To: Board of Supervisors
From: County Administrative Office
Agenda Section: Consent
SUBJECT:
title
Supplemental Budget for Rio Dell Annexation Tax Exchange Sharing Agreement (4/5 Vote Required)
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve a supplemental budget request in the amount of Forty-Three Thousand Five Hundred Forty-Three Dollars and Fifty-Four Cents ($43,543.54) related to the Rio Dell Annexation Tax Exchange Sharing Agreement. (4/5 vote required).
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SOURCE OF FUNDING:
General Fund (1100)
DISCUSSION:
On April 9, 2019, the Humboldt County Board of Supervisors adopted a group of strategies and expectations to enable local fire districts to utilize property tax sharing agreements with the County of Humboldt in support of annexation and a commitment to deliver services to areas outside current district boundaries. The first agreement of this type was approved by the Board in December 2019 with the Rio Dell Fire Protection District ("RDFPD"). In July 2020, the Board adopted Resolution No. 20-64 and authorized a secured property tax revenue exchange with RDFPD, establishing terms under which tax sharing would occur and directed the Auditor-Controller to administer the exchange of revenues between the County of Humboldt and all applicable entities.
Through the above agreement, the County of Humboldt established a payment structure of Forty-Three Thousand Five Hundred Forty-Three Dollars and Fifty-Four Cents ($43,543.54) in base property tax revenue for RDFPD related to the annexation. This amount is equal to seventy-five percent (75%) of RDFPD's average tax allocation factor, multiplied by one percent (1%) property tax revenue for the current year within the planned annexation area, with additional calculations for each fiscal year thereafter. Approval of the annexation from the State Board of Equalization ("BOE") became effective at the start of fiscal year 2021-2022. However, this left a ga...
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