02-02-2010 - (7)City of West Covina
Memorandum
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Shannon A. Yauchzee
Public Works Director/City Engineer
AGENDA
ITEM NO. D-5a
DATE February 2, 2010
SUBJECT: REQUEST FOR REALLOCATION OF PROPERTY TAXES
LOS ANGELES COUNTY SANITATION DISTRICT NO. 22
(ANNEXATION NO.396)
LOCATION: CORTEZ STREET BETWEEN PEACE AND QUIET DRIVE
AND PROSPERO DRIVE (THREE EXISTING SINGLE-FAMILY HOMES
AND THREE PROPOSED SINGLE-FAMILY PROPERTIES)
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO.2010 — .3 - 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.396
DISCUSSION:
At the request of the property owners, the Los Angeles County Sanitation District (LACSD) has
submitted an annexation that includes six residential parcels, located along Cortez Street between
Peace and Quiet Drive and Prospero Drive, for an allocation of Annual Tax Increment Funds. Of the
six.properties three have existing single-family homes and the other three are un-developed. In order
for the single-family residences to connect to the sewer on the parcel, LACSD requires the parcel be
annexed to a Sanitation District. 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 property 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 the LACSD, and in order to develop, the area must be annexed to a district so that they
can receive sanitary sewer service. The LACSD 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. If the City Council chooses
not to approve the proposed exchange of property tax revenues, the proposed annexation would not
go forward and the area within the annexation would not have the rights to receive sanitary sewer
services and could not be developed.
Z:\AGENDA - 2010\Property Tax Sharing Request Annex 22-396.doc
Andrew G. Pasmant, City Manager
and City Council
Page 2 — February 2, 2010
FISCAL IMPACT:
The reallocation of the property tax proportionately reflects the existing tax allocation in the majority
of the City, which is already in the LACSD. The reduction in the City's future property tax revenue
in favor of the LACSD for the proposed annexation area is about 0.14% of the City's apportionment
of the property tax. The City's Community Development Commission owns most of the land in the
proposed annexation area. Since public agencies' properties are not taxed, the amount being
reallocated to the LACSD is based on the six privately owned properties' assessed values. Since the
assessed value for these properties have yet to be determined, the amount of property taxes paid will
be used to determine the reduction in the City's future property tax revenue in favor of the LACSD.
The value is derived as follows:
Tax Rate Area 03067:
• Property Tax paid in 2009-2010 = $25,569
• City's apportionment is $4,093.26 (16.0087% of $25,569)
• Sanitation District's share is $5.77 (0.1410% of $4,093.26)
The adjusted amount represents a reduction of $5.77 of the City's annual tax apportionment
attributable to the land within the boundary of the annexation.
Prepared y: Miguel Hernandez Reviewed/Approved by: Shannon A. Yauchzee
Civil Engineering Associate Director/City Engineer
Reviewed/Approved by:
Finance
Attachment No.1 Map
Attachment No.2 County Sanitation Districts of Los Angeles Joint Resolution (City)
Attachment No.3 Resolution
Z:\AGENDA - 2010\Property Tax Sharing Request Annex 22-396.doc
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*ATTACHMENT NO.2
JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES
ACTING IN BEHALF OF
Los Angeles County General
Los Angeles County Library
Los Angeles County Fire - FFW
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
Upper San Gabriel Valley Municipal Water District
APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES
RESULTING FROM ANNEXATION TO COUNTY SANITATION DISTRICT NO. 22.
"ANNEXATION NO. 396"
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. 396,-
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. 22 in the annexation entitled Annexation No. 396 is approved and
accepted.
2. For each fiscal year commencing on and after July 1, 2009, 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 0.4655164 percent of the annual tax increment attributable to the. land area encompassed
within Annexation No. 396 for Tax Rate Area 03066 as shown on the attached Worksheet.
3. For each fiscal year commencing on and after July 1, 2009, 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 0.4655082 percent of the annual tax increment attributable to the land area encompassed
within Annexation No. 396 for Tax Rate Area 03067 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. 396.
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 and Upper San Gabriel Valley Municipal Water District, signatory hereto.
ATTEST:
Secretary
CITY OF WEST COVINA
SIGNATURE
PRINT NAME AND TITLE
Date
(SIGNED IN COUNTERPART)
• ATTACHMENT NO.3
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.396
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.. 3 96 for each fiscal year commencing on and after July 1, 2010.
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. 396 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 2nd day of February 2010.
Mayor Shelly Sanderson
ATTEST:
City Clerk Laurie Carrico
0 0
,I LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do 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 2nd day of February 2010, by the
following vote of the City Council:
AYES:
NOES:
ABSENT:
City Clerk Laurie Carrico
APPROVED AS TO FORM:
City Attorney Arnold Alvarez-Glasman
ZARESOLUTION - 2010\Property Tax Sharing No 22-Annex 396.doe