HomeMy WebLinkAboutMINUTES - 04241990 - 1.23 % 23
TO: BOARD OF SUPERVISORS aE-_1---:L-o�
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FROM: Phil Batchelor, County Administrator
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DATE: April 18 , 1990 °sr---__----� cam, County
SUBJECT: LEGISLATION: SB 1780 (Robbins)
SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOVAY ENDATION
Adopt a position in SUPPORT of SB 1780 by Senator Robbins which
would require a redevelopment plan which is amended to include
tax increment financing where the original plan did not include
such financing to utilize for its base year the assessed value of
the year in which the plan is amended to use tax increment
financing, rather than the assessed value for the year in which
the original redevelopment plan was approved.
BACKGROUND:
Under existing law, a Community Redevelopment Agency can adopt a
redevelopment plan without the use of tax increment financing and
later amend that plan to elect to use property tax revenue to
finance some or all of the plan. Existing law is unclear with
respect to which base year is to be used to calculate the
property tax diversion once the redevelopment plan has been
amended.
Senator Robbins has introduced SB 1780 at the request of the Los
Angeles County Board of Supervisors to clarify community
redevelopment law by requiring a new base year for the purpose of
calculating assessed valuation growth in a project area when an
agency amends a non-tax increment project and elects to use tax
increment financing.
Recently, a redevelopment agency in Los Angeles County which
formed a project without the use of the tax increment financing
CONTINUED ON ATTACHMENT: eS YES SIGNATURE:
_2L n:
/ RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S): a&JJ_�"' Z& �Z�
ACTION OF BOARD ON April 24, 1990 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
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.
4
CC: ATTESTED PR 2 4 1990
Please see Page 2. PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
M382 (10/88)
BY 4 DEPUTY
decided to amend the plan to include such financing. The agency
intends to use the base year of the original project plan for
purposes of calculating the amount of property tax to be diverted
from the County, schools and other affected taxing entities.
By diverting all the assessed valuation growth in the project
area beginning with the original base year, a substantially
larger portion of the total property tax is diverted in the first
year of the plan amendment. A large diversion of property tax in
the project amendment year would reduce property tax revenues to
taxing entities and impact the ability of taxing agencies to
provide services.
In addition, the adoption of a redevelopment plan without the use
of tax increment tends to lessen the amount of local opposition
to the plan. Later, when the agency amends the plan to use tax
increment, it is difficult to oppose the plan if the original
plan was not sufficiently challenged. Finally, the agency
originally adopted the original plan without tax increment
financing because of the availability of other revenue sources.
Any future necessity for additional revenues should be limited to
future tax increment growth and not be based on property tax
growth which has occurred since the beginning of the original
project.
The Board has been asked by Los Angeles County to support their
efforts in this regard by supporting SB 1780 . The Assistant
County Administrator-Finance recommends that the Board of
Supervisors support SB 1780 for the reasons stated above.
cc: Senator Robbins
County Administrator
Assistant Administrator-Finance
Auditor-Controller
Les Spahnn, SRJ. Jackson, Barish & Associates
Clancy Leland, Legislative Representative, Los Angeles
County, 1100 K Street, Suite 300, Sacramento, CA 95814