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HomeMy WebLinkAbout03/07/2000, C6 - AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO CONCERNING PROPERTY-TAX REVENUES FROM THE BISHOP AND MAINO OPEN SPACE ANNEXATION (LAFCO APPLICATION NO. 58, CITY APPLICATION NO. 10-98). council Mar. 7, 00 j agenda aepoin "c6 CITYOF SAN LUIS O B 1 S P 0 FROM: . Arnold B. Jonas, Community Development Director Y14 19' Prepared By. Glen Matteson, Associate Planner SUBJECT: AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO CONCERNING PROPERTY-TAX REVENUES FROM THE BISHOP AND MAINO OPEN SPACE ANNEXATION (LAFCO APPLICATION NO. 58, CITY APPLICATION NO. 10-98). CAO RECOMMENDATION Adopt a resolution accepting the negotiated exchange of property-tax revenues and annual property-tax increments for the Open Space Annexation of Bishop Peak and the Maino Family site. DISCUSSION In May 1998, the Council recommended this annexation to the Local Agency Formation Commission (LAFCo) and approved zoning that will take effect upon annexation (attached 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). After the City has annexed these open space sites that it owns, no property taxes will be paid. Therefore, this action is a formality in meeting the procedural requirements for annexation. City and County staff have negotiated draft agreements for presentation to the City Council and to the Board of Supervisors. The Board is scheduled to consider this item during the day on March 7. If the Board of Supervisors and the City Council take the recommended actions, the LAFCo hearing for the subject annexation is expected to be March 16 or April 20. FISCAL IMPACT Approving the recommended agreement will allow the annexation to be completed, eliminating the need for the City to pay taxes on these sites and saving about$5,000 per year. 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 May 7), 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 resolve the matter. Attachments: Draft resolution approving tax-sharing agreement;Vicinity map openspac\tax sharing CARL C6-1 RESOLUTION NO. (2000 Series) A RESOLUTION OF THE SAN LUIS OBISPO CITY COUNCIL ACCEPTING A NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUKAND ANNUAL TAX INCREMENT BETWEEN THE COUNTY OF SAN LUIS OBISPO AND THE CITY, FOR THE BISHOP AND MAINO OPEN SPACE ANNEXATION (#58) 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 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 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 Annexation No. 58 to the City of San Luis Obispo (Open Space Annexation Area A,Bishop Peak, and Area B,Maino Family); and WHEREAS,the negotiating parties,to wit: Lee Williams, County of San Luis Obispo, and Ken Hampian, 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. C6-2 Resolution No. (2000 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 shall be transferred from the County of San Luis Obispo to the City of San Luis Obispo in the fiscal year 2001 - 2002 and each fiscal year thereafter in the amount of 12.54287 percent, before Educational Revenue Augmentation Fund. (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 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 2000. Mayor Allen Settle ATTEST: Lee Price, City Clerk C6-3 Resolution No. (2000 Series) Page 3 APPROVED: G: rge en,. Attorney C6=4 Vicinity Map Open Space Annexatic ANNX 10-98 — — — — — — Existing City Limits � I -- ---- ---- _.r r ---,— � •tom Bishop Peak site Maino - - -site V 1 Kilometer 1 Mile City of S.L.O.Community Development Dept. January 2000 `? '9 r-nn�