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HomeMy WebLinkAboutItem 2b - Resolution No. 6992 adopting joint resolution of the LA Co. Board of Supervisors and Sanitation DistrictCod ,4Uaityoivoo STAFF REPORT Public Works Services Department DATE: September 17, 2013 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Carmen Masud, Management Analyst SUBJECT: RESOLUTION NO. 6992 ADOPTING THE JOINT RESOLUTION OF THE LOS ANGELES COUNTY BOARD OF SUPERVISORS AND THE LOS ANGELES COUNTY SANITATION DISTRICT NO. 15 BOARD OF DIRECTORS APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM ANNEXATION TO COUNTY SANITATION DISTRICT NO. 15 Recommendation: Approve SUMMARY The Los Angeles County Sanitation District ( LACSD) has submitted a request for annexation for the property located at 2222 Highland Oaks Drive, for an allocation of annual Tax Increment Funds. The referenced property was a vacant parcel, but is now connected to the City's sanitary sewer system, which is connected to the Sanitation District's trunk sewer lines. LACSD requires that any new parcel receiving service not previously provided be annexed to a Sanitation District. Therefore, a resolution for property tax revenue exchange needs to be adopted by all affected agencies. It is recommended that the City Council approve Resolution No. 6992 adopting the joint resolution of the Los Angeles County Board of Supervisors and the Los Angeles County Sanitation District No. 15 Board of Directors approving and accepting negotiated exchange of property tax revenues resulting from annexation to County Sanitation District No. 15. DISCUSSION LACSD provides sewerage services in the metropolitan Los Angeles area and maintains trunk sewer facilities and pumping plants that convey sewage from local sewer systems to LACSD sewage treatment plants. The construction, maintenance, and operation of these facilities are funded by a combination of ad valorem property tax and individual sewer assessment fees. Any new parcel receiving service not previously provided must be annexed to a Sanitation District. Pursuant to Revenue and Taxation Code Section 99 and 99.01, prior to any jurisdictional change which will result in a Resolution No. 6992 — Adopt Joint Tax Sharing Resolution September 17, 2013 Page 2 of 2 special district providing new service, the governing bodies of all local agencies that receive property tax from the area must approve the change so that a portion of the annual tax increment can be transferred to the special district providing the additional services. The amount of the annual tax increment to be exchanged or shared is calculated and determined by the Los Angeles County Auditor Controller based on the specific Tax Rate Area (TRA). The property owner at 2222 Highland Oaks Drive recently built a new single family home. In order to receive off -site disposal of sewage, the property owner requested that the property be annexed to Los Angeles County Sanitation District No. 15. As a result of the referenced annexation, the City of Arcadia agrees to participate in tax revenue exchange with all affected local agencies. For each fiscal year commencing after the effective date of the jurisdictional change, the County Auditor Controller determined that a total of 0.50767% of the annual tax increment attributable to the land area incorporated within Annexation No. 293 be transferred to the County Sanitation District No. 15. In order for the Joint Tax Sharing to be approved, the City must pass Resolution 6992 for property tax revenue exchange or joint tax sharing. FISCAL IMPACT The Sanitation District will receive 0.50767% of the annual tax increment attributable to the land area incorporated within Annexation No. 293. The City of Arcadia will not lose any existing ad valorem tax revenue it currently receives from the affected territory. The City would only be giving up a portion of the revenues it would receive on increased assessed valuation of the property at 2222 Highland Oaks Drive. For example, should the City receive $100.00 of increased assessed valuation, the City would give up approximately $0.51 of that amount to the County Sanitation District. RECOMMENDATION It is recommended that the City Council approve Resolution 6992 adopting the joint resolution of the Los Angeles County Board of Supervisors and the Los Angeles County Sanitation District No. 15 Board of Directors approving and accepting negotiated exchange of property tax revenues resulting from annexation to County Sanitation District No. 15. Approved: Dominic Lazzarett City Manager Attachments — Resolution No. 6992 LACSD Joint Resolution RESOLUTION NO. 6992 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, ADOPTING THE JOINT RESOLUTION OF THE LOS ANGELES COUNTY BOARD OF SUPERVISORS AND THE LOS ANGELES COUNTY SANITATION DISTRICT NO. 15 BOARD OF DIRECTORS APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM ANNEXATION TO COUNTY SANITATION DISTRICT NO. 15 WHEREAS, there is property within the City of Arcadia which is to be annexed to the County Sanitation District of the County of Los Angeles; and WHEREAS, pursuant to Sections 99 and 99.01 of the Revenue and Taxation Code, prior to the effective date of any jurisdictional change which will result in a special district providing new service, the governing bodies of all local agencies who receive an apportionment of the property tax from the area must determine the amount of property tax revenues from the annual tax increment to be exchanged between the affected agencies and approve and accept the negotiated exchange of property tax revenues by resolution; and WHEREAS, there has been prepared a joint resolution of the Los Angeles County Board of Supervisors and the Los Angeles County Sanitation District No. 15 Board of Directors; and WHEREAS, this joint resolution specifies the negotiated exchange of property tax revenues for Annexation No. 293 for each fiscal year commencing on and after July 1, 2013. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS: 1 SECTION 1. That the joint resolution of the Los Angeles County Board of Supervisors, the Los Angeles County Sanitation District No. 15 Board of Directors, and the City of Arcadia, a copy of which is attached hereto, approving and accepting the negotiated exchange of property tax revenues resulting from Annexation No, 293 to County Sanitation District No. 15, is hereby adopted. SECTION 2. That for the fiscal year commencing on and after July 1, 2013 or after the effective date of this jurisdictional change, whichever is later, and for fiscal years thereafter, the County Auditor shall transfer to County Sanitation District No. 15 a total of 0.50767 percent of the annual tax increment attributable to the land area encompassed within Annexation No. 293. SECTION 3. That no additional transfer of property tax revenues shall be made from any other taxing agencies to County Sanitation District No. 15 as a result of /-11TIM * am, MOW 1131 SECTION 4. That no transfer of property tax increments, if any, from properties within the area subject to the Central Redevelopment Plan previously adopted by the Arcadia Redevelopment Agency, shall be made during the period that such tax increment is legally committed for repayment of the redevelopment project costs. SECTION 5. That if at any time after the effective date of this Resolution, the calculations used herein to determine initial property tax transfers or the data used to perform those calculations are found to be incorrect, thus producing an improper or inaccurate property tax transfer, the property tax transfer shall be recalculated and the corrected transfer shall be implemented for the next fiscal year, and any amounts of property tax received in excess of that which is proper shall be refunded to the 2 appropriate agency. SECTION 6. That annually adjusted rates shall take effect for all sewer service appearing on sewer bills issued on July 1 or thereafter of each year. SECTION 7. That the Mayor and City Clerk are hereby authorized and directed to execute said joint resolution indicating adoption by the City Council of the City of Arcadia. Passed approved and adopted this day of , 2013. ATTEST: City Clerk APPROVED AS TO FORM: sz;�� P, - 4elca�- Stephen P. Deitsch City Attorney 3 Mayor of the City of Arcadia JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES ACTING IN BEHALF OF Los Angeles County General Fund Los Angeles County Flood Control THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 15 OF LOS ANGELES COUNTY, AND THE GOVERNING BODIES OF City of Arcadia Upper San Gabriel Valley Municipal Water District APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM ANNEXATION TO COUNTY SANITATION DISTRICT NO. 15. "ANNEXATION NO. 293" WHEREAS, pursuant to Section 99 and 99.01 of the Revenue and Taxation Code, prior to the effective date of any jurisdictional change which will result in a special district providing a new service, the governing bodies of all local agencies that receive an apportionment of the property tax from the area must determine the amount of property tax revenues from the annual tax increment to be exchanged between the affected agencies and approve and accept the negotiated exchange of property tax revenues by resolution; and WHEREAS, the governing bodies of the agencies signatory hereto have made determinations of the amount of property tax revenues from the annual tax increments to be exchanged as a result of the annexation to County Sanitation District No. 15 entitled Annexation No. 293; NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. The negotiated exchange of property tax revenues resulting from the annexation of territory to County Sanitation District No. 15 in the annexation entitled Annexation No. 293 is approved and accepted. 2. For each fiscal year commencing on and after July I, 2013 or after the effective date of this jurisdictional change, whichever is later, the County Auditor shall transfer to County Sanitation District No. 15 a total of 0.50767 percent of the annual tax increment attributable to the land area encompassed within Annexation No. 293 as shown on the attached Worksheet. 3. No additional transfer of property tax revenues shall be made from any other taxing agencies to County Sanitation District No. 15 as a result of annexation entitled Annexation No. 293. 4. No transfer of property tax increments from properties within a community redevelopment project, which are legally committed to a Community Redevelopment Agency, shall be made during the period that such tax increment is legally committed for repayment of the redevelopment project costs. 5. If at any time after the effective date of this resolution, the calculations used herein to determine initial property tax transfers or the data used to perform those calculations are found to be incorrect thus producing an improper or inaccurate property tax transfer, the property tax transfer shall be recalculated and the corrected transfer shall be implemented for the next fiscal year, and any amounts of property tax received in excess of that which is proper shall be refunded to the appropriate agency. The foregoing resolution was adopted by the Board of Supervisors of the County of Los Angeles, the Board of Directors of County Sanitation District No. 15 of Los Angeles County, and the governing bodies of City of Arcadia and Upper San Gabriel Valley Municipal Water District, signatory hereto. ATTEST: Secretary CITY OF ARCADIA SIGNATURE PRINT NAME AND TITLE Date (SIGNED IN COUNTERPART)