TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
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Property Tax Allocation for Annexation - LAFCO Reorganization (Detachment/Annexation from County Service Area 70) No. 3269 - Ramona Francis Annexation.
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RECOMMENDATION
Adopt Resolution No. 2024-023, determining the amount of property tax revenues to be exchanged between and among the City of Chino and the County of San Bernardino, resulting from the jurisdictional change described by LAFCO 3269 (PL23-0014, Annexation).
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FISCAL IMPACT
The attached Resolution will transfer future property tax revenues from the County of San Bernardino to the City of Chino, beginning with $56,022 for Fiscal Year 2024-2025. The additional property tax revenue will be added to the budget in FY 2024-2025. Tax revenues will increase in subsequent years as properties become developed within the annexed area.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above will further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Responsible Long-Range Planning
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Revenue: 1001000-51005 |
Expenditure: |
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Transfer In: Click or tap here to enter text. |
Transfer Out: Click or tap here to enter text. |
BACKGROUND
On July 5, 2023, the City Council initiated the Ramon Francis Annexation as part of the process of annexing one of the various islands located within the City’s Sphere of Influence from the unincorporated area of San Bernardino County. The annexation area consists of mostly single-family residential zoned parcels on approximately 145 acres of land, generally located near the intersection of Ramona and Francis Avenues (Exhibit A). The intent of the annexation is to annex one of the unincorporated islands to help clean up the City’s boundaries and to clarify how these areas are to be serviced by the City. The proposed annexation area is currently comprised of mostly single-family homes with some animal keeping, vacant land, various agricultural uses, the Baitul Hameed Mosque and a small market. In addition to initiating the annexation in July 2023, the City also approved the Prezone (PL23-0014) of the annexation area to Residential/Agricultural (RD2), Residential, 4.5 dwelling units/Acre (RD4.5) and Public (P) consistent with the City’s General Plan land use designations. The annexation will go into effect once the annexation is formally approved by the Local Agency Formation Commission (LAFCO) tentatively scheduled for September 18, 2024. If approved, the annexation will be final 30 days following LAFCO approval.
ISSUES/ANALYSIS
State law provides that an agreement be reached between the City of Chino and San Bernardino County on future distribution of property tax revenue within areas that are annexed into the City. Because the proposed annexation is considered to be an island annexation by LAFCO, the City will receive its full share of property tax for annexed properties, which is consistent with the tax collected on other properties in the City. The amount to be transferred to the City will be the average of all the Tax Rate Areas in the City equaling 10.43%.
To begin transfer of the property tax, both the City and County must approve separate resolutions approving the tax-split, which is attached for Council review.
Attachments: Exhibit A - Location Map
Resolution No. 2024-023