COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

DATE:

August 11, 2005

BOARD MEETING DATE:

August 16, 2005

SPECIAL NOTICE

None

VOTE REQUIRED

Majority

TO:

Honorable Board of Supervisors

FROM:

Mary McMillan, Deputy County Manager

SUBJECT:

Property Tax Exchange – City of Daly City

RECOMMENDATION:

Adopte a resolution authorizing a property tax exchange between San Mateo County and the City of Daly City for the proposed annexation of the Lands of Verlinden and Paccinini.

BACKGROUND:

We have received from LAFCo the proposed annexation of the Lands of Verlinden (1616 Annie Street) and Paccinini (1624 Annie Street) to the City of Daly City. In anticipation of an application for the proposed annexation of the Lands of Verlinden and Paccinini to the City of Daly City, it has been requested that the County of San Mateo Board of Supervisors adopt a property tax exchange resolution between the County Board of Supervisors and the City of Daly City pursuant to Revenue and Taxation Code 99. The annexation application may not be processed until the County and the City agree to the amount of property tax that will be transferred.

An agreement has been reached with the City and a resolution is presented for your approval. The agreement is in accordance with the Board’s policy of granting a city an amount of property tax that approximates the current average share of property tax of the city of the proposed annexation. The annexation includes the transfer of fire responsibility to the City from the County.

VISION ALIGNMENT:

We believe this recommendation is consistent with the Shared Vision Commitments to be a responsive, effective and collaborative government.

FISCAL IMPACT:

The total amount of taxes available for exchange before the ERAF shift between the two agencies is $4,195.73. The City will receive approximately $2,705.19 and the County will retain approximately $1,490.54.