Loading...
HomeMy WebLinkAboutCC RES 80-1191'7 18 :L9 3O RESOLUTION NO. 80-119 A Resolution of the City Council of the City of Tustin California, AGREEING TO ACCEPT THE EXCHANGE OF PROPERTY TAX REVENUES IN CONJUNCTION WITH ANNEXATIONS PURSUANT TO A MASTER AGREEMENT WHEREAS, Section 99 of the Revenue and Taxation Code requires resolutions of agreement by local agencies for the exchange of property tax revenue as a prerequisite to the issuance of-a certificate of filing of an annexation proposal; and WHEREAS, pursuant to Section 99(d)-of the .Revenue and TaxatiOn COde, a county and any local agency may develop and a. dopt a Master Property Tax Transfer Agreement; and. ~ .'WHEREAS, a Master Property Tax Transfer Agreement. has been prepared and adopted by the Board of Supervisors of Orange-County on October 28, 1980, and by the City Council of the City of Tustin on November 3, 1980; and WHEREAS, said Master Agreement covers any completed and effective annexations between January 2, 1978 and July 24, 1979, as well as those pending uncompleted and future annexations subject to the tax re-allocation provisions of Section 99 of the-Revenue and Taxation Code, NOW THEREFORE BE IT RESOLVED that the City Council of the City of Tustin hereby agrees to accept the negotiated exchange of property tax revenue pursuant to said agreement attached hereto and a part hereof. · BE IT FURTHER RESOLVED that the City Clerk shall furnish a Certified Copy of this resolution to the County Auditor, Executive Officer of LAFCO and the Clerk of the Board of Supervisors of Orange County in satisfaction of the requirements of Section 99(b) of the Revenue-and Taxation Code. PASSED AND ADOPTED at a regular meetin.q of the Tustin City Council held on the 3rd day of November, 1980. Mayor . ~ ' ATTEST: STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS' CITY OF TUSTIN ) Mary E. Wynn, City Clerk and eX-officio Clerk of the City Council of the City of Tustin, California, does hereby certify 'that t~e whole number of the members of the City Council of the City-of Tustin is five; that the above and foregoing Resolution No. 80.-119 was duly and regularly introduced, passed and adopted at a regular meeting of the City Council held on the 3rd day' °fNovember · 1980. AYES: NOES: ABSENT: COUNCILMEN: SALTARELLI ,__E...DGAR, KE~N~...E..DY, _SHARP ,_._ H0..E. STEREy COUNCILMEN: NONE L .... ~ ., ,4 .... ~ ~ .i.. ....... ~ ~ . ~. COUNCILMEN: NONE Mary E. Wyn~, J Cierk~ City of T~tin California · '1 ~7 " 9 I0 11 1.2 ]'3 14 18¸ ~ 0 2! 22 - 23 24 ~ 25 _.o 26 MASTER PROPERTY TAX TRANSFER AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF TUSIIN TO PROVIDE FOR PROPERTY TAX EXCHANGE · IN AREAS ANNEXED BY THE CITY day of :. October -_ .... THIS AGREEMENT is entered into this 28th~ i9=80 =, by and between the County of Orange, hereinafter "COUNTY", and City of Tustin ....... , hereinafter' "CITY" followS: .. =__= ....... _ ...... · as . 1. The purpose of this Agreement is-to provide a uniform and-pre- dictab'le method '.of 'e. xchanging, property tax revenues between CITY, COUNTY,. . · anq certa~.n special districts governed b7 the Board of SuPervisors :~hen . CI~¥ annexes an area. previously unincorporated.. This A~reement :[.s entered into pursuant to section 9.9 (d) of the Revenue and Taxation Code. · (Hereafter statutory references are to the Revenue and Taxation Code _. · unless otherwise- indicated. ) ... ' " .. · · . · ' . '2. This Agreement covers an~ completed and effect'ire annexations to. · . CITY file? with the State Board of..Equalization between. January 2, 1978, · and July 24, 1979, as well as those pending uncompleted and future annexa- - . tions subject to the tax reallocation provisions of section' 99. Any .. · · · annexations cOmpleted on or before July 24, .1979 which have heretofore. · o 'been assigned t.o. an existing tax rate area by the state Board of Equali'- zation are excluded from this. Agreement. . - o 3. For any annexations to CITY ~iled with the State Board of Equa/li- zat±on between ,January :2~ 1~78 and. January 1~-1~7~ and between 'January 2~ . 1979 an8 July 24, 1979 which were made effective on the tax roll-s respec-... tivel7 for~ fiscal 7ears' 1~7~-80 and 1~80-81 the red±stribut£on of taxes ..",. o will first be effected beginning' with the proceeds of the fi.seal 1980-81 o. For.any annexations filed with the State Board of Equalization tax roll. '3 4 7 11 12 1:3 1-4 18 19 2¸0 22 23 24 ~ 25 o~ 26 after JUly 24, 1979 ,e redistribution of pr°p~"t 'tax revenues Will'' · in the fiscal'year in which the tax roll '.iS first changed to reflect the annexation, i.e. ~ the fiscal 7oar in which the annexation is effective property tax purposos pursuant to' Government Code Section 54S02. 4. This agreement may be 'amended 'at any time by the mutuaI c°nsen.t · · of the parties. Any such amendment will apply only to those annexations · . . completed thereafter. . -- ''5. The histOric 'tax ratio between CITY and COUNTY shall be use<~, :.~ · a basi's to redistribute property tax revenues ~umong the County general - fund, ~ertain special districts and CITY.' · · · . · The histo~'i~ CITY-.COUNTY tax ratio is o o was arrived at. in tho £ollowi. ng manner: ' .~ · .44954885957' - 55045114043, · a. The Cou~.ty Auditor-Controller has d~termin'ed the 197~-80 property tax allocations to various jurisdictions in acCordance wit,L: Section 97.5. .. i . '' . b.' The total .property tax allocation for CITY and the total ~roperty tax al'lOcation for th~ .County ~eneral fund. within calculated. The .aBove ratio ~:epresents the 'percentago of oach to ~- o · total of the two. The above historic tax ratio shall remain constant throu9 - out the term of this Agreement and is to be used for all anfiexati~' covered by this Agreement withouE regard to the year t. hey take 6. For the purpose of determining the redistribution of property tax revenues in newly annexed ar~as pursuant to this Agreement, prope~- contained 'in each proposed annexation shall be determined tO be develo~>.~:., substantially developed or undeveloped in acCordance with the procedure set forth in this paragraph.' . . . . / 10 12 '14 18 21 22 23. 24 25' 26 2.7 28 . o · =- a. Annexations filed with the Local .... Agen_c_y For. mation Commission after the effective date of this Agreement: __ Prior'. to the filing of a resolution' or petition for annexa- . tion with the Local Agency Formati6n Commission, the prOper~y proPoSed for annexatiOn shall be 'determined to be developed/substan- tially developed or undeveloped as follows: · - . ..... (1) (a) If the' property is residential in nature, is wholly subdivided and at least 75 percent of the subdivided, lots . have existing r'esidential structures on'th~,-~'the'p~'°perty' shall be deemed developed/substantially developed. (b) If the proPerty is .wholly residential in nature, .. wholly subdivided and less than. 25 percent, of the subdivided lots have existing residential structures on them; and there are no parks, park sites, school sites, or other public improvements or faCilities on the property (excluding streets highways,, utility lines), the property shall 'be deemed undeveloped. ('c) If the entire property is .being 'used for agricultural purposes, the property shall be deemed undeveloped. · · (d) If the property has no. parks, park sites, schoOl . . sites, oil exploration or produCtion facilities, or Other $.tructures~ improvoments or facil±t±es on it~ ~het:hor or pr±vate~ it. shall be deemed-Undeveloped. (2') ' I'f 'the property fails to fall into any of the categories ~ - defined in subParagraPh a. (1) above, then the property shall be .. deemed and treated developed/substantially developed or. undeve- o loped if the County Administrat'ive Officer and the City Manager, or their designees, agree in writing. · . .,,. . · I0 12 13 14 18 19 20 21 '22 23 ~4 ~' 25 ..o 26 / 0 /. (3.) If such written agreement is not-reached within thirty · days following the City Manager's written request to the County Administrative Officer and the annexation is under one hundred acres, then the Local Agency FOrmation commission shall .de%ermine? · whether or-not 'the property is to be deemed and'. treated as 'doVe'I loped/substantially developed or undeveloped° SUch determination~ · may be made B7 the Local Agency Formation Commission at the of its final determination regarding the annexation. In m~kin · the above determina'tion regarding the status of the property the . Local Agency Formation Commission shall consider the recommenda- tions of both COUNTY and CITY, if any, and shall consider the · following factors if. applicable: · {a) Tho ratio of asse$$od value of ~provemonts .to assessed value of land; (b) The density of population; (c) The extent of commercial, residential and industria'~' development; (d)' The extent of public facilities, improvements and properties; ' ~ (e) Existing COUNTY and proposed CITY land use stander ~ for the property to be annexed, and surrOunding areas; and (f) Any other factOrs it deems appropriate, CITY and COUNTY shall file resolutions with the Local[ Agency Formation Commission. pursuant to section 99(b) agreein?; l- to be bound by its determination whether the property is deve- loped/substantially, developed or undeveloped. -4- (4) If such written agreement is ~not reached within thirty days fOllOwing the City Manager'S request-to the 'county Admini- strative Officer. and the annexation is one hundred acres or more, such determination shall be ma~e by the Executive Officer of the Local Agency Formation Commission On the basis of the same matters required to be considered by the Commission. Such deter- ruination shall be made prior to the filing of the resolution or - . 8 Petition. for annexation with the Commission. . b. Annexations completed or f iled..with the Local Aggn'-cy Formation 11 Commission on Or before the effective date of this Agreement: .... - -- ............... - '": "-'-' · '~ : ---" ~' ~1~ Attached hereto, Exhibit A, is a list of any annexations ' 12 13 14 ~ 15 covered by this Agreement which have. been completed or were filed · with the Local Agency FOrmation Commission on or' before the' effective · date of this Agreement. Said annexations shall be treated as deve- loped/substantially developed' or undeveloPed as indicated in said exhibit. · . . 7. in the case of annexations to CITY of unincorporated areas .the 18 following methods will be Used to make the-section 99 adjustments to the ~"'~9 allocation of property tax revenues made pursuant to section '97 (a), and ~0 the proPortions allocated pursuant 'to. section 98 (e), to the County general 21 fund; certain special districts governed by the Board of Supervisors; and 22 'CITY. 23 24 ~ 25 Z 26 o 2'1 ~ 28 a. If the area .to be annexed is developed/substantially deve- loped the amount .allocated 'to..the CITY and COunty general fund with .. respect to each new tax rate area pursuant to section 97.5(a) in the first-fiscal year in which the annexation is effective for tax pur- poses is d. etermined as' follows. 'In eaCh new tax rate area withi~n.: · the area annexed the amount which would have been allocated to -5- : .:': '. . . . . .. . . . .... ~ ~ ....................... : .... . ...... . ...... ' ............ .? ~-.~..--,-~ -? ............. · ....... .,-.~-- .-. ......... .~.~,,~... ...... ~,.~.. ....... : -~.-. ...... -,~.~w~-~ ........ -r.~-~,~,~,~,,,~-~,:~.~, :~-~. ~,..,~. ~-,~. ~- .~ - I 10 I1 12 ~ ~ 16 og I'7' 18 I9 20 21 22 23 24 ~ 25 ~o 26 ~ 27 County general fund under, sections 97 (a) and 98(e), assuming 'CITY entitled to a zero allocation, shall be' divided between CITY and th,~.~: County general .fund on the basis of the CITY-COUNTY historical tax ratio. Additionally in each new tax rate area the amount which have been allocated, pursuant to sections 97 (a) and 98(e),. assuming CITY is entitled to a zero allocation, to any special' district o governed by the Board of Supervisors whiCh transferred 'complete so~ viCe responsibility to CITY as a result of the annexatiOn, shall ~. determined. Said amount shall be divided between CITY and %he Counts' general fund on the basis of the historical CITY-COUNTY tax ratio.. · In the event any special district governed by the Board of Supervi-. sors has transferred 'Par. tial, but not complete, service responsibi- · · · lity to 'CITY the transfer to COUNTY and CITY from said district under this .paragraph shall be as agreed by CITY and COUNTY. : . b. If the area to be annexed 'is undeveloped the amqunts alloc..- ted to the CITY and County general fund shall be determined in the same manner as subparagraph "a" above, provided that the.amount allocated to the County .general fund in each new tax-rate area · pursuant to section 97.5(a) in the first fiscal year and each Year. thereafter shal. 1 be at least equal to the allocati°n to the Count~ general fund ,in the same geographical area in the fiscal year prior to that in which the annexation is effective for tax purposes. 8. The amounts' alloca%ed pursuant to paragraph 7 in the first fis~' cal year shall form the basis for allocations in subsequent fiscal 7e~-"' ~ as oLherw±se .provided by sections ~7, ~7.5 and 98; provided that the .. --6--' ! amountS guaranteed to the County general fund in subparagraph'.7b shall 'be . 2 ignored in determining the amount of property tax revenue allocated in ~ the prior year for purposes of sections 97(a) and 98(e).- ' Attached hereto, 4 Exhibit B,. 'is an illustration of the calculations contained in p~ragraphs 5 ? and 8 'as applied to-a hypothetical annexation' 6 9. Annexations of one hundri~d acres 'or moro which are ~'"3 substantially develoCed are excluded from this Agreement. Tho Parties' 8 shall negotiate a separate agreement for such' annexations. .~ 10" Annexations of One hundred acres or' more which are undeveloped 10 are subject to this Agreement provided the parties may negotiate a sepa-. ' 11 rate- a~reement for such annexations. ' ... . 12 11. .The parties shall take all actions necessary to effectuate this "~- 13 Agreement, including the filing o.f resolutions pursuant to section 99(b) 14 agreeing to accept the exchange of property taxes provided for herein. ~,~z~ 15 12. The provisions of this Agreement' Will determine the adjustments, i.i~ 16 pursuant t° section 99, resulting from annexations to CITY. It is. under ~o §: 17 stood, that. any such determination will be subject to subsequen~ adjust- 18 ment, 'as provided by applicable statutes, in the event.' all or any portion ~9 of the. annexed territorY is subsequently included in another' jurisdic- 20 tional change. ...- · -. .. 21 13. This Agreement Shall commence the date last executed below and' ... 22 continue in effect until terminated i~ the following manner ' Either. 25 party may terminate .this 'Agreement on at least six' months' written notice 24 provide'd that this Agreement will ~ontinUe %o apply 'to~..,~~,. a~nexations ' ~. 25 filed wit~ the Local 'Agency Formation Commission' prior.,'-t°~'the date. such ~ 26 no. tice is given, i . ~ . '9 ,11 13 14 J),,, Id, I- ~-'~ -15 ~,j U 1 g 7 18 19 2O 2! 22 23 24 25 , .._.o 26 ~ . ~ 27 {~ 28 14. The terms "property tax revenues'", "Jurisdiction". , and "jUris- dictional change'' as used 'herein shall have the same meaning' as containe~ in s~ction 95. The term "special d.istrict" shall have the same meaning . : . as contained in sections 2215 and 2216... · IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year dated below: . Dated - Signed and certified that a copy of this document has been delivered to the Chairman of the Board- . · JuNE ALEXANDER "' - Clerk of the Board of Supervisors · APPROVED AS TO. FOR/4: ADRIAN KUYPER, COUNTY CouNSEL . DATED:" ,'N0,vember 3, 1980 COUNTY OF ORANGE, a poli. tical subdivision of the State of California ' By_ Chairman of its Board of Supervisors . ,,COUNTY,, -8- Annexation No. 117. Annexation No. 1'24 Annexation No.- 97 .Annexation No. 107 Annexation No. 109 Annexation No. 110 Annexation No. 111 Annexation ~kb. 114 Annexation kb. 115 Ann~exation ~kb. 1-16 Annexation No. 118 Annexation No. 119- Annexation ~No. 120 Annexation No. '121 Annexation'Ab. 122 Annexation No. 123' Annexation Nk). 127 Peters Canyon Santa Ana Fwy-Myford - Complet ~.ed_' -976/79 Filed' . Main st. - Freeway Browning/~4itchell/R-~d Hill IslaLnd 9/3/80 sycamOre/Walnut/~4itchell Island Filed San Juan 'Green Valley Island "9/22/80 Nisson - "B" Street T2 10250 "B" Street Warren - Ne%~0ort Green Valley- R-=d Hill Ne%~0ort- Sycamore ProSpect- 17th St. "B" Street - McFadden ' Irvine Blvd. -Dean St. Tract Map 11050 San Juan- Red Hill Holt - HamalaTM undevel. undevel. Island '1'2/21/79 developed Island Filed . Partial 12/4/78 Partial 1/15/79 Partial 1/15/79' Partial 1'/15/79 2/20/79' Partial 6/4/79 Pnsula Filed Partial Filed Island Filed Filed developed developed develol~d developed i · developed developed- developed developed developed developed developed developed developed developed .. IllUstration of Property TaX Redistribution Following a .City Annexation Page 1 of 4 . 1'. In fiscal year 1 the city exists entirely in tax rate area (TRA) 1-001. 2 TRA's (88-001 and 88-002) represent the unincorporated area adjacent to the city and are classified as undeveloped under paragraph 6. 2. During fiscal year 1 an annexation is completed prior to Janua'ryl 1st so that it' is effective for the fiscal year 2 tax roll, creating TRA's 1-002 and 1-003' on the fiscal year 2 tax roll. No other jurisdictional changes took place. 1-002 88-001 1-003 - 88-002 3. Gro~h in assessed value from fiscal'y.ear 1 to fiscal year 2 is 10% for the geographic area represented, by TRA 1-0~2 and 10% for the balance of 88-001. Growth in assessed value from fiscal year 2 to fiscal year 3 is 110% for TRA 1-0'02. 4. The historical City-County ratio is .5 : .5. 5' Pertinent calculations in fiscal year 1: . . 1-00! City ' · County General Fund Ail Special Districts Schools 88-001 · city _ County General Fund Special District A- Special District B (services no~ assumed) Schools ,. · Rev. ·& Tax. Code Sec. 98(e) factors 97.5 amount. .16 .16 .08 .60 i.00 .00 .20 .05 .- .10 .65 $-0- 240 60 120 780 - 1.00 · ~ ~ $1,200' · a. Special District A represents a Special District governed 'by the Board of Supervisors whose--service responsibilities are fully assumed by the- city due to the annexation. - .. . b. The city did not exist in TRA 88-001 in fiscal year 1 and-therefore has no factors.or amounts allocated to it.' · · 6. A portion of TRA 88-001 representing 25% of the assessed value in year 1 .will, due to the city annexation, become TRA 1-002 in year 2. The pertinent calcula- tions for fiscal year 1 would be as follows: 1-002 City County General Fund Special District A Special District B Schools -. Balance of 88--001 'City County General Fund Special District A Special District B Schools · 98(e) . factors .00 .20 .05 .10 .65 1.00 .00 .20 .05 . .10 .65 1 O0 97.5 . amount 60 15 30 195 ,. ~. 180 45. 90 .' · 585 $900 = . Auditor-controller does sections 97, 97.5, 98 and 99 calculations Page 1-002 Fiscal Year 1 98 (e) 97.5 factor amount (1) 98(e) - factors Fiscal Year (2) 97(a) amount 98 (e) (3) amount (4). Total :City County General Fund Special. DistriCt A Special District B Schools · . . 88-001 · City County General Fund Special' District A SPecial District B Schools Footnotes _ __ Did not exist .125 .125 .00 .10 .65 1.00 $ -,-O2- $ '41.25 41.25 - '33.00 . 214 .50 "- $ 330.00 o00 .20 .05 .10 .65 " 240 6O 120 780 $1,200 .00 .20 .05 .10 .65 ' 1.00 -o- '$ -o- 240 (42.00) 6o - (~o. 5o) 120 . (21.00) 780 ' ' (136.50) · 200 -~: (2~0.00) $ 22.50 60.00 214. f, ' $330.0( .. 198.00 49.50 99.00 643.50 $990.00 · . (1) Section 98(e) factors from the predecessor TRA are used for new TRA 1-002. The County General ~md factor-of .20 plus the Special District A factor of .05 equal 25 which is split between City and County General Fund in the historical ratio of .5 : .5. - . . . .. . . · (2)' The section 97(.a) amount is .the section 97.5 amount of'the Prior year. The section 97.5 amount for 1-002 was -0- in the prior year. The section 97.5 amount for 88-001 was the entire fiscal year 1 amount for that TRA. . · . (3) For 1-002, because there was no prior year section 97.5 amount, the entire allo- cation for all 'entities is made under section 98(e). For 88-001, 'because the assessed value has decreased, the amount calculated under section 98(e) is negative and reduces the 'section 97 (a) amount to arrive at the total. .. · . The portion, of 88-001 which became 1-002 was $300 in year 1 x 10% increase = $330 in year 2. '-' "-' . The ~ortion of 88-001 not' annexed was $900 in year 1 x 10% increase = $990 in .year 2. Compared to $i,200 of year 1 results in $(210) for year 2. .. (4) In TEA 1-002, City and.County General Fund amounts after section 97 (a) and section 98(e) calculations were .$41.25 each. Paragraph 7b provides the County General Fund shall not receive less than the section 97.5 amount for the year prior ~to the annexation (that is $60). Accordingly the City and County General Fund amounts were adjusted. 1-002 Auditor-controller does sections 97, 97.5, 98 and. 99 calculations (1) 98(e) factors 'Fiscal Year 3 (2) 97 (a) amount 98(e) amount' (3) Total City County General'Fund Special District A Special District Schools · .125 .125. .00 .10 .65 ~.00 $ 41.25 $ 45.38 41.25 45.37 ' -0- -0- 33.00 36.30 214.50 235..9'5 $33-0.00 '- $363.00 $ 86.63. 86.62 --0-- 69.30 450.45 $693.00 ... Footnotes ' (1) 98 (e) factors from priOr year are used. '(2) The 97(a) amount is the 97.5 amount of the prior year before the paragraph 7b adjustment. - (3) Because 'County General Fund. share under the historical ratio nOw exceeds the amount guaranteed under paragraph 7b, no adjustment is necessary. ..