HomeMy WebLinkAbout07/16/2002, C10 - AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO CONCERNING PROPERTY-TAX REVENUES FROM THE IRISH HILLS council M.u,�D� 7/16/02
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CITY OF SAN LUIS OBISPO
FROM: John Mandeville, Community Development Director"\
Prepared By: Glen Matteson,Associate Planner
SUBJECT: AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO
CONCERNING PROPERTY-TAX REVENUES FROM THE IRISH HILLS
OPEN SPACE ANNEXATION (LAFCO APPLICATION NO. 68, CITY
APPLICATION NO. 42-02).
CAO RECOMMENDATION
Adopt a resolution accepting the negotiated exchange of property-tax revenues and annual
property-tax increments for the Irish Hills Open Space Annexation.
DISCUSSION
The Council recommended this annexation to the Local Agency Formation Commission
(LAFCo) in April 2002, and on July 2, 2002, approved zoning that will take effect upon
annexation (see 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 annexation, no property
taxes will be paid on City-owned lands, but they will continue on the private Stapleton property.
Property taxes from this private parcel will continue to accrue to the County. City and County
staff have negotiated draft agreements for presentation to the City Council and to the Board of
Supervisors. Both the Council and Board are scheduled to consider this item at their respective
July 16 meetings. If the Council and Board act on the recommendation, the LAFCo hearing for
the subject annexation will be on the next day, July 17.
FISCAL IMPACT
Approving the recommended agreement will allow the annexation to be completed, eliminating
the need for the City to pay taxes on this land and saving as much as $12,000 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, 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:
1. Vicinity map
2. Draft resolution approving tax-sharing agreement `/^1
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Attachment 1
Annexation 42-02: Irish Hills Open Space
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- Attachment 2
RESOLUTION NO. XXXX(2002 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 IRISH HILLS OPEN SPACE ANNEXATION(#68)
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. 68 to the City of San Luis Obispo (Irish Hills Open Space area); and
WHEREAS, the negotiating parties, to wit: Jim Grant, 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 thepublic interest that such negotiated exchange,of property tax
revenues and annual tax increment be consummated.
C10-3
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Resolution No. xxxx (2002 Series) 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) Annual tax increment shall be transferred from the County of San Luis
Obispo to the City of San Luis Obispo in the fiscal year 2003 - 2004 and each fiscal year
thereafter in the amount of 16.4976 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 , 2002.
Mayor Allen Settle
ATTEST. APPROVED:
Lee Price, City Clerk ;pllieflt Jor ens Ci Attorney
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