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HomeMy WebLinkAbout1982-03-25 - Resolution No. 82-06RESOLUTION NO. -aP_06_ 0 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA COUNTY WATER DISTRICT CONCERNING NEGOTIATION ALLOCATION OF TAX REVENUE INCREMENT IN ANNEXATION 77-6 WHEREAS, Annexation 77-6 to the Yorba Linda County Water District ("YLCWD"), completed on February 7, 1978, added certain territory to the District's boundaries which territory thereby became entitled to receive service from the District; and WHEREAS, services provided by the District to the territory within Annexation 77-6 are essential to proposals for land development which, in turn, greatly enhance pro- perty values and property tax revenues; and WHEREAS, the YLCWD has expended, and in the future will be required to expend, large sums of money in order to extend service to newly-developing territory; and WHEREAS, under the law in effect at the completion date of Annexation 77-6, the YLCWD was entitled to establish tax rates for lands within its jurisdictional boundaries and receive its full share of such property tax revenues attri- butable to the annexed lands; and -1- • 0 WHEREAS, the passage of Article XIIIA of the California Constitution and its implementing legislation has eliminated the District's ability to establish tax rates and has fixed a uniform rate of $4.00 per $100.00 of assessed value throughout the State of California; and WHEREAS, Chapter 6 of Part 0.5 of Division 1 of the California Revenue and Taxation Code has established a method for allocating property tax revenues among local agencies generally in proportion to each agency's share of property tax revenue from each tax rate area in fiscal year 1977-1978 and has provided for reallocation of property tax revenue for territory subject to jurisdictional change; and WHEREAS, the Office of the County Counsel of the County of orange has opined that the County of Orange is not authorized, pursuant to Revenue and Taxation Code Section 99, to negotiate with and on behalf of the Yorba Linda County Water District for the exchange of property tax revenue increments relating to Annexation 77-6 because, in County Counsel's opinion, the County of orange did not previously provide water service to the affected lands, and thus does not constitute an "affected agency;" and WHEREAS, in reliance upon this County Counsel opinion the Board of Supervisors for the County of orange has refused to approve an allocation of taxes to YLCWD for Annexation 77-6; and -2- WHEREAS, Chapter 102 of the Statutes of 1982, adding Section 99.2 to the Revenue and Taxation Code, authorizes a property tax negotiation where a jurisdictional change was completed between January 1, 1978 and July 28, 1980, and the jurisdictional change has, or will, result in a special district providing one or more services to an area where those services have not been previously provided by any local agency. Under this law the special district and each local agency which receives an apportionment of property tax revenues from the area subject to the jurisdictional change may negotiate an exchange of property tax; and WHEREAS, it is in the best interest of YLCWD to negoti- ate for and on its own behalf the exchange of property tax revenue increments resulting from Annexation 77-6, rather than permitting the Board of Supervisors to negotiate the exchange of such property tax revenues on behalf of YLCCD. NOW, THEREFORE, the Board of Directors of the Yorba Linda County Water District does hereby resolve, find, determine and order as follows: Section 1: Extension of YLCWD service into the terri- tory added to YLCWD by Annexation 77-6 has resulted in increases in assessed values within said territory. Unless a share of the property tax revenue generated from within the territory is allocated to YLCWD, great unfairness and -3- inequity will be imposed upon the citizens and taxpayers within such territory. Unless a share of property tax revenue resulting from the increases in assessed value is allocated to the YLCWD, the citizens and taxpayers within the territory comprising Annexation 77-6 will be required to subsidize other citizens in other portions of the County of orange because of the net outflow of tax dollars from the Yorba Linda area. Since the increase in assessed value within this area is, in part, attributable to provision of service by YLCWD, it is inequitable for other local agencies that are not providing service in the area to receive increased property tax allocations resulting from such increase in assessed value. Section 2: Annexation 77-6, for which the certificate of filing was recorded on February 7, 1978, was filed between January 2, 1978 and July 28, 1980, and thus is subject to the provisions of Section 99.2 of the Revenue and Taxation Code. Section 3: Annexation 77-6 has resulted and will result in the provision by YLCWD of water service to terri- tory where that service was not previously provided. Section 4: The YLCWD Board of Directors has never entered into any agreement with the County of Orange or any other local public agency, by resolution, written agreement, or otherwise, with respect to the property tax reallocation relative to Annexation 77-6. -4- Section 5: YLCWD hereby exercises its right pursuant to Sections 99.2(b) and 99.1(a)(3) to negotiate for and on its own behalf the exchange of property tax revenue incre- ments resulting from the jurisdictional change affecting the territory added to the District by Annexation 77-6. Section 6: A portion of the future increases in property tax revenue within the territory added to YLCWD by Annexation 77-6 should be allocated to YLCWD as though the territory had been included within the District in fiscal year 1977-78 and fully subject to the property tax rate of the YLCWD in that year. This will result in an appropriate proportionate share of the property tax revenue being allocated to the YLCWD for the benefit of the citizens and taxpayers of the YLCWD. Section 7: YLCWD hereby demands that the Board of Supervisors of the County of Orange comply with the provi- sions of Revenue and Taxation Code Section 99.2, enacted as Chapter 102 of the Statutes of 1982, and said Board of Supervisors is hereby requested to negotiate with YLCWD, as provided in Sections 99, 99.1 and 99.2 of the Revenue and Taxation Code, an exchange of property tax revenue for the territory included within Annexation 77-6, in accordance with the principles set forth above. -5- • PASSED AND ADOPTED this 25 day of March , 1982, by the following roll call vote: AYES: Directors Lindow, Clodt, Cromwell and Knauft NOES: None ABSENT: Director Korn President Yorba Linda County Water District ATTEST: Secretary Yorba inda County Water District 09-115 -6-