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HomeMy WebLinkAboutMINUTES - 02271990 - 1.64 'L . 1-064 oz7 TO: BOARD OF SUPERVISORS �.° Contra FROM: ;,j r��_.`•�\ Phil Batchelor, County Administrator oa Costa DATE: February ,21 1990 `. County \,. _ �T �Tq('UUV'(Q SUBJECT: LEGISLATION: SB 998 (Presley) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECONMENDATION Adopt a position in SUPPORT of SB 998 by Senator Presley which would provide an alternative method of determining the property tax increment which a redevelopment agency would be required to pay to a taxing! jurisdiction during the time the redevelopment project is effective. BACKGROUND: Under current law taxing agencies are permitted to elect to be allocated certain amounts, allocated to the redevelopment agency in that jurisdiction under tax increment financing, that are attributable to increases in the tax rates within the project area occurring after the tax year in which the ordinance adopting the redevelopment plan becomes effective. Existing law precludes that election if an agreement has been entered into between the taxing agency and the redevelopment agency or the redevelopment agency has distributed specified payments in accordance with another provision of law. If an election is an alternative available to a taxing agency, existing law specifically permits any affected taxing agency to elect, and requires every school district and community college district to elect, to be allocated all or any portion of the tax revenues allocated to the redevelopment agency which are attributable to either or both of the following: 1. Increases in the rate of tax imposed for the benefit of the taxing agency where the increased levy occurs after the tax CONTINUED ON ATTACHMENTYYe s YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE S: ACTION OF BOARD ON— February 2:7, 19 9 Q APPROVED AS RECOMMENDED X OTHER I _r VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED oz� l �� Assistant Administrator - Finance PHIL BATCHELOR,CLERK OF THE BOARD OF Auditor-Controller SUPERVISORS AND COUNTY ADMINISTRATOR Deputy Director-Redevelopment Agency M382 (10/88) BY ,DEPUTY year in which the ordinance adopting the redevelopment plan becomes effective. 2. Increases in the assessed value of taxable property in the redevelopment area, as the assessed value is established by the assessment roll last equalized prior to the effective date of the ordinance adopting the redevelopment plan which are, or otherwise would be, calculated annually pursuant to subdivision ( f) of Section 110. 1 of the Revenue & Taxation Code (generally the 2% annual inflation increase) . SB 998 (Presley) would, as amended June 26, 1990 , add an alternative to # 2 above. This alternative would allow the taxing agency to elect to receive the average annual percentage increase in the assessed value of the taxable property in the redevelopment project area during the five years immediately prior to the effective date of the ordinance adopting the redevelopment plan, applied to the assessed value of the project area during the fiscal year in which the redevelopment plan is adopted. If the five year average is less than or equal to 100, the taxing agency' s election to receive it shall be subject to the consent of the redevelopment agency. The redevelopment agency may defer payment of all or part of the amounts it owes to the taxing agency under this provision if the taxing agency consents to such a deferral. SB 998 provides a more generous method of allocating the property tax to which taxing agencies are entitled in redevelopment agencies. Rather than in general receiving only the 2% inflation factor over the base year value, SB 998 would provide an alternative which would allow the taxing agency to elect to receive an amount equal to the average annual increase in the property tax over the five years prior to the establishment of the redevelopment project area. If this figure is more than 20 the taxing agency would benefit from this alternative. In any case, the taxing agency would still be guaranteed at least the 2% inflation factor. In view of the fact that SB 998 provides an alternative manner of electing to receive property taxes from redevelopment agencies, the Assistant County Administrator-Finance has recommended that the Board of Supervisors indicate their support for SB 998 .