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HomeMy WebLinkAbout1983-03-15; City Council; 7328; Legislative Matters Annexations. § [ ~ ·o 8' ~ ' 2 ffi .2l 2 t/1 ~ ~ M CX) I 1 M ' .. ,, z 0 g < ..J 0 :z :::> 0 0 CIT. OF CARLSBAD -AGENDh SILL AB# 7.J 2 r rn LEGISLATIVE MATTERS (ANNEXATIONS) DEPT. HO. __ _ MTG. 3/15/83 DEPT. CM CITY ATTY "j;A_ ' CITY MGR. ...-: / RECOMMENDED ACTION: While Council supports SB-322, SB-255, and AB-498 in concept, authorize Mayor and City Manager to take appropriate action to communicate the Council's preference for SB-322 for the relief it provides in the way of agricultural provision protection. EXHIBITS: 1. Letter to Senator William Craven 2. Lett~r to Assemblyman Frazee I I •• , 'i , ! I i l , ,i l Ii 1200 ELM AVENUE CARLSBAD, CALIFORNIA 92008 Office of the Mayor March 15, 1983 <tr:itp of <!arlsbab Assemblyman Robert Frazee 3088 Pio Pico Drive, Suite 200 Carlsbad, CA 92008 SB-322 ANNEXATIONS SB-255 -LAFCO AB-498 DO PASS TELEPHONE: (7f4) 43B-5561 The Carlsbad City Council urges your support for iegislation which would allow annexations to be processed through LAFCO. As a result of a court decision, the San Diego LAFCO has declared a moratorium on annexations until a sphere of influence study is completed for ell special districts in the County. Such a study n. :t take years to complete. Carlsbad has six annexations in process at the present time: If the legislature does not act, those annexations cannot be completed. we urge you to support legislation to postpone the effective date of the court decision and to allow annexa- tions to be processed as they have for the past 10 years. While we support all three bills in concept, our preference is SB-322 for the relir:if it provides in the way of agri- cultural provision protection. After this urgency legislation is passed, we strongly urge the legislature to conduct an interim study of the activities and effectiveness of LAFCO. We feel that an in-depth review is needed to determine what changes may be appropriate in the procedures followed by LAFCO. Sincerely, if:lsLER Mayotci MC:gb Attachments cc: Chamber of Commerce .. interested and active in regard to this issue and has offered any support to the city position they can give. We suggest that cities contact local chambers ~ ' of commerce on this issue and explain the detrimental effects of compulsory ) and blnding arbitration on local governments and their taxpayers. The members of the Assembly Committee on Public Employees and Retirement are: Elder (Chair), Molina (Vice Chair), Bergeson, Fr.izzelle, Hughes, Johnston, Lewis, Papan, Seastrand, and Tucker. 2. SUPPORT Annexations. ,!,egj.slation to Postpone Effective Date of Court Decision Passed by Local Government Committees. SB 255 (Marks) -SB 322 (Craven) -._AB 498 (Cortese). (All Urgency Bills). In January, an appellate courtdetermined that a Local Agency Format:i.on Commission could not ap- prove an annexation, or other municipal reorganization or boundary change, unless spheres of influence had been completed for all governmental agencies aff~cted by che 1.AFCO decision. Very few LAFCOs have completed spheres of influence for all the cities and dis- tricts in their counties. The decision has therefore caused annexations and other reorganizati.ons to grind to a halt in much of the state. The three bills listed above have been introduced to prescribe a date by which LAFCOs roust have spheres of influence in place and to enable LAFCOs to continue to approve reorganizations in the meantime. On Wednesday, SB 255 and SB 322 were amended and passed by the Senate Com.~ittee on Local Government and AB 498 was passed by the Assembly Committee on Local Govern- ment. The essential features of the bills, as amended in Committee, are as follows: a) SB 255: LAFCOs must complete all spheres of influence by January l, 1985. In the meantime, a LAFCO must make the following detet1ninations before it may approve a reorganization: 1) LAFCO is procee<ling with spheres of influence which 111/ly apply to the affected territory. 2) all other requirements of law applicable to the reorganization have been met. 3) urban development of prime agricultural land, as defined in MORGA, j_s not involved in the reorganzation .• b) AB 498: LAFCOs must complete all spheres of influence by January l, 1986. In the meantime• when processing a reorganization, LAFCO must make written findings on the ~ffect of the reorganization on maintain- ing existing agricultural preser-!eS which are located in the territory affected by the reorganization, and must abide by other laws governing annexations. c) ~: LAFCOs must complete all spheres of influence by January l, 1987, In the meantime, when processing a reorganization, LAFCO must make the same finding on agricultural preserves as required by AB 498, and must also ~onsider any spheres of influence adopted by LAFCO before LAFCO considers the proposed reorganization. Although the League supports all these bills in concept, we prefer the January 1, -2 -2/25/83 3 .. . 3. 1986 date for completion of spheres of influence and prefer the determinations and con~lderations req~~red by~- It is believed that January 1, 1986 gives a reasonable time for completion in llght of limited resources, and at the same time is a short enough time period to require LAFCOs to be diligent in compl~ting spheres of influence. .. The actions required by SB 322 assure that existing spheres will be considered, although this appears to only clarify existing law. The agricultural protection finding of ~ and SB 322 requires LAFCO to attempt to preserve agricultural lands, but does not absolutely proh:l.bit urban development of prime agricultural land. Th .. absolute prohibition could unintentionally prevent appropriate develop- ment of prime agricultural lands. The bills will m9st likely be up for votes on the floors of thelr respective. houses the ueek of March 7 or March 14. Interestetl cities should contact their legis- lators ln support of these bills, expressing their preference for the agricultural protection provisions of~ and AB 498, and for the 1986 deadline. CPI Decrease Impacts Property Tax Revenue. Article XIII A, Section 2(b) reads: "The full cash value base [of real property against which the property tax rate is levied] may re.fleet from year to year the inflationary rate not to exceed 2% for any given year or reduction as shown in the Consumer Price Index or compar- able data • • . " The State Board of Equalization uses the definition of "Consumer Price Index" fourd in Revenue and Taxation Code Section 2212 to determine the change in the property tax tase as mentioned in Article XIII A: 11 2212. 'Percentage change in the cost-of-living' means the percentage change from Aprill of the prior year to Aprill of the current year in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations." The State Department of Finance has estimated the April 1, 1982 through April l, 1983 CPI to be -0.7%. This negative change will cause a decrease in property tax revenues attributable to assessed property wnich is neither new construction nor has changed ownership during the Aprill -Aprill period. Most cities, however, will probably show a net increase in property tax revenues despite the negative CPI factor due to increased real estate transactions in the past several months. On the other hand, with recent cuts in the price of,gasoline, the CPI may be drawn even farther downward. ADMINISTRATIVE ACTIVITIES Small Cities Community Development Block Grant (CDBG) Program. The State Depart- ment of Housing and Community Development (HCD) has recently completed a series of regional training sessions dealing with application requirements of the state administered Small Cities CDBG Program. During the training sessions, HCD told city officials they would be required to have their city attorney sign a letter (assurance) stating the city's housing element is in conformance with state law, Article 10.6 of the Government Code. As the result of a meeting between UCD and the League, HCD has agreed to provide cities with the option of having the as- surance signed by the city manager or appropriate designated local official. HCD will distribute a supplement to its training manual advising cities o( this change in its application requirements. -3 -2/25/83 1200 ELM AVENUE CARLSBAD, CALIFORNIA 92008 Office of the Mayor . (i)--- . . Qtitp of ~arlsbab March 15, 1983 Senator William Craven 2121 Palomar Airport Road Suite 100 Carlsbad, CA 92008 SB-322 -ANNEXATIONS SB-255 -LAFCO AB-498 -DO PASS TELEPHONE: (71A) 438•5561 The Carlsbad City Council urges your support for legislation which would allow annexations to be processed through LAFCO. As a result of a court decision, the San Diego LAFCO has declared a moratorium on annexations until a sphere of · influence study is completed for all special districts in the County. Such a study may take years to complete. Carlsbad has six annexations in process at the present time. If the legislature does not act, those annexations cannot be completed. We urge you to support legislation to postpone the effective date of the court decision and to allow annexa- tions to be processed as they have for the past 10 years. W~ile we support all three bills in concept, our preference is SB-322 for the relief it provides in the way of agri- ·cul tural provision protection. After this urgency legislation is passed, we strongly urge the legislature to conduct an interim study of the activities and effectiveness of LAFCO. We feel that an in-depth review is needed to determine what changes may be appropriate in the procedures follow~d by L.~FCO. Sincerely, II)/ . M,R~ ,Cl\SLER Mayor MC:cle Attachments cc: Chamber of Commerce ' I, I - I interested a~d activ n regard to this issue and ha ,ffered any support to the ctty position they can give. We suggest that cities contact local chambers of commerce on this issue and explain the detrimental effects of.compulsory and binding arbitration on local governments and their taxpayers. The members of the Assembly Committee on Public Employees and Retirement are: Elder (Chair), Molina (Vice Chair), Bergeson, Fr.izzel.le, Hughes, Johnston, Lewis, Papan, Seastrand, and Tucker. 2. SUPPORT Annexations. Legislation to Postpone Effective Date of Court Decision Passed by Local Government Committees. SB 255 (~larks) -~ (Craven) -AB 498 (Cortese). (All Urgency Bills). In January, an appellate court determined that a Local Agency Formation Commission could not ap- prove an annexation, or other municipal reorganization or boundary chang~, unless spheres of influence had been completed for all governmental agencies affected by the LAFCO decision. Very few LAFCOs have completed spheres of influence for all the cities and dis- tricts in their counties. The decision has therefore caused annexations and other reorganizations to grind to a halt in much of the state. The thr.ee bills listed above have been introduced to prescribe a date by which LAFCO~ must have spheres of influence in place and to enable LAFCOs to continue to approve reorganizations in the meantiwe. Cn Wednesday, SB 255 and SB 322 were amended and passed by the Senate Committee "n Local Government and AB 498 was passed by the Assembly Committee on Local Govern~ ment. The essential features of the bills, as amended in Collllllittee, arc a~ follows: a) SB 255: LAFCOs must complete all spheres of influence by January 1, 1985. In the meantime, a LAFCO must make the following determinations before it Nay approve a reorganization: 1) LAFCO is proceeding with spheres of influence which may apply to.the affected territory. 2) all other requirements of law applicable to the reorganization have been met. 3) urban development of prime agricultural land, as defined in Y.ORGA, is not involved in the reorganzation. b) AB 498: tAFCOs must complete all spheres of influence by January 1, 1986. In the meantime, when processing a reorganization, LAFCO must make written findings on the effect of the reorganization on maintain- ing existing agricultural preserves which are located in the territoJ:"y affected by the reorganization, and l'\USt abide by other laws governing annexations. c) SB 322: LAFCOs must complete all spheres of influence by January 1, 1987. In the meantime, when processing a reorganization, LAFCO must make the same finding on agricultural preserves as required by AB 1198, and must also consider any spheres of influence adopted by LAFCO before LAFCO considers the proposed reorganization. Although the League supports all these bills in concept, we prefer the January 1, -2 -2/25/83 1 ' ------------.. ,,..u,.,.,,""""""___,..,,.._,. 3. 1986 date for comple 1n of spheres c-f influence an and considerations r~quired by SB 322. refer the detcrrainations It is believed that January 1, 1986 gives a reasonable time for completion in , light of limited resources, and at the same time is a short enough time period to require LAFCOs to be diligent in completing spheres of influence. The actions required by SB 322 assure that existing spheres will be considered, although this appears to only clarify existing law. The ag1:icultural protection finding of AB 498 and SB 322 requires L~FCO to attempt. to preserve agricultural lands, but does not absolutely prohibit urban development of prime agricultural land. The absolute prohibition could unintentionally prevent appropriate develop- ment of prime agricultural lands. The bills will most likely be up for votes on the floors of their respective houses the week of Narch 7 or March 14, Interested cities should contact their legis- lators in support of these bills, expressing their preforence for the agricultural protection provisions of SB 322 and AB 498, and for the 1986 deadline. CPI Decrease Impacts Property Tax Revenue. A1:ticle XIII A, Section 2(b) reads: "The full cash value base [of real property against which the property tax rate is le.vied) may reflect from year to year the inflationary rate not to exceed 2% for any given year or reduction as shown in the Consumer Price Index or compar- able data ••• " The State Board of Equalization uses the definition of "Consumer Price index" found in Revenue and Taxation Code Section 2212 to determine the change in the property tax tase as mentioned in Article XIII A: "2212. 'Percentage change in the cost-of-living' means the percentage change from April 1 of the prior year to April 1 of the current.year in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations. 11 The State Department of Finance has estimated the April 1, 1982 through Aprill, 1983 CPI to be -0. 7%. This negative change will cause a decrease in property ta"< revenues attributable to assessed property which is neither new construction nor has changed ownership during the April 1 -April 1 per:iod. Host cities, however, will probably show a net increase in property tax revenues despite the negative CPI factor due to increased real estate transactions in the past several months. On the other hand, with recent cuts in the price of•gasoline, the CPI may be drawn even farther downward. ADMINISTRATIVE ACTIVITIES t,. Small Cities Community Development Block Grant (CDBG) Program. The State Depart- ment of Housing and Community Development {!!CD) has recently completed a series of regional training sessions dealing with application require.ments of the state administered Small Cities CDBG Program. During the training sessions, HCD told city officials they ~~ould be required to have their city attorney sign a letter (assurance) stating the city's housing element is in conformance with state law, Article 10,6 of the Government Code. As the result of a meeting between l!CD and the League, HCD has agreed to provide cities with the option of having the as- surance ~igned by the city manager or appropriate designated local official. HCD will distribute a supplement to its training manual advising cities of this change in its application requirements. -3 -2/25/83