HomeMy WebLinkAboutRESOLUTIONS - 01261982 - 82/134//IL
IN THE BOARD OF SUPERVISG~S
OF
CONTRA COSTA COUNTY, STATE OF CALIFORNIA
In the Matter of
Special Di strict )
Property Tax Exchanges)
RESOLUTION NO . 82/134
(Sec. 99.1, Revenue and
Taxation Code)
WHEREAS, Section 99.l of the Revenue and Taxation Code
provides for an exchange of property tax revenue increases between
local agencies, exclusive of school districts, when a special
district extends services int o an area where no local agency is
providing that service; and
WHEREAS, the County of Contra Costa has negotiated a
formula for such exchange of property tax revenue with the East
B.ay Municipal Utility District and the Central Contra Costa
Sanitary District, the concept of which was approved by this Board
on April 7, 1981 to oe in effect through October 31, 1981 which
date was-extended to April 30, 1982 by Board Order dated November 3,
1981; and
WHEREAS -, in order to implement the tax exchange as
negotiated the Cou·nty Auditor-Controller has developed specific
formulas as-set forth in Exhibit A attached hereto and as illus-
trated in Exhibit B attached hereto;
NOW, THERE;FORE, BE IT RESOLVED: The formulas expressed
in Exhioit A attached hereto are approved for use in calculating
tax increment exchange1?· in annexation situations where Revenue and
Taxation Code. Section 99.1 is applicable;
A repres-entati've tax rate area shall be defined as one
hayt_ng a s ·imilar comnination of agencies _ to that in the proposed
annexation and sh.all be determined by the County Auditor-Controller;
Unless· otherwise spe.cifically ordered by the Board, this
:r;-esolut.ton s:ha)l apply· only to annexation to the Central Sanitary
and Eas·t B.:3,y Municipal Utility Districts.
Jf any local agency, for whom the Board is not authorized
to ne.got,t_a,te. the tax transfer Ce. g. cities-) , does not adopt the
txansfer a.rran<Jement per the formulas, then this agreement shall
not apply.
If an annexation involves at the same time both an annexa~·
ti.on by a special district wherein Section 99.1 -R & Tis applicable
and an annexation of unincorporated territory by a city, the tax
exchange calculations shall be made _in the following sequence:
first, the negotiated tax allocation factor shift to the city, then,
per the formulas e xpressed in Exhibit A, the tax allocation factor
shifts to the annexing district from all local agencies i_ncTuding
the city. Tf the city does not agree to that transfer, then this
agreement shall not apply.
'J~he policy stated in this resolution shall expire
April 30, 1982.
vote:
PASSED by the Board on January 26, 1982 by the following
AYES: Supervisors Powers, Fahden, Torlakson, Schroder
NOES: None
ABSENT: Supervisor McPeak
Orig: A,uditor-Controllex
cc: EBMUD
Central San. Di:st.
LA,FCO
I,,.,.,. cettlfy that thl1 lat! true t11l'ldcorrecteopyof
1n act/on talc•n and entered on ·the mlnutea of the
Board of Supervisors on the date shown.
ATTESTED: -JAN 2 6 1982
By
J.R. OLSSON, COUNTY CLERK
and ex olliaio Clerk of the Board
RESOLUTION NO.
c,T~md a._J /!._j/2< . DepUly
82/134
EXHIBIT A
FORMULAS FOR PROPERTY TAX EXCHANGES
Section 99.1, Revenue and Taxation Code
NOTE: "ATIAF" stands for Annual Tax Increment
Allocation Factor
(Revenue and Taxation Code sec. 98e)
FACTORS:
A= The annexing agency's ATIAF in the newly annexed territory.
B = The factor by which each affected local agency's ATIAF is multiplied
to determine the portion of each local agency's ATIAF to be transferred
to the annexing agency.
C = The annexing agency's ATIAF in a tax rate area presently served by
that agency having a similar combination of agencies to that in the
proposed annexation ("representative tax rate area").
L1 , L2, L3 etc. = The ATIAF's of the local agencies in the tax rate area
being annexed whose ATIAF's are subject to transfer to the annexing
agency.
LT= The combined ATIAF's of those local agencies.
Sl' s 2 , s 3 etc. = The ATIAF's of the jurisdictions whose ATIAF's are not
subject to transfer (i.e. Schools) per R & T 99.1.
ST= The combined ATIAF's of those agencies not subject to transfer.
NL 1 , NL 2 , NL 3 etc. = The ATIAF of each local agency in the new tax rate
area created by the annexation.
FORMULAS:
First, determine the annexing agency's ATIAF for the new tax rate area:
A= C x (LT+ .5 x ST)
Second, calculate the factor for reducing each local agency (excluding
schools):
B ==A ; LT
Third, determine each local agency's ATIAF for the new tax rate area:
NL 1 = L1
NL 2 = L2
etc .
(Bx L1)
(B x L 2)
,,.,,;1.J ti,
EXHIBIT B
Example of application of tax exchange formulas
for R. & T. sec. 99.1 anne xations.
ASSUMPTIONS:
1. Sanitation District Z is annexing territory. Its ATIAF in a tax
rate area served by a similar combination of agencies is 5%.
2 . The ATIAFS in the t a x rate area, a portion of which is being annexed,
is:
(L1) County 25%} (L 2 ) City A ·15% LT = 55% (L 3) Special District B 6%
(L4) Special District C 9%
(S 1 ) School District D 35 %} ST = 45% (S 2) Community College District 10%
Total 100% 100% ----
Ste p 1
A = C x (LT+ .5 x ST )
A = .05 X (.55 + .5 X .45) = .05 X .775 = .03875
Step 2
B = A 7 LT
8 = .03875 X (1 ~ .55) = ,03875 X 1.81818 = .07045
Ste p 3
County: NL 1 = L1
City A: NL2 = L2
(Bx L1) = .25
(Bx L2) = .15
(.0704 5 X .25) = .2 3239 =
(.07045 X .15) = .13943 =
· 2 3.239%
13. 943%
Sp e c . Dist. B: NL 3 = L3
Spec. Dist. C: NL4 = L4
(Bx L3) = .06
(Bx L4) = .09
(.07045 X ,06) = .05577 = 5.577%
(.07045 X .09) = ,08366 = 8 .366%
Sa nita t i on Di strict Z (the a rtn e x i n g dis t rict, fac tor A, above )
School District D (uncha ng e d)
Commun:i. ty College District (unc ha n ged)
TOTAL
3 . 875 %
35.000%
10 .000%
100 .000 %
ATI AF 's i n n ew t a x r a t e area j
'l"-/1.J t/