Res 85-002RESOLbTION NO. 85-002
A RESOLUTION CF THE CITY COUNCIL
OF THE CITY OF POWAY, CALIFORNIA,
APPROVING THE MASTER PROPERTY TAX TRANSFER
AG~.W~T WITH THE COUNI~ OF SAN DI5~4~
~{EREAS, representatives of the County of San Diego and the cities within
the County have c~.~leted negotiations on a Master Property Tax Transfer
Agreement; and
~EREAS, the City of Poway desires to becc~e a party to that agreement.
NOW, THEREFORE, BE IT RESOLVED that the Poway City Council does hereby
approve and accept the Master Property Tax Transfer Agrc~--~aent attached hereto as
Exhibit "A."
PASS~D, ADOPTED AND APPROVED, by the City Council of the City of Poway,
California, at a regular meeting thereof this 10th day of January, 1985.
Marjorie K. Wahlsten, City Clerk
November 1984
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 the various CITIES_within the County hereinafter called "Cities";
RECITALS
WHEREAS, Section 99 of the Revenue and Taxation Code provides 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 provides 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 services is transferred from one entity
of government to another, the appropriations limit of the trJnsfere~ 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 jurisdictional changes submitted to the
Local Agency Formation Comission on or After November 2, 1984, and as to all
future jurisdictional changes completed during the term of and within the limits of
this Agreement.
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.
(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 inmediately preceding the tax year
in which the jurisdictional change is filed with the Local Agency
Formation Con~nission.
(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.
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EXHIBIT A
SECTION 2. Apportionment of Property Tax Revenues. The County Auditor shall
adjust the amount of property tax revenue determined pursuant to Section 96 and 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 jurisdic-
tional change subject to this Agreement, which shall have become effective during
the preceding calendar year as follows: '
(a)
The base property tax revenues shall be adjusted such that the annexing
city receives the percentage, shown on Attachment A, of the combined
{p6oled) County and detaching special districts' share of the base
property tax revenue. -The balance of the base property-.tax revenue shall
be transferred to the County General Fund.
(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 distribution of the
annual tax increment shall be maintained in subsequent years 5nless
altered by additional jurisdictional changes.
SECTION 3. Transfers of Appropriations Limits. Whenever a jurisdictional
change occurs between parties to this agreement and such jurisdictional change
results in ~ 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 any of the following: (1) nuclear power
generation stations; {2) the East Mesa Study Area as defined in County General
Plan Amendment 84-02 (Item 6); {3) proposals having assessed valuation of $35
million or more on the current equalized tax rolls; (4) proposals having existing
commercial development which generated retail sales of $10 million or more in the
preceding twelve months; and (5) proposals which include the dissolution of a
special district. 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 continue in force for all pending and future jurisdictional changes
until April 1, 1988. Jurisdictional changes in process on April 1, 1988 shall
continue to completion under the terms of this Agreement. After April 1, 1988, the
Agreement shall automatically be extended until any party provides three (3) months
notice of intent to terminate this agreement with respect to subsequent
jurisdictional changes for which it is an affected agency.
SECTION 6. Termination Due to Changes 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 maximize each party's ability to deliver essential governmental services in
areas annexed to cities. In entering into this Agreement, the partaies 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.
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Accordingly, it is mutually understood and agreed that this Agreement may,
upon ninety {gO) 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.
IN WITNESS WHEREOF, the parties have entered into this Agreement by the
resolutions an~ on the dates set. forth below:
CITY OF CARLSBAD
Resolution
Date
CITY OF CORONADO
Resolution
Date
CITY OF EL CAJON
Resolution
Date
CITY OF LA MESA
Resolution
Date
CITY OF NATIONAL CITY
Resolution
Date
CITY OF POWAY
Resolution 85-002
Date January 10,
1985
CITY OF SAN DIEGO
Resolution
Date
CITY OF VISTA
Resolution
Date
CITY OF CHULA VISTA
Resolution
Date
CITY OF DEL MAR
Resolution
Date
CITY~ OF ESCONDIDO
Resolution
Date
CITY OF LEMON GROVE
Resolution
Date
CITY OF OCEANSIDE
Resolution
Date
CITY OF SAN MARCOS
Resolution
Date
CITY OF SANTEE
Resolution
Date
COUNTY OF SAN DIEGO
Resolution
Date
ATTACHMENT A
SHARE OF POOLED PROPERTY TAX REVENUES
TO BE TRANSFERRED TO ANNEXING CITIES
Incorporated Area
Carlsbad
Chula Vista
Coronado
Del Mar
E1 Cajon
Escondido
La Mesa
Lemon Grove
National City.
Oceanside
Poway
San Diego
San Marcos
Santee
Vista
Cit) Percentage
48%
41
53
.... 41
..... 38
36
38
34,
46
53
43
45
23
43
41