Joint Meeting Council/BFPD
10/6/26 05:30 PM
City Manager Department
Rochelle Clayton
Resolution
Doc ID: 6610
AGENDA ITEM
AGENDA MATTER:
APPROVAL OF AGREEMENT WITH THE COUNTY OF SAN BERNARDINO AND THE RELATED
RESOLUTIONS FOR THE TRANSFER OF PROPERTY TAX REVENUES ASSOCIATED WITH THE
ANNEXATION OF LAND FROM THE JURISDICTIONS OF SAN BERNARDINO COUNTY AND SAN
BERNARDINO COUNTY FIRE PROTECTION DISTRICT INTO THE CITY OF BARSTOW AND
BARSTOW FIRE PROTECTION DISTRICT, AS SPECIFIED BY THE LOCAL AREA FORMATION
COMMISSION (LAFCO)
EXECUTIVE SUMMARY:
Staff recommends that the City Council adopt two resolutions approving the final negotiated exchange of property tax revenues associated with LAFCO 3280 and LAFCO 3281 for the Barstow International Gateway ("BIG") Project. Each resolution would repeal and replace a previously adopted City resolutions to reflect the final terms negotiated among the San Bernardino County (County), San Bernardino County Fire Protection District (SBCFPD), the City of Barstow (City), and Barstow Fire Protection District (BFPD), as applicable, pursuant to Revenue and Taxation Code section 99.
DISCUSSION:
In June 2026, the City Council approved the Barstow International Gateway Project, including certification of the City of Barstow General Plan and Barstow International Gateway Project Environmental Impact Report (EIR), and approved applications for LAFCO reorganization for Action Area A and Action Area B.
As part of the BIG approvals, the City Council adopted Resolution No. 5274-2026 for Action Area A and Resolution No. 5275-2026 for Action Area B, authorizing preliminary property tax exchange terms for the proposed LAFCO reorganizations.
Following further negotiations among the City, County, and affected special districts, the parties have reached final agreement regarding the exchange of property tax revenues required by Revenue and Taxation Code section 99. The proposed resolutions repeal and replace the earlier resolutions with the final negotiated terms. Although Odessa Water District’s jurisdiction is affected by LAFCO 3280 and LAFCO 3281, it collects no property taxes, so it is not included in the proposed resolutions.
Property Tax Transfer Calculation
For jurisdictional changes processed through LAFCO, the County calculates the property tax transfer to determine the share of property tax revenue the affected city will receive following the jurisdictional change. The County’s methodology recognizes the city’s historical property tax share, accounts for property tax associated with services affected by the annexation, and divides the remaining property tax impact equally between the County and the City.
The calculation works as follows:
1. Determine the property tax revenue generated by the affected area. The Assessor establishes the assessed value, and the Auditor-Controller determines the property tax revenue and existing distribution within each Tax Rate Area (TRA).
Joint Meeting Council/BFPD
10/6/26 05:30 PM
City Manager Department
Rochelle Clayton
Resolution
Doc ID: 6610
AGENDA ITEM
2. Determine the city’s historical property tax share. The percentage of property tax revenue received by the city within its Major TRA is applied to the property tax revenue generated within the area being annexed. This establishes the amount the city would generally have received if the area had historically been within its boundaries.
3. Account for property tax associated with affected services. Property tax currently allocated to special districts whose services are affected by the jurisdictional change is identified and deducted from the city’s historical share before the remaining amount is divided. Typically, the related property tax follows the service being transferred; however, the affected agencies may negotiate a different allocation.
4. Split the remaining amount between the County and city. After deducting the property tax associated with the affected services, the remaining historical share is generally divided equally between the County General Fund and the city.
LAFCO 3280
LAFCO 3280 (formerly Action Area A) includes annexation of territory to the City, BFPD, and Odessa Water District, together with related detachments from SBCFPD and County Service Area 70. Under the negotiated agreement, the City and County will each receive fifty percent (50%) of the County property tax base allocation and future incremental growth attributable to the affected territory.
The resolution also approves a separate Property Tax Revenue Sharing Agreement among the City, County, SBCFPD, and BFPD addressing fire district property taxes within Tax Rate Areas 056-062 and 056-104. Under that agreement, property tax revenue currently allocated to SBCFPD within those tax rate areas, including future increment, will continue to be allocated to SBCFPD following annexation of the territory to BFPD.
TABLE 1 - ANNEXATION 3280 CALCULATION
Joint Meeting Council/BFPD
10/6/26 05:30 PM
City Manager Department
Rochelle Clayton
Resolution
Doc ID: 6610
AGENDA ITEM
LAFCO 3281
LAFCO 3281 (formerly LAFCO Action Area B) includes the annexation of County territory into the City of Barstow and the Odessa Water District, together with detachment from County Service Area 70. Under the negotiated agreement, the City and County will each receive fifty percent (50%) of the County property tax base allocation and future incremental growth attributable to the affected territory.
TABLE 2 - ANNEXATION 3281 CALCULATION
Joint Meeting Council/BFPD
10/6/26 05:30 PM
City Manager Department
Rochelle Clayton
Resolution
Doc ID: 6610
AGENDA ITEM
CEQA
On June 2, 2026, the City Council certified the City of Barstow General Plan and Barstow International Gateway Project Environmental Impact Report and adopted all required CEQA findings. The LAFCO reorganizations for LAFCO 3280 and LAFCO 3280, and related entitlements, were contemplated as part of the BIG Project approvals and were evaluated in the certified EIR. The proposed property tax exchange resolutions implement those previously approved reorganizations, and no additional environmental review is required under CEQA.
Joint Meeting Council/BFPD
10/6/26 05:30 PM
City Manager Department
Rochelle Clayton
Resolution
Doc ID: 6610
AGENDA ITEM
ATTACHMENTS
1. Attachment 1 - Resolution No. [____] Amending No. 5274-2026 and approving the property tax revenue exchange and Property Tax Revenue Sharing Agreement for LAFCO 3280 a. Resolution Exhibit A: Property tax transfer calculations for LAFCO 3280
2. Attachment 2 - Agreement - LAFCO 3280 Property Tax Revenue Sharing Agreement among the City, County, SBCFPD, and BFPD
a. Agreement Exhibit B: Property Tax Revenue Sharing Agreement among the City, County, SBCFPD, and BFPD
3. Attachment 3 - Resolution No. [____] Amending No. 5275-2026 and approving the property tax revenue exchange for LAFCO 3281
a. Resolution Exhibit C: Fire District Property Tax Revenue Transfer Methodology for LAFCO 3280
FISCAL IMPACT:
Fiscal Impact results in an increase of Property Tax Revenues that are currently within the jurisdiction of San Bernardino County. With no development improvements, the current amount is $4,653 for LAFCO 3280 and $604 for LAFCO 3281.
RECOMMENDED ACTION:
Staff recommends that the City Council, sitting as itself and as the governing body for the Barstow Fire Protection District:
1. Adopt Resolution No. [____] Repealing Resolution No. 5274-2026 and Approving the Negotiated Exchange of Property Tax Revenues and Related Property Tax Revenue Sharing Agreement for LAFCO 3280 Associated with the Barstow International Gateway Project;
2. Adopt Resolution No. [____] Repealing Resolution No. 5275-2026 and Approving the Negotiated Exchange of Property Tax Revenues for LAFCO 3281 Associated with the Barstow International Gateway Project;
3. Authorize the City Manager, acting as City Manager and as General Manager of BFPD, to execute the Fire District Property Tax Revenue Sharing Agreement and related implementation documents for LAFCO 3280, subject to approval as to form by the City Attorney; and
4. Direct the City Clerk to transmit certified copies of the adopted resolutions and related agreements to the County of San Bernardino and the San Bernardino County Local Agency Formation Commission.