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HomeMy WebLinkAbout1984-12-18; City Council; 6553-2; Master Property Tax Exchange Agreementk 0 a J V 2 n O V A©%� CWT W CARLSBAD — AGEND!'` ILL ME; MASTER PROPERTY TAX EXCHANGE AGREE- DEPT. HD. `'��� MT(i. 12 lts8A MENT. CITY ATTY -,F DEPT. C. tsgr. CITY MGR..� RECOMMENDED ACTION:' Adopt Resolution No. approving the master property tax agreement with the ounty of San Diego. ITEM EXPLANATION: After Proposition 13 was approved by the voters in 1978, the County of San Diego and various cities in San Diego County entered into a master property tax agreement to establish how property taxes would be split between a city and the county when annexation occurred. The old agreement expired on November 1, 1984. A new agreement has been tentatively approved by the cities and the county and is now being formally presented for adoption. Under the new agreement the City of Carlsbad will receive the same percentage of "base property tax revenue" as it receives of the i "property tax increment" in newly annexed areas. This is an improvement over the old agreement wherein the city did not receive r a share of the "base property tax revenue" in an annexation.' The City of Carlsbad will now receive 48% of both types of revenue. FISCAL IMPACT: 4 The new agreement will provide the city with a share of the base y property tax upon annexation. i EXHIBITS: 1. Resolution No. 7 b'�{_� approving master property tax agreement. II �' RESOLUTION 7843 r l� 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2E 29 2E A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD CALIFORNIA APPROVING THE MASTER PROPERTY TAX AGREEMENT. WHEREAS, prior to any annexation the City and the County of ;an Diego must enter into an agreement on the split of property taxes from the area to be annexed; and WHEREAS, an agreement has been negotiated to determine the split of property taxes in certain annexations. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad as follows: 1. That the above recitations are true and correct. 2. That the Master Property Tax Agreement attached hereto as Exhibit A is hereby approved. 3. That the Mayor is hereby authorized and directed to sign the agreement on behalf of the City. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad held the 18th day of lnprmber , 1984, by the following vote, to wit: AYES: Council Members Casler, Lewis, Kulchin, Chick and Pettine NOES: None ABSENT: None IIATTEST: 14 ALETHA L. RAUTENKRANZ, City lerk (SEAL) MARY H.JCASLER, Mayor 9 z • EXHIBIT A to Res. No. 7,:M November 1984 MASTER PROPERTY TAX TRANSFER AGREEMENT THI. ,GRUMENT is made and entered into by and between tke COUNTY OF SAN OIEGO, a political subdivision of the State of California, hereinafter called "County", and the various CITIES -within the County hereinafter called "Cities"; RECITALS WHEREAS, Section 99 of the Revenue and Taxation Code provides that no annexation shall become effective until each County and city whose service areas or service responsibilities would be altered by such jurisdictional change agrees, by resolution, to accept the negotiated exchange of property tax revenues; and WHEREAS, Section 99 of the Revenue and Taxation Code provides that a County and any local agency within the County may adopt a master property tax transfer agreement; and WHEREAS, Article XIIIB of the State Constitution provides that in the event the Financial responsibility of providing services is transferred from one entity of government to another, the appropriations limit of the transferee shall be increased by a reasonable amount as mutually agreed and the appropriations limit of the transferor shall be decreased by the same amount; and WHEREAS, the parties have negotiated this Agreement for the exchange of property tax revenues as to all unresolved jurisdictional changes submitted to the Local Agency Formation Commission on or After November 2, 1984, and as to all future jurisdictional changes completed during the term of and within the limits of this Agreement. AGREEMENT NOW, THEREFORE, the parties agree as follows: SECTION 1. Definitions. The definitions contained in this section and in the Revenue and Taxation o e s ail govern the construction, meaning, and application of words used in this agreement. (a) "Base property tax revenues" means property tax revenues as determined by the County Auditor pursuant to Sections 96 and 97 of the Revenue and Taxation Code, during the fiscal year immediately preceding the tax year in which the jurisdictional change is filed with the Local Agency Formation Commission. (b) "Annual tax increment" means the property tax revenue from the annual increase in assessed value attributable to the TRA affected by the jurisdictional change, as determined by the County Auditor and Controller pursuant to Section 98 of the Revenue and Taxation Code. -1- 3 SECTION 2. A ortionment of Pro ert Tax Revenues. The County Auditor shall adjust the amount,o property tax revenue a erm ne pursuant to Section 96 and 97 of the Revenue and Taxation Code, as amended from time to time, for each local agency whose service area or service responsibilities were altered by jurisdic- tional change subject to this Agreement, which shall have become effective during the preceding calendar year as follows: (a) The base property tax revenues shall be adjusted such that the annexing city receives the percentage, shown on Attachment A, of the combined (pooled) County and detaching special districts' share of the base property tax revenue. - The balance of the base property •tax revenue shall be transferred to the County General Fund. (b) The property tax increment shall be adjusted such that the annexing city receives the percentage, shown on Attachment A, of the combined (pooled) County and detaching special districts' share of the annual tax increment. The balance of the annual tax increment shall be -transferred to the County General Fund. The resulting percentage distribution of the annual tax increment shall be maintained in subsequent years unless altered by additional jurisdictional changes. SECTION 3. Transfers of Appropriations Limits. Whenever a jurisdictional change occurs between parties to this agreement and such jurisdictional change results in a transfer of base property tax revenue, the appropriations limits of the affected jurisdictions shall be adjusted in accordance with the base property tax revenue transfer. SECTION 4. 'Limitations on Agreement. This agreement shall not apply to annexations of property which include any of the following: (1) nuclear power generation stations; (2) the East Mesa Study Area as defined in County General Plan Amendment 84-02 (Item 6); (3) proposals having assessed valuation of S35 million or more on the current equalized tax rolls; (4) proposals having existing commercial development which generated retail sales of $10 million or more in the preceding twelve months; and (5) proposals which include the dissolution of a special district. By mutual consent of both the County and an affected city, property tax exchange for jurisdictional changes can be negotiated outside the bounds of this Agreement. SECTION 5. Term of Agreement. This Agreement shall be effective upon its approval and execution y the parties. Except as otherwise provided therein, this Agreement shall continue in force for all pending and future jurisdictional changes until April 1, 1988. Jurisdictional changes in process on April 1, 1988 shall continue to completion under the terms of this Agreement. After April 1, 1988, the Agreement shall automatically be extended until any party provides three (3) months notice of intent to terminate this agreement with respect to subsequent jurisdictional changes for which it is an affected agency. SECTIM 6. Termination Due to Chan es in the Law. The purpose of this Agreement is to make equitable distribution of avaia le property tax revenues consistent with the terms of existing law as mutually understood by the parties and to maximize each party's ability to deliver essential governmental services in areas annexed to cities. In entering into this Agreement, the partaies mutually assume the continuation of the existing statutory scheme for the distribution of available property tax revenues to local government, r.nd that assumption is a basic tenet of this Agreement. -2- 1 According) , itis mutually understood and dtthat thisated Agreementas to may, upon ninety (90T days written notice by any party, e uent Jurisdictional changes of that party if changes should occur in statutory law, court decisions or State administrative interpretations which negate the basic intent of this agreement. IN WITNESS WHEREOF, the parties have entered into this Agreement by the resolutions and on the dates set forth below: CITY OF CARLSBAD CITY OF CHULA VISTA Resolution No. 7843 Resolution. Date December 18, 1984 Date CITY OF CORONADO CITY OF DEL MAR Resolution __ Resolution Date CITY OF EL CAJON Resolution Date CITY OF LA MESA Resolution Date CITY OF NATIONAL CITY Resolution Date CITY OF POWAY Resolution _ Date CITY OF SAN DIEGO Resolution Date CITY OF VISTA Resolution Date CITY. OF ESCONDIDO Resolution Date CITY OF LEMON GROVE Resolution Date CITY OF OCEANSIDE Resolution Date CITY OF SAN MARCOS Resolution Date CITY OF SANTEE Resolution Date COUNTY OF SAN DIEGO Resolution Date Date S 13 ATTACHMENT A SHARE OF POOLED PROPERTY TAX REVENUES TO BE TRANSFERRED TO ANNEXING CITIES Incorporated Area City Percentage Carlsbad . . .. . . . . . . . 48% Chula Vista . . . . . . . . . . . 41 Coronado . . . . . . . . . . . 53 Del Mar . . . . . . . . . . . 41 E1 Cajon . . . . . . . . . . . 38 Escondido . 36 La Mesa . . .. . . . . . . 38 Lemon Grove . . . . . . . . . . 34 National City . . . . . . . . . . . 46 Oceanside . . . . . . . . . . . 53 Poway . . .. . . . . . . . 43 San Diego . . .. . . . . . . . 45 San Marcos . . . . . . . . . . . 23 Santee . . . . . . . . . . . 43 Vista ........... 41 -4- 1