RESOLUTION NO. R-2022-13
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA, APPROVING ANNEXATION
AND PROPERTY TAX EXCHANGE AGREEMENT FOR
COUNTY UNINCORPORATED HAMER ISLAND
A. Recitals
(i). The City of Placentia ("City") initiated proceedings pursuant to the Cortese - Knox -Hertzberg Local government Reorganization Act of 2000, Division 3, commencing with Section 56000 of the California Government Code, and filed a petition with the Orange County Local Agency Formation Commission for the annexation of unincorporated territory known as "Hamer Island" to the City (Exhibit A); and (ii). Section 95(e) of the Revenue and Taxation Code provides that an annexation to a city represents a jurisdictional change; and
(iii). Section 99 of the Revenue and Taxation Code provides that prior to the effective date of any jurisdictional change, the affected entities, i.e., the County and City, are required to negotiate and agree to the amount of property tax revenues to be exchanged; and
(iv). Section 99 of the Revenue and Taxation Code allows cities and counties to adopt and approve property tax exchange agreements to set forth the exchange of such revenues following the addition to a city of previously unincorporated territory; and (v). County and City staffs have reached agreement, subject to Board and City Council approval, regarding the exchange of property tax as a result of the annexation of the unincorporated territory by the City, whereby upon annexation by the City, the City shall receive 52.6624 percent of the property tax and the County shall receive 47.3376 percent of the County's share of the 1% basic levy of property tax generated within the area to be annexed, pursuant to Master Property Tax Transfer Agreement 80-1975 between the County of Orange and the City of Placentia; and (vi). The City provides its own fire protection services and has been providing fire protection and EMS services to Hamer Island under an Out of Area Service Agreement with the County since July 1, 2020; and
(vii). The City shall receive 100% of the Structural Fire Fund generated in the annexed areas upon annexation; and
(vi). Hamer Island is approximately 76 acres of unincorporated territory with 346 single family homes and approximately 1,045 County residents; and Resolution R-2022-13 ATTACHMENT 2
(vii). Hamer Island is located within the City's Sphere of Influence and entirely within the City's municipal boundaries.
B. Resolution
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
1. In all respects as set forth in the Recitals, Part A., above.
2. The City Council of the City of Placentia, California, does hereby approve and adopt this resolution approving the property tax exchange agreement reached between the City and the County whereby, upon completion of the annexations of the Hamer Island to the City, the County shall receive 47.3376 percent and the City shall receive 52.6624 percent of the County's share of the one percent basic levy of property tax from the annexed area pursuant to Master Property Tax Transfer Agreement 80-1975 and 100 percent of the Structural Fire Fund generated in the annexed areas upon annexation.
3. If any section, subsection, sentence, clause, or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
APPROVED and ADOPTED this 15th day of March 2022
Rhonda Shader, Mayor
ATTEST:
Robert S. McKinnell, City Clerk
Resolution R-2022-13 ATTACHMENT 2
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 15th day of March 2022 by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
Christian L. Bettenhausen, City Attorney
Resolution R-2022-13 ATTACHMENT 2
EXHIBIT A
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Resolution R-2022-13
Exhibit A
ATTACHMENT 2