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File #: 09-0549    Version: 1
Type: Agenda Item Status: Department Matters
File created: 4/23/2009 In control: Board of Supervisors
On agenda: 5/5/2009 Final action:
Title: Chief Administrative Office recommending adoption of Resolution accepting the exchange of property tax increments for the annexation of two parcels (APNs 121-280-03 and 121-280-05) into the El Dorado Irrigation District, Local Agency Formation Commission (LAFCO Project No. 2009-01). Resolution 084-2009
Attachments: 1. Clarksville Annexation Resolution.pdf, 2. Exhibit 2009-01-B.pdf, 3. Letter from CFO - Connie L. Bair, 4. Financial Analysis.pdf
Related files: 09-0992
Title
Chief Administrative Office recommending adoption of Resolution accepting the exchange of property tax increments for the annexation of two parcels (APNs 121-280-03 and 121-280-05) into the El Dorado Irrigation District, Local Agency Formation Commission (LAFCO Project No. 2009-01).
Resolution 084-2009
Body
Background: The Clarksville Annexation to the El Dorado Irrigation District (EID), Local Agency Formation Commission (LAFCO) Project No. 2009-01 will annex two parcels, APN 121-280-03 (9.52 acres) and APN 121-280-05 (1.8 acres) into EID. The annexation triggers the requirement under the law to redistribute property tax increments applicable to the property being annexed.

Reason for Recommendation: In accordance with Revenue and Taxation Code Sections 99 and 99.01, negotiations have been completed regarding the redistribution of the property tax increments applicable to these parcels. EID will accept by resolution a 2.6667% share of the property tax increment.

Under past practice, local agencies impacted by annexations have informally agreed to minimum percentages required for annexation of the share tax levy in the existing tax rate area. It is the Chief Administrative Office's understanding that these minimum percentages are as follows for agencies affected by the Clarksville annexation:

El Dorado Irrigation District: 2.6667%
El Dorado Hills CSD: 10%
El Dorado Hills Fire: 17%

With recent annexations involving EID, in order to generate their minimum of 2.6667%, all other affected agencies have surrendered a proportional share of the existing tax levy. This methodology applied to the Clarksville annexation would have resulted in a 9.7795% share for the El Dorado Hills CSD which is 0.2205% below the minimum amount the CSD requires for annexation. The same methodology would also result in an 18.7284% share for El Dorado Hills Fire, which is 1.7284% above their minimum.

During discussions with each agency regarding this methodology, a repr...

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