment for the TK Annexation (154 Suburban Road). CAO RECONEMWE 4DATION: 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, pursuant to the Revenue and Tax Code Section 99. DISCUSSION Situation/Previous Review The TK Annexation area covers roughly 22 acres between Tank Farm Road and Suburban Road along South Higuera Street, as shown on the attached vicinity map. On October 4, 1994, the City Council adopted an ordinance prezoning the annexation property Service-Commercial(C-S), consistent with the Land Use Element designation of 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 February 21, 1995, the San Luis Obispo County Board of Supervisors is scheduled to initiated a 30-day period (February 21 to March 23) for negotiation of exchange of property tax revenues and annual tax increment for the TK Annexation. Action taken by the Board will be reported to the Council at the meeting. Prior to final LAFCo action on the TK 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 agreement will result in the City receiving incremental property tax revenues from the TK Annexation area at a rate of 13.78343 percent. This is the County's standard tax sharing policy regarding newly annexed areas. ALTERNATIVES Continue and direct the staff to further negotiate with the County over desired terms of the property tax revenue distribution associated with the annexation. Attached: Draft Resolution Vicinity Map RESOLUTION NO. (1995 Series) A RESOLUTION OF THE CITY OF SAN LUIS OBISPO COUNCIL ACCEPTING 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 TK ANNEXATION AT 154 SUBURBAN ROAD (SLO COUNTY ANNEXATION #40) BE IT RESOLVED by the Council of the City of San Luis Obispo, that: 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 or 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 Resolution No. (1995 Series) Page 2 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. 40 to the City of San Luis Obispo (TK 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 WIEREAS, 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 property tax revenues shall be transferred from the County of San Luis Obispo to the City of San Luis Obispo in the fiscal year 1996-97. (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, 13.78343 percent, shall be transferred from the County of San Luis Obispo to the City of San Luis Obispo in the fiscal year 1996-97 and each fiscal year thereafter. S-3 Resolution No. (1995 Series) Page 3 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 , 1995. Mayor ATTEST: City Clerk APPROVED: ity o y C:s+JA / an USL o . 46on V J V .c TANK ■ , i !AlrM I R. SITE' v.A ' ' ISL • ;� J p- H- ... ARI 0 '�' •t"a<9 z0 27(+.. II 24 is .4 � ..n '.. I: rAc..r l+.�.A fires. � AIRV ta �= R m v0•s zs N �r ��, \ J IND AR I URI- 19 1_ r VICINITY MAP TK ANNEXATION NORTH 154 SUBURBAN ROAD �s-s AGENDA C_5 pppp +` I Dail: REM # �� VIII II IIIII�IIIIIII II I �Ill��I�III VIII IIIc City Of SAn tuts OBISPO 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403-8100 COUNCIL ACIDDIDIR MEMORANDUM CAO ARNDIR ACAO O FIRE CHIEF ATTORNEY APW DIR ER CLJMG O POLICE CHF a ClTo: City Council p C PEADMOMT� O UTIL DIR j. �_ a PERSDIR Via: Ken Hampian, Assistant City Administrator From: Arnold Jonas, Community Development Director O By: Whitney McIlvaine SUBJECT: Revisions to the resolution for the TK Annexation tax revenue agreement. Attached is a revised page 2. of the resolution accepting the negotiated exchange of property tax revenue and annual tax increment between the County and the City for the TK Annexation at 154 Suburban Road. The change to Section 2.(a) has been made for the purpose of clarifying the terms of the negotiated exchange. (The terms themselves have not been changed - only the description of the terms.) Under the terms of the exchange, as negotiated, the County will retain all of the base property tax revenue. Only a percentage of the tax increment, resulting from property development and consequent appreciation, will be transferred to the City on an annual basis - as stated in Section 2.(b) of the resolution. The Board of Supervisors has received the same resolution language. OThe City of San Luis Obispo is committed to including the disabled in all of its services,programs and 4ctivities. Telecommunications Device for the Deaf(805)781-7410. Resolution No. (1995 Series) Page 2 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. 40 to the City of San Luis Obispo (TK 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 ase property tax revenues shall be transferred from the County of San Luis Obispo to the City of San Luis Obispo in (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, 13.78343 percent, shall be transferred from the County of San Luis Obispo to the'City of San Luis Obispo in the fiscal year 1996-97 and each fiscal year thereafter.