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02-06-2007 - (4)City of West Covina Memorandum TO: Andrew G. Pasmant, City Manager and City Council FROM: Shannon A. Yauchzee, Director/City Engineer Public Works Department AGENDA ITEM NO. D-64 DATE February 6, 2007 SUBJECT: REQUEST FOR REALLOCATION OF PROPERTY TAXES COUNTY SANITATION DISTRICT NO. 22 (ANNEXATION NO.393) LOCATION: NORTHWEST QUADRANT OF GRAND AVENUE AND . CORTEZSTREET RECOMMENDATION: It is recommended that the City Council adopt the following resolution: RESOLUTION NO.2006- 007 - 60 - A RESOLUTION- OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING THE JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES, THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 22 OF THE COUNTY OF LOS ANGELES, AND THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM AN ANNEXATION TO -COUNTY SANITATION DISTRICT NO. 22, BEING ANNEXATION NO.393 DISCUSSION: The County Sanitation District has submitted an annexation that consists of three vacant parcels and two developed parcels located on the northwest quadrant of Grand Avenue and Cortez Street for an allocation of Annual Tax Increment Funds. This area is 4.45 acres in size. Previously, the City Council approved several reallocations of this type. Since the passage of Proposition 13, provisions of the California Revenue and Taxation Code have been adopted which specify that prior to an area being annexed to a special district, the propertv tax revenue for the area shall be reallocated as previously negotiated between the agencies receiving property tax revenue from the area. Many of the undeveloped areas in the City are not currently annexed to a County Sanitation District, and in order to develop, the area must be annexed to a district so that they can receive sanitary sewer service. The County Sanitation District provides both sewage treatment facilities and major sewer lines connecting the City's sewer system to sewage treatment plants. The construction, maintenance, and operation of these district facilities are funded by a combination of an ad valorem property tax and individual sewer assessment fees. ALTERNATIVES: There are no other alternatives if the properties are to be developed with the sewer improvements in accordance with the provisions of local ordinances and State statutes. FISCAL IMPACT: The reallocation of the property tax proportionately reflects the existing tax allocation in the majority of the City, which is already in a County Sanitation District. The reduction in the City's future property tax revenue in favor of the County Sanitation District for the area, which the assessed valuation for the property at $3,177,200, is about $3,971.50 per year. • • t IN Andrew G. Pasmant, City Manager and City Council Page 2, February 6, 2007 The value is derived as follows: • Property Taxis 1% of $3,177,200 (assessed value)_ $31,772 • 0.125% of $31,772 (Property Tax)_ $3,971.50 The adjusted amount represents a reduction of 0.125 percent of the annual tax increment attributable to the land within the boundary of the annexation. This annexation consists of three vacant parcels and two developed parcels with a total area of 4.448 acres. Once the three vacant parcels are developed, they will be annexed to the- Citywide Sewer Service Charge District resulting in an increase of $77.91 per year to the district. Prepare y: Miguel Hernandez Reviewed/Approved by: Shannon A. Yauchzee Civil Engineering Associate Director/City Engineer Reviewed/Approved by: Finance Attachment No.I County Sanitation Districts of Los Angeles Joint Resolution Attachment No. 2 Resolution Z:\AGENDA - 2007\Property Tax Sharing Request No 22_Annex 393.doc ATTACHMENT NO. 1 • 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 Library Los Angeles County Flood Control THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 22 OF LOS ANGELES COUNTY, AND THE GOVERNING BODIES OF City of West Covina West Covina Sewer Maintenance District Three Valleys Municipal Water District APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM ANNEXATION TO COUNTY SANITATION DISTRICT NO. 22. "ANNEXATION NO. 393" 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. 22 entitled Annexation No. 393; NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: I. The negotiated exchange of property tax revenues resulting from the annexation of territory to County Sanitation District No. 22 in the annexation entitled Annexation No. 393 is approved and accepted. 2. For each fiscal year commencing on and after July 1, 2008, or after the effective date of this jurisdictional change, whichever is later, the County Auditor shall transfer to County Sanitation District No. 22 a total of 0.4663294 percent of the annual tax increment attributable to the land area encompassed within Annexation No. 393 for Tax Rate Area 03107 as shown on the attached Worksheet. r i 0 3. For each fiscal year commencing on and after July 1, 2007, or after the effective date of this jurisdictional change, whichever is later, the County Auditor shall transfer to Count Sanitation District No. 22 a total of 0.4668525 percent of the annual tax increment attributable to the land area encompassed within Annexation No. 393 for Tax Rate Area 03120 as shown on the attached Worksheet. 4. No additional transfer of property tax revenues shall be made from any other taxing agencies to County Sanitation District No. 22 as a result of annexation entitled Annexation No. 393. 5. 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. 6. 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. 22 of Los Angeles County, and the governing bodies of City of West Covina, West Covina Sewer Maintenance District, and Three Valleys Municipal Water District, signatory hereto. ATTEST: Secretary WEST COVINA SEWER MAINTENANCE DISTRICT SIGNATURE PRINT NAME AND TITLE Date (SIGNED IN COUNTERPART) v � i J , (f`op pA 4 ! N Pr) 'N q 05 H C, W /'�-1 O M O ZZZZZZ�TTTTTT U ` 1 Q Z Z 0,06 Oz F O I H Z�w QJur U. X Q _ 6 LLJ O =�0 7 Z Z 0 Z 7 U Q 0 � O N N O O 111 f h t 3 H A H OI t O ga.; .;aoot_.;f$$ogea <O elae:ef^f A� t 1• W W1W W W W O f t>>> W W■ 1 O f • • • • • • • • • • • • • • • • ``\l. ® < N OhpA OA P111O Ifl NMf00 O N t �IflNt�t�AOf �f f AH y� 2J ZO Ai Z i Z i i NNf0pp1tt0 AO n nO nw �10o AflpphAAA gqAOAAH pp0 `O NON 00 z g G mNNNNNZNNNN L`t' Qa O C -- - O N A tY1m1-O^l � �l7 O 0 J JV JJJJJJ:.IJ JJ J JJ pIT V t 1 I 1 I 1 1 1 v 0 1 1 1 cap «iei •\ �i 1 a 1 1 \ tp • N Sa ; CY U L m L "MI O M C \ M O• M C = C X C 00 n y o C •<� ti © 96 m c a o Q / h� 10• < + a a N OOOIT �• � F O 4 m r O ! /• '�• • • ®. ' b ► n � / bb'.id � LU 1A t NttA , k; L 0 ATTACHMENT NO.2 is RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING THE JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES, THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 22 OF THE COUNTY OF LOS ANGELES AND THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM AN ANNEXATION TO COUNTY SANITATION DISTRICT NO. 22, BEING ANNEXATION NO. 393 WHEREAS, there are certain areas within the City of West Covina which are to be annexed to the County Sanitation District of the County of Los Angeles; and WHEREAS, pursuant to Section 99 and 99.1 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 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 Board of Supervisors of the County of Los Angeles, the Board of Directors of County Sanitation District No. 22 of the County of Los Angeles, and the City Council of the City of West Covina; and WHEREAS, this joint resolution specifies the negotiated exchange of property tax revenues for Annexation No. 393 for each fiscal year commencing on and after July 1, 2008. NOW, THEREFORE, the City Council of the City of West Covina does hereby resolve as follows: SECTION 1. That the joint resolution of the Board of Supervisors of the County of Los Angeles, the Board of Directors of County Sanitation District No. 22 of the County of Los Angeles, and the City Council of the City of West Covina approving and accepting negotiated exchange of property tax revenues resulting from annexation to County Sanitation District No. 22 being Annexation No. 393 are hereby adopted. SECTION 2. That the Mayor and City Clerk are hereby authorized to execute said joint resolution indicating adoption by the City Council of the City of West Covina. SECTION 3. That the City Clerk shall certify to the adoption of this resolution and send a certified copy to the County Sanitation Districts of the County of Los Angeles. APPROVED AND ADOPTED this 6`h day of February 2007. Mayor ATTEST: City Clerk I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 6 h day of February 2007. by the following vote of the City Council. AYES: NOES: ABSENT: City Clerk APPROVED AS TO FORM: City Attorney ZARESOLUTION - 2007\Property,Tax sharing No 22-Annex 393.doc