Title
Approve Property Tax Transfer for the proposed “Gloria Road Agricultural Cooler Reorganization” involving annexation of approximately 48.97 acres to the City of Gonzales and detachment from the Gonzales Rural Fire Protection District.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve Property Tax Transfer for the proposed “Gloria Road Agricultural Cooler Reorganization” involving annexation of approximately 48.97 acres to the City of Gonzales and detachment from the Gonzales Rural Fire Protection District.
SUMMARY
The Monterey County Local Agency Formation Commission (LAFCO) is in receipt of a reorganization proposal involving annexation of 48.97 acres to the City of Gonzales and detachment from the Gonzales Rural Fire Protection District. The property is within the City of Gonzales sphere of influence. The proposal cannot be considered by LAFCO until a property tax transfer has been approved by the City and the County.
DISCUSSION
The area proposed for annexation site is located adjacent to the existing city limits and is within the adopted sphere of influence of the City of Gonzales. According to the application filed with LAFCO of Monterey County, the proposed annexation was brought forward by the Rianda Family Partnership in order to support its’ business objectives by bringing an agricultural cooler facility nearer to its; fields on property it owns. The City of Gonzales general plan designates the site for industrial/manufacturing,
Regarding the property tax transfer, the Board of Supervisors has previously adopted tax transfer resolution which provides that the County and affected agencies would transfer a percentage of their “tax revenue base” based on the pro rata share of the City’s equivalent tax rate to the combined City/County equivalent tax rates. The formula reflects the County’s loss of property tax revenue that was imposed by the State of California during fiscal year 1993-94. Non-affected jurisdictions will retain their percentage share of property taxes collected within an affected tax rate area. Of the total amount of property taxes available for distribution, the City of Gonzales will receive 40.44% and the County will receive 59.56%. In addition, in Tax Rate Area 076-001, the City will receive the entire amount of property tax attributed to the Gonzales Rural Fire Protection District.
OTHER AGENCY INVOLVEMENT
The attached resolution was previously approved as to form by County Counsel. This matter was processed with the assistance of the Monterey County Auditor-Controller’s Office. An informational draft resolution was previously sent to the City of Gonzales
FINANCING
The reorganization proposal territory is within Tax Rate Area 076=001. Tax Rate Area 076-001 has the following property tax distribution: 27.72% - Monterey County; 1.51 % - affected district (fire district); 70.77% - non-affected districts; 100% - total. Due to property tax revenue reductions imposed by the State on the County of Monterey, the percentage share of existing County property tax available for distribution has been reduced by 41% from 27.72 % to 16.35%. As recommended, the County would receive 8.17 % and the City would receive 8.18 % of the amount available for distribution. In addition, the City would receive the entire 1.51 % previously allocated to the Gonzales Rural Fire Protection District for a total allocation of 9.69%. After adding back in the 41% ERAF reduction, the County would receive 19.54 % of the total property tax base collected within the affected area if the reorganization is approved.
Property tax increment (growth) will similarly be allocated based on the ratio described in the previous section of this report, Within the annexation area, the city will receive 12.72% and the County will receive 16.51%. The calculations described in this report are detailed in the attached resolution.
____________________________________
Nicholas Chiulos,
Assistant County Administrative Officer
_______
Date
cc: Kate McKenna, LAFCO Executive Officer
Darren McBain, LAFCO Analyst
Carmen Gil, City Manager, City of Soledad
Jennifer Forsyth, Monterey County Auditor-Controller’s Office
Attachments: Map and Resolution