HomeMy WebLinkAbout14 - Property Tax Payment for Newport CoastITEM s14
TO: Members of the Newport Beach City Council
FROM: Homer L. Bludau, City Manager
SUBJECT: Agreement with Orange County Fire Authority and the County of
Orange: Property Tax Payment
Authorize the Mayor to execute the attached Agreement.
ACTION:
BACKGROUND: When the City annexed the Newport Coast, it became entitled to receive a
portion of the property taxes (sometimes referred to on tax bills as the 1 % Basic
Levy) that Newport Coast property owners pay to the County Treasurer -Tax
Collector and which are then distributed to:
• The County of Orange's General Fund
• The Orange County Fire Authority (OCFA)
• Newport -Mesa Unified School District
• The Irvine Ranch Water District
• Coast Community College District
• The Orange County Transportation Authority
• The Orange County Vector Control District
• and several others
These property taxes are NOT the special assessments that people in the
Newport Coast (and many in the pre - annexation boundaries of Newport Beach)
pay. The 1% Basic Levy refers solely to the Proposition 13- limited levy that
reflects 1% of the assessed value of property.
The Newport Coast annexation became effective January 1, 2002. If this
annexation were a typical one, the County Auditor - Controller would
automatically direct all property taxes re- directed by the annexation to the City
for the period that begins July 1, 2002. The Auditor - Controller has done so. But
the Auditor - Controller does not specifically do so for the property taxes due the
City between January 1, 2002 and June 30, 2002 (about $1.4 million in the case of
OCFA).
The attached agreement between the County of Orange, OCFA, and the City
remedies this six-month situation by directing that the County allocate
$1,431,942.00 from the OCFA's Structural Fire Fund to the City for the period of
January 1, 2002 through June 30, 2002.
If approved by your Council, the Agreement would be approved by OCFA on
March 14, 2002 and shortly thereafter by the Orange County Board of
Supervisors.
We expect to soon see at least one more agreement similar to this that affects the
shares of the 1 % Basic Levy received by the County of Orange General Fund
(about $408,400.00) and by the Orange Count' Library District (about
$212,418.00).
ATTACHMENT: Proposed Agreement between the City of Newport Beach, the County of Orange,
and the Orange County Fire Authority regarding the allocation of 1% Basic Levy
property taxes in the Newport Coast for the period between January 1, 2002 and
June 30, 2002.
2
AGREEMENT BETWEEN ORANGE COUNTY FIRE AUTHORITY,
COUNTY OF ORANGE AND CITY OF NEWPORT BEACH
REGARDING PROPERTY TAX EXCHANGE RELATED
TO NEWPORT COAST ANNEXATION
THIS AGREEMENT is made and entered into by and among the Orange County
Fire Authority ( "OCFA "), the County of Orange ( "County ") and the City of Newport
Beach ( "City ") and shall become effective upon the date of approval of the governing
board of the last party to approve it.
RECITALS
WHEREAS City has completed proceedings to annex previously unincorporated
territory within the County of Orange generally known as the "Newport Coast" area
which is specifically described and depicted on Attachment "A" ( "Annexation Area "), and
WHEREAS prior to January 1, 2002, OCFA provided Fire Services, including fire
prevention, fire suppression, emergency medical services and hazardous materials
response, to the Annexation Area, and
WHEREAS effective January 1, 2002, City has been providing, and will continue
to provide, Fire Services to the Annexation Area, and
WHEREAS Article IV, Section 3.A of the Amended Joint Powers Agreement
relating to OCFA (the "AJPA ") requires the County to transmit to OCFA the structural
fire fund property tax revenues received from the Annexation Area, and
WHEREAS the amount of structural fire funds attributable to the Annexation Area
for the period of January 1, 2002, through June 30, 2002 ( "Service Period "), is
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estimated to be one million four hundred thirty -one thousand nine hundred forty -two
dollars ($1,431,942), and
WHEREAS OCFA and City agree that such structural fire funds should be
allocated to the party providing such Fire Services;
NOW THEREFORE, in consideration for the promises, covenants and conditions
set forth herein, the parties agree as follows:
AGREEMENT
1. The Recitals set forth hereinabove are true and correct.
2. County is authorized to transmit to City structural fire fund moneys
allocated to the Annexation Area for the Service Period that would have otherwise been
payable to OCFA pursuant to the AJPA, estimated by the parties to be one million four
hundred thirty -one thousand nine hundred forty -two dollars ($1,431,942.00).
3. All provisions of that certain Annexation Agreement between City and
OCFA "entered into as of November 20, 1997," not inconsistent herewith, shall remain
in full force and effect.
2 -I
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be
executed as set forth herein below.
ORANGE COUNTY FIRE AUTHORITY
Dated: By:
Susan Ritschel
Chairperson
ATTEST:
Dated: By:
Clerk of the Authority
APPROVED AS TO FORM:
TERRY C.ANDRUS
GENERAL COUNSEL
By: Dated:
CITY OF NEWPORT BEACH
Dated:
Dated:
APPROVED AS TO FORM:
ROBERT H. BURNHAM
CITY ATTORNEY
By:
Tod W. Ridgeway
Mayor
ATTEST:
City Clerk
By: Dated:
[Signatures continued on Page 4]
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COUNTY OF ORANGE
Dated:
ATTEST:
Dated:
APROVED AS TO FORM:
BENJAMIN P. DE MAYO
COUNTY COUNSEL
of the Board
By: Dated:
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Newport Coast
Annexation Area
BLOCKS 5151, 5152 5251. 5252
525x, 5J51. SJ52 ANNEXATION NO. 1
MODULES VARIOUS - -- `
(FRASIER ANNEXATION)
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