TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
title
Amended Property Tax Allocation for Annexation - LAFCO Reorganization (Detachment/Annexation from County Service Area 70) No. 3268 - East End Annexation.
end
RECOMMENDATION
Adopt Resolution No. 2024-039, 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).
body
FISCAL IMPACT
The attached Resolution will transfer future property tax revenues from the County of San Bernardino to the City of Chino, estimated to be approximately $54,870 for Fiscal Year 2024-25. Tax revenues will increase in subsequent years as properties become developed within the annexed area. The additional revenue generated will be placed in the FY2023-25 Mid-Term Budget.
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
|
Revenue: 1001000-51005 |
Expenditure: |
|
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. The annexation area is 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). An application (LAFCO 3268) was submitted to the Local Agency Formation Commission (LAFCO) on December 8, 2023.
On April 16, 2024, the City Council approved a property tax allocation for the East End Annexation. Subsequently, on April 23, 2024, the San Bernardino County Board of Supervisors opposed the current proposal for the East End Annexation unless the annexation area is expanded to include three additional parcels (totaling 7.31 acres) located west of the San Antonio Channel, as identified in Exhibit B. Expanding the annexation area to include these lots would prevent the formation of an unincorporated County island, which is prohibited by State Law. To remedy this issue, LAFCO administration amended the City’s application (LAFCO 3268) to include the additional three parcels west of the channel. On July 17, 2024, the San Bernardino County Local Agency Formation Commission approved the annexation. The City and the County of San Bernardino have 30 days from July 17, 2024, to approve the revised property tax allocation to include the newly added parcels.
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. A formula for tax transfer has been revised to now include the addition of the three parcels for the East End Annexation. The amount to be transferred to the City for the entire annexation area, including the three added parcels 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 - Original East End Annexation Map
Exhibit B - Amended East End Annexation Map
Resolution No. 2024-039