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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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County Manager’s Office
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DATE:
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May 13, 2008
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BOARD MEETING DATE:
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May 20, 2008
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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David Boesch, Assistant County Manager
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SUBJECT:
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Resolution agreeing to an exchange of property tax revenues between the County of San Mateo and the City of Redwood City for the proposed annexation of the properties located at 343 – 375 Alameda De Las Pulgas
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RECOMMENDATION:
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Adopt a resolution agreeing to an exchange of property tax revenue between the County of San Mateo and the City of Redwood City for the proposed annexation of the properties located at 343 – 375 Alameda De Las Pulgas.
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VISION ALIGNMENT:
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Commitment: Responsive, effective and collaborative government
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Goal(s): Goal 22—County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire county.
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BACKGROUND:
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Revenue and Taxation Code Section 99 requires participating jurisdictions to agree to the amount of property tax transferred as a result of and condition of the Local Agency Formation Commission’s (LAFCo) approval of annexation of property from one jurisdiction to another.
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DISCUSSION:
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A property tax transfer agreement between the County of San Mateo County and the City of Redwood City has been reached for the properties located at 343 – 375 Alameda De Las Pulgas. The negotiated agreement can best be characterized as an even split of the aggregate total of the relevant tax increments. Due to the transition of services including library, fire protection and lighting from the County to Redwood City, the relevant tax increments would be transferred in their entirety while the “difference” of an even split would come from the General County Tax account, representing a drop from 26.6 percent to 19.8 percent—a reduction of 6.7 percentage points.
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Tax Rate Area 073-019
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Relevant Account Description
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Incremental Factor
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Current
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Negotiated Shift
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Proposed
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General County Tax
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0.2669021749
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(0.0688035139)
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0.1980986610
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Free Library
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0.0389072175
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(0.0389072175)
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-0.0-
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County Fire Protection Structure
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0.0723374599
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(0.0723374599)
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-0.0-
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Emerald Lake Lighting
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0.0180504697
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(0.0180504697)
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-0.0-
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City of Redwood City
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NA
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0.1980986610
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0.1980986610
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TOTALS
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0.3961973220
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-0.0-
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0.3961973220
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The recommended agreement is in accord with prior practice 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.
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FISCAL IMPACT:
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Assuming $2.9 million in assessed value for the subject properties, the total amount of taxes available for exchange before the ERAF shift between the two agencies is $29,000. Redwood City would receive approximately $5,744 and the County would retain an estimated $5,744. The amount both jurisdictions would receive is expected to increase with the anticipated development of the subject properties.
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