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HomeMy WebLinkAboutAgenda Statement 1984/08/21 Item 13 COUNCIL AGENDA STATEMENT Item 13 Meeting Date 8/21/84 ITEM TITLE: Resolution //203 Consenting to negotiate with the County of San Diego outside the bounds of the Master Property Tax Exchange Agreement for the proposed Lower Sweetwater Reorganization SUBMITTED BY: Director of Planning o V/ (4/5ths Vote: Yes No x ) REVIEWED BY: City Manager The Master Property Tax Exchange Agreement signed by the City of Chula Vista and the County of San Diego states, under Section 4, that by mutual consent of both the County and an affected City, property tax exchange for jurisdictional changes can be negotiated outside the bounds of said Agreement. The County Board of Supervisors, at their meeting of August 21 , 1984, will consider a similar resolution consenting to the "outside" negotiations with the City of Chula Vista for the proposed Lower Sweetwater Reorganization. RECOMMENDATION: That Council adopt a resolution consenting to negotiate with the County of San Diego outside the bounds of the Master Property Tax Exchange Agreement for the proposed Lower Sweetwater Reorganization. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The proposed Lower Sweetwater Reorganization involves the annexation of approximately 88 acres of unincorporated/inhabited territory to the City of Chula Vista, and concurrent detachments from the Lower Sweetwater Fire Protection District and the San Diego County Flood Control District - Zone 3. The subject proposal will soon be submitted to LAFCO and will be initiated by a petition of the majority of the registered voters who reside within the proposal area. (Please see Exhibit A which depicts the proposal area. ) According to LAFCO processing procedures, property tax exchange negotiations involving the affected agencies must be completed prior to their Commission's consideration of the proposed reorganization at a scheduled public hearing. It has been determined, through discussions with the County's Facilities Planning Division, that the exchange of property tax revenues from the proposal area pursuant to the Master Agreement would not be equitable for the City of Chula Vista. Page 2, Item 13 Meeting Date 8/21/84 Therefore, it has been recommended by County staff that negotiations take place outside the bounds of the Master Agreement in order to determine a more equitable exchange of property tax revenue in the instant case. County staff has prepared a similar resolution of consent which the Board of Supervisors will consider on August 21 , 1984. FISCAL IMPACT: Taking all revenue sources into consideration, the City would experience a net loss of approximately $2,000 in revenue under the Master Agreement. However, under the County-proposed tax exchange, the City would receive between $5,000 and $6,000 of revenue from all sources including property taxes. This amount, of course, would apply to the base year (taxes collected today). In future years the City would receive 41% of the area's growth in value (annual tax increment, ATI) under the County-proposal as compared to 24.5% of ATI pursuant to the Master Agreement. JN:fp WPC 1219P e 2./ by th3 City ncl o t, GlUa Vista, C iivi-r:'sa Dated ��� c