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HomeMy WebLinkAboutResolutions - No. 80-143RESOLUTION NO. 80-143 RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH THE COUNTY OF SAN JOAQUIN AND THE CITY OF LODI TO SHARE PROPERTY TAX REVENUES RESOLVED, that the City Council of the City of Lodi does hereby approve Agreement with the County of San Joaquin and the City of Lodi to share property tax revenues, which Agreement contains the following provisions: 1. Upon annexation, the property tax given up by those Special Districts which would no longer pro- vide services in the annexed area, would be added to the property tax allocated to the County in the annexed area. These two amounts would become the total property tax base to be shared by the City of annexation and the County. The sharing ratio of this base as well as all future incremental growth, or decrease in growth, would be at the ratio of 36.6% to the City and 63.4% to the County. This is based upon an historical average ratio for the sharing of property taxes between the Cities and the County within the six Cities of San Joaquin County. 2. This ratio would also apply in the case of property annexations which at the time of annexation were exempt from property taxes, but which might, at a later date, provide property taxes. 3. This ratio would apply to all pending annexations, as well as all future annexations, completed during the term of this agreement (see paragraph 9). 4. This ratio will apply to all annexations which may have taken place since January of 1978, where an agreed upon property tax sharing formula has not yet been reached between the annexing City and the County. 5. The effective date of the sharing shall be determined as follows: A. Annexations approved prior to January 1st of any calendar year shall share in property tax effective July 1st of that calandar year, except -for the following: B. All annexations initiated prior to January 1st, 1980, shall share in property tax effective July lst, 1980, except that 80-1='-3 -1- C. In no event will property tax be allocated to a City prior to the date that the City assumes responsibility for providing services in the annexed area. 6. In the case of the City of Stockton only, it is agreed that the City, at its option, and in lieu of the 36.6% ratio, may elect to receive a share of the property tax which represents the total amount of the Special Districts' share of property tax, which would be lost upon annexation, with the provision that the City will not share any of the County property tax base upon such annexation. The future incremental growth of property tax in the annexed area will thereafter be shared in the ratio equal to the initial tax base ratio as determined by the County share retained by the County and the City share derived from the Special District property tax loss. This option will apply only for annexations filed with LAFCO prior to January 1, 1980. Thereafter, the sharing ratio for all annexations for the City of Stockton shall be 36.6% to the City and 63.4% to the County. 7. The City ratio shall include any apportionment of property tax revenue for Special Districts governed by the City 8. The assessed valuation to be used by the County Auditor -Controller shall be the assessed valuation applicable to the fiscal year in which the appli- cation for jurisdictional change is submitted to LAFCO. 9. This agreement between the County and the City of Lodi shall remain in effect through June 30, 1983, unless earlier terminated by the mutual agreement of the County and the City. The agreement may be termi- nated unilaterally be either the County or the City by giving six -months notice of an intended termination date which will occur on or after June 30, 1983. In the absence of termination, as herein provided, this contract shall remain in effect for an indefinite period. BE IT FURTHER RESOLVED that the City Council of the City of Lodi does hereby authorize the Mayor and City Clerk to execute the aforementioned Agreement on behalf of the City. Dated: October 15, 1980 I hereby certify that Resolution No. 80-143 was passed and adopted by the City Coilncil of the City of Lodi in a regular meeting held October 15, 1980 by the following vote: -2- Ayes: Councilmen - Hughes, McCarty, Murphy, Pinkerton and Katnich Noes: Councilmen - None Absent: Councilmen - None ALICE M. REIMCHE City Clerk -3- AGREEMENT FOR PROPERTY TAX ALLOCATION UPON ANNEXATION AGREEMENT entered into this 15th day of October, 1980, by and between the City of Lodi hereinafter referred to as "CITY" and the County of San Joaquin, hereinafter referred to as "COUNTY". W I T N E S S E T H: WHEREAS, Article 13A, Section 1 of the Constitution of the State of California limits ad valorem taxes or real property to one percent (1%) of full cash value; and WHEREAS, Chapter 6 of Part 0.5 of Division 1 of the Revenue and Taxation Code (Sections 95 et. seq.) provides for the allocation of property tax revenues; and WHEREAS, CITY and COUNTY wish to provide for the equitable allocation of property tax revenues upon annexation. NOW, THEREFORE, in consideration of the premises and the following terms and conditions, the parties hereto agree, as follows: 1. DEFINITIONS. The following words and phrases shall have the meanings in this agreement as set forth: A. "Property Tax Base" shall mean the base year sum of the ad valorem tax allocated to Special Districts and to COUNTY within the area being annexed. -1- B. "Special Districts" shall mean those political subdivisions organized pursuant to the laws of the State of California whose functions within the area being annexed are terminated and/or assessed by CITY. C. "Historical average ratio" shall mean the ratio of 36.6% CITY and 63.4% COUNTY. D. "Base year" shall mean the assessed valuation applicable to the property and improvements within the area being annexed at the time the application for annexation is submitted to LAFCO. E. "Incremental growth" shall mean the total increase or decrease in the property tax base over the base year. 2. PROPERTY TAX ALLOCATION. A. CITY and COUNTY shall, upon each annexation, share in the property tax base and all incremental growth thereof pursuant to the historical average ratio. B. Future property taxes. The historical average ratio would also apply to any property exempt from ad valorem taxes which subsequently became taxable. C. Application. The allocation set forth in Paragraph 2.A. shall apply to all pending and future annexations and, in the absence of an applicable property tax allocation agreement, to all annexations completed subsequent to January 1, 1978. -2- 3. EFFECTIVE DATE OF ALLOCATION. A. Annexations completed prior to December 31st of any calendar year shall share in property tax effective July 1st of the next succeeding fiscal year, except for the following: 1. All annexations completed prior to January 1st, 1980, shall share in property tax effective July 1st, 1980, except that 2. In no event will property tax be allocated to a city prior to the date that the city assumesresponsi- bility for providing services in the annexed area. 4. TERMINATION. This agreement may be terminated on or after June 30, 1983, by either party hereto upon six (6) months written notice. Said termination shall effect the Property Tax Allocations as set forth in Paragraph 2 hereof of annexations which are completed subsequent to the effective date of termination. -3- APPROVED by Resolution No. 80-143 duly adopted by the City of Lodi on October 15 , 1980 and Resolution No.80-143 duly adopted by the County of San Joaquin on October 15 1980. ATTEST % "v % ;'. ALICE M.-/REIMCHE City Clerk Approved as to form RONALD M. STEIN City Attorney ATTEST Deputy County Clerk Approved as to form Deputy County Counsel -4- CITY OF LODI 61 r 1 WALTER J. TNICH Mayor, City of Lodi COUNTY OF SAN JOAQUIN By ADRIAN FONDSE Chairman, Board of Supervisors