HomeMy WebLinkAbout07/18/2000, C6 - AGREEMENTS WITH THE COUNTY OF SAN LUIS OBISPO CONCERNING PROPERTY-TAX REVENUES FROM FOUR ANNEXATIONS IN THE AIRPORT AND MARGARITA AREAS council Ncft D� Jul.18, 00
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CITY O F SAN LUIS O B 1 S P 0
FROM: Arnold B. Jonas, Community Development DirectodD F", 41
Prepared By: Glen Matteson, Associate Planner
SUBJECT: AGREEMENTS WITH THE COUNTY OF SAN LUIS OBISPO
CONCERNING PROPERTY-TAX REVENUES FROM FOUR
ANNEXATIONS IN THE AIRPORT AND MARGARITA AREAS
CAO RECOMMENDATION
Adopt resolutions accepting the negotiated exchange of property-tax revenues and annual
property-tax increments for the four annexations, under which the County would receive all
property taxes and the City would receive all sales taxes.
DISCUSSION -
At previous . hearings, the City Council recommended to the Local Agency Formation
Commission (LAFCo) that the following annexations be approved, and adopted zoning that will
take effect upon annexation(vicinity map,Attachment#1):
Informal Name City Appl.# LAFCo# Planning Area Current Use Proposed Development
Fane Supply 206-99 60 Airport cultivated land retail
A&R Welding 188-99 59 Airport retail&wholesale service businesses
Pacific Bell 206-99 61 Airport utility yard utility yard
Acacia Creek
Sports Fields 177-99 63 Margarita grazing land City sports fields
Lathrop PD 79-99 63 Airport vacant land offices&Internet serv.
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 draft agreements for presentation to the City
Council (Attachment#2). The Board is scheduled to consider this item during the day on July 18.
The agreements follow an overall City-County agreement for Airport Area annexations, which
was approved by bothagencies 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, one of the properties to be annexed
generates substantial sales tax, and one is expected to do so following relocation of a retail use.
C6-1
Council Agenda Report—tax sharing agreement
Page 2
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 September 9), 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. Departing from the previous agreement with the County would require re-
negotiation of the approach to sharing revenues from the Airport Area.
Attachments: #1 -Vicinity map
#2 -Draft resolutions approving tax-sharing agreements
masp\sports fields\tax sharing CAR
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Attachment 1
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- Attachment 2
RESOLUTION NO. (2000 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 A& R WELDING ANNEXATION
(LAFCO#59; CITY FILE 188-99)
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 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. 59 to the City of San Luis Obispo(A& R Welding); 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.
C6-4
Resolution No. (2000 aeries) 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 2000.
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
APPROVED:
lefWG. Jog , Ci Attomey
C6-5
Attachment 2
RESOLUTION NO. (2000 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 FARM SUPPLY ANNEXATION
(LAFCO#60; CITY FILE 206-99)
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 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. 60 to the City of San Luis Obispo (Farm Supply); 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.
C6-6
Attachment 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) 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 2000.
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
APPROVED:
A4t Jorgin Ci ttomey
C6-7
Attachment 2
RESOLUTION NO. (2000 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 PACIFIC BELL ANNEXATION
(LAFCO #61; CITY FILE 206-99)
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 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. 61 to the City of San Luis Obispo (Pacific Bell); 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.
C6-8
Attachment 2
Resolution No. (2000 series)
Page 2
NOW,THEREFORE,BE TT 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 2000.
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
APPROVE
J Jo ge 4, C Attorney
C6-9
Attachment 2
RESOLUTION NO. (2000 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 ACACIA CREEK ANNEXATION
(LAFCO #63; CITY FILES 79-99 & 177-99)
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 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. 63 to the City of San Luis Obispo(Acacia Creek); 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.
C6-10
Attachment 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) 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 2000.
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
APPROVED:
21
effrey . Jo Ci 'Attomey
C6-11