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Home My WebLink About1981-04-07; City Council; 6553; Master Property Tax Transfer Agreementao CITY OF CAliLSBAD AGvDi'J7x Wr,L kQO. - - Initial: pept.Ild+._ DATE : � __i �APRII, 7 _ 19 81 _.�____ C . Atty . \! _.,.. CITY MANAGER Subject: MASTER PROPERTY TAX TRANSFER AGREEMENT Sta.t4mejt of thc: Matter The County Board of Supervisors has prepared a master agreement to provide a formula for sharing property taxes upon annexation. The terms of this agreement were negotiated between the Board of Supervisors and a committee of mayors led by Mayor Packard. The formula provides that each city will receive a percentage of county and special district property taxes in an annexed area. The city's share will be prorated based upon the ratio between city and county taxes in the incorporated area of the city. In Carlsbad the city will receive 48% of the county's share. Fiscal Impact The tax split formula means the city will receive about 25% less in property taxes from annexed areas than from existing incorporated areas. Exhibit Resolution No. CF !V Recommendation Adopt Resolution No. approving Master Property Tax ; Transfer Agreement. Council Action: 4-7-81 Council adopted Resolution 6481. 1 RESOLUTION N0. 6481 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN AGREEMENT 3 BETWEEN THE COUNTY OF SAN'DIEGO AND THE CITY OF • CARLSBAD, IMPLEMENTING THE TEP.MS OF THE "POOLING 4 METHOD" FOR SHARING PROPERTY TAX REVENUES WHEN CITY ANNEXAT?ONS OCCUR, AND AUTHORIZING THE 5 MAYOR TO EXECUTE SAID AGREEMENT. 6 The City Council of the City of Carlsbad, California, 7 does hereby resolve as follows: g 1. That that certain agreement between the County of 9 San Diego and the City of Carlsbad entitled "Master Property Tax 10 Transfer Agreement", a copy of which is attached hereto marked 11 Exhibit A and made a part hereof, is hereby approved. 12 2. That the Mayor of the City of Carlsbad is hereby o' 13 authorized and directed to execute said agreement for and on o� a 14 behalf of the City of Carlsbad. AOz¢ 2 � <<o 15 PASSED, APPROVED AND ADOPTED at a regular meeting,of LL ,W z W 6 =16 the City Council of the City of Carlsbad, California, held on zFcc17 the 7th'WZ M 1981 by the following vote, to day of April a � . 18 wit.. ' 19 AYES: Council Members Packard, Casler, Anear, Lewis and Kulchin 20 NOES: None 2;, ABSENT: None 22 AONALD-6C. PACKARD, Mayor 23 ATTEST: 24 - - ems- 25 ALL'THA L. RAUTENKRANZ, City Cler}it 26 (SEAL) ! 27 28 64,11 EXHIBIT A TO CITY COI .IL RESOLUTION March 20,1981 MASTER PROPERTY TAX TRANSFER AGREEMENT • 1 • AGREEMENT is mad? and entered'into by and -between the c THIS amade a subdivision of the State of "county , and various CITIES w�th- COUNTY OF SAN DIEGO, political++ ' California, hereinafter called .in the County hereinafter called "Cities"; RECITALS_ and tion ode pro- WFiEREAS, Section 99 fthe bee Revenue :tectaveauntilCeach countyati; vides that no annex • b resolution, to whose service areas or service responsibilities would e and city urisdictional change agrees, Y and altered by such j tax revenues; accept the negotiated exchange of property WHEREAS,*Section,99 of the Revenue ny local and n Tt xatjon the cCodeypmay ro yides that a couYoyea�a tax transfer agreement; and adopt a master p- p Provides W1IEREAS , Ar-;;cle XIIIB of the State Constioftprovding sex- that in the event the financial respoofigovern ices :,s transferred from one enttitY rea shallnbetincre snSfbY v ra riatio , • the appropria.tions -as t t ac %,ed and the ethopsame amouzit; and a `reasonable�•amount`as mutually J• limit oz the transferor' shall be decreased by ys A r�ement for the WHEREAS, the parties have negotiated lu g urisdic- •exchange of property tax revenues as tears11978eS1979c, and 19801 v tional changes completed in calendar h es completed during the and, as to all futxjre jurisdictional Chang term of and within the limits of this' Agreement; and of • telly agreed to an exchange the parties have mutue. leted WHEREAS, urisdictional changes comp appropriations limits as to all 7 urisdictional changes 19a0, and as to all future j -r ree- sinco July 1, , ` completed dur�.ng tlie• term of and within the limits of th; � . g ment. . r ' AGRE� EmENT , NOW, TIIEREI'ORE, the parties agree as follows: SECTION 1. Definitions. The definitions contained in this . section and in the Revenue `nd�jCltc�innofowordsaused inthis construction, meaning, and pp agreement. . 1 -1 -2- s (SECTION 1 continued) ; erty tax revenues, (a) "Base property; tax xe,Yenues" means Prop as determined by the County Auditor pursuant to Sections 96 and the fiscal year im- 97 of the Revenue and Taxatiyearoinhich �wnthe jurisdictional a mediately preceding the tax y I'ormatian Commission. change is tiled with the Local Agency the property erty tax revenue (b) "Annual tax increment means the ;from the annual increase in assessed value aStdetexmined by'the TRA affected by the jurisdictional change, 98 of the County Auditor and Controller p } Revenue and Taxation Code. property" means re improve- (cj "Developed pal pxopertj�. having dvalue equal means thereon with an assess land inthesama assessar,sparcel.e assessed value of t (d) "Undeveloped property" means real property having no i� assessed impxovenents thereon or having impxovements thereon ; with se assessed value of less than the assessed value of the land' in the same parcel. , `"'' • tax revenue t • SECTION 2. Aaoo ,,zonment of gropexty Tio�arLyniles. The County Auditor s .a� ° ad3u t the amount. of k 1 an determined pursuant to Section 9G or 97 of thfor each elocal � Taxation Code, as amended from time•to time, r ect to this Agreement, .� agency whose service area or servit:e responsibilities were • :, altered by jurisdictional change sx �1 the preceding calendar which shall have become offec t:.ve dt.ring year, as follOws: 1. Undeveloped property ' (a) No Base property tax revenue shall be transferred. (b) The annual tax increment seivesb- a parcentagested h the p that the annexing city receives the (Pooled) ' shown on Attachment A, of Lhe . tr cts,hare of County and dct:achi.ng special dis the annual tax increment. The balance of the annual tax increment hall be transfiercentageildistribution s General Fund. The resulting 1 of the annual tax increment shall badditionaled in subsequent years unless altered by jurisdictional changes. 2. Developed property (a) The annG:cing city Shall 'receive i7.3% of the County's• and detaching :special districts' base base property tar: rcvenue from the annexed p - 3- ' (Developed Property continued) (b) The property tax increment' shall be adjusted such that the annexing city receives the p Attachment A, of the combined (pool shown on Special districts' share Qf ' County and detaching p The balance of the annual , the annual tax increment* erred t tax increment sThelxesultingbp fpercentage distrx u- • General Fund. ti. . unless altered by additional ti.on of the annual inczemen(: shall b•, main •• in subsequent Years Transfers of AD ro riations Limi"ts." Wheneveragree- SE • CTION 3• a occurs between partle to,.this a jurisdictional ch�.ng transfer oS ment and such ju_isdictional a change xiationsts n UIT of the base pxcperty tax revenue, the app p fectad 5urisdicti.ons shall be adused in accordance with the of tax revenue transfer.. base property agreement shall WMitations oxoA�aaynwhIch"include nuclear power SECTION � . = . not a:?plY to annexations of p p urisdictional mutual consent of both the County an " geheration stationsYo exty tax exchange Wr 3 ' an affected city, ot; changes"can be negot-aced outside the bounds of this Agreement' Term of Agreement• This Agreement shall be . SEGTI0;3 5 • the parties' •.'Effective upan its approva and e>;acutihi by Agreement shall ton - its therein, thas �.; Exaept as otherwise p and future jurisdictional changes ending 30 days prior to that tinue in force for all p ur ose of re-examining and t thirty ( ) • until Nove artier 1, shall m et1984. Atlfor tile ions of this Agreement. - .times the p� the terms and cop shall possibly a�•n_ndic es in process on NovemUex ]' Agreement. ". Juriudictional Chang continue to completion under the terins of cth�s he i,aw. Vhe SEC`1`IGN 6. Texminatian Due to Chanq��e.=Sl�1bution of ose of this Agreement is .to ma]:e eq pure " tax revenues cons:partiespartie]senndrto maxi- ' •' . available Property LindeYstood by et:isting laa�y mutually into this Mize each p s abilii:y to. deliver assc:ntzal yavernmenta In entering �artics mutually assume the continuation available the services in areas annexed to cities• Agreement, the r.' assumption existing statutory scheme for tllavernmentuand that property tax revenues to Agreement. greem nt. ' is a basic tenet of this Ag' • l it is mutually understood and agreed a]nytparty According Y� 90) days written notice by Agreement may upon. ninety ( %iri,,dictional change., of that ' ]ie terminated csssl3ould occurnin0 Stautoxy law, courLcciccisions ,arty, if Chang . r State administrative into rpxet?tyons which negate the basic Of this Agreement" ' intent- -• IN'W,tTNESS WHEREOF, the parties have entered into this Agreement: on the dates set forth below. COUNTY OF SAN DIEGO d° By • Date i CITX OF CARLSBAD CITY OF CHULA VISTA " By y. Title m A YD4 Title n pate. Date r17� i i CITYOF CORO\ADO CITY OF DEL MAR }' BY . _ _ Y ._____ ' Ti' le Title; ` 'Date __ Date _. CITY OF EL CAJON CITY OF ESCONDIDO BY By } Title -- Title '.Date Date CITY Or. IMPERIAL BEACH CITY OF LA'MtSA , t By By Title Title i • •• Date Date w r CITX Or LEMON GROVE CITY CITY OF NATIONAL CI � • By By TitlP __ 7 .Title ' Date Date CITY OF OCEANSIDL CITY OF SAN DIEGO • By BY % Title Title. Date Date • ,CITY OF SAN DIARLOS CITY ;OF VISTA . By By Tit Title -.� .. Date Date s ` • • , n i . 4} i • r ATTAC1I14ENT A SHARE OF POOLED ANNUAL TAX INCREMENT TO BE TRANSFERRED TO ANNEXING CITIES City.Percentage xncoriorated Area • . 48% . Carlsbad 41 Chula Vista 53 Coronado 41 De'1 liar 38 El Cajon 36 " Escondido 55 imperial -Beach• 38 La Mesa _ 34 Lemon Grove 46 National City 53 ciceanside _ 45 R :San Diego 23 t •San Marcos '41 , Vista '