HomeMy WebLinkAbout10/17/2000, C3 - AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO CONCERNING PROPERTY-TAX REVENUE FROM A DE-ANNEXATION LOCATED AT THE END OF SOUTHWOOD DRIVE council
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CITY O F SAN LUIS O B I S P O
FROM: Ron Whisenand, Acting Community Development Directo(
Prepared By: Whitney McIlvaine,Associate Planner
SUBJECT: AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO
CONCERNING PROPERTY-TAX REVENUE FROM A DE-
ANNEXATION LOCATED AT THE END OF SOUTHWOOD DRIVE
CAO RECOMMENDATION
Adopt a resolution accepting the negotiated exchange ,of property-tax revenues and annual
property-tax increments for the detachment of territory as required as a prerequisite to any
jurisdictional change by the Revenue and Tax Code Section 99.
DISCUSSION
A dimension error on the Southwood Annexation map, recorded in 1973, placed the city limit
beyond a property boundary rather than coterminus with that boundary. This later resulted in a
remainder parcel inside city limits of less than 2000 square feet when the County approved Tract
681 just outside city limits. Please refer to the Assessors parcel map (Attachment #1) and to
Exhibit A of the resolution(Attachment#2).
Earlier this year the City issued a conditional certificate of compliance for the remainder parcel,
which required the property owners to process a de-annexation of the parcel to essentially correct
the previous mapping error and re-align the city limit with the actual property line. The property
owners are currently processing the de-annexation and a lot line adjustment in the County to
create a more conforming lot.
California law requires the City and the County to agree on division of the property taxes from
the territory proposed for annexation or detachment. (Revenue and Taxation Code, Section 99).
An explanation of the estimated tax revenue to be transferred to the County is attached.
(Attachment#3). The calculation follows an overall City-County agreement for annexations and
detachments,which was approved by both agencies in 1998.
This item is scheduled for consideration by the County Board of Supervisors on October 10,
2000 and by the Local Agency Formation Commission(LAFCo) on October 19,2000.
FISCAL IMPACT
The net fiscal impact to the City will be a loss of$5.15 annually, the City's share of property tax
revenue for a parcel of land approximately 1750 square feet in size and valued at$2,825.
ALTERNATIVES
The City and the County must agree on a revenue division before the detachment can be
completed. State law says that if the City and the County do not reach agreement within a 60-day
CM
Council Agenda Report—Tax Sharing Agreements for Fonte De-Annexation
Page 2
period, the detachment process stops and would need to be re-initiated for the detachment 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.
Attachments: #I —Assessors parcel map
#2-Draft resolutions approving tax-sharing agreements
#3 —Estimated tax revenue to be transferred to the County
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ATTACHMEW 2
RESOLUTION NO. (2000 Series)
A RESOLUTION OF THE CITY COUNCIL OF SAN LUIS OBISPO
ACCEPTING A 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 FONTE DE-ANNEXATION
(LAFCo Application # 12-R-00)
(City File No. CC 216-99)
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 otbawise 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 De-
Annexation No. 12-R-00 from the City of San Luis Obispo (Fonte De-Annexation); and
WHEREAS,the negotiating parties,to wit: Jim Grant, Assistant Administrative Officer,
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.
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Resolution No. (20s- . series) 2
Page 2 . ATTACHMENI�
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) The City of San Luis Obispo's portion of the base property tax revenue for the
land area shaded on attached Exhibit A shall be transferred to the County of San Luis Obispo.
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 , 2000.
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
APPROVED:
J ffr . J ge n, Attorney
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Oct 04 00 02: 11p SLO County Admin 805-781 -5023 p. 6
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EXHIBIT A
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P.O.B. NE COR OF
TRACT 317 1 1/2-IP N89'17'12"E 13.73'
"RCE 10276"
SOUTHWOOD DR. - LIMITEXISTLc CITY
LIMIT UNE
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NEW CITY
LIMIT LOT 18
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LOT 71 = c):
T 1/27P "RCE 10276" N i�`S� ��0
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SCALE 1"_40.
CITY OF SAN Z�
LUIS OBISPO COUNTY OF
SAN LUIS
OBISPO
R R M D E S I G N G R 0 U P DE-ANNEXATION
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3701 South Mgwm a:eet, San Lm 9bmpa Calita m 93101 805/543-1794
r` rwh k am 3"m u am W`iod Amim PES em DATE: 8-30-2000 SCA
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)CAL AGENCY FORMATION COMMI )N
NOTICE TO COMMENCE NEGOTIATIvN
FOR TRANSFER OF PROPERTY TAX REVENUE ATTACHMENT 3
Proposed Jurisdictional Change: Detachment from the City of San Luis Obispo(Fonte)
LAFCO FILE NO'. 12-R-00
Agenda Date for
Neaotiatiog Agencies: Start of Negotiations
City of San Luis Obispo October 10,2000
County of San Luis Obispo
Subject Property:
Tax Cade Area Parcel No. (s) Valuation
From: 003-000 004381-072 $2,825
To: 112-053 004-381-072 $2,825
Estimated proptax revenue to the City of San Luis Obispo generated within subject
erty
property:$5 fiscal year 2000-2001
Property Tax attributed to following local agencies:
Revenue from
Aciency Proposed Detachment Area
SLO City $5.15
General Fund 8.42
Air Pollution Control 29
County Library 55
Port San Luis 45
San Luis Flood Control .10
Nacimiento Water Control .09
SLO Community College 1.80
County School Service 1.08
Flood Zone 9 17
San Luis Coastal 10.15
Totals $28.25
Percentage of annual tax increment to be exchanged:No Change
Negotiation Period:•October 10 through December 10,2000
Property Tax Exchange ffective in fiscal year:2001.2002 ,
_ By. - o.-A L• (TD"e 1 Date:
Paul L Hood,Executive Officer
(Note:at dose of negotiations,each agency shall immediately transmit to the LAFCO Executive
Officer a certified copy of the resolution setting forth the amount of property tax revenue to be
transferred.For dependent districts,the Clerk of the Board of Supervisors shall transmit a certified
behalf of both parties. This will allow LAFCO to
copy of the Board's resoluHan adopted an
commence processing of the jurisdictional change.)
C- County Negotiator.County Auditor-Controller and Negotiating Agency
txrev
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