HomeMy WebLinkAboutCC 9 ANNEXATION 151 06-03-91CONSENT CALENDAR NO. 9
6-3-91
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SATE:
JUNE 31 1991
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: -COMMUNITY 'DEVELOPMENT DEPARTMENT
SUBJECT: MASTER PROPERTY TAX TRANSFER AGREEMENT TO THE PROPOSED
ESPLANADE/HOLT ANNEXATION NO. 151
RECOMMENDATION
Approve the Master Property Tax Transfer Agreement to the Proposed
Esplanade/Holt Annexation No. 151 by the adoption of City Council
Resolution No. 91-80 as submitted or revised.
BACKGROUND
On January 21, 1991, the City Council authorized the application
for the Annexation of territory known as Esplanade/Holt Annexation
No. 151. In addition, the City Council confirmed the application
of the Master Property Tax Transfer Agreement and a 45 City/55
County tax share ratio of anticipated revenues within the proposed
annexation area. The Master Property Tax Transfer Agreement
between the County of Orange and the City of Tustin provides for
property tax exchange in areas annexed by the City. The Agreement,
however, does not cover annexations over 100 acres. Annexations
over 100 acres must be separately negotiated. While the County has
in the past accepted the historical tax share ratio for annexation
areas in Tustin over 100 acres, they rejected the Council's tax
share resolution adopted on January 21st and requested that
Annexation 151 be negotiated.
In negotiating the tax share ratio with the County, it was the
County's objective to fully offset any adverse impacts on the
County General Fund as a result of the annexation. Based upon
information available from the Auditor -Controller's office, the
following revenue was available for negotiation.
County General Fund
County Structural Fire Fund
OCSLAD (street lighting)
CSA 5
$384,208.00
248,558.00
37,382.00
2,577.00
Total $672,719.00
City Council Report
Re: Annexation No. 151
June 3, 1991
Page 2
Instead of the 45/55 tax share ratio, the County has agreed to a
39/6l City/County ratio . based on figures calculated by County staff .
and: their original negotiation' position to offset any impacts. on
the- County General Fund (Exhibit A compares the 45/55 and 39/61%
ratio) .
It should be noted that the County originally proposed a 35/65
split but the City of Tustin was able to raise several issues that
disputed the County's data justifying the 35/65 ratio. The 39/61
proposed tax share ratio is still a significant departure from
previous actions by the County and the City should expect that any
action on their part will provide a precedent in any future
annexation negotiations. However, it is our understanding that
without approval of the attached tax share agreement by the City
Council on June 3rd, Annexation No. 151 will not be heard by LAFCO
on June 19, 1991.
Christine Shingle n
Assistant City Manager
Community Development Department
Attachment: Master Property Tax Transfer Agreement
EXHIBIT A
PROPOSED TAX SHARE RATIO ANNEXATION NO. 151
City General Fund Share
Historical
45155 Tax Share Ratio
$302,724
County General Fund Share 369,995
$672,719
Proposed
3 9,Z 61 Tax Share Ratio
$262,360
410,359
$672,719
° Please note that the County Fire fund would lose $248,552 to City of
Tustin. This fire fund revenue would be, however, offset by Tustin
General Fund fire contract cost increases.
° OCSLAD and CSA 5 revenues would'be transmitted to City of Tustin in
amount of $39,959.00.
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RESOLUTION NO. 91-80
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF TUSTIN, CALIFORNIA,
APPROVING A MODIFICATION TO THE
MASTER PROPERTY TAX TRANSFER
AGREEMENT ON THE PROPOSED
ESPLANADE/HOLT ANNEXATION NO. 151
WHEREAS, the County of Orange and the City of Tustin
have previously entered into the Master Property Tax
Transfer Agreement dated November 18, 1990; and
WHEREAS, annexations over 100 acres which are
developed/substantially developed are excluded from the
terms of said agreement and are subject to separate
property tax transfer negotiations; and
WHEREAS, the County Administrative Officer and the
City Manager of the City of Tustin have negotiated an
exchange of property tax revenues for the City of Tustin.
Annexation No. 151, an annexation which is over 1.100 acres
and is developed/substantially developed pursuant to
Section 99 of the Revenue and Taxation Code.
NOW, THEREFORE, BE IT RESOLVED, that the City
Council of the City of Tustin does hereby:
1. Determine that the reallocation of property
tax revenues from the proposed Annexation No.
151 to the City of Tustin shall be governed by
the terms of the Master Property Tax Transfer
Agreement said property deemed to be
developed/ substantially developed, except that
Section 5 of the Master Property Tax Transfer
Agreement does not apply to the proposed
Annexation No. 151 to the City of Tustin and
that a City -County tax ration of 39 percent
City and 61 percent County shall be used in
lieu of the historical City -County tax ratio
for both the base revenues and growth in tax
revenues calculations.
2. Direct the City Clerk to notify the Executive
officer of the Local Agency Formation
Commission and the County of Orange Chief
Administrative Office of the City's
determination.
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Resolution No. 91-80
Page 2
PASSED AND ADOPTED at a regular meeting of the
Tustin City Council, held on the 3rd day of June, 1991.
CHARLES E. PUCKETT, Mayor
MARY E. WYNN, City Clerk
STATE OF CALIFORNIA)
COUNTY OF ORANGE) SS
CITY OF TUSTIN)
CERTIFICATION FOR RESOLUTION NO. 91-80
MARY E. WYNN, City Clerk and ex -officio Clerk of the City
Council of the City of Tustin, California, does hereby
certify that the whole number of the members of the City
Council of the City of Tustin is five; that the above
and foregoing Resolution No. 91-80 was duly and regularly
introduced, passed and adopted at a regular meeting of
the City Council held on the.3rd day of June, .1991, by
the following vote:
COUNCILMEMBERS AYES:
COUNCILMEMBERS NOES:
COUNCILMEMBERS ABSTAINED:
COUNCILMEMBERS ABSENT:
MARY E. WYNN, City Clerk