HomeMy WebLinkAbout01/21/1997, C-4 - CITY ACCEPTANCE OF AN AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO REGARDING THE PROPERTY TAX REVENUES AND ANNUAL TAX INCREMENT FOR ANNEXATION NO. 44, A PORTION OF SUBURBAN ROAD FRONTING THE TK ANNEXATION.council "°�°
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CITY O F SAN LUIS O B I S P O
FROM: Arnold Jonas, Community Development Director
Prepared By: Whitney McIlvaine, 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 Annexation No. 44, a portion of Suburban Road fronting the
TK Annexation.
CAO RECONEMMNDATION:
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
Annexation No. 44 covers that portion of Suburban Road along the frontage of the TK Annexation,
as shown on the attached vicinity maps. As approved, the TK Annexation includes only that
portion of Suburban Road dedicated for purposes of road widening. After further
consideration, the Public Works Department and County Engineering staff concluded that the
boundaries of the annexation should be amended to include the full width of Suburban Road
along the TK frontage. On May 17, 1996, the City Council approved a resolution requesting that
the Local Agency Formation Commission (LAFCo) approve the annexation.
On January 18, 1997, the San Luis Obispo County Board of Supervisors is scheduled to initiate a
30-day period (January 18 to February 18) 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. A copy of the resolution that will be considered by the Board is attached.
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.
While this procedure is a legally required prerequisite to consideration of annexation, no change to
the City's property tax revenues will occur as a result of this annexation since the area to be
annexed is only right -of - -way.
Attached:
Draft Resolution for the City Council
Draft resolution to be considered by the County Board of Supervisors
Vicinity Maps
e -114
RESOLUTION NO. (1997 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 ANNEXATION #44
(PORTION OF SUBURBAN ROAD FRONTING THE TK ANNEXATION)
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
Annx X44 - Tax Transfer
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.44 to the City of San Luis Obispo; 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) No annual tax increment 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
d -w -3
Annx #44 - Tax Transfer
Page 3
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:
/:V-7W5► 9
the foregoing resolution was passed and adopted this day of ..1997.
Mayor Allen Settle
ATTEST:
City Clerk Bonnie Gawf
APPROVED AS TO FORM:
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IN THE BOPM OF SUPERVISORS
COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA
PRESENT: Supervisors
ABSENT:
day ------- --------------- ,19 - - - --
RESOLUTION NO.
RESOLUTION 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
The following resolution is hereby offered and read:
WHEREAS, in the case of a jurisdictional change other than a city incorporation or
district formation which will after 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 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
resolutions to him 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
Annexation No. 44 to the City of San Luis Obispo (Suburban Road); and
WHEREAS, the negotiating party, to wit: Lee Williams, Deputy County Administrator,
County of San Luis Obispo, on behalf of the County and Ken Hampian, Deputy City
Administrator, on behalf of the 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. c - y -7'
NOW, THEREFORE BE IT RESOLVED AND ORDERED by the Board of Supervisors
of the County of San Luis Obispo, State of Celifomia, as follows:
1. That the recitals set forth above are true, correct and valid.
2. That the County 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, Zero (0),
after the ERAF calculation, shall be transferred from the County of San Luis Obispo General
Fund 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.
4. That the County 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.
Upon motion of Supervisor seconded by Supervisor
and on the following roll call, to wit:
AYES:
NOES:
ABSENT:
ABSTAINING:
the foregoing resolution is hereby adopted.
ATTEST
Clerk of the Board of Supervisors
By:
Deputy Clerk
By:
Chairperson of the Board of Supervisors
/ED AS TO FORM AND LEGAL EFFECT
B. LINDHOLM, JR\ A
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