Agenda Item
City Council
Item #: 3.21. 10/11/2022 File #: 22-0545
TO: Honorable Mayor and Members of the City Council
FROM: Rob Houston, City Manager
1. SUBJECT
Approval of tax exchange agreement with the City of Anaheim as part of a reorganization of city boundaries. Resolution NO. 11418.
2. SUMMARY
The resolution approves the tax exchange agreement with the City of Anaheim as part of a reorganization of city boundaries to allow for a more efficient delivery of municipal services.
3. RECOMMENDED ACTION
Adopt Resolution No. 11418. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11349 and approving a property tax exchange agreement between the City of Anaheim and the City of Orange regarding the Santa Ana River reorganization (areas 1, 1A, 2, 3 and remaining areas) No. RO 20-06 and determining said actions are exempt from the California Environmental Quality Act Pursuant to Section 15301 (Class 1, existing facilities).
4. FISCAL IMPACT
The City will forego $63.48 in property tax revenue per year as a result of the reorganization of city boundaries.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote the quality of life in the community c: Support and enhance attractive, diverse living environments.
6. DISCUSSION AND BACKGROUND
The cities of Orange and Anaheim share a long boundary and have worked collaboratively over the years to reorganize City boundaries to benefit both cities and improve the delivery of local services. A small portion of the existing Angel Stadium parking lot is located in the City of Orange and a boundary realignment would be required for any future development. In addition, the City of Anaheim is negotiating the acquisition of Orange County Flood Control District (OCFCD) excess properties within Orange in the area of Orangewood Avenue and the Santa Ana River for incorporation into Anaheim.
In discussions with the City of Anaheim, City staff requested extending the limit further north from the original proposal, just south of the SR-57, to eliminate a pocket of the Santa Ana River trail from remaining within the City of Orange. The City of Anaheim is amenable to the request and the total area is referred to as the Santa Ana River reorganization and includes approximately 9.8 acres. Such incorporation requires a boundary adjustment through the Local Agency Formation Commission of City of Orange Printed on 10/6/2022Page 1 of 2
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Item #: 3.21. 10/11/2022 File #: 22-0545
incorporation requires a boundary adjustment through the Local Agency Formation Commission of Orange County (OC-LAFCO). The City Council approved Resolution No. 11282 to support the proposed reorganization of city boundaries at its meeting on October 13, 2020.
Tax Exchange Agreement
Sections 99 and 99.01 of the California Revenue and Taxation Code requires jurisdictions involved in such a jurisdictional change to adopt resolutions agreeing to a property tax redistribution prior to LAFCO’sapproval of the reorganization. By approving the proposed resolution, the City of Orange rescinds a previous resolution that only included the Stadium Sliver, and agrees that the Santa Ana River reorganization area would be more efficiently served by the City of Anaheim and that it is appropriate to distribute one hundred percent (100%) of the City of Orange’s share of the one percent basic levy of property tax generated within the area to the City of Anaheim upon the effective date of the reorganization. The City of Orange’s share of this property tax revenue is $63.48 per year.
Upon completion of the annexation, the City of Anaheim will take over responsibility for providing city services to the area, and will also assume ownership of, and responsibility for, all right-of-way and public facilities adjacent to the property that are currently owned by the City of Orange.
Staff recommends adopting the resolution to approve the tax exchange agreement for the proposed reorganization of boundaries with the City of Anaheim.
7. ATTACHMENT
· Resolution No. 11418 with attached Exhibit A
City of Orange Printed on 10/6/2022Page 2 of 2
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