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. 3268 - East End Annexation.
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RECOMMENDATION
Adopt Resolution No. 2024-017, 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 3268 (PL20-0003, 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 $52,056 for Fiscal Year 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: Click or tap here to enter text. |
Expenditure: |
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Transfer In: Click or tap here to enter text. |
Transfer Out: Click or tap here to enter text. |
BACKGROUND
The City Council initiated an annexation (East End Annexation) on behalf of the applicant, Golden Management Services, Inc., on October 3, 2023 to annex 23 parcels consisting of 56.87 acres of land in the City’s Sphere of Influence from the unincorporated area of San Bernardino County, generally located south of Francis Avenue, west of East End Avenue, north of Philadelphia Street, and a small portion south of Philadelphia Street (Exhibit A). The intent of the annexation is to allow the applicant to construct three industrial buildings, totaling 63,900 square feet on 3.59 acres of land at the northwest corner of East End Avenue and Philadelphia Street once the annexation is complete. The proposed annexation area is currently comprised of industrial properties that include vacant property, outdoor storage (vehicles, equipment, materials), and Scott Brothers Dairy. In addition to initiating the annexation in October 2023, the City also approved the Prezone (PL20-0003) of the annexation area to Light Industrial (M1) and General Industrial (M2) that will go into effect once the annexation is formally approved by the Local Agency Formation Commission (LAFCO) tentatively scheduled for July 17, 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. Over the last couple of months, a formula for tax transfer has been negotiated between the City of Chino and San Bernardino County for the East End Annexation. 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. 2024-017