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HomeMy WebLinkAboutAGENDA REPORT 1998 0520 CC REG ITEM 11GIiEi1x • CITY OF MOORPARK, CALIFORNIA CITY COUNCIL AGENDA REPORT City Council Meeting of 5.2-0-9s CITY OF MOORPARK ACTION: A ��P r o vied . TO: The Honorable City Council BY. FROM: Mary K. Lindley, Director of Community Services PC DATE: May 13, 1998 (City Council Meeting of May 20, 1998) SUBJECT: Consider Ventura Regional Sanitation District Property Tax Transfer Agreement BACKGROUND On February 18, the City Council considered, and approved in concept, a proposal that transfers the property tax currently allocated to the Ventura Regional Sanitation District to the cities and the County. An agreement has since been drafted (Attachment A) and each elected body is being asked to consider and approve the Agreement. The timing of the Agreement's approval by each of the cities and VRSD is critical and must be completed by May 31. The Board of Supervisors will consider the Agreement on June 2 and the transfer will be initiated on July 1, 1998. The Agreement provides that cities will receive a permanent transfer of 98% of the VRSD property tax collected within their boundaries over a two -year period. The County will receive a permanent transfer of 100% of the VRSD property tax collected in the unincorporated area and 2% of the VRSD property tax generated within each city, including the former VRSD tax revenue in Simi Valley and Moorpark. When the cities of Moorpark and Simi Valley detached from VRSD they received 50 % of the property tax allocated to the District, the other 50 % was allocated to the County. Under the Agreement, the County will transfer to Moorpark and Simi Valley an equivalent of 98 % of the tax its currently collects within the boundaries of those two cities. This is consistent with the transfer results in place for the eight (8) remaining VRSD member cities. The Agreement also preserves funding, at a reduced level, for regional solid waste programs previously lost by supplanting the lost fees with CIWMP Fees. The proposed fee increase partially offsets revenues lost through rescission of the Erickson -Bush Agreement, and would raise CIWMP Fees from the current $0.34 /ton to $0.50 /ton ($0.16/ ton increase). Revenue deficits created by the shift of tax revenues from the regional to local level will be addressed by a reduction in regional programs provided by the County. Recommendation Staff recommends that the City Council approve the Agreement for the Transfer of Property Taxes and Unitary Taxes, pending final language approval by the City Manager and City Attorney, and authorize the Mayor to sign on behalf of the City. C ADOC SISOLID W STIVRSDAGR. AGD 00614 TAXES AND UNITARY TAXES This Agreement is made this 2nd day of June 1998, by and between the Ventura Regional Sanitation District ( "District "), the County of Ventura ( "County "), and each of the Cities of Camarillo, Fillmore, Moorpark, Ojai, Oxnard, Port Hueneme, Santa Paula, Simi Valley, Thousand Oaks and San Buenaventura ( "Cities" where referred to jointly). WHEREAS, the District has been allocated property taxes and unitary taxes which the District may transfer to the County and the Cities in accordance with Revenue and Taxation Code § 99.1; WHEREAS, the District desires to transfer property taxes and unitary taxes that would have been allocated to the District for the 1998 -99 fiscal year and for fiscal years thereafter to the County and the Cities in accordance with this Agreement; WHEREAS, in 1985, the Cities of Moorpark and Simi Valley detached from the District and as a part of said detachment, certain property taxes previously allocated to the District were transferred to the County and the Cities of Moorpark and Simi Valley in accordance with certain terms and conditions ( "Detachment Allocations "); WHEREAS, the County and the Cities of Moorpark and Simi Valley desire to reallocate among them the property taxes that are subject to the Detachment Allocations in accordance with this Agreement. WHEREAS, on March 2, 1989, the County and the District entered into that certain agreement entitled "Agreement Between Ventura Regional Sanitation District and County of Ventura Regarding Funding for Solid Waste Programs" whereby, among other things, the District agreed to pay certain of its property taxes to the County under certain terms and conditions ( "Erickson -Bush Agreement "); WHEREAS, the County and the District desire to no longer be bound by the Erickson - Bush Agreement and the parties further desire that property taxes that were subject to the Erickson -Bush Agreement be transferred by the District to the County and the Cities in accordance with this Agreement; and WHEREAS, in order for the parties to implement this Agreement and at the same time for the County to maintain necessary solid waste programs, it is necessary for the County to increase the County's Integrated Waste Management Fee from 34 cents to 50 cents per ton, oc1 NOW THEREFORE, in mutual consideration of the terms and conditions herein provided, the parties agree as follows: Terms and Conditions 1. Commencing July 1, 1998 and continuing thereafter, property taxes and unitary taxes that would have been allocated to the District or that would have been part of the Detachment Allocations or or that would have been subject to the Erickson -Bush Agreement shall be transferred and reallocated in accordance with this Agreement. 2. Effective for the fiscal year 1998 -99, the following transfers shall be made: a. In each of the following cities, 73.5% of the property taxes allocated to the District shall be transferred to the city: Camarillo, Fillmore, Port Hueneme, Ojai; Oxnard, Santa Paula, Thousand Oaks and San Buenaventura. b. 1.5% of the property taxes allocated to the District in each of the following cities shall be transferred to the County General Fund: Camarillo, Fillmore, Port Hueneme, Ojai, Oxnard, Santa Paula, Thousand Oaks and San Buenaventura. 75% of the District's allocated property taxes in the unincorporated areas shall be transferred to the County General Fund. d. $42,110.42 of property taxes allocated to the County General Fund shall be transferred to the City of Moorpark. e. $118,183.15 of property taxes allocated to the County General Fund shall be transferred to the City of Simi Valley. f. 75% of the unitary taxes deemed allocated to the District shall be redistributed to the ten Cities and the County using a factor computed by dividing the total amounts transferred to each city and the County by the sum total of all transferred amounts. 3. Effective for fiscal year 1999 -2000, the following transfers shall be made: a. In each of the following cities, 98% of the property taxes allocated to the District shall be transferred to the city: Camarillo, Fillmore, Port Hueneme, Ojai, Oxnard, Santa Paula, Thousand Oaks and San Buenaventura. b. 2% of the property taxes allocated to the District in each of the following cities shall transferred to the County General Fund: Camarillo, Fillmore, Port Hueneme, Ojai, Oxnard, Santa Paula, Thousand Oaks and San Buenaventura. F� 000148 C. 100% of the District's allocated property taxes in the unincorporated areas shall be transferred to the County General Fund. d. $14,036.81 of property taxes shall be transferred from the County General Fund to the City of Moorpark. e. $39,394.38 of property taxes shall be transferred from the County General Fund to the City of Simi Valley. f. 100% of the unitary taxes deemed allocated to the District shall be redistributed to the ten Cities and the County using a factor computed by dividing the total amounts transferred to each city and the County by the sum total of all transferred amounts. 4. The aforesaid transfers of property and unitary taxes set forth in paragraphs 2 a., b., c., and f., as adjusted by paragraphs 3 a., b., c. and f., shall be permanent and remain effective in subsequent fiscal years. The aforesaid transfers of property taxes set forth in paragraphs 2 d. and e., combined with those additional transfers in 3 d. and e., shall be permanent and remain effective in subsequent fiscal years. 5. Commencing on July 1, 1998 and continuing thereafter, the Erickson -Bush Agreement shall no longer be effective. Property taxes and unitary taxes that would have been subject to the Erickson -Bush Agreement shall be transferred by the District to the County and Cities in accordance with subparagraphs a., b. and c. of Paragraphs 2 and 3 of this Agreement. The Detachment Allocations shall be superceded by this Agreement in accordance with this Agreement. 6. All transfers of property taxes are to be made in the amount deemed allocated in the prior fiscal year before the distribution of the annual tax increment and in accordance with Section 96.5 of the Revenue and Taxation Code with reference to growth in the same manner as other existing transfers and agreements. 7. Each of the parties to this Agreement acknowledges that in order to implement this Agreement and at the same time allow the County to maintain necessary solid waste programs, the County will need to increase the County's Integrated Waste Management Fees from 34 cents per ton to 50 cents per ton of solid waste. Each of the parties to this Agreement shall publicly support such increase in writing. 8. This Agreement shall not become effective in any respect until all of the parties to this Agreement have executed this Agreement. 3 0OWL4 9. Each of the parties warrants that it has read this Agreement, understands the terms and conditions hereof and has been authorized to execute this Agreement by its governing body. 10. This Agreement may not be modified except in writing executed by each of the parties affected by such modification. Dated: ATTEST: RICHARD DEAN, County Clerk, i n ri COUNTY OF VENTURA County of Ventura, State of California, and ex officio clerk of the Board of Supervisors thereof. LIM Deputy Clerk Chairperson of the Board of Supervisors VENTURA REGIONAL SANITATION DISTRICT Dated: By Chairperson of the Board CITY OF CAMARILLO Dated: By 4 00(:ki.;01 Dated: Dated: Dated: Dated: Dated: CITY OF FILLMORE : CITY OF MOORPARK : CITY OF OJAI as CITY OF OXNARD : CITY OF PORT HUENEME 0 () (,�,1,:]1 Dated: Dated: Dated: Dated: CITY OF SANTA PAULA CITY OF SM VALLEY CITY OF THOUSAND OAKS CITY OF SAN BUENAVENTURA C l ool.52