Adopt resolution authorizing execution of a Revenue Sharing and Property Tax Exchange Agreement between Yolo County and the City of Woodland related to planned annexations for the Barnard Court, Westucky, and Pirmi areas, and City-owned properties. (Potential positive general fund impact) (Pinedo/Tengolics)

Adopt resolution authorizing execution of a Revenue Sharing and Property Tax Exchange Agreement between Yolo County and the City of Woodland related to planned annexations for the Barnard Court, Westucky, and Pirmi areas, and City-owned properties.

Under state law, a prerequisite for the Local Formation Agency Commission (LAFCO) to process a duly submitted annexation application is agreement between the annexing City and County on a tax-sharing agreement governing the allocation of property taxes on parcels to be annexed. The tax-sharing agreement is the primary vehicle available to help ensure that property tax revenues are allocated to the City and County consistent with each entity’s responsibility for providing municipal services to the residents and businesses within the newly-annexed territory.

City staff previously reached out to the County to initiate annexation negotiations and the City and the County have reached tentative agreement (Att. A) on the parameters for a Revenue Sharing and Property Tax Exchange specific to properties in the Barnard, Westucky, and Pirmi areas, as well as two city-owned parcels including a Water Plant and a Sports Park (Att. C) all of which are located within the city's urban limit line and sphere of influence. The proposed annexation areas do not contemplate additional revenue generating development. Below is a summary of the proposed terms:

Barnard, Westucky, Pirmi

• Property Tax
  • City/County split allocation to County General Fund 50%/50% (Post-ERAF)
  • ACO Fund 100% to City (city commits to curb, gutter, street, sidewalk improvements in annexed areas)
  • Fire, Library, Road District 100% to City (city assuming these services)
• Sales Tax
  • City/County split sales tax 50%/50% for all existing and future uses within Barnard area

City-Owned Parcels

• Property Tax
  • General Fund, ACO, Fire, Library, Road District 100% to City

Per the analysis conducted by the County's consultant, the Barnard/Westucky/Pirmi annexation would be revenue positive for the County (Att. D). A resolution authorizing the execution of the agreement is attached (Att. B). 
 

City of Woodland, Department of Finance, County Counsel