Title
Adopt resolution clarifying the intent of Board of Supervisors resolution 2015-12 approving a property tax transfer agreement between the County of Monterey and the South Monterey County Fire Protection District for the "South Monterey County Annexations" to the Fire District
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Adopt resolution clarifying the intent of Board of Supervisors resolution 2015-12 approving a property tax transfer agreement between the County of Monterey and the South Monterey County Fire Protection District for the "South Monterey County Annexations" to the Fire District
SUMMARY/DISCUSSION:
In 2014, the South County Fire Protection District submitted an application to LAFCO of Monterey County to annex a significant amount of territory in South Monterey County. These were areas without structural fire protection or emergency medical response. The annexation application initially included a large amount of territory in the southeast portion of the County which included an area then being planned for a major solar energy collection facility. At that time, the Fire District and the County engaged in discussions regarding a "property tax transfer", required for LAFCO consideration of the annexation. Pursuant to adopted Board of Supervisors policy, fire district annexations receive a share of property tax "increment" or growth. Because the future revenue generation potential of the solar collection project was not known at the time, and in order to avoid a revenue windfall to the District, the original tax transfer resolution prepared by County staff included the provision that:
"this property tax transfer does not include any portion of the property tax revenue generated from energy production sources. In the event that property tax generated from energy production source tax revenue increases over 150% from the level in effect at the time of approval of this resolution, the distribution of property tax increm...
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