HomeMy WebLinkAbout85-62 - Bayview Annexation - Exchange of Property Tax RevenuesRESOLUTION NO. 85 -62
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AGREEING TO ACCEPT AN
EXCHANGE OF PROPERTY TAX REVENUES AS SET FORTH
IN THE MASTER PROPERTY TAX TRANSFER AGREEMENT
• BETWEEN THE CITY OF NEWPORT BEACH AND THE
COUNTY OF ORANGE IN CONJUNCTION WITH THE
BAYVIEW ANNEXATION
WHEREAS, the City of Newport Beach proposes to annex
certain real property commonly known as "The Bayview" annexation
presently under the jurisdiction of the County of Orange; and
WHEREAS, Section 99 of the Revenue and Taxation Code
requires that all local agencies subject to any jurisdictional
change must agree on an exchange of property tax revenues prior
to the issuance of a certificate of filing of any resolution
requesting initiation of preliminary proceedings of annexation;
and
WHEREAS, the County of Orange and the City of Newport
Beach have entered into a Master Property Tax Transfer Agreement
dated October 28, 1980, which establishes a formula for
allocation of property taxes between local agencies in the event
of a jurisdictional change.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Newport Beach that the City of Newport Beach hereby
agrees to accept the exchange of property tax revenues as set
forth in the Master Property Tax Transfer Agreement, a copy of
• which is attached hereto and incorporated by reference, in
connection with the proposed Bayview annexation.
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BE IT FURTHER RESOLVED that the Bayview annexation shall
be determined to be "undeveloped" property for purposes of the
Master Property Tax Transfer Agreement.
ADOPTED this 26th day of , 1985.
Mayor
ATTEST:
City Clerk
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1' MASTER PROPERTY TAX TRANSFER AGREEMENT
BETWEEN THE COUNTY OF ORANGE AND THE CITY OF
2 NEWPORT BEACH
TO PROVIDE FOR PROPERTY TAX EXCHANGE
3 IN AREAS ANNEXED BY THE CITY
4
5 THIS AGREEMENT is entered into this 28th day of October
6 1980 , by and between the County of Orange, hereinafter "COUNTY ", and th =_
I 7 City of Newport Beach hereinafter "CITY ", as follows:
B 1. The purpose of this. Agreement is to provide a uniform and pre -
9 dictable method of exchanging property tax revenues between CITY, COUNTY,
10 and certain special districts governed by the Board of Supervisors when
11 CITY annexes an area previously unincorporated. This Agreement is
12 entered into pursuant to section 99(d) of the Revenue and Taxation Code.
13 (Hereafter statutory references are to the Revenue and Taxation Code
14 unless otherwise indicated.)
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0":; 15 2. This Agreement covers any completed and effective annexations to
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16 CITY filed with the State Board of Equalization between January 2, 1978,
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17 and July 24, 1979, as well as those pending uncompleted and future annexa
18 tions subject to the tax reallocation provisions of section 99. Any
19 annexations completed on or before July 24, 1979 which have heretofore
20 been assigned to an existing tax rate area by the State Board of Equali-
21 zation are excluded from this Agreement.
22 3. For any annexations to CITY filed with the State Board of Equali-
23 zation between January 2, 1978 and January 1, 1979 and between January 2,
24 1979 and July 24, 1979 which were made effective on the tax rolls respec-
25 tively for fiscal years 1979 -80 and 1980 -81 the redistribution of taxes
26 will first be effected beginning with the proceeds of the fiscal 1980 -81
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® 28 For any annexations filed with the State Board of Equalization
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after July 24, 197ta c..e redistribution of prope�cy tax revenues will begi:
in the fiscal year in which the tax roll is first changed to reflect the
annexation, i.e., the fiscal year in which the annexation is effective fc�
property tax purposes pursuant to Government Code Section 54902.
4. This agreement may be amended at any time by the mutual consent
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 used as
a basis to redistribute property tax revenues among the County general
fund, certain special districts and CITY.'
The historic CITY - COUNTY tax ratio is .51937804992:.48062195008, It
was arrived at in the following manner:
a. The County Auditor - Controller has determined the 1979 -80
property tax allocations to various jurisdictions in accordance with
section 97.5. -
b. The total property tax allocation for CITY and the total
property tax allocation for the County general fund within CITY were
calculated. The above ratio represents the percentage of each to the
total of the two.
The above historic tax ratio shall remain constant through-
out the term of this Agreement and is to be used for all annexations
covered by this Agreement without regard to the year they take place.
6. For the purpose of determining the redistribution of property
tax revenues in newly annexed areas pursuant to this Agreement, property
contained in each proposed annexation shall be determined to be developed/
(substantially developed or undeveloped in accordance with the procedure
set forth in this paragraph.
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Annexations filed with the Local Agency Formation Commission
after the effective date of this Agreement:
Prior to the filing of a resolution or petition for annexa-
tion with the Local Agency Formation Commission, the property
proposed for annexation shall be determined to be developed /substan-
tially developed or undeveloped as follows:
(1) (a) If the property i.s residential in nature, is wholly
subdivided and at least 75 percent of the subdivided lots
have existing residential. structures on them, the property
shall be deemed developed /substantially developed.
(b) If the property is wholly residential in nature, is
wholly subdivided and lees 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 agricultura.
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
structures, improvements or facilities on it, whether public
or private, it shall be deemed undeveloped.
(2) If 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-
loped if the County Administrative Officer and the City Manager,
or their designees, agree in writing.
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(3) If such written agreement is not reached within thirty
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days following the City Manager's written request to the County
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Administrative Officer and the annexation is under one hundred
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acres, then the Local Agency Formation Commission shall determine)
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whether or not the property is to be deemed and treated as deve-
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loped /substantially developed or undeveloped. Such determination,
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may be made by the Local Agency Formation Commission at the t.ne
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of its final determination regarding the annexation. In making
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the above determination regarding the status of the property the
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Local Agency Formation Commission shall consider the recommenda-
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tions of both COUNTY and CITY, if any, and shall consider the
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following factors if: applicable:
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(a) The ratio of assessed value of improvements to
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assessed value of land;
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(b) The density of population;
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(c) The extent of commercial, residential and industrial
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development; -
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(d) The extent of public facilities, improvements and
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properties;
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(e) Existing COUNTY and proposed CITY land use standards
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for the property to be annexed and surrounding areas; and
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(f) Any other factors it deems appropriate.
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CITY and COUNTY shall file resolutions with the Local
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Agency Formation Commission pursuant to section 99(b) agreeing
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to be bound by its determination whether the property is deve-
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loped /substantially developed or undeveloped.
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(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 made 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-
mination shall be made prior to the filing of the resolution or
petition for annexation with the Commission.
b. Annexations completed or filed with the Local Agency Fonnation
Commission on or before the effective date of this Agreement:
Attached hereto, Exhibit A, is a list of any annexations
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
following methods will be used to make the' section 99 adjustments to the
allocation of property tax revenues made pursuant to section 97(a), and
the proportions allocated pursuant to section 98(e), to the County genera
fund; certain special districts governed by the Board of Supervisors; and
CITY.
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 determined as follows.- In each new tax rate area within
the area annexed the amount which would have been allocated to the
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County general fund under sections 97(a) and 98(e), assuming CITY is
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entitled to a zero allocation, shall be divided between CITY and the
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County general fund On the basis of the CITY - COUNTY historical tax
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ratio. Additionally in each new tax rate area the amount which would,
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have been allocated, pursuant to sections 97(a) and 98(e), assuming
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CITY is entitled to a zero allocation, to any special district i
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governed by the Board of Supervisors which transferred complete L
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vice responsibility to CITY as a result of the annexation, shall be
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determined. Said amount shall be: divided between CITY and the County,
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general fund on the basis of the historical CITY - COUNTY tax ratio.
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In the event any special district: governed by the Board of Supervi-
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sors has transferred partial, but not complete, service responsibi-
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lity to CITY the transfer to COUNTY and CITY from said district under,
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this paragraph shall be as agreed.:by CITY and COUNTY.
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b. If the area to be annexed is undeveloped the amounts alloca-
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ted to the CITY and County general fund shall be determined in the
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same manner as subparagraph "a" above, provided that the amount
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allocated to the County general f'undein each new tax rate area
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pursuant to section 97.5(a) in the first fiscal year and each year
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thereafter shall be at least equal to the allocation to the County
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general fund in the same geographical area in the fiscal year prior
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to that in which the annexation is effective for tax purposes.
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8. The amounts allocated pursuant to paragraph 7 in the first fis-
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cal
year shall form the basis for allocations in subsequent fiscal years
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as
otherwise provided by sections 97, 97.5 and 98; provided that the
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amounts guaranteed to the County general fund in subparagraph 7b shall be
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,.
Exhibit B, is an illustration of the calculations contained in paragraphs
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7 and 8 as applied to a hypothetical annexation.
9. Annexations of one hundred acres or more which are developed/
substantially developed are excluded from this Agreement. The parties
shall negotiate a separate agreement for such annexations.
10. Annexations of one hundred acres or more which are undeveloped
are subject to this Agreement provided the parties may negotiate a sepa-
rate agreement for such annexations.
11. The parties shall take all actions necessary to effectuate this
Agreement, including the filing of resolutions pursuant to section 99(b)
agreeing to accept the exchange of property taxes provided for herein.
12. The provisions of this Agreement will determine the adjustments,
pursuant to section 99, resulting from annexations to CITY. It is under-
stood that any such determination will be subject to subsequent adjust-
ment, as provided by applicable statutes,`in the event all or any portion
of the annexed territory is subsequently included in another jurisdic-
tional change.
13. Ths:Agreement'shall commence the date 'last executed below and
continue in effect until terminated in the following 'manner. 'Either i
party may terminate this Agreement on at least six months' written notice
provided that this Agreement will continue to apply to any annexations y
filed with the Local Agency Formation Commission prior to the date such....
h6tice 'is given.
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14. The terms "property tax revenues ", "jurisdiction ", and "juris-
dictional change" as used herein shall have the same meaning as contained
in section 95. 'The term "special district" 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: (l
Dated: L41--- " (1 / L0
Signed and certified that a copy
of this document has been delivered
to the pha,i.rman ,'of the Board
JUNE ALEXANDER
Clerk of the Board of`Supervisors ""
APPROVED AS TO FORM:
ADRIAN KUYPER, COUNTY COUNSEL
.,N+ X300_
Dated: �e Z %), \gao
II DATED:
ATTEST:
City Clerk
COUNTY OF ORANGE, a political
subdivision of the State of
California
l
By
Chairmanjbf its Board of
Supervisors
"COUNTY"
r,
CITY OF NEWPORT BEACH
Be ee
% Mayor
"CITY"
r C !
CITY OF NEWPORT BEACH
ANNEXATION TITLE
Annexation No. 87 (County Triangle)
Annexation No. 88 (Oxbow)
EXHIBIT "A"
DATE OF LAFCO APPROVAL
4/23/80
v.
Not yet approved
STATUS
Develope.
Developer.
Exhibit B
CPage 1 of 4
Illustration of Property Tax Redistribution Following a City Annexation
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 January 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 -001
1 -002
RUM 104
1 -003
813 -002
3. Growth in assessed value from fiscal year .1 to fiscal year 2 is loo for the
geographic area represented by TRA 1 -002 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 -002.
4. The historical City- County ratio is .5 .S.
5. Pertinent calculations in fiscal year 1:
r.
Rev. & Tax. Code Sec.
98(e) 97.5
factors amount
1 -001
City .16
County General Fund .16 N/A
All Special Districts .08
Schools .60
1.00
88 -001
City .00 $ -0-
County General Fund .20 240
Special District A .05 60
Special District B (services not assumed) .10 120
Schools .65 780
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.
Exhibit B
Page 2 of '4
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:
98(e) 97.5
factors amount
1 -002
City .00 $ -0-
County General Fund .20 60
Special District A .05 15
Special District B .10 30
Schools .65 195
1.00 $ 300
Balance of 88 -001
City .00 $ -0-
County General Fund .20 180
Special District A .05 45
Special District B .10 90
Schools .65 585
1.00 $900
Exhibit B
Page 3 of 4
Auditor - Controller does.sections 97, 97.5,
98 and 99 calculations
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Fiscal
Year 1
Fiscal
Year 2
(2)
(3)
9B(e)
97.5
9B(e)(1)
97(a)
9B(e)
factor
amount
factors
amount
amount
Total
1 -002
City
.125
$ -0-
$ 41.25
$ 22.50
-ounty General Fund
Did
not exist
.125
-0-
41.25
60.00
?ecial
District A
.00
-0-
-0-
-0-
Special
District B
.10
-0-
33.00
-33.00
Schools
.65
-0-
214.50
214.50
1.00
$ -0-
$ 330.00
$330.00
88 -001
City
.00
$ -0-
.00
$ -0-
$ -0-
$ -0-
County General Fund
.20
240
.20
240
(42.00)
198.00
Special
District A
.05
60
.05
60
(10.50)
49.50
Special
District B
.10
120
.10
120
(21.00)
99.00
Schools
.65
780
.65
780
(136.50)
643.50
1.00
$1,200
1.00
$1,200
5(210.00)
$990.00
Footnotes
(1) Section 98(e) factors from the predecessor TRA are used for new TRA 1 -002. The
County General Fund 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 pripr 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 portion of 88 -001 not annexed was $900 in year 1 x 10% increase = $990 in
year 2. Compared to $1,200 of year 1 results in $(210) for year 2.
(4) In TRA 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.
Ernibit B
Page'4,.of 4.
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Auditor - Controller does sections 97, 97.5,
98 and 99 calculations '
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.
c
'Fiscal
Year 3
(1)
(2)
(3)
98(e)
97(a)
98(e)
factors
amount
amount
Total
1 -002
.City
125
$ 41.25
$ 45.38
$ 86.63
County General Fund
.125
41.25
45.37
86.62
Special District A
.00
-0-
-0-
-0-
Special District B
.10
33.00
36.30
69.30
Schools
.65
214.50
235.95
450.45
1.00
$330.00
$363.00
$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.
c