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HomeMy WebLinkAbout02-58 - Agreeing to Property Tax Sharing Formula with County of OrangeRESOLUTION NO. 02-58 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AGREEING TO A PROPERTY TAX SHARING FORMULA WITH THE COUNTY OF ORANGE FOR THE PROPOSED EASTSIDE ANNEXATION AREAS. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, the annexation of unincorporated county islands in Eastside Costa Mesa will serve to promote logical, efficient, and cost effective delivery of public services; and WHEREAS, the County of Orange and the City of Costa Mesa both recognize that these areas would be more efficiently served by the City of Costa Mesa; and WHEREAS, all or portions of these islands are within specific redevelopment project areas administered by the Orange County Development Agency (OCDA) which direct most of the property tax increment to the OCDA; and WHEREAS, in 1980, the City of Costa Mesa adopted a Master Property Tax Transfer Agreement with the County of Orange that directs that 0.509527 of the County General Fund share of the basic 1 % Basic Levy be transferred to the City and 0.490473 remain with the County upon annexation of territory by the City; and WHEREAS, because the City has its own Fire Department, 100% of the County's share of the 1 % Basic Levy from the Structural Fire Fund and Orange County Fire Authority should also go to the City upon the City's commencement of providing fire/paramedic services to the areas; and WHEREAS, the unincorporated county islands, being all or partly covered by redevelopment project areas, will produce less property tax dollars for non - redevelopment public agencies than had the areas not been under redevelopment authority. NOW THEREFORE, BE IT RESOLVED THAT upon the effective date of each specific annexation, the property tax transfer between the City of Costa Mesa and the County of Orange General Fund will be determined by the following formulas: 1. 0.70 of the County General Fund share of the non -redevelopment 1 % Basic Levy be transferred to the City of Costa Mesa. 2. 0.30 shall remain with the County. 3. The property tax transfer will revert to the ratio specified in the , Master Property Tax Agreement at the time when the Orange County Development Agency ceases to collect tax increment from areas subject to this annexation. Said ratio is as follows: 0.509527 of the County General Fund share of the .1% Basic Levy be transferred to the City and 0.490473 remain with the County. BE IT FURTHER RESOLVED that upon the effective date of each specific annexation, 100% of the non -redevelopment property tax revenues that formerly accrued from the annexed territory to the Structural Fire Fund and Orange County Fire Authority shall henceforth accrue to the City of Costa Mesa. Passed and adopted this 19th day of August, 2002. ATTEST: APPROVED AS TO FORM: Deputy y Clerk of the City of Costa City Attorney MesaL^ Mayor of the City of Costa Mesa STATE OF CALIFORNIA) COUNTY OF ORANGE ) ss. CITY OF COSTA MESA ) I, JULIE FOLCIK, Deputy City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certifies that the above and foregoing Resolution No. 02-58 was duly and regularly passed and adopted by said City Council at a,regular meeting thereof held on the 19th day of August, 2002. IN WITNESS WHEREOF, I have hereby set my hand and affixed the Seal of the City of Costa Mesa this 20th day of August, 2002. DepuV,bty Clerk arid ex -officio Clerk of the City 6ouncil of the City of Costa Mesa