To: Board of Supervisors
From: County Administrative Office
Agenda Section: Departmental
Vote Requirement: Majority
SUBJECT:
title
Consider Entering into a Property Tax Sharing Agreement or Provide a General Fund Allocation to the Humboldt Community Services District (HCSD) to Support Infrastructure Improvements at the North McKay Ranch Subdivision
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Adopt one of the following:
a. A resolution on behalf of the Board and all affected special districts agreeing that no property tax revenue will be exchanged; or
b. A resolution on behalf of the Board and all affected special districts agreeing to the exchange of property tax revenue as requested by HCSD.
2. Provide direction to staff to return with a future item to allocate General Fund revenue to the HCSD.
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STRATEGIC PLAN:
This action supports the following areas of your Board's Strategic Plan.
Area of Focus: Housing for All
Strategic Plan Category: 4002 - Increase and prioritize housing development
DISCUSSION:
On Aug. 1, 2025, the county received a Notice of Filing from the Humboldt Local Agency Formation Commission (LAFCo) regarding the proposed North McKay Ranch Annexation to the Humboldt Community Services District (HCSD). HCSD provides water and sewer services to the unincorporated areas surrounding Eureka, and the proposed annexation will result in service expansion and infrastructure impacts associated with the development of the North McKay Ranch Subdivision.
In response to LAFCo's notification, the County Assessor and Auditor-Controller provided data to LAFCo and HCSD identifying the assessed valuations and estimated property tax revenues attributable to each affected agency within the proposed annexation area. The proposed annexation area will result in the following property tax adjustments without an additional tax sharing agreement:
Pursuant to Revenue and Taxation Code (R&T) Section 99(b)(1)(B)(5), wh...
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