R 3957
RESOLUTION NO. 3957
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ACCEPTING NEGOTIATED
EXCHANGE OF PROPERTY TAX REVENUE AND ANNUAL
TAX INCREMENT BETWEEN THE COUNTY OF SAN LUIS
OBISPO AND THE CITY OF ARROYO GRANDE
REGARDING DETACHMENT NO.1 (LAFCO FILE 4.R-06)
WHEREAS, in the case of a jurisdictional change other than a city incorporation or district
formation which will alter the service area or responsibility of a local agency, Revenue and
Taxation Code Section 99(a)(1) requires that the amount of property tax revenue to be
exchanged, if any, and the amount of annual tax increment to be exchanged among the
affected local agencies shall be determined by negotiation; and
WHEREAS, when a city is involved, the negotiations are conducted between the City
Council and the Board of Supervisors of the County; and
..
WHEREAS, when a special district is involved, the negotiations are conducted by the
Board of Supervisors of the County on behalf of the district or districts, unless otherwise
requested by said district or districts pursuant to Revenue and Taxation Code Section
99(b)(5); and
WHEREAS, Revenue and Taxation Code 99(b)(6) requires that each local agency, upon
completion of negotiations, adopt resolutions whereby said local agencies agree to accept
the negotiated exchange of property tax revenues, if any, and annual tax increment and
requires that each local agency transmit a copy of each such resolution to the Executive
Officer of the Local Agency Formation Commission; and
WHEREAS, no later than the date on" which the certificate of completion of the
jurisdictional change is recorded with the County Recorder, the Executive Officer shall
notify the County Auditor of the exchange of property tax revenues by transmitting a copy
of said resolutions to him and the County Auditor shall thereafter make the appropriate
adjustments as required by law; and
WHEREAS, the City of Arroyo Grande (City) and the County of San Luis Obispo (County)
have previously agreed to a property tax exchange methodology pursuant to Joint
Resolution No. 01-96 which provides that in the case of undeveloped property, all of the
"base" property tax revenues will be retained by the County, with incremental property tax
revenues to be apportioned between the County and City as follows: in the case of land
pre-zoned for non-residential uses (such as retail, offices or manufacturing), the County
will receive all of the incremental property tax revenues; and in the case of land pre-zoned
for residential uses, the County will receive 66% of the incremental property tax revenues
it would otherwise have received from the Tax Rate Area, and the City will receive the
remaining 34%; and
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RESOLUTION NO. 3957
PAGE 2
WHEREAS, the negotiations have taken place concerning the transfer of property tax
revenues and annual tax incrernent between the County of San Luis Obispo and the City
of Arroyo Grande pursuant to Section 99(a)(1) for the jurisdictional change designated the
Detachment No. 1 (LAFCO file 4-R-06) of property from the City of Arroyo Grande (Milne
Property); and
WHEREAS, the negotiating party, to wit: Dan Buckshi, Administrative Analyst, on behalf
of the County and Steve Adams, City Manager, on behalf of the City of Arroyo Grande
have negotiated the exchange of property tax revenue and annual tax increment between
such entities as hereinafter set forth; and
WHEREAS, it is in the public interest that such negotiated exchange of property tax
revenues and annual tax increment be consummated.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande,
as follows:
1. That the recitals set forth above are true, correct and valid.
2. That no annual tax increments shall beitransferred from the City of Arroyo Grande
to the County of San Luis Obispo in the fiscal year 2007-2008 nor in any fiscal year
thereafter (because the property is a Low Value Exemption)
3. Upon receipt of a certified copy of this Resolution and a copy of the recorded
certificate of completion, the County Auditor shall make the appropriate
adjustments to property tax revenues and annual tax increments as set forth
above.
4. That the City Clerk is authorized and directed to transmit a certified copy of the
Resolution to the Executive Officer of the San Luis Obispo Local Agency
Formation Commission; who shall then distribute copies in the manner prescribed
bylaw.
On motion by Council Member Arnold, seconded by Council Member Guthrie, and by the
following roll call vote, to wit:
AYES:
NOES:
ABSENT:
Council Members Arnold, Guthrie, Dickens, Costello, and Mayor Ferrara
None
None
the foregoing Resolution was adopted this 10th day of October 2006.
RESOLUTION NO. 3457
PAGE 3
{
~ CITY MANAGER
APPROVED AS TO FORM:
~~9
TI OTHY J. A ,CITY ATTORNEY
';'f~
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 3957 is a true, full, and correct copy of said Resolution passed and
adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 10th
day of October 2006.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 11th day of
October 2006.
~Iu-
RE, CITY CLERK