HomeMy WebLinkAboutTax Agreement County of San DiegoCity of National City, California
COUNCIL AGENDA STATEMENT
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MEETING DATE May 5, 1992
AGENDA ITEM NO.
T�Ti RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA
AN A D APPROVING AN AGREEMENT FOR COOPERATION BETWEEN THE COUNTY OF SAN DIEGO,
THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND THE CITY OF
NATIONAL CITY, AMENDMENT III, NATIONAL CITY DOWNTOWN REDEVELOPMENT PROJECT.
PREPARED BY. DEPARTMENT
Executive Director Community Development Commission
EXPLANATION: The Agreement considered by the City Council on December 10, 1991
propose a payment of $3 million by January 31, 1992 and $10 million by January 31, 1998.
The County did not have a $3 million capital project within or near and of benefit to
the Downtown Project and does not have one projected for $10 million by January 31, 1998.
The Agreement is therefor revised for payment of $1 million per year, each year, begin-
ning May 15, 1992 and ending May 15, 2005, a total of 14 payments of $1 million.
Pursuant to the Agreement the CDC can receive up to 10% per year
compounded each year from 1991-1992 through 1997-1998 and then up to 6% per year
compounded each year from 1998-1999 through 2014-2015. The County would receive the
overage. The CDC's tax sharing Agreements with the San Diego County Office of
Education and the Southwestern Community College District are treated so as to not
reduce the CDC's 10% or the CDC's 6%. These matters are covered in Section 2 of the
Agreement.
Future Amendments to the Redevelopment Plan internal to the Project
Boundary (2,083 acres) which will not have a fiscal impact on the County, such as
designation of property acquisition areas, will not require County involvement or
approval. See Section 9.3. Adding land area to the Project or changing the maximum
allocation of taxes, or extending the duration of the Plan or increasing the maximum
amount of tax allocation bonds which may be outstanding at any one time would involve
the County.
Environmental Review X N/A
Financial Statement : Not applicable.
Account No.
STAFF RECOMMENDATION
Executive Director, Community Development Commission, recommends approval.
BOARD/COMMISSION RECOMMENDATION
The Community Development Commission (CDC) Board, on December 3, 1991, approved the
earlier Agreement and authorized its execution. The Agreement has changed
substantially A new CDC approval is necessary.
ATTACHMENTS (Listed Below) Resolution No. 92-69
Agreement for Cooperation.
A•200 (Rev. 9/00)
RESOLUTION NO. 92-69
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NATIONAL CITY AUTHORIZING AND APPROVING
AN AGREEMENT FOR COOPERATION BETWEEN THE
COUNTY OF SAN DIEGO, THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF
NATIONAL CITY AND THE CITY OF NATIONAL
CITY.
WHEREAS, the City Council of the City of National City, California and the
Community Development Commission of the City of National City (CDC), held a joint
public hearing on Amendment III, National City Downtown Redevelopment Project on
June 11, 1991 and the City Council, on June 18, 1991 adopted Ordinance No. 91-2013
amending the Redevelopment Plan for the Project and the CDC, by adoption of
Resolution No. 91-25 (NCDRP Amend. III) on June 11, 1991, found and determined
that the Project has caused and Amendment III will cause a financial burden or
detriment to taxing agencies and that payments are necessary to alleviate the
financial burdens or detriments; and
WHEREAS, the County of San Diego earlier proposed, in December, 1991, an
Agreement for cooperation in satisfaction of the County's share of the tax increment
from the National City Downtown Redevelopment Project, as amended by Amendment
III, to and including Fiscal Year, 2014-2015; and
WHEREAS, the Mayor and City Council and the City Manager have caused to
be prepared, by Katz Hollis Coren and Associates, Inc., Sacramento, California, a
Project Cash Flow Analysis which was considered by the Mayor and City Council and
the City Manager at the City Council Meeting held April 28, 1992; and
WHEREAS, the CDC's Bond Counsel, Investment Banker, Financial Analyst,
Executive Director, and Attorney have worked with the County Administrative staff,
the County Auditor -Controller and the County Counsel in the resolution of the legal
and financial aspects of the proposed Agreement and the Executive Director of the
CDC recommends approval thereof and the County administrative staff will
recommend approval thereof to the County Board of Supervisors; and
WHEREAS, the City Council wishes to enter into the proposed Agreement for
cooperation with the County of San Diego;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
National City, California that the Mayor is hereby authorized to execute, on behalf
of the City, that certain Agreement entitled, "Agreement for Cooperation Between
the County of San Diego, the City of National City, and the Community Development
Commission of the City of National City for Amendment III to the Redevelopment
Plan for the National City Downtown Redevelopment Project Area". Said Agreement
is on file in the Office of the City Clerk.
Continued on Page Two
Resolution No. 92-69
Page 2 of 2
PASSED AND ADOPTED this 5th day of May, 1992.
"C AL jr,
-George H. Waters, Mayor
ATTEST:
P
Lo ' Anne Peoples, City Clerk
APPROVED AS TO FORM:
/? : �. ' 0 P3 -.,
George H. Eiser III, City Attorney
AGREEMENT FOR COOPERATION BETWEEN THE COUNTY OF SAN DIEGO,
THE CITY OF NATIONAL CITY, AND THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY
FOR AMENDMENT III TO THE REDEVELOPMENT PLAN
FOR THE NATIONAL CITY DOWNTOWN REDEVELOPMENT PROJECT AREA
This Agreement is entered into on the 5th day of MAY ,
1992, by and between the Community Development Commission of the
City of National City ("Commission"), the City of National City
("City") and the County of San Diego ("County").
R E C I T A L S
A. The City Council of the City of National City adopted
Amendment III to the Redevelopment Plan for the National City
Downtown Redevelopment Project Area ("Amendment III") by
Ordinance No. 91-2013.
B. The Project Area for Amendment III, adopted by Ordinance No.
91-2013, encompasses 2,083.1 acres.
C. Health and Safety Code Section 33401 provides that the
Commission may pay to an affected taxing agency any amount of
money which the Commission determines is appropriate to alle-
viate any financial burden or detriment caused to the taxing
agency by a redevelopment plan.
D. The County advised the Commission of the potential financial
impact resulting from the adoption and implementation of
Amendment III.
E. The parties found that the Commission's implementation of
Amendment III will result in a loss of property tax revenues
which the County could reasonably have expected to receive in
the absence of Amendment III.
F. On April 16, 1985, the parties entered into the Agreement
between the County of San Diego, the City of National City,
and the Community Development Commission of the City of
National City ("April 16, 1985 Agreement") to alleviate the
financial burden or detriment to the County caused by the
implementation of Amendments No. 1 and No. 2 to the
Redevelopment Plan for the City of National City Downtown
Redevelopment Project.
F. To alleviate the financial burden or
caused by implementation of Amendment
April 16, 1985 Agreement, the parties
Agreement.
detriment to the County
III, and to replace the
hereto enter into this
G,
AgRELz ENT
NOW, THEREFORE, for and in consideration of the foregoing prom-
ises, and for their mutual advantage and concern, the parties do
hereby agree as follows:
1. Definitions
The words and terms in the Agreement shall have the following
meanings:
1.1 "Commission" shall mean the Community Development
Commission of the City of National City.
1.2 "City" shall mean the City of National City, a municipal
corporation.
1.3 "County" shall mean the County of San Diego, a political
subdivision of the State of California.
1.4 "Project Area" shall mean the National City Downtown
Redevelopment Project Area identified in the Ordinance
adopting Amendment III.
1.5 "Fiscal Year" shall mean the period from July 1 to and
including the following June 30.
1.6 "Ordinance" shall mean the Ordinance of the City adopting
Amendment III.
1.7 "Amendment III" shall mean the amendment to the
Redevelopment Plan for the National City Downtown
Redevelopment Project Area prepared by the Commission and
adopted by the City Council ,pursuant to the Ordinance, as
required by law.
1.8 "April 16, 1985 Agreement" shall mean the Agreement
between the County of San Diego, the City of National
City, and the Community Development Commission of the
City of National City entered into on April 16, 1985.
1.9 "Unitary Property Taxes" shall mean taxes as defined in
Revenue and Taxation Code Section 98.9.
2. Payment of Tax Revenues
2.1 In order to comply with federal and state laws governing
the issuance of tax allocation bonds by the Commission,
and the use of proceeds thereof, it is not possible for
the Commission to make a lump sum payment from such bond
7
proceeds to the County, as might be preferred, in recog-
nition of the potential financial impact resulting from
the adoption and implementation of Amendment III.
2.2 Accordingly, the Commission shall pay to the County no
later than May 15, 1992 the sum of $1,000,000 and annual-
ly no later than May 15 in each of the years 1993 through
2005 the sum of $1,000,000, and $621,867 no later than
May 15, 2006, to be used at the County's sole discretion
for any purpose within or outside the City.
The parties anticipate that the Commission will issue tax
allocation and refunding tax allocation bonds by June 30,
1992. The Commission shall in good faith seek to mini-
mize the debt service requirements for these bonds by
obtaining a surety bond and debt service insurance, and/
or by extending the maturity period from the year 2011 to
the year 2015. In the event the Commission is unable to
(1) obtain a surety bond, (2) obtain debt service insur-
ance, and (3) extend the maturity period, the amount and
schedule of annual payments to the County shall be ad-
justed to provide the maximum feasible annual payment
less than $1 million, over the number of years necessary
to provide compensation having a present value equivalent
to the agreed -upon series of payments between May 1992
and May 2006.
2.3 The. Commission shall pay to the County all tax increment
revenues allocated to the Commission pursuant to Section
33670(b) of the Health and Safety Code which are.attri-
butable to increases in the rate of tax levied by or for
the benefit of the County, which. levy occurs in or after
Fiscal Year 1990-91.
2.3.1 In the event of a tax rate increase as described
in Section 2.3 above, the County Auditor and
Controller shall notify the Commission of the tax
rate increase and provide to the Commission, in
writing, a recommended methodology to calculate
amounts due pursuant to such increase.
2.4 In addition to amounts pursuant to Sections 2.1, 2.2 and
2.3 above, the Commission shall pay to the County tax
increment revenues as follows:
(a) Beginning in Fiscal Year 1991-92 and ending in
Fiscal Year 1997-98, 100 percent of any tax
increment, not including unitary property taxes,
attributable to growth in assessed valuation above
91
3.
a compounded annual rate of 10 percent, relative
to Fiscal Year 1990-91.
(b) Beginning in Fiscal Year 1998-99 and ending in
Fiscal Year 2014-15, 100 percent of any tax
increment, not including unitary property taxes,.
attributable to growth above a compounded annual
rate of 6 percent, using the lesser of actual
growth through FY 1997-98 or a 10 percent annual
rate compounded through FY 1997-98 as the bench-
mark above which the 6 percent growth is to be
calculated.
(c) Notwithstanding the provision in Section 2.4(a)
and Section 2.4(b) above that the County shall
receive 100 percent of specified tax increment,
should the Commission enter into a tax sharing
agreement with the San Diego County Office of
Education ("SDCOE") or the Southwestern Community
College District ("SCCD"), the percentage of
increment payable to the County under Section
2.4(a) and Section 2.4(b) shall be reduced by any
percentage of annual tax increment to be paid by
the Commission to the SDCOE or the SCCD pursuant
to such agreements. The Commission shall provide
the County with a copy of any tax sharing agree-
ment with the SDCOE or the SCCD for Amendment III
within 30 days after the execution of the agree-
ment by the parties thereto.
(d) In the event that the Plan remains in effect
beyond FY 2014-15, the County shall receive its
full share of all tax increment as if the
Redevelopment Plan was not in effect. The City
and the Commission shall not be precluded by vir-
tue of this Agreement from extending the Redevel-
opment Plan for the National City Downtown Rede-
velopment Project beyond FY 2014-15.
2.5 The amounts payable to the County pursuant to Sections
2.3 and 2.4 above shall be determined by using the
instructions in Attachment A to complete the worksheet in
Attachment A-1, and the instructions in Attachment B to
completed the worksheet in Attachment B-1.
Payment Procedure
3.1 The County Auditor and Controller shall allocate and dis-
tribute to the Commission the total amount of incremental
4
revenue available to the Commission in accordance with
applicable law.
3.2 Within 30 calendar days after receiving a statement from
the Auditor and Controller indicating the estimated
amount of tax increment available to the Commission for a
given fiscal year, the Commission shall calculate the
County's share of the increment pursuant to Section 2.3
and Section 2.4, using the work sheet attached hereto as
Attachment A-1, and shall file a copy of the completed
work sheet with the County Auditor and Controller.
3.3 Within 30 calendar days after the receipt by the
Commission of tax increment, the Commission shall
calculate and pay the County's share of such increment.
Payment shall be sent to the attention of the County
Auditor and Controller, with a written explanation of how
the amount was determined.
3.4 Within 30 calendar days after receiving a statement from
the Auditor and Controller indicating the actual amount
of tax increment available to the Commission for a given
fiscal year, the Commission shall calculate and pay the
amount, if any, due to the County in excess of the amount
determined on the basis of the Auditor's estimate
pursuant to Section 3.2 above. Payment shall be sent to
the attention of the Auditor and Controller, with a writ-
ten explanation of how the amount was determined.
3.5 Any amount due the County which is not paid within the
time period specified in Sections 3.3 and 3.4 above shall
accrue interest at the pooled money investment rate of
the County, as published in the County Treasurer's Quar-
terly Earnings Report or a comparable successor publica-
tion, for the duration of the delinquency.
4. Subordination
Payments pursuant to Section 2.2 shall be subordinate to the
rights of the holder or holders (other than if the City of
National City or a public entity in which it is a party is the
holder) of the Commission's bonds to which tax revenues have
been pledged. The Commission shall in good faith diligently
attempt to market such bond or bonds in a manner such that
sufficient tax revenues remain available to make payments
pursuant to Section 2.2. In the event the Commission is un-
able to make such payments, the amount due to the County shall
accrue interest until payment is made, computed at the pooled
money investment rate of the County as published in the County
5
Treasurer's Quarterly Earnings Report or a comparable succes-
sor publication.
5. indebtedness
The obligations of the City/Commission under this Agreement
shall constitute an indebtedness of the City/Commission for
the purposes of carrying out the Redevelopment Project, which
indebtedness shall be payable only from the taxes levied by or
for the benefit of taxing agencies in the Redevelopment Pro-
ject Area, and allocated to the Commission pursuant to Health
and Safety Code Section 33670 et seq.
6. Reimbursement for Auditor and Controller's Costs
6.1 The Commission agrees to reimburse the County Auditor and
Controller for the Auditor's annual costs for accounting
and distribution of tax increment to the Commission,
including costs for any services performed pursuant to
this Agreement, services performed pursuant to
requirements mandated by statute, or services performed
at the special request of the Commission which are not
mandated by law.
6.2 Payment shall be made within thirty days of receipt by
the Commission of the Auditor's statement of costs.
7. Defense against Legal Challenge
The parties agree that in the event litigation is initiated
attacking the validity of all or any portion of this Agree-
ment, all parties shall in good faith defend and seek to up-
hold this Agreement.
8. County, Commission and City Cooperation in Redevelopment
It is the intention of the parties to expedite and facilitate
the implementation of the Redevelopment Plan and to assist one
another in the implementation of the Redevelopment Plan in
accordance with applicable state and federal law. The parties
agree to supply one another with information and reports from
time to time as may become reasonably necessary in order for
the parties to undertake their respective obligations under
this Agreement. The Executive Director of the Commission and
a representative of the County Chief Administrative Officer
shall meet on a biennial basis to review the progress of
implementation of the Redevelopment Plan and this Agreement.
2
9. General Provisions
9.1 Effective Date
The date of this Agreement shall be the date when the
Agreement shall have been -signed by the City and the
Commission.
9.2 Term of Agreement; Amendment
This Agreement shall remain in effect during the entire.
term of Amendment III and shall not be revoked or revised
except by a written.amendment signed by the parties.
9.3 Redevelopment Plan; Amendment
By this Agreement, the parties intend to resolve all -
differences with respect to the Redevelopment Plan or to
future amendments to the Redevelopment Plan. The County
agrees that it shall not bring any suit or action of any
nature challenging the validity of the Redevelopment
Plan, the resolutions, findings or other actions taken by
the Commission or the City in relation to the approval of
the Redevelopment Plan or the Negative Declaration or
other environmental documents prepared for the project;
or in relation to any future amendments to the Redevelop-
ment Plan.
The terms of Section 2 above shall apply to any future
amendments to the Redevelopment Plan which are internal
to the Redevelopment Plan Project Area and would not have
a fiscal impact on the County, such as the designation of
acquisition areas within the Project Area: However, the
County shall receive a full pass -through of its share of
additional property tax increment attributable to any
future amendments to the National City Downtown Rede-
velopment Project which would have a fiscal impact on the
County, such as a future amendment of the Redevelopment
Plan which adds land area to the existing Redevelopment
Project Boundary, increases the maximum allocation of
real property taxes to the Commission, extends the dura-
tion of the Redevelopment Plan, or increases the maximum
amount of tax allocation bonds which may be outstanding
at any one time.
In the event of a future amendment having a fiscal impact
on the County, the Executive Director of the Commission
and a representative of the County Chief Administrative
Officer shall prepare appropriate worksheets and written
instructions to calculate amounts payable to the County
rA
in addition to amounts calculated pursuant to Section 2.5
above.
9.4 Entire Agreement
This Agreement constitutes the entire understanding and
agreement between the parties and supersedes all previous
negotiations between them. It is the intent of the
commission, the City and the County that the payments
herein provided for constitute a full, complete, fair and
equitable adjustment for all financial and other impacts
which have resulted or may result during the term of this
Agreement from Amendment III as adopted by Ordinance No.
91-2013. The parties contemplate that payments to the
County in certain years may exceed the amount of property
tax revenues the County would have received in the
absence of the division of taxes required by Section
33670 of the Health and Safety Code; consistent with
Section 33401(b) of the Health and Safety Code, any such
excess payments would reimburse the County for amounts _
deferred, including interest computed at the pooled money
investment rate of the County as published in the County
Treasurer's Quarterly Earnings Report or a comparable
successor publication, in prior years beginning with FY
1991-92 and to the extent to which the County received
less tax revenue in such years than would have been re-
ceived absent Amendment III.
By this Agreement, the parties terminate their April 16,
1985 Agreement.
IN WITNESS WHEREOF, the parties have caused this Agreement, con-
sisting of 29 pages including all attachments, to.be executed on
the dates set forth opposite their signatures.
COUNTY OF SAN DIEGO (�
By: J
Clerk of the Board of S pervisors
Approved as to Form and Legality:
COUNTY �COUNSEL j
/1
2� t
By:
Approved and/or authorized by the Board
of Supervisors of the County of San Diego
/117
J
X .5-/a -90 3o s
ute-Ok of the Board of Supervisors
Date
/5-7
Date
-\1 COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY.( OF NATIONAL CITY
Date
Approved as to Form and Legality:
COMMISSION OUNSEL
By:
Date
CITY OFNATIONAL CITY�
Date
Approved as to Form and Legality:
CITY ATTO EY
By:
Date
0
WORKSHEET INSTRUCT.NS ATTACHMENT A
HOW TO CALCULATE THE COUNTY'S SHARE OF REVENUE
PER AGREEMENT SECTIONS 2.3 AND 2.4
FOR FISCAL YEAR 1991-92 THROUGH FISCAL YEAR 1997-98
STEP 1 DETERMINING CUTOFFS IN GROWTH OF AV
Lines 1.1 through 1.6
Using the AP07 Reports for the current fiscal year provided by
the Auditor and Controller for each of the six sub -areas of the
National City Downtown Redevelopment Project Area, take the
"TOTAL" amounts given under the column titled "Gross AV LESS A/O
EXEMPTIONS" in the section for "ACTUAL" AV and enter the amounts
on Lines 1.1 through 1.6.
Line 2
Add the amounts on Lines 1.1 through 1.6. Enter the resulting
amount on Line 2.
Lines 3.1 through 3.6
Using the AP07 Reports for FY 1990-91 for each of the Project
Area sub -areas, take the "TOTAL" amounts given under the column
titled "GROSS AV LESS A/O EXEMPTIONS" in the section for "ACTUAL"
AV and enter the amounts on Lines 3.1 through 3.6.
Line 4
Add the amounts on Lines 3.1 through 3.6. Enter the resulting
amount on Line 4.
Line 5
Subtract Line 4 from Line 2. Enter the resulting amount on Line
5.
Line 6
Enter the amount given on Line 4.
Line 7
Using the 10.00% Escalation Schedule (Attachment 1), go to the
current fiscal year (Column 2) for which the calculation is being
made and follow across to the related escalation factor in
(Column 3). Enter this factor on Line 7.
Line 8
Multiply the amount on Line 6 by the factor on Line 7. Enter the
resulting amount on Line 8.
(If the amount on Line 2 is less than or equal to the amount on
Line 8, skip to Step 4, Line 19 of the calculation process and
then skip to Step 6, Line 26. If the amount on Line 2 is greater
than the amount on Line 8, complete Lines 9 through 28.)
Line 9
Subtract the amount on Line 8 from the amount on Line 2. Enter
the resulting amount on Line 9.
1
WORKSHEET INSTRUCT ONS G ATTACHMENT A
STEP 2 DETERMINING THE PERCENTAGE VALUE OF GROWTH ABOVE THE
10% THRESHOLD
Line 10
On Line 10, enter the amount given on Line 9.
Line 11
On Line 11, enter the amount given on Line 2 minus $332,703,468.
(Note: $332,703,468 is the sum of the base year assessed
valuations for the areas which make up the National City Downtown
Redevelopment Project.)
Line 12
Divide the amount on Line 10 by the amount on Line 11. Enter the
resulting percentage on Line 12.
STEP 3 DETERMINING COUNTY'S PERCENTAGE SHARE OF INCREMENT
ABOVE THE THRESHOLD
Line 13
On Line 13, enter the percentage pass -through of tax increment to
the San Diego County Office of Education required for the current
fiscal year by a tax sharing agreement between the Commission and
the Office of Education.
Line 14
On Line 14, enter the percentage pass -through of tax increment to
the Southwestern Community College District required for the
current fiscal year by a tax sharing agreement between the
Commission and the Community College District.
Line 15
Add the percentage amount on Line 13 and the percentage amount on
Line 14. Enter the resulting percentage amount on Line 15.
Line 16
Subtract the percentage amount on Line 15 from 100 percent.
Enter the resulting percentage amount on Line 16.
K
WORKSHEET INSTRUCTIONSATTACHMENT A
STEP 4 DETERMINING ELIGIBLE INCREMENT
Line 17
If calculating Estimated Tax Increment, on Line 17 enter the
amount given on the AP21 Summary Section titled "Total Estimated
Redevelopment Tax Increment" minus any amount of unitary tax
revenue included in that total. If calculating Actual Tax
rncrgment, on Line 17 enter the amount given on the Auditors'
Incremental Payment Statement titled "Total Of Incremental
Payments" minus any amount of unitary tax revenue included in
that total.
Line 18
On Line 18, enter the amount, if any, attributable to an increase
in the rate of tax levied by or for the benefit of the County.
This amount and/or its method of calculation to be provided by
the Auditor and Controller.
Line 19
Subtract the amount on Line 18 from the amount on Line 17. Enter
the resulting amount on Line 19.
Line 20
Enter the percentage amount from Line 12.
Line 21
Multiply the amount on Line 19 by the percentage amount on Line
20. Enter the resulting amount on Line 21.
STEP 5 DETERMINING THE REVENUE TO DISTRIBUTE TO THE COUNTY
Line 22
On Line 22, enter the amount on Line 21.
Line 23
On Line 23, enter the percentage amount on Line 16.
Line 24
Multiply the amount on Line 22 by the percentage amount on Line
23. Enter the resulting amount on Line 24.
3
WORKSHEET INSTRUCT oNS C ATTACHMENT A
STEP 6 DETERMINING TOTAL REVENUE TO BE PAID TO THE COUNTY PER
AGREEMENT
Line 25
On Line 25, enter the amount on Line 18.
This is the amount of revenue due to the County per Agreement
Section 2.3.
Line 26
On Line 26, enter the amount on Line 24.
This is the amount of revenue due to the County per Agreement
Section 2.4.
Line 27
Add the amounts on Lines 25 and 26. Enter the total on Line 27.
This is the total amount due to the County from the Commission. -
(Note: If this worksheet is based on Estimated Tax Increment, an
additional worksheet will need to be completed at the end of the -
fiscal year to allow for any additional revenue or adjustments to
the Commission's Tax Increment during the current fiscal
year.)
A sample worksheet is attached for reference purposes.
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-
WORKSHEET INSTRUCT rS ATTACHMENT B
HOW TO CALCULATE THE COUNTY'S SHARE OF REVENUE
PER AGREEMENT SECTIONS 2.3 AND 2.4
FOR FISCAL YEAR 1998-99 THROUGH FISCAL YEAR 2014-15
STEP 1 DETERMINING THE GROWTH RATE BENCHMARK FOR FY 1997-98
Lines 1.1 through 1.6
Using the AP07 Reports for FY 1997-98 provided by the Auditor and
Controller for each of the six sub -areas of the National City
Downtown Redevelopment Project Area, take the "TOTAL" amounts
given under the column titled "GROSS AV LESS A/O EXEMPTIONS" in
the section for "ACTUAL" AV and enter the amounts on Lines 1.1
through 1.6.
Line 2
Add the amounts on Lines 1.1 through 1.6. Enter the resulting -
amount on Line 2.
Lines 3.1 through 3.6
Using the AP07 Reports for FY 1990-91 for each of the Project
Area's sub -areas, take the "TOTAL" amounts given under the column
titled "GROSS AV LESS A/0 EXEMPTIONS" in the section for "ACTUAL"
AV and enter the amounts on Lines 3.1 through 3.6.
Line 4
Add the amounts on Lines 3.1 through 3.6. Enter the resulting
amount on Line 4.
Line 5
Multiply the amount on Line 4 by 1.948717, which is the
escalation factor for FY 1997-98 per the 10.00% Escalation
Schedule in Attachment 1. Enter the resulting amount on Line 5.
Line 6
On Line 6, enter the amount on Line 2 or the amount on
whichever is less.
This amount is the benchmark above which the 6 percent
to be calculated per Section 2.4(b) of the Agreement.
1
Line 5,
growth is
WORKSHEET INSTRUCrJNS
ATTACHMENT B
STEP 2 DETERMINING CUTOFFS IN GROWTH OF AV
Lines 7.1 through 7.6
Using the AP07 Reports for the current fiscal year provided by
the Auditor and Controller for each sub -area of the National City
Downtown Redevelopment Project Area, take the "TOTAL" amounts
given under the columns titled "Gross AV LESS A/0 EXEMPTIONS" in
the section for "ACTUAL" AV and enter the amounts on Line 7.1
through 7.6.
Line 8
Add the amounts on Lines 7.1 through 7.6. Enter the resulting
amount on Line 8.
Line 9
On Line 91 enter the amount given on Line 6.
Line 10
Subtract Line 9 from Line 8. Enter the resulting amount on Line
10.
'Line 11
Enter the amount given on Line 9.
Line 12
Using the 6.00% Escalation Schedule (Attachment 2), go to the
current fiscal year (Column 2) for which the calculation is being
made and follow across to the related escalation factor in
(Column 3). Enter this factor on Line 12.
Line 13
Multiply the amount on Line 11 by the factor on Line 12. Enter
the resulting amount on Line 13.
(If the amount on Line 8 is less than or equal to the amount on
Line 13, skip to Step 5, Line 24 of the calculation process, and
then skip to Step 7, Line 31. If the amount on Line 8 is greater
than the amount on Line 13, complete Lines 14 through 33.)
Line 14
Subtract the amount on Line 13 from the amount on Line 8
the resulting amount on Line 14.
R
Enter
WORKSHEET INSTRUCTNS ATTACHMENT B
STEP 3 DETERMINING THE PERCENTAGE VALUE OF GROWTH ABOVE THE 6%
THRESHOLD
Line 15
On Line 15, enter the amount given on Line 14.
Line 16
On Line 16, enter the amount given on Line 2 minus $332,703,468.
(Note: $332,703,468 is the sum of the base year assessed
valuations for the areas which make up the National City Downtown
Redevelopment Project.)
Line 17
Divide the amount on Line 15 by the amount on Line 16. Enter the
resulting percentage on Line 17.
STEP 4 DETERMINING COUNTYsS PERCENTAGE SHARE OF INCREMENT
ABOVE THE THRESHOLD
Line 18
On Line 18, enter the percentage pass -through of tax increment to
the San Diego County Office of Education required for the current
fiscal year by a tax sharing agreement between the Commission and
the Office of Education.
Line 19
On Line 19, enter the percentage pass -through of tax increment to
the Southwestern Community College District required for the
current fiscal year by a tax sharing agreement between the
Commission and the Community College District.
Line 20
Add the percentage amount on Line 18 and the percentage amount on
Line 19. Enter the resulting percentage amount on Line 20.
Line 21
Subtract the percentage amount on Line 20 from 100 percent.
Enter the resulting percentage amount on Line 21.
3
WORYSHEET INSTRUCT�N'S
ATTACHMENT B
STEP 5 DETERMINING ELIGIBLE INCREMENT
Line 22
If calculating Estimated Tax Increment, on Line 22 enter the
amount given on the AP21 Summary Section titled "Total Estimated
Redevelopment Tax Increment" minus any amount of unitary tax
revenue included in that total. If calculating Actual Tax
Increment, on Line 22 enter the amount given on the Auditors'
Incremental Payment Statement titled "Total Of Incremental
Payments" minus any amount of unitary tax revenue included in
that total.
Line 23
On Line 23, enter the amount, if any, attributable to an increase
in the rate of tax levied by or for the benefit of the County.
This amount and/or its method of calculation to be provided by
the Auditor and Controller.
Line 24
Subtract the amount on Line 23 from the amount on Line 22. Enter
the resulting amount on Line 24.
Line 25
Enter the percentage amount from Line 17.
Line 26
Multiply the amount on Line 24 by the percentage amount on Line
25. Enter the resulting amount on Line 26.
STEP 6 DETERMINING THE REVENUE TO DISTRIBUTE TO THE COUNTY
Line 27
On Line 27, enter the amount on Line 26.
Line 28
On Line 28, enter the percentage amount on Line 21.
Line 29
Multiply the amount on Line 27 by the percentage amount on Line
28. Enter the resulting amount on Line 29.
4
WORKSHEET INSTRUC'NS __ ATTACHMENT B
STEP 7 DETERMINING TOTAL REVENUE TO BE PAID TO THE COUNTY PER
AGREEMENT
Line 30
On Line 30, enter the amount on Line 23.
This is the amount of revenue due to the County per Agreement
Section 2.3.
LINE 31
On Line 31, enter the amount on Line 29.
This is the amount of revenue due to the County per Agreement
Section 2.4.
Line 32
Add the amounts on Lines 30 and 31. Enter the total on Line 32:
This is the total amount due to the County from the Commission.
(Note: If this worksheet is based on Estimated Tax Increment, an -
additional worksheet will need to be completed at the end of the
fiscal year to allow for any additional revenue or adjustments to
the Commission's Tax Increment during the current fiscal year).
A sample worksheet is attached for reference purposes.
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NATIONAL CITY AGREEMENT
10.00%
ESCALATION SCHEDULE
ATTACHMENT 1
2
3
4
.......
AGREEMENT
FISCAL
ESCALATION
7ET
YEAR
YEAR
FACTOR
FACTOR
1
1990-91
1.000000
0.000000
2
1991-92
1.100000
0.100000
3
1992-93
1.210000
0.210000
4
1993-94
1.331000
0.331000
5
1994-95
1.464100
0.464100
6
1995-96
1.610510
0.610510
7
1996-97
1.771561
0.771561
8
1997-98
1.948717
0.948717
NATIONAL CITY AGREEMENT
6.00%
ESCALATION SCHEDULE
G,
ATTACHMENT 2
1 2 3
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.....}.+,..:....•:::::«:n. v:.....i4...::: r.... ....aF.. ... .{: :..�,,,y:,.a.:..:..::+...,,.y;:::-::.i$:.;:::.: .v.i;;52
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NET
AGREEMENT FISCAL ESCALATION
YEAR YEAR FACTOR FACTOR
1997-98
1.000000
0.000000
8
9
1998-99
1.060000
0.060000
10
1999-2000
1.123600
0.123600
11
2000-2001
1.191016
0.191016
12
2001-2002
1.262477
0.262477
13
2002-2003
1.338226
0.338226
14
2003-2004
1.418519
0.418519
15
2004-2005
1.503630
0.503630
16
2005-2006
1.593848
0.593848
17
2006-2007
1.689479
0.689479
18
2007-2008
1.790848
0.790848
19
2008-2009
1.898299
0.898299
20
2009-2010
2.012196
1.012196
21
2010-2011
2.132928
1.132928
22
2011-2012
2.260904
1.260904
23
2012-2013
2.396558
1.396558
24
2013-2014
2.540352
1.540352
25
2014-2015
2.692773
1.692773
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COUNTY OF SAN DIEGO
OFFICE OF AUDITOR CONTROLLER
INCREMENTAL PAYMENT STATEMENT
AGENCY NAME
PROJECT NAME
FUND NUMBER
FISCAL YEAR
GROSS INCREMENT
UNITARY REVENUE
TOTAL INCREMENT
SB813 SUPPLEMENTAL
ROLL CORRECTIONS
SECURED
UNSECURED
TOTAL ROLL CORRECTION:,
TOTAL ADJUSTMENTS
ADJUSTED INCREMENT
MAXIMUM INCREMENT AVAILABLE
LESS DISBURSEMENTS
REDEVELOPMENT AGENCY
PROJECT
(2,923) `
1,410
FIRST
COUNTY OF SAN DIEGO
OFFICE OF AUDITOR CONTROLLER
INCREMENTAL PAYMENT STATEMENT
AGENCY NAME
PROJECT NAME
FUND NUMBER
FISCAL YEAR
GROSS INCREMENT
UNITARY REVENUE
TOTAL INCREMENT
SB813 SUPPLEMENTAL
ROLL CORRECTIONS
SECURED
UNSECURED
TOTAL ROLL CORRECTION:,
TOTAL ADJUSTMENTS
ADJUSTED INCREMENT
MAXIMUM INCREMENT AVAILABLE
LESS DISBURSEMENTS
REDEVELOPMENT AGENCY
PROJECT
(2,923) `
1,410
FIRST
INCREMENT
11/22/89
SECOND
INCREMENT
12/27/89
THIRD
INCREMENT
01/17/90
FOURTH
INCREMENT
02/14/90
FIFTH
INCREMENT
03/14/90
SIXTH
INCREMENT
04/25/90
SEVENTH
INCREMENT
05/23/90
EIGHT
INCREMENT
06/13/90
NINTH
INCREMENT
07/05/90
FINAL
INCREMENT
08/15/90
TOTAL OF INCREMENTAL PAYMENTS
150,538
(1,513)
149,025
11267,474
21,452
1,288,926
1,437,951
1,437,951
90,664
533,818
156,471
30,361
46,362
408,191
121,863
10,000
20,000
20,221
1,437,951
Passed and adopted by the Council of the City of National City, California,
on .............
Ma.....y ...5. 19.92 by the following vote, to -wit:
...
Dalla. Inzunza. Van Deventer, Zarate, Waters
Ayes: Councilmen........................................................................................
Nays: Councilmen ...None
..........................................................
Absent: Councilmen ...None
......................................................
Abstain: Councilmen ...None
..................................................................
AUTHENTICATED BY
GEORGE H. WATERS
Mayor of the City of National City, California
.....
C' y Clerk dofthVeVC-itt'y-4`o.Pajtion-
ia
By: ................................................................................
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and cor-
rect copy of RESOLUTION NO. .... 9.2-.69.... of the City of National City,
Calif., passed and adopted by the Council of said City on .... May .... 5...... 1.9.9.2
(Seal)...............................................................................:........
City Clerk of the City of National City, California
By: ................................................................................
Deputy
Chapter III
RECORDS MAINTENANCE, RETENTION, STORAGE AND DESTRUCTION
1. Purpose. The purpose of a records management program is to
provide guidelines for City departments concerning records
maintenance, retention, storage, and destruction. The main
objectives of the program are to increase the usefulness of
the record by preserving only the material that is truly
essential or desirable, and to make that information quickly
accessible by accurate classification of the record. Another
objective is to provide a procedure for the orderly and lawful
destruction of all records. By controlling the creation,
maintenance, and disposition of all records, efficiency and
economy of City business can be enhanced and sound records
management practices vastly improved.
2. Destruction of Records.
a. Temporary Records. At the beginning of each calendar
year or on a more frequent basis when appropriate, the
department manager or his/her designee will review those
records whose retention period have expired, and which
are no longer needed for legal, administrative, fiscal,
historical, or research purposes. The department manager
will submit a "Destruction of Temporary Records Notice"
to the City Attorney for approval. Upon approval by the
City Attorney, the original "Destruction of Temporary
Records Notice" will be returned to the initiating
department for permanent retention.
b. Permanent Files. Pursuant to Government Code Sec-
tion 34090.7, permanent files are destroyed only after
the files have been microfilmed and the film record
edited, duplicated and permanently stored. When this is
accomplished, the destruction procedure as outlined in
the "Destruction of Temporary Files" procedure will be
followed.
c. Destruction of Confidential Files. "Confidential"
records or files are those which are exempt from
disclosure under the California Public Records Act
(Government Code Section 6250, et seq.), or under any
other provision of law establishing a privilege or
confidentiality as to such records. If there is any
question as to whether a record is confidential, the City
Attorney's Office should be consulted.
All files of a confidential nature will be destroyed by
shredding only. Retention requirements and the destruc-
tion procedure also apply to confidential files. All
City departments will follow the "Destruction of
H.
Confidential Files" procedure outlined below only after
the proper destruction notices have been completed and
.. approved.
(1) If a department has a large volume of confidential
records to destroy, arrangements for pickup of the
records by an outside agency must be made through
the City Manager. An individual from the depart-
ment, designated by the department head, must
accompany the records to the site of destruction to
witness the total destruction of the files. Only
after watching the destruction process of the
records may the witness sign and date the destruc-
tion notice.
(2) If a department has a small volume of files to
destroy, the files may be destroyed by a designated
individual from the department on the City -owned
shredder. After shredding the files, the individual
may sign and date the destruction notice.
d. Destruction of Temporary Records Notice. In following
the procedure for destruction of temporary records, the
"Destruction of Temporary Records Notice" form depicted
in Appendix "A" shall be utilized.
9
A.
B.
APPENDIX "A"
DESTRUCTION OF TEMPORARY RECORDS NOTICE'
Department 3 Division: O Date:
e FeEention per o on e o 6;il g recor s has elapse
and it is no longer necessary to store them. Please
indicate approval for their destruction by signing and
Indicating the date.
rljE V_ATFZVRMR RECURDS TDTA"RETEHI U9_
RAi�1�.DEi$ATRAFIUAt: ^ FERID6:
V O
DESCRIPTIONRIDD ZDJERE6�TDE74TiisiT—
U F
1U'PRU7
Diparirent ikad Date
City Attorney Date
UESTRXTICW-DATE— DESTRDi 'nT: S-
Q O OO
Type the name of the department in this space and the
division, if applicable (e.g., Parks and Recreation: Adminis-
tration).
The date the destruction notice was typed.
0111
C. In this space, type the specific category that the file is
classified under according to your department's files
retention listing (e.g., Activity Reports).
D. This space is provided for a detailed description of the file
(e.g., Monthly Reports).
B. Type the total retention period of the particular file found
in your department's files retention listing in this space.
F. Type the period covered for the file in this space. The total
retention period for a file is computed from the date of the
last entry to the file.
G. Upon destruction of the record, the employee from the
department destroying the file will indicate the date of the
destruction in this space.
H. This space is for the signature of the employee who destroyed
the file.
I. For the department's remarks, if any.
11