HomeMy WebLinkAbout2006-38 - Property Tax Transfer for West Santa Ana HeightsRESOLUTION NO. 2006. 38
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH
RELATING TO A PROPERTY TAX TRANSFER AGREEMENT
WITH THE COUNTY OF ORANGE ON BEHALF OF THE COUNTY,
THE ORANGE COUNTY FIRE AUTHORITY,
AND THE ORANGE COUNTY LIBRARY DISTRICT
RELATING TO THE REORGANIZATION OF WEST SANTA ANA HEIGHTS
WHEREAS, on February 14, 2006, the City of Newport Beach has proposed the
annexation and /or reorganization of territories adjacent to or within the City's western
and northern sphere of influence. These territories are known as West Santa Ana
Heights ( °WSAH "), the Emerson Tract ( "Emerson ") and a parcel off of Industrial Way
that now includes a part of the General Services Department's Corporate Yard
( "Corporate Yard Parcel "); and
WHEREAS, all or portions of these territories are within specific redevelopment
project areas administered by the Orange County Development Agency (OCDA) which
direct most property tax increment to the OCDA; and
WHEREAS, in July 2003, the City of Newport Beach annexed the eastern Santa
Ana Heights and Bay Knolls communities; and
WHEREAS, in 1980, the City Council adopted a Master Property Tax Transfer
Agreement ( MPTTA) with the County of Orange that directs that 0.51937804992 of the
County General Fund share of the 1% Basic Levy be transferred to the City and
0.48062195008 remain with the County upon annexation of territory by the City; and
WHEREAS, on August 13, 2002, the Board of Supervisors and the City Council
(via the Council's Resolution 2002 -55) agreed to adjust the MPTTA for the eastern
Santa Ana Heights community, Bay Knolls, and the Emerson Tract so that — until such
time as the redevelopment project area expires — the 1% Basic Levy share of the
property tax apportionments upon annexation would be split 70% to the City and 30% to
the County in order to assist the City of Newport Beach in funding municipal services to
these areas because portions of the areas fall within an OCDA project area; and
WHEREAS, because the City has its own library system and fire department, the
City's share of the 1% Basic Levy from the Orange County Library System and the
Structural Fire Fund or Orange County Fire Authority share will equal 100% of these
agencies' respective shares; now, therefore be it
RESOLVED by the City Council of the City of Newport Beach that the City
Council hereby states that, upon the effective date of each specific annexation noted
herein (West Santa Ana Heights and Emerson Tract), the property tax transfer between
the City of Newport Beach and the County of Orange General Fund will be as described
below. For the Emerson Tract, per Council Resolution 2002 -55:
• 0.70 of the County General Fund share of the non - redevelopment 1% Basic Levy be
transferred to the City of Newport Beach; and
• 0.30 shall remain with the County; and
• The property tax transfer will revert to the ratio specified in the Master Property Tax
Agreement at the time when the Orange County Development Agency ceases to collect
tax increment from the areas subject to this annexation. Said ratio is as follows:
0.51937804992 of the County General Fund share of the 1% Basic Levy be transferred
to the City and 0.48062195008 remain with the County; and
For the West Santa Ana Heights area:
• 0.51937804992 of the County General Fund share of the County General Fund portion
of the 1 % Basic Levy shall be transferred to the City of Newport Beach; and
0.48062195008 shall remain with the County; and be it also
RESOLVED by the City Council of the City of Newport Beach that the City
hereby requests that, upon the effective date of each specific annexation, 100% of the
non- redevelopment property tax revenues accrued from the reorganized or annexed
territory to the Orange County Library District shall be transferred to the City of Newport
Beach; and be it also
RESOLVED by the City Council of the City of Newport Beach that the City
hereby requests that, upon the effective date of each specific annexation, 100% of the
non- redevelopment property tax revenues accrued from the reorganized or annexed
territory to the Orange County Fire Authority shall be transferred to the City of Newport
Beach.
ADOPTED this 23rd day of May, 2006
(:L) W -
Mayor
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 2006 -38 was duly and regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council, duly and regularly held on the
23rd day of May 2006, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Curry, Selich, Rosansky, Ridgeway, Daigle, Nichols, Mayor Webb
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 24th day of May 2006.
(Seal)