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HomeMy WebLinkAboutC-2228 - Master Property Tax Transfer Agreementse - MASTER PROPERTY TAX TRANSFER AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF 2 NEWPORT BEACH TO PROVIDE FOR PROPERTY TAX EXCHANGE 31 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 the 7 City of Newport Beach , hereinafter "CITY", as follows: 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 14I unless otherwise indicated.) Jy d h .;z I5I 2. This Agreement covers any completed and effective annexations to 0,3 "--;W 16 CITY filed with the State Board of Equalization between January 2, 1978, Aga 17 and July 24, 1979, as well as those pending uncompleted and future annexa 18 tions subject to the tax reallocation provisionsof 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- t 25 tively for 26 will first be .effected beginning with the proceeds of the fiscal 1980-81 N _ a 27 tax roll. 28 For any annexations filed with the State Board of Equalization fiscal years 1979-80 and 1980-81 the redistribution of taxes -1- 1 2 .3 4 5 6 7 8 9 . 10 11 12 13 14 J. W . 4= 15 J WOO uuu m 16 "emu oZf 4 17 u 18 19 20 21 22 23 24 F. 25 2 26 N P 27 28 after July 24, 197 redistribution of proy tax revenues will begin 110 in the fiscal year in which the tax roil is first changed to reflect the annexation, i.e., the fiscal year in which the annexation is effective for 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. / W, 442 O D ] ]a Wow yU 4tW 4fz O=4 3. 00 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 • 26 • 27 0 28 a. 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 is 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 less 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 agricultural 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. -3- ® F0192.210 (4/77) 1 2 3 4 5 8 9 10 11 12 13 14 I5 16 17 18 19 20 21 22 23 24 25 26 27 28 (3) If such written agreement is not reached within thirty days following the City Manager's written request to the County Administrative Officer and the annexation is under one hundred acres, then the Local Agency Formation Commission shall determine whether or not the property is to be deemed and treated as deve- loped/substantially•developed or undeveloped. Such determination may be made by the Local Agency Formation Commission at the time of its final determination regarding the annexation. In making the above determination regarding the status of the property the Local Agency Formation Commission shall consider the recommenda- tions of both COUNTY and CITY, if any, and shall consider the following factors if. applicable: (a) The ratio of assessed value of improvements to assessed value of land; (b) The density of population; (c) The extent of commercial, residential and industrial development; (d) The extent of public facilities, improvements and properties; (e) Existing COUNTY and proposed CITY land use standards for the property to be annexed and surrounding areas; and (f) Any other factors it deems appropriate. CITY and COUNTY shall file resolutions with the Local Agency Formation Commission pursuant to section 99(b) agreeing to be bound by its determination whether the property is deve- loped/substantially developed or undeveloped. -4- e 3 5 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2 26 N P 0 27 ® 28 (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 Formation 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 general 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 -5- M41, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 J T mf o:; 15 mooV V m 16 4'u O1� 00 17 u 18 19 20 21 22 23 24 25 O 26 N 27 LL 28 County general fund under sections 97(a) and 98(e), assuming CITY is entitled to a zero allocation, shall be divided between CITY and the County general fund on the basis of the CITY -COUNTY historical tax ratio. Additionally in each new tax rate area the amount which would have been allocated, pursuant to sections 97(a) and 98(e), assuming CITY is entitled to a zero allocation, to any special district governed by the Board of Supervisors which transferred complete ser- vice responsibility to CITY as a result of the annexation, shall be determined. Said amount shall be divided between CITY and the County general fund on the basis of the historical CITY -COUNTY tax ratio. In the event any special district governed by the Board of Supervi- sors has transferred partial, but not complete, service responsibi- lity to CITY the transfer to COUNTY and CITY from said district under this paragraph shall be as agreed by CITY and COUNTY. b. If the area to be annexed is undeveloped the amounts alloca- ted to the CITY and County general fund shall be determined in the. same manner as subparagraph "a" above, provided that the amount allocated to the County general fund in each new tax rate area pursuant to section 97.5(a) in the first fiscal year and each year thereafter shall be at least equal to the allocation to the County general fund in the same geographical area in the fiscal year prior to that in which the annexation is effective for tax purposes. 8. The amounts allocated pursuant to paragraph 7 in the first fis- cal year shall form the basis for allocations in subsequent fiscal years as otherwise provided by sections 97, 97.5 and 98; provided that the / 0111 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 N 0 27 LL 28 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 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 necessacy 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. This Agreement shall commence the date last executed below and continue in effect until terminated iri the following manner. Either party may terminate this Agreement on at least six months' written notice provided that this Agreement will continue to apply to any annexations filed with the Local Agency Formation Commission prior to the date such notice is given. / / e e ® F0192.210 (5/77) 1 2 3 4 5 6 7 8 9 10 .11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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: Dated:. Signed and certified that a copy of this document has been delivered to the.Chai.rman of the Board. JUNE ALEXANDER Clerk of the Board of Supervisors' APPROVED AS TO FORM: ADRIAN KUYPER, COUNTY COUNSEL By tUIt tNati Dated: S fl )\% DATED: • ATTEST: COUNTY OF ORANGE, a political subdivision of the State of California By //J Chairman '•f its Board of Supervisors CITY OF NEWPORT BEACH oect,e_ "COUNTY" Byezte_gt_te UMayor "CITY" City Clerk -8- CITY OF NEWPORT BEACH ANNEXATION TITLE Annexation No. 87 (County Triangle) Annexation No. 88 (Oxbow) EXHIBIT "A" DATE .OF. LAFCO APPROVAL STATUS 4/23/80 Developed: Not yet approved Developed. es Exhibit B Page 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 88-001 1-003 J 88-002 3. Growth in assessed value from fiscal year 1 to fiscal year 2 is 10% 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 : .5. 5. Pertinent calculations in fiscal year 1: Rev. & Tax. Code Sec. 98(e) 97.5 factors amount 1-001 City .16 County General Fund .16 All Special Districts. .08 Schools .60 1.00 N/A 88-001 City .00 $ -0- County General Fund .20 240 Special District A .05 60 Special District 8 (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. a 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 County General Fund Special District A Special District B Schools . 00 . 20 .05 .10 .65 1.00 $ -0- 180 45 90 585 $900 Exhibit B Page 3 of 4 1-002 City County General Fund Special District A Special District B Schools Auditor -Controller does. sections 97, 97.5, 98 and 99 calculations Fiscal Year 1 Fiscal Year 2 98(e) 97.5 98(e)(1) 97(a)(2) 98(e)(3) (4) factor amount factors amount amount Total Did not exist 88-001 City .00 $ -0- County General Fund .20 240 Special District A .05 60 Special District B .10 120 Schools .65 780 1.00 $1,200 Footnotes . 125 $ -0- $ 41.25 $ 22.50 .125 -0- 41.25 60.00 .00 -0- -0- -0- .10 -0- 33.00 33.00 .65 -0- 214.50 214.50 1.00 $ -0- $ 330.00 $330.00 . 00 .20 . 05 .10 . 65 1.00 $ -0- $ -0- $ -0- 240 (42.00) 198.00 60 (10.50) 49.50 120 (21.00) 99.00 780 (136.50) 643.50 $1,200 $.(210.00) $990.00 (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 prior 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 $60). Accordingly the City and County General Fund amounts were adjusted. ET.hibit,$, Page' 4„ of /4 Auditor_ Controller does sections 97, 97.5, 98 and 99 calculations Fiscal Year 3 98(e)(1) 97(a) (2) 98(e) (3) 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. IND J Wf 4 b o'Z W O u u u 4 z OZ4 om u O 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2 26 27 28 VTB:mm RESOLUTION OF THE BOARD OF SUPERVISORS OF ORANGE COUNTY, CALIFORNIA December 2, 1980 On motion of Supervisor Anthony, duly seconded and carried, the following Resolution was adopted: BE IT RESOLVED that the Clerk of the Board, on behalf of the Board of Supervisors, is authorized to execute the Master Property Tax Agree- ment between the County of Orange and the City of Newport Beach; and BE IT FURTHER RESOLVED that the County agrees to accept the exchange of property tax revenues for the annexations listed in Exhibit A of said Agreement as provided in said Agreement; and BE IT FURTHER RESOLVED that the Clerk of the Board is directed to notify the Executive Officer of the Local Agency Formation Commission and the Auditor -Controller of the Board's determination; and BE IT FURTHER RESOLVED that the Clerk of the Board is directed to notify the Executive Officer of the Local Agency Formation Commission to finalize Annexation No. 87 (County Triangle) before the State Board of Equalization. AYES: SUPERVISORS PHILIP L. ANTHONY, HARRIETT M. WIEDER, EDISON W. MILLER, THOMAS F. RILEY, AND RALPH B. CLARK NOES: SUPERVISORS NONE ABSENT: SUPERVISORS NONE Resolution No. 80-1973 AB 8 Master Property Tax Transfer Agreement; Exchange of Property Tax Revenues; City of Newport Beach 1 2 3 4 5 6 8 9 10 11: 12 13 18 19 20 21 22 23 24 25 26 STATE OF CALIFORNIA ss COUNTY OF ORANGE I, JUNE.ALEXANDER,-Clerk .of the Board of Supervisors of Orange, County, California, hereby certify that the above and foregoing Resolution was duly and regularly adopted by the said Board at a regular meeting thereof held on the 2nd day of December by a unanimous vote of said Board , 1980 , and passed IN WITNESS WHEREOF, I have hereunto set my"hand and seal this 2nd day of December , 1980 g.J!E/g 1- s m ,DUNE ALEXANDER.f Clerk:4 the Board.,p.f Suggrvi.sors of Oi:ag'ei County, calxSrn a M I\ r41