|
|
|
|
COUNTY OF SAN MATEOInter-Departmental Correspondence |
County Manager's Office |
| |
DATE: |
August 21, 2003 |
BOARD MEETING DATE: |
September 9, 2003 |
| |
TO: |
Honorable Board of Supervisors |
FROM: |
Paul T. Scannell, Assistant County Manager |
SUBJECT: |
Property Tax Exchange - Mosquito Abatement District |
| |
RECOMMENDATION: |
Approve a resolution authorizing a zero property tax exchange between San Mateo County and the San Mateo Mosquito Abatement District for the proposed annexation of the unincorporated portions of the County, currently not included within the District boundaries. |
| |
BACKGROUND: |
The San Mateo County Mosquito Abatement District was formed in 1953. The District's current boundaries include cities on the Bayside from East Palo Alto on the south to Millbrae on the north, and the immediately surrounding unincorporated areas. The governing Board of Trustees consists of one appointee from each of the 12 cities and one appointed by the Board of Supervisors. The District Office is in Burlingame. The District 's budget is approximately $2.2 million annually. The District is currently supported by property tax and a parcel tax of $3.74 per parcel. |
| |
In anticipation of the spread this year of the West Nile Virus to the County the District has proposed the expansion of its boundaries to include the rest of the County and the request is being considered by the Local Agency Formation Commission(LAFCO). The County's Department of Public Health, Environmental Health Division, supports the annexation because of the West Nile threat. Initially, the District had proposed that its share of the property tax within its current boundaries and the parcel tax be extended to the new territory. That proposal was not acceptable to the cities that were to be annexed because of this year's budgetary issues. The District has now successfully negotiated with the cities a compromise that will allow the annexation of the new territory subject to LAFCO's authorization. The compromise requires that no property taxes be shifted from other taxing agencies to the District in the annexed area and that a parcel tax be submitted for a vote by the property owners in the new territory, including the unincorporated area. The details of the parcel tax have not been finalized, but it is anticipated that the tax will be $11-15 per parcel annually. The ballot, to be conducted by the District, will likely be a mail ballot and will be held late this year or early next year. It is anticipated that LAFCO will make the annexation contingent on majority approval by the property owners, because lacking a positive vote, the District would not be able financially to provide the service. |
| |
DISCUSSION: |
By law LAFCO cannot consider a proposed annexation unless the agencies involved have agreed to a property tax exchange. Since the services in the annexed area will be entirely funded by the proposed parcel tax, there will no property tax received by the District. All of the cities in the proposed expansion area have agreed to a zero property tax exchange. It is recommended that the County agree to a similar resolution on behalf of the unincorporated area to be annexed, enabling LAFCO to go forward with its deliberations and eventually a vote of landowners in the newly annexed area as to whether or not they are willing to pay a parcel tax for this service. |
| |
FISCAL IMPACT: |
There is no fiscal impact to the County in adopting the zero tax exchange. Eventually, after approval by LAFCO, a parcel tax will be submitted for approval by majority vote of the affected property owners. |
| |
Cc: Controller's Office
LAFCo.
Assessor's Office |
| |