Report Prepared by: Craig J. Cornwell, City Attorney
Title
SUBJECT: Adopt Resolution 2026-48 Approving the First Amendment to the Property Tax Sharing Agreement with the County of Merced
REPORT IN BRIEF
Considers adopting a Resolution approving the First Amendment to the Property Tax Sharing Agreement with the County of Merced. The First Amendment extends the term of the Agreement for three (3) additional years, with all remaining terms and conditions remaining unchanged.
RECOMMENDATION
City Council - Adopt a motion adopting Resolution 2026-48, a Resolution of the City Council of the City of Merced, California, Approving the First Amendment to the Property Tax Sharing Agreement with the County of Merced, Dated August 16, 2016.
Body
ALTERNATIVES
1. Approve as recommended by staff; or
2. Approve, subject to modifications by the City Council; or
3. Deny.
AUTHORITY
Charter of the City of Merced, Section 200. State of California Revenue and Taxation Code.
CITY COUNCIL PRIORITIES
Economic Development.
DISCUSSION
The California Revenue and Taxation Code requires cities and counties to enter into a property tax sharing agreement before the Local Agency Formation Commission (LAFCO) may consider an application for annexation. Without a valid agreement in place, the City would be unable to process future annexations through LAFCO.
The City of Merced and the County of Merced are currently parties to a ten (10) year Property Tax Sharing Agreement that was approved on August 16, 2016. The agreement expires on August 16, 2026.
The City and County have maintained property tax sharing agreements since 1980. The original agreements remained in effect until 1995, followed by a new agreement executed in 1997 that expired on December 31, 2014. The current agreement, approved in 2016, established the following property tax sharing provisions for annexed territory:
* The City receives 100% of the property taxes that would otherwise be allocated for County Fire Servic...
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