Title
Approve the property tax transfer resolution for the proposed Paraiso Hot Springs Sphere of Influence Amendment and Annexation to the Mission Soledad Fire Protection District.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve the Property Tax Transfer Resolution for the proposed Paraiso Hot Springs Sphere of Influence Amendment and Annexation to the Mission Soledad Fire Protection District.
SUMMARY:
The Local Agency Formation Commission (LAFCO) of Monterey County is in receipt of an application involving a sphere of influence amendment and annexation of the Paraiso Hot Springs property to the Mission Soledad Fire Protection District. The property is located at the end of Paraiso Springs Road in the Soledad area and is zoned “VO” (visitor serving). Approximately one-third of the property is currently located within the fire district boundaries, but the remaining two-thirds of the property do not lie within the fire district boundaries. The matter cannot be considered by LAFCO until a property tax transfer has been approved by the Board of Supervisors and the Fire District Board of Directors.
DISCUSSION:
The Board of Supervisors has adopted a property tax transfer formula which provides that fire protection districts are to be allocated a portion of the County property tax growth increment. The formula reflects the County’s 40 % loss of property tax revenue that was imposed by the State during fiscal year 1993-94 and remains in effect today. This State-imposed property tax shift is known as the Education Relief Augmentation Fund (ERAF). Non-affected jurisdictions not involved in the annexation retain their percentage share of property taxes collected within the affected tax rate area. The Mission Soledad Fire District and the County of Monterey will share the amount of property tax increment available for distribution based on a percentage rate intended to facilitate the previously approved economic development of Paraiso ...
Click here for full text