HomeMy WebLinkAbout- PH-4 - Attachment 4 - 7/15/20141
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ue F LIED
MASTER PROPERTY TAX TRANSFER AGREEMENT1
BETWEEN THE COUNTY OF ORANGE AND THE CITY SIE ALEXANDER, Clerk
COSTA MESA �t`the Board of Supervisors
TO PROVIDE FOR PROPERTY TAX EXCHANGE SY.-Za
IN AREAS ANNEXED BY THE CITY Deputy
THIS AGREEt4ENT is entered into this 28th day of October
1980 , by and between the County of Orange, hereinafter "COUNTY", and the
N City of Costa Mesa
, hereinafter "CITY", as follows:
I. The purpose of this Agreement is to provide a uniform and pre-
dictable method of exchanging property tax revenues between CITY, COUNTY,
and certain special districts governed by the Board of Supervisors when
CITY annexes an area previously unincorporated. This Agreement is
entered into pursuant to section 99(d) of the Revenue and Taxation Code.
(Hereafter statutory references are to the Revenue and Taxation Code
unless otherwise indicated.)
2. This Agreement covers any completed and effective annexations to
CITY filed with the State Board of Equalization between January 2, 1978,
and July 24, 1979, as well as those pending uncompleted and future annexa-
tions subject to the tax reallocation provisions of section 99. Any
annexations completed on or before July 24, 1979 which have heretofore
been assigned to an existing tax rate area by the State Board of Equali-
zation are excluded from this Agreement.
3. For any annexations to CITY filed with the State Board of Equali-
zation between January 2, 1978 and January 1, 1979 and between January 2,
1979 and July 24, 1979 which were made effective on the tax rolls respec-
tively for fiscal years 1979-80 and 1980-81 the redistribution of taxes-.
will first be effected beginning with the proceeds of the fiscal 1980-81
tax roll.
For any annexations filed with the State Board of Equalization
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after July 24, 1979 a redistribution of property tax revenues will begin,
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 for
property tax purposes pursuant to Government Code Section 54902.
4. This agreement may be amended at any time by the mutual consent
Ilof the parties. Any such amendment will apply only to those annexations
11 completed thereafter.
S. 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 .50952717581= • 49047282419 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.1
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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a. Annexations filed with the Local Agency Formation Commission
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after the effective date of this Agreement:
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Prior to the filing of a resolution oretition for annexa -
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tion with the Local Agency Formation Commission, the property
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proposed for annexation shall be determined to be developed/substan-
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tially developed or undeveloped as follows:
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(1) (a) If the property is residential in nature, is wholly
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subdivided and at least 75 percent of the subdivided lots
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have existing residential structures on them, the property
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shall be deemed developed/substantially developed.
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(b) If the property is wholly residential in nature, is
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wholly subdivided and less than 25 percent of the subdivided
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lots have existing residential structures on them; and there
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are no parks, park sites, school sites, or other public i
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improvements or facilities on the property (excluding streets',
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highways, utility lines), the property shall be deemed
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undeveloped.
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(c) If the entire property is being used for agricultural!
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purposes, the property shall be deemed undeveloped. I
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(d) If the property has no parks, park sites, school
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sites, oil exploration or production facilities, or other
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structures, improvements or facilities on it, whether public
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or private, it shall be deemed undeveloped.
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(2) If the property fails to fall into any of the categories
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defined in subparagraph a.(1) above, then the property shall be
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deemed and treated developed/substantially developed or undeve-
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loped if the County Administrative Officer and the City Manager,
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or their designees, agree in writing.
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(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
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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.
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(4) If such written agreement is not reached within thirty
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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
iLocal Agency Formation Commission on the basis of the same I
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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
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covered by this Agreement which have been completed or were filed
with the Local Agency Formation Commission on or before the effective)
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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 i
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
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
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
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general fund on the basis of the historical CITY -COUNTY tax ratio.
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-
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
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I amounts guaranteed to the County general fund in subparagraph 7b shall be
2 ignored in determining the amount of property tax revenue allocated in
3 the prior year for purposes of sections 97(a) and 98(e). Attached hereto,
4 Exhibit B, is an illustration of the calculations contained in paragraphs
5 7 and 8 as applied to a hypothetical annexation.
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6 9. Annexations of one hundred acres or more which are developed/ `
7 substantially developed are excluded from this Agreement. The parties
8 shall negotiate a separate agreement for such annexations.
9 10. Annexations of one hundred acres or more which are undeveloped
10 are subject to this Agreement provided the parties may negotiate a sepa-
11 rate agreement for such annexations. I
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12 11. The parties shall take all actions necessary to effectuate this
13 Agreement, including the filing of resolutions pursuant to section 99(b)
14 agreeing to accept the exchange of property taxes provided for herein.
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0o IS 12. The provisions of this Agreement will determine the adjustments, I
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16 pursuant to section 99, resulting from annexations to CITY. It is under-
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30 17 stood that any such determination will be subject to subsequent adjust- '
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18 ment, as provided by applicable statutes, in the event all or any portion
19 of the annexed territory is subsequently included in another jurisdic-
20 tional change.
21 13. This Agreement shall commence the date last executed below and
22 continue in effect until terminated iA the following manner. Either
23 party may terminate this Agreement on at least six months' written notice
24 provided that this Agreement will continue to apply to any annexations I
25 filed with the Local Agency Formation Commission prior to the date such
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14. The terms "property tax revenues", "jurisdiction", and "juris- j
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dictional change" as used herein shall have the same meaning as contained
lin section 95. The term "special district" shall have the same meaning
las contained in sections 2215 and 2216.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement
ion the day and year dated below:
Dated:
Signed and certified that a copy
of this document has been delivered
to the Chairman of the -Board
1 -K a cu,±=
JUNE ALEXANDER
Clerk of the Board of Supervisors
APPROVED AS TO FORM:
ADRIAN KUYPER, COUNTY COUNSEL
By N jQrV �aUJ-Al�_
Dated:
DATED:
COUNTY OF ORANGE, a political
subdivision of the State of i
California
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By _,Jaj Zv��
Cha rman fits Board of
Supervis rs
"COUNTY"
CITY OF Costa :Mesa
By
MAYOR
® 28 it "CITY"
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