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Home My WebLink AboutCC RESO 13,571RESOLUTION NO. 13,571 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND THE COUNTY OF SAN DIEGO FOR EXCHANGE OF PROPERTY TAX REVENUES BE IT RESOLVED by the City Council of the City of National City, that the Mayor is hereby authorized and directed to execute that certain "Master Property Tax Transfer Agreement" between the City of National City and the County of San Diego for the purpose of establishing a uniform procedure to exchange property tax revenues between local governments. PASSED AND ADOPTED this 9th day of June, 1981. ATTEST: March 20,1981 MASTER PROPERTY TAX TRANSFER AGREEMENT THIS AGREEMENT is made and entered into by and between the COUNTY OF SAN DIEGO, a political subdivision of the State of California, hereinafter called "County", and various CITIES with- in the County hereinafter called "Cities"; RECITALS WHEREAS, Section 99 of the Revenue and Taxation Code pro- vides that no annexation shall become effective until each county and city whose service areas or service responsibilities would be altered by such jurisdictional change agrees, by resolution, to accept the negotiated exchange of property tax revenues; and WHEREAS, Section 99 of the Revenue and Taxation Code pro- vides that a county and any local agency within the county may adopt a master property tax transfer agreement; and WHEREAS, Article XIIIB of the State Constitution provides that in the --event the financial responsibility of providing ser- vices is transferred from one entity of government to another, the appropriations limit of the transferee shall be increased by a: -reasonable amount as mutually agreed and the appropriations limit of the transferor shall be decreased by the same amount; and WHEREAS, the parties have negotiated this Agreement for the exchange of property tax revenues as to all unresolved jurisdic- tional changes completed in calendar years 1978, 1979, and 1980, and as to all future jurisdictional changes completed during the term of and within the limits of this Agreement; and _WHEREAS, the parties have mutually agreed to an exchange of appropriations limits as to all jurisdictional changes completed since July 1, 1980, and as to all future jurisdictional changes completed during the term of and within the limits of this Agree- ment. -AGREEMENT NOW, THEREFORE, the parties agree as follows: SECTION 1. Definitions. The definitions contained in this section and in the Revenue and Taxation Code shall govern the construction, meaning, and application of words used in this agreement. -2- (SECTION 1 continued) (a) "Base property tax revenues" means property tax revenues, as determined by the County Auditor pursuant to Sections 96 and 97 of the Revenue and Taxation Code, during the fiscal year im- mediately preceding the tax year in which the jurisdictional change is filed with the Local Agency. Formation Commission. (b) "Annual tax increment" means the property tax revenue from the annual increase in assessed value attributable to the TRA affected by the jurisdictional change, as determined by the County Auditor and Controller pursuant to Section 98 of the Revenue and Taxation Code. (c) "Developed property" means real property having improve- ments thereon with an assessed value at least equal to the assessed value of the land in the same assessor's parcel. (d) "Undeveloped property" means real property having no assessed improvements thereon or having improvements thereon with an assessed value of less than the assessed value of the land in the same parcel. SECTION 2. Apportionment of Property Tax Revenues. The County Auditor shall adjust the amount of property tax revenue _.determined pursuant to Section 96 or 97 of the Revenue and Taxation Code, —as amended from time to time, for each local agency whose service area or service responsibilities were altered by jurisdictional change subject to this Agreement, which shall have become effective during the preceding calendar year, as follows: 1. Undeveloped Property (a) No Base property tax revenue shall be transferred. .(b) The annual tax increment shall be adjusted such that the annexing city receives the percentage, shown on Attachment A, of the combined (pooled) County and detaching special districts' share of the annual tax increment. The balance of the annual tax increment shall be transferred to the County General Fund. The resulting percentage distribution of the annual tax increment shall be maintained in subsequent years unless altered by additional jurisdictional changes. 2. Developed Property (a) The annexing city shall receive 17.5% of the County's and detaching special districts' base property tax revenue from the annexed parcel. - 3- (Developed Property continued) (b) The property tax increment shall be adjusted such that the annexing city receives the percentage, shown on Attachment A, of the combined (pooled) County and detaching special districts' share of the annual tax increment. The balance of the annual tax increment shall be transferred to the County General Fund. The resulting percentage distribu- tion of the annual tax increment shall be maintained in subsequent years unless altered by additional jurisdictional changes. SECTION 3. Transfers of Appropriations Limits: Whenever a jurisdictional change occurs between parties to this agree- ment and such jurisdictional change results in a transfer of base property tax revenue, the appropriations limits of the affected jurisdictions shall be adjusted in accordance with the base property tax revenue transfer. SECTION 4. Limitations on Agreement. This agreement shall not apply to annexations of property which include nuclear power generation stations. By mutual consent of both the County and an affected city, property tax exchange for jurisdictional changes can be negotiated outside the bounds of this Agreement. SECTION 5. Term of Agreement. This Agreement shall be effective upon its approval and execution by the parties. Except as otherwise provided therein, this Agreement shall con- tinue in force for all pending and future jurisdictional changes until November 1, 1984. At least thirty (30) days prior to that time, -the -parties shall meet for the purpose of re-examining and possibly amending the terms and conditions of this Agreement. Jurisdictional changes in process on November 1, 1984, shall continue to completion under the terms of this Agreement. SECTION 6. Termination Due to Chan es in the Law. The purpose of this Agreement is to make equitable distribution of available property tax revenues consistent with the terms of existing.. .law as mutually understood by the parties and to maxi- mize'each party's ability to deliver essential governmental services in areas annexed to cities. In entering into this Agreement, the parties mutually assume the continuation of the existing statutory scheme for the distribution of available property tax revenues to local government and that assumption is a basic tenet of this Agreement. Accordingly, it is mutually understood and agreed that this Agreement.may.i1pon ninety (90) days written notice by any party be terminated as to subsequent jurisdictional,changes of that party if changes should occur in statutory law, court decisions or State administrative interpretations which negate the basic intent of this Agreement. -4- IN WITNESS WHEREOF, the parties have entered into this ,Agreement on the dates set forth below. COUNTY OF SAN DIEGO By Date CITY OF CARLSBAD CITY OF CHULA VISTA By By Title Date Title Date CITY OF CORONADO CITY OF DEL MAR By Title By Title Date Date CITY OF EL CAJON CITY OF ESCONDIDO By By Title Title Date Date CITY OF IMPERIAL BEACH CITY OF LA MESA By By Title Title Date Date -5- CITY OF LEMON GROVE By Title Date CITY OF NATIONAL CITY By Title Date CITY OF OCEANSIDE CITY OF SAN DIEGO By By Title Title Date Date CITY OF SAN MARCOS CITY OF VISTA By By Title Title Date Date • ATTACHMENT A SHARE OF POOLED ANNUAL TAX INCREMENT TO BE TRANSFERRED TO ANNEXING CITIES Incorporated Area City Percentage Carlsbad 48% Chula Vista 41 Coronado 53 Del Mar 41 El Cajon 38 Escondido 36 Imperial Beach 55 La Mesa 38 Lemon Grove 34 National City 46 Oceanside 53 San Diego 45 San Marcos 23 Vista 41