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Agenda Item
ASR
Control 22-000419 |
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MEETING DATE: |
06/07/22 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
3 |
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SUBMITTING
Agency/Department: |
County Executive Office (Approved) |
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Department contact
person(s): |
Jessica Witt (714) 834-7250 |
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Lala Oca Ragen (714) 834-7219 |
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Subject: Property Tax Resolution for
Pomeroy Property Detachment from City of Tustin
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Resolution to Form |
Discussion |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
See Financial Impact Section |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: N/A
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RECOMMENDED ACTION(S):
Adopt Resolution approving the property tax exchange for the detachment of property located adjacent to 2242 Foothill Boulevard and owned by Leason Pomeroy from the City of Tustin to the County of Orange.
SUMMARY:
Adoption of the proposed Resolution will allow the City of Tustin to exclude the detached property from its sphere of influence and enable the merger of the detached property with an existing developed parcel within the County of Orange.
BACKGROUND INFORMATION:
In December 2020, the Orange County Local Agency Formation Commission (LAFCO) received a petition from landowner Leason Pomeroy (Pomeroy) to detach approximately 0.18 acre located adjacent to an existing parcel at 2242 Foothill Boulevard, Tustin, CA 92705 and north of Padias Lane (Detached Area) from the City of Tustin (City) to the County of Orange (County). Pomeroy initiated the request because the subject area is part of an adjacent larger property located within unincorporated North Tustin, and if successfully detached, will be merged to create a single parcel in the County and thus excluded from the City's sphere of influence. The detachment petition would: (i) align the boundaries of the subject territory; (ii) place the entire property within a single jurisdiction; (iii) support the efficient delivery of municipal services; and (iv) resolve any issues of inconsistent land use regulations between the City and the County.
LAFCO notified affected agencies of Pomeroy's petition, with comments due by January 31, 2022. There were no comments or objections received from City. In order for LAFCO to consider Pomeroy's petition and the jurisdictional change, the affected entities must negotiate the amount of property tax revenues to be exchanged, and upon agreement adopt property tax exchange resolutions, pursuant to Section 99 of the Revenue and Taxation Code.
The County Executive Office (CEO), in consultation with County Counsel, the Auditor-Controller and the Assessor, is advised that the Detached Area will be detached from Tax Rate Area (TRA) No. 13-077 and consolidated within TRA No. 89-095. Section 95(g) of the Revenue and Taxation Code provides that if the area subject to a jurisdictional change is within the same combinations of local agencies and school entities as an existing TRA, the two TRAs may be combined into one TRA. There is no current assessed value attributed to the Detached Area given its small size, and its consolidation within TRA No. 89-095 would not have a material impact on the TRA apportionment factors for that tax rate area.
The City and County have met and negotiated a property tax exchange resolution conditional upon the detachment of the Detached Area becoming effective. Attachment A is the proposed Resolution for approving the property tax exchange with the City in connection with the detachment of the Detached Area as depicted in the legal description and map attached to the Resolution.
In addition, Section 99(b)(5) of the Revenue and Taxation Code requires the County to consult with special districts whose service areas or responsibilities will be affected. The Pomeroy petition would impact the following special districts: Irvine Ranch Water District, Municipal Water District of Orange County, Orange County Water District and East Orange County Water District. By letter dated April 18, 2022, CEO notified the four water districts of the proposed detachment with the proposed property tax Resolution and invited their comments. All four water districts expressed no questions or concerns.
Following the filing of the statement of boundary change with the Board of Equalization, a base of zero dollars ($0.00) in property tax attributable to the Detached Area and 0.10295639373 of the annual property tax increment attributable to the Detached Area will be transferred from City to the County Structural Fire Fund and Public Library Fund. The property tax allocations that are applicable to TRA No. 89-095 will be applied to the Detached Area and City's share in the Detached Area will be reduced to zero.
The proposed property tax exchange Resolution is on City's City Council agenda for June 6, 2022. CEO recommends the Board's adoption of the proposed Resolution approving a property tax exchange with the City in connection with the detachment of the Detached Area. If approved, the City and County Resolutions will be transmitted to LAFCO, which will generate a certificate of filing. The certificate will be recorded with the Clerk-Recorder and subsequently presented to Auditor-Controller so that the appropriate tax adjustments can be made.
FINANCIAL IMPACT:
There is no current assessed value attributed to the Detached Area, given its small size, and the addition of the Detached Area to Tax Rate Area (TRA) No. 89-095 would have an immaterial impact on the TRA apportionment factors for that TRA.
STAFFING IMPACT:
N/A
REVIEWING AGENCIES:
Auditor-Controller
ATTACHMENT(S):
Attachment A – Property Tax Resolution
Attachment B - Revenue and Taxation Code Section 99
Attachment C – Revenue and Taxation Code Section 95(g)