Consent-General Government # 11.
Board of Supervisors
County Administrator
- Meeting Date:
- 05/05/2026
- Brief Title
- Village Farms Tax Transfer Agreement
From:
Michael Webb, County Administrator, County Administrator's Office
Staff Contact:
Alexander Tengolics, Director of Strategic Operations, County Administrator's Office, x8068
Supervisorial District Impact:
Districts 2,4
Subject
Adopt resolution authorizing execution of a Property Tax Exchange Agreement between Yolo County and the City of Davis related to planned annexation for the Village Farms development project. (Potential positive general fund impact) (Webb/Tengolics)
Recommended Action
Adopt resolution authorizing execution of a Property Tax Exchange Agreement between Yolo County and the City of Davis related to planned annexation for the Village Farms development project.
Strategic Plan Goal(s)
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Operational Excellence |
Reason for Recommended Action/Background
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 the Village Farms development project, an approximately 500-acre development consisting of 1,800 residential units (Att. B). The annexation and development proposal will be subject to a vote of the Davis electorate on the June 2, 2026 ballot. The agreement allocates General Fund and ACO tax revenues 50/50 with Springlake Fire Protection District revenues being allocated 100% to the City and Road Fund 2 revenues being allocated 100% to the County on a post-ERAF (Education Revenue Augmentation Funds) basis. The agreement also includes language to monitor CR 102 drainage and to address county road impacts, both from construction and level of service.
Staff recommends the Board adopt the attached resolution authorizing the Property Tax Exchange Agreement (Att. C).
Collaborations (including Board advisory groups and external partner agencies)
City of Davis, Department of Financial Services, Department of Community Services, County Counsel
Fiscal Impact
Fiscal impact (see budgetary detail below)
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $ 0
- Amount budgeted for expenditure:
- $ 0
- Additional expenditure authority needed:
- $ 0
- On-going commitment (annual cost):
- $ 0
Source of Funds for this Expenditure
- General Fund
- $0
Further explanation as needed:
Staff anticipates the tax transfer agreement will generate approximate $1,500,000 annually for the County. Further, staff believes this agreement is fair and appropriately covers County costs associated with the new development.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Mark Bryan | Paula Hugi | 04/30/2026 09:14 AM |
| Michael Webb | Alexander Tengolics | 04/30/2026 09:37 AM |
| Michael Webb | Michael Webb | 04/30/2026 09:46 AM |
| Financial Services | Laura Liddicoet | 04/30/2026 09:58 AM |
| County Counsel | Kimberly Hood | 04/30/2026 03:39 PM |
| Cindy Perez | Cindy Perez | 04/30/2026 03:56 PM |
- Form Started By:
- Alexander Tengolics
- Started On:
- 04/07/2026 11:30 AM
- Final Approval Date:
- 04/30/2026