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HomeMy WebLinkAboutJoint Resolution 01-96 JOINT RESOLUTION NO. 01-96 A RESOLUTION OF THE CITIES OF SAN LUIS OBISPO COUNTY ESTABLISHING A COUNTYWIDE POLICY FOR PROPERTY TAX EXCHANGE UPON ANNEXATION WHEREAS, changing governmental fiscal relationships have required a modification to the earlier approach to determining property tax exchange between cities and the County upon annexation; and WHEREAS, the extent and nature of this modification has been agreed upon through a process of negotiation between the cities and the County based upon a shared goal of producing a countywide tax exchange agreement that is fair to all parties; and WHEREAS, a fair agreement is one that respects the following two principles: (1) that the County should not "profit' from annexations, nor should annexations result in a net fiscal loss to the County; (2) that tax exchange practices should not undermine good land use planning by discouraging cities from pursuing logical and appropriate annexations; and WHEREAS, in order to provide objective data upon which to develop an equitable agreement, the cities commissioned an independent fiscal study of the impact of annexation and development of vacant lands around cities on County government; and WHEREAS, the results of this study assisted in the development of a new countywide tax exchange agreement; and WHEREAS, upon adoption of the agreement, the County and the cities will continue to collaborate on related matters of shared importance, including: (a) following adoption by the Board of Supervisors, reconsidering a countywide development impact fee program, which may include appropriate city impact fees for county development occurring in the unincorporated fringe of cities for which a clear City impact can be determined; and (b) support existing policies which encourage urban-like development within the boundaries of.cities. NOW, THEREFORE, BE IT RESOLVED by the City Councils of the Cities of San Luis Obispo County: 1. For "raw land" annexations prezoned commercial or industrial, the County retains the existing property tax base and all of the future property tax increment. 2. For annexations prezoned residential, the County retains the existing property tax base and two-thirds-(66%) of the future property tax increment. Resolution No. J01-6 Page 2 I 3. For commercial and industrial annexation areas already substantially developed, tax exchange will be negotiated on a case-by-case basis between the annexing city and the County to determine an appropriate property tax-sharing arrangement, based upon the principle of fiscal neutrality for the County. 4. For annexations prezoned agricultural, the County retains the existing property tax base and all of the future property tax increment. i 5. The County and the cities agree to re-examine the above policies at five- year intervals to assure that they remain appropriate and current for all j parties. I PASSED AND ADOPTED by the City Councils of the Cities of San Luis Obispo County at a special joint meeting thereof held on the 25th day of April, 1996. MAYOR OF ARROYO G d A ND ATTEST: CIV CLEAK MAYOR OF ATASCADERO ATTEST: (Nat adopted) Z i CITY CLERK MAYOR OF GROVER BEACH ATTEST: A , - ; CITY CLERK. J Resolution No. J01-96 Page 3 MAYOR OF MORRO BA ATTEST: CITY CLER MAYOR OF PASO ROBLES ATTEST: (Not participating) CITY CLERK MAYOR OF PISMO BEACH ATTEST: (Not participating) CITY CLERK i MAYO OF SAN LUIS OBISPO ATTEST: ICLE