ITEM 5. 1
CITY MANAGER' S REPORT
APRIL 14, 2025 CITY COUNCIL REGULAR MEETING
ITEM: PROPERTY TAX SHARING AGREEMENTS WITH THE
COUNTY OF SAN JOAQUIN
RECOMMENDATION: Council to Consider the Following:
1. Adopt a Resolution to Approve Second Addendum
to Master Property Tax Agreement ( A- 12- 472)
Between the City of Lathrop and County of San
Joaquin Amending the Property Tax Allocation
Methodology and Extending the Term for an
Additional Six ( 6) Years, Up to and Including July
31, 2035; and
2. Adopt a Resolution to Approve Addendum to Tax
Allocation Agreement ( A- 23- 6) Between the City
of Lathrop and County of San Joaquin for the
Allocation of Property Tax for the West Lathrop
Specific Plan Area; and
3. Adopt a Resolution to Approve Addendum to Tax
Allocation Agreement ( A- 96- 341) Between the
City of Lathrop and County of San Joaquin for the
Allocation of Property Tax for the West Lathrop
Specific Plan Area; and
4. Adopt a Resolution to Approve Tax Allocation
Agreement between the City of Lathrop and
County of San Joaquin for the Allocation of
Property Tax for the North Central Lathrop Area;
and
5. Adopt a Resolution to Approve Tax Allocation
Agreement Between the City of Lathrop and
County of San Joaquin for the Allocation of
Property Tax for the Singh Petroleum Area.
SUMMARY:
Since incorporation, the City has entered into several tax sharing agreements with the County of San Joaquin (" County") for the purpose of determining how property tax revenue will be divided after a property is annexed into the City. Under the terms of the initial agreement, property tax revenues were split 90%- County/ 10°/ 0-City.
Over the years, the City and County have renegotiated terms and percentage allocations to more equitably distribute property tax revenues between the City and the County based on service responsibility.
CITY MANAGER' S REPORT PAGE 2
APRIL 14, 2025 CITY COUNCIL REGULAR MEETING
PROPERTY TAX SHARING AGREEMENTS WITH SAN JOAQUIN COUNTY In July 2024, City staff made a request to the County to meet and explore amending the current property tax sharing agreements. After analysis and negotiations, the County Administrator and City Manager agreed to propose the following to the Board of Supervisors and the City Council:
1. Amend Property Tax Agreement ( A- 12- 472) (Attachment F) to extend its term for an additional six ( 6) years, up to and including July 31, 2035, confirm the property tax allocation for Annexation Property Tax Base to remain 90%- County/ 10%- City and amend allocation of all Incremental Growth to an allocation of 60%- County/ 40%- City.
2. Add an addendum to Tax Allocation Agreement ( A- 23- 6) (Attachment G) to add tax rate area ( TRA) 007-89 to the list of TRAs included in Agreement ( A-23- 6).
3. Add an addendum to Tax Allocation Agreement ( A- 96- 341) (Attachment H) retaining the allocation of property tax for the West Lathrop Specific Plan Area and to remove specific TRA' s, since these are included in other tax allocation agreements pursuant to other amendments that accompany this report.
4. Approve a Tax Revenue Allocation Agreement ( Attachment I) for the allocation of property tax for the North Central Lathrop Area.
5. Approve a Tax Allocation Agreement ( Attachment J) for the allocation of property tax for the Singh Petroleum Area.
The proposed addendums and agreements will revise the formula within the tax rate areas for incremental growth from a ratio of 90%- County/ 10%- City, or 80%- County/ 20%- City to a ratio of 60%- County/ 40%- Cityfor excess of base allocations.
Future annexations approved by the San Joaquin Local Agency Formation Commission ( LAFCo) and all currently undeveloped property in the North Central Lathrop ( NCL) Area as of April 1, 2025, will be subject to the new tax rate ratio.
While these agreements will have no immediate effect on property tax revenue received, the City will receive substantially more property tax revenue than previously anticipated from future development areas. For example, the proposed rate of 60%- County/ 40%- City may generate in the North Central Lathrop project area an estimated additional $ 500 thousand in property tax revenue per year for the City when the project is built out.
CITY MANAGER' S REPORT PAGE 3
APRIL 14, 2025 CITY COUNCIL REGULAR MEETING
PROPERTY TAX SHARING AGREEMENTS WITH SAN JOAQUIN COUNTY BACKGROUND:
Since incorporation the City has entered into several tax sharing agreements with the County of San Joaquin (" County") for the purpose of determining how property tax revenue will be divided after property is annexed into the City. Under the terms of the initial agreement, property tax revenues were split 90%- County/ 10°/ 0-City.
In 2016, the City and County entered into the current Master Tax Sharing Agreement, which expires on July 31, 2029. Staff proposes an extension to July 31, 2035.
In July 2024, City staff made a request to the County to meet and explore amending the current property tax sharing agreements. After analysis and negotiations, the County Administrator and City Manager agreed to propose the following to the Board of Supervisors and the City Council:
1. Amend property tax agreement (A- 12- 472) (Attachment F) to extend the term for an additional six ( 6) years, up to and including July 31, 2035.
2. Add addendum to Tax Allocation Agreement ( A- 23- 6) ( Attachment G) to add tax rate area ( TRA) 007-89 to the list of TRAs included in Agreement ( A- 23- 6)
3. Add addendum to Tax Allocation Agreement ( A- 96- 341) (Attachment H) for the allocation of property tax for the West Lathrop Specific Plan Area. This agreement memorializes the removal of certain TRAs from Agreement A- 96- 341 since they are included in other tax sharing agreements pursuant to the other documents included in the report.
4. Approve Tax Revenue Allocation Agreement ( Attachment I) for the allocation of property tax for the North Central Lathrop Area. This agreement will affect all undeveloped property in the North Central Lathrop Area after April 1, 2025.
The new tax ratio shall be: (1) Base Allocation 90%- County/ 10°/ 0-City and ( 2) Excess of Base Allocation: 60%- County/ 40%- City. This change is estimated to increase property tax revenues to the City by $ 500 thousand per year.
5. Approve Tax Allocation Agreement ( Attachment J) for the allocation of property tax for the Singh Petroleum Area. The new tax ratio shall be: (1) Base Allocation 90%- County/ 10°/ 0-City and ( 2) Excess of Base Allocation: 60%- County/ 40%- City.
CITY MANAGER' SREPORT PAGE 4
APRIL 14, 2025 CITY COUNCIL REGULAR MEETING
PROPERTY TAX SHARING AGREEMENTS WITH SAN JOAQUIN COUNTY REASON FOR RECOMMENDATION:
The revised tax ratio will more equitably distribute property tax revenues between the City and the County based on service responsibility. The proposed agreements allow property tax revenue allocations to be split relative to the assignment of service responsibilities that come with annexations into the City. Without revision of the agreements, the City would be allocated service responsibilities without a corresponding allocation of revenues to pay for the services, in turn, homeowners and property owners would pay the price. Staff recommends the City Council authorize the proposed agreements and addendums.
FISCAL IMPACT:
The proposed ratios will revise the formula within the tax rate area for incremental growth from either a 90%- County/ 10%- City tax or 80%- County/ 20°/ 0-City split to the proposed 60%- County/ 40%- Citysplit. While this agreement has no immediate effect on property tax revenue received, it will allow more future property tax revenue collected to come to the City to pay for corresponding City services. As a result of these addendums and agreements, the City will collect more than previously anticipated from future development of the designated areas, while homeowners and property owners will see no impact on their property tax bills.
CITY MANAGER' S REPORT PAGE 5
APRIL 14, 2025 CITY COUNCIL REGULAR MEETING
PROPERTY TAX SHARING AGREEMENTS WITH SAN JOAQUIN COUNTY ATTACHMENTS:
A. Resolution to Approve Second Addendum to Master Property Tax Agreement ( A- 12- 472) Between the City of Lathrop and County of San Joaquin Amending the Property Tax Allocation Methodology and Extending the Term for an Additional Six ( 6) Years, Up to and Including July 31, 2035 B. Resolution to Approve Addendum to Tax Allocation Agreement ( A- 23- 6) Between the City of Lathrop and County of San Joaquin for the Allocation of Property Tax for the West Lathrop Specific Plan Area C. Resolution to Approve Addendum to Tax Allocation Agreement ( A- 96- 341) Between the City of Lathrop and County of San Joaquin for the Allocation of Property Tax for the West Lathrop Specific Plan Area D. Resolution to Approve Tax Allocation Agreement between the City of Lathrop and County of San Joaquin for the Allocation of Property Tax for the North Central Lathrop Area
E. Resolution to Approve Tax Allocation Agreement Between the City of Lathrop and County of San Joaquin for the Allocation of Property Tax for the Singh Petroleum Area.
F. Second Addendum to Master Property Tax Agreement ( A- 12- 472) G. Addendum to Tax Allocation Agreement ( A- 23- 6)
H. Addendum to Tax Allocation Agreement ( A- 96- 341)
I. Tax Allocation Agreement North Central Lathrop Area
J. Tax Allocation Agreement Singh Petroleum Area
CITY MANAGER' S REPORT PAGE 6
APRIL 14, 2025 CITY COUNCIL REGULAR MEETING
PROPERTY TAX SHARING AGREEMENTS WITH SAN JOAQUIN COUNTY APPROVALS:
Cari Ja
Director f Finance
y9. 2DS
Date
idehoic-Thomas Hedegard Date
Deputy City Manager
4 Salvador Navarrete Date
City Attorney
Step en J. Salvatore Date
City Manager
RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO
APPROVE A SECOND ADDENDUM TO MASTER PROPERTY TAX
AGREEMENT ( A- 12- 472) BETWEEN THE CITY OF LATHROP AND
COUNTY OF SAN JOAQUIN AMENDING THE PROPERTY TAX
ALLOCATION METHODOLOGY AND EXTENDING THE TERM FOR AND
ADDITIONAL SIX ( 6) YEARS, UP TO AND INCLUDING JULY 31, 2035 WHEREAS, since incorporation the City has entered into several tax sharing agreements with the County of San Joaquin (" County") for the purpose of determining how property tax revenue will be divided after a property is annexed into the City; and
WHEREAS, under the terms of the initial agreement, property tax revenues were split 90%- County/ 10%- City; and
WHEREAS, over the years, the City and County have renegotiated terms and percentage allocations to more equitably distribute property tax revenues between the City and the County based on service responsibility; and
WHEREAS, in July 2024, City staff made a request to the County to meet and explore amending the current property tax sharing agreements; and
WHEREAS, after analysis and negotiations, the County Administrator and City Manager agreed to propose to the Board of Supervisors and the City Council an amendment to Property Tax Agreement ( A- 12- 472) extending the term for an additional six ( 6) years, up to and including July 31, 2035, confirming the property tax allocation for Annexation Property Tax Base to 90%- County/ 10°/ 0-City and amend allocation for all Incremental Growth to 60%- County/ 40%- City; and
WHEREAS, while this agreement will have no immediate effect on property tax revenue received, it will generate substantially more property tax revenue than previously anticipated in future development areas.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lathrop, does hereby approve the Addendum to the Master Property Tax Agreement ( A- 12- 472) between the City of Lathrop and County of San Joaquin amending the property tax allocation methodology and extending the term for an additional six ( 6) years, up to and including July 31, 2035.
Attachment " A"
The foregoing resolution was passed and adopted this 14th day of April, 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
Attachment " A"
RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO
APPROVE
BETWEEN THE
ADDENDUM
CITY OF LATHROP
TO TAX
AND
ALLOCATION
COUNTY OF
AGREEMENT( A-23-6)
SAN JOAQUIN FOR
THE ALLOCATION OF PROPERTY TAX FOR THE WEST LATHROP
SPECIFIC PLAN AREA
WHEREAS, since incorporation the City has entered into several tax sharing agreements with the County of San Joaquin (" County") for the purpose of determining how property tax revenue will be divided after a property is annexed into the City; and
WHEREAS, under the terms of the initial agreement, property tax revenues were split 90%- County/ 10%- City; and
WHEREAS, over the years, the City and County have renegotiated terms and percentage allocations to more equitably distribute property tax revenues between the City and the County based on service responsibility; and
WHEREAS, in 2022, the City and County amended the 1996 West Lathrop Specific Plan Property Tax Sharing Agreement ( A- 23- 6) to revise the property tax ratio from 90%- County/ 10%- City tax split to a 60%- County/ 40%- City; and
WHEREAS, in July 2024, City staff made a request to the County to meet and explore amending the current property tax sharing agreements; and
WHEREAS, after analysis and negotiations, the County Administrator and City Manager agreed to propose to the Board of Supervisors and the City Council an addendum to Tax Allocation Agreement ( A- 23- 6) to add tax rate area ( TRA) 007-89 to the list of TRAs; and
WHEREAS, while this agreement will have no immediate effect on property tax revenue received, it will generate substantially more property tax revenue than previously anticipated in future development areas.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lathrop, does hereby approve the proposed Addendum to Tax Allocation Agreement ( A- 23- 6) between the City of Lathrop and County of San Joaquin to add TRA 007-89 to the list of tax areas included in Tax Allocation Agreement ( A- 23- 6) for the Allocation of Property Tax for the West Lathrop Specific Plan Area.
Attachment " B"
The foregoing resolution was passed and adopted this 14th day of April, 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Attachment " B"
RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO APPROVE ADDENDUM TO TAX ALLOCATION AGREEMENT ( A- 96- 341)
BETWEEN THE CITY OF LAHTROP AND COUNTY OF SAN JOAQUIN FOR
THE ALLOCATION OF PROPERTY TAX FOR THE WEST LATHROP SPECIFIC PLAN
WHEREAS, since incorporation the City has entered into several tax sharing agreements with the County of San Joaquin (" County") for the purpose of determining how property tax revenue will be divided after a property is annexed into the City; and
WHEREAS, under the terms of the initial agreement, property tax revenues were split 90°/ o- County/ 10%- City; and
WHEREAS, over the years, the City and County have renegotiated terms and percentage allocations to more equitably distribute property tax revenues between the City and the County based on service responsibility; and WHEREAS, in 2022, the City and County amended the revise the property tax ratio from 90%- County/ 10°/ 0-City tax split to a 60%- County/ 40°/ 0-City 1996 West Lathrop Specific Plan Property Tax Sharing Agreement ( A- 96- 341) to ; and WHEREAS, in July 2024, City staff made a request to the County to meet and explore amending the current property tax sharing agreements; and WHEREAS, after analysis and negotiations, the County Administrator and City Manager agreed to propose to the Board of Supervisors and the City Council an addendum to Tax Allocation Agreement ( A- 96- 341) for the allocation of property tax for the West Lathrop Specific Plan Area. This addendum will memorialize the removal of certain TRAs from Agreement A- 96- 341 since these are now to be included in other tax allocation agreements pursuant to resolutions accompanying this resolution; and
WHEREAS, while this agreement will have no immediate effect on property tax revenue received, it will generate substantially more property tax revenue than previously anticipated in future development areas.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lathrop, does hereby approve the proposed Addendum to Tax Allocation Agreement ( A- 96- 341) Between the City of Lathrop and County of San Joaquin for the allocation of property tax for the West Lathrop Specific Plan Area.
Attachment " C"
The foregoing resolution was passed and adopted this 14th day of April, 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
Attachment " C"
RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO
APPROVE TAX ALLOCATION AGREEMENT BETWEEN THE CITY OF
LATHROP AND COUNTY OF SAN JOAQUIN FOR THE ALLOCATION OF
PROPERTY TAX FOR THE NORTH CENTRAL LATHROP AREA
WHEREAS, since incorporation the City has entered into several tax sharing agreements with the County of San Joaquin (" County") for the purpose of determining how property tax revenue will be divided after a property is annexed into the City; and
WHEREAS, under the terms of the initial agreement, property tax revenues were split 90°/ 0- County/ 10%- City; and
WHEREAS, over the years, the City and County have renegotiated terms and percentage allocations to more equitably distribute property tax revenues between the City and the County based on service responsibility; and WHEREAS, after analysis and negotiations, the County Administrator and City Manager agreed to propose to the Board of Supervisors and the City Council a Tax Revenue Allocation Agreement for the allocation of property tax for the North Central Lathrop Area; and
WHEREAS, this agreement will affect all property in the North Central Lathrop Area that is undeveloped as of April 1, 2025; and WHEREAS, the new tax ratio shall be: ( 1) Base Allocation 90%- County/ 10%- City and ( 2) Excess of Base Allocation: 60Wo- County/ 40°/ 0-City; and WHEREAS, while this agreement will have no immediate effect on property tax revenue received, it will generate substantially more property tax revenue than previously anticipated in future development areas.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lathrop, does hereby approve the proposed Tax Allocation Agreement for the North Central Lathrop Area.
Attachment " D"
The foregoing resolution was passed and adopted this 14th day of April, 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
Attachment " D"
RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO
APPROVE TAX ALLOCATION AGREEMENT BETWEEN THE CITY OF
LATHROP AND COUNTY OF SAN JOAQUIN FOR THE ALLOCATION
OF PROPERTY TAX FOR THE SINGH PETROLEUM AREA
WHEREAS, since incorporation the City has entered into several tax sharing agreements with the County of San Joaquin (" County") for the purpose of determining how property tax revenue will be divided after a property is annexed into the City; and
WHEREAS, under the terms of the initial agreement, property tax revenues were split 90%- County/ 10%- City; and
WHEREAS, over the years, the City and County have renegotiated terms and percentage allocations to more equitably distribute property tax revenues between the City and the County based on service responsibility; and WHEREAS, after analysis and negotiations, the County Administrator and City Manager agreed to propose to the Board of Supervisors and the City Council a Tax Revenue Allocation Agreement for the allocation of property tax for the Singh Petroleum Area; and
WHEREAS, this agreement will affect all property undeveloped in the Singh Petroleum Area on or after April 1, 2025; and
WHEREAS, the new tax ratio shall be: ( 1) Base Allocation 90%- County/ 10%- City and ( 2) Excess of Base Allocation: 60%- County/ 40%- City; and WHEREAS, while this agreement will have no immediate effect on property tax revenue received, it will generate substantially more property tax revenue than previously anticipated in future development areas.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lathrop, does hereby approve the proposed Tax Allocation Agreement for the Singh Petroleum Area.
Attachment " E"
The foregoing resolution was passed and adopted this 14th day of April, 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
Attachment " E"
SECOND ADDENDUM TO MASTER PROPERTY TAX AGREEMENT ( A- 12- 472)
BETWEEN THE CITY OF LATHROP AND COUNTY OF SAN JOAQUIN AMENDING
THE PROPERTY TAX ALLOCATION METHODOLOGY AND EXTENDING THE TERM FOR AN ADDITIONAL SIX (6) YEARS, UP TO AND INCLUDING JULY 31, 2035
1. ADDENDUM.
This addendum between the CITY OF LATHROP, a municipal corporation (" City"), and the COUNTY OF SAN JOAQUIN, a political subdivision of the State of California County") of the Property Tax Transfer Agreement entitled Agreement for Property Tax Allocation Upon Annexation ( A- 12- 472), (hereinafter " The Master Property Tax Agreement"), is entered into this day of April 2025 pursuant to Resolution No. adopted by the Board of Supervisors of County, and Resolution No. adopted by the City Council of City. This addendum revises section 2 and extends the term of the Master Property Tax Agreement for an additional six ( 6) years, up to and including July 31, 2035.
Section 2 is hereby amended in its entirety as follows:
PROPERTY TAX ALLOCATION.
Upon each new annexation after the effective date of this addendum, property tax allocation for the Annexation Property Tax Base shall be pursuant to the ratio of 10% CITY and 90% COUNTY, and all Incremental Growth thereof pursuant to the ratio of 40% CITY and 60% COUNTY.
All the terms of the Agreement, and any amendments thereto, are incorporated and made part of the Addendum.
2. COUNTERPARTS
This agreement may be executed in two counterparts, each of which shall constitute an original.
IN WITNESS WHEREOF, the City of Lathrop has authorized the execution of this Agreement by its Mayor, and San Joaquin County has authorized its execution by the Chairman of its Board of Supervisors in accordance with Resolution No. on the dates set forth below.
1 Attachment " F"
CITY OF LATHROP COUNTY OF SAN JOAQUIN
By:
Paul Akinjo
Mayor
By:
Paul Canepa
Chair, Board of Supervisors
Dated: Dated:
ATTEST: ATTEST:
By: By:
Teresa Vargas
City Clerk
APPROVED AS TO FORM:
By:
Rachel DeBord
Clerk of the Board
By:
Salvador Navarrete Edward J. Kiernan
City Attorney County Counsel
Attachment " F"
2 ADDENDUM TO TAX ALLOCATION AGREEMENT (A- 23- 6) BETWEEN THE
CITY OF LATHROP AND COUNTY OF SAN JOAQUIN FOR THE ALLOCATION OF
PROPERTY TAX FOR THE WEST LATHROP SPECIFIC PLAN AREA
1. ADDENDUM.
This addendum between the CITY OF LATHROP, a municipal corporation (" City"), and the COUNTY OF SAN JOAQUIN, a political subdivision of the State of California County"), of the Tax Allocation Agreement for the Allocation of Property Tax for the West Lathrop Specific Plan Area ( A- 23- 6), ( hereinafter " Agreement"), is entered into this day of April 2025 pursuant to Resolution No. , adopted by the Board of Supervisors of County, and Resolution No. , adopted by the City Council of City. This addendum adds Tax Rate Area ( TRA) 007-89 to the list of TRAs included in the Agreement.
All the terms of the Agreement, and any amendments thereto, are incorporated and made part of the Addendum.
2. COUNTERPARTS
This agreement may be executed in two counterparts, each of which shall constitute an original.
IN WITNESS WHEREOF, the City of Lathrop has authorized the execution of this Agreement by its Mayor, and San Joaquin County has authorized its execution by the Chairman of its Board of Supervisors in accordance with Resolution No. on the dates set forth below.
1 Attachment " G"
CITY OF LATHROP COUNTY OF SAN JOAQUIN
By:
Paul Akinjo
Mayor
By:
Paul Canepa
Chair, Board of Supervisors
Dated: Dated:
ATTEST: ATTEST:
By: By:
Teresa Vargas
City Clerk
APPROVED AS TO FORM:
By:
Salvador Navarrete
City Attorney
Rachel DeBord
Clerk of the Board
By:
Edward J. Kiernan
County Counsel
Attachment " G"
2 ADDENDUM TO TAX ALLOCATION AGREEMENT (A- 96- 341) BETWEEN THE
CITY OF LATHROP AND COUNTY OF SAN JOAQUIN FOR THE ALLOCATION OF
PROPERTY TAX FOR THE WEST LATHROP SPECIFIC PLAN AREA
1. ADDENDUM.
This addendum between the CITY OF LATHROP, a municipal corporation ("City"), and the COUNTY OF SAN JOAQUIN, a political subdivision of the State of California County"), of the Tax Allocation Agreement for the Allocation of Property Tax for the West Lathrop Specific Plan Area (A- 96- 341), (hereinafter "Agreement"), is entered into this day of April 2025 pursuant to Resolution No. , adopted by the Board of Supervisors of County, and Resolution No. , adopted by the City Council of City. This addendum memorializes the removal from A- 96- 341 the following Tax Rate Areas ("TRAs") covered by subsequent agreements: 007-8, 007-9, 007-80, 007- 091 ( A- 23- 6); 007-89 (A- 25- ); and 007-14, 102- 044 (A- 25- ).
2. COUNTERPARTS
This agreement may be executed in two counterparts, each of which shall constitute an original.
IN WITNESS WHEREOF, the City of Lathrop has authorized the execution of this Agreement by its Mayor, and San Joaquin County has authorized its execution by the Chairman of its Board of Supervisors in accordance with Resolution No. on the dates set forth below.
1 Attachment " H"
CITY OF LATHROP COUNTY OF SAN JOAQUIN
By:
Paul Akinjo
Mayor
By:
Paul Canepa
Chair, Board of Supervisors
Dated: Dated:
ATTEST: ATTEST:
By: By:
Teresa Vargas
City Clerk
APPROVED AS TO FORM:
By:
Rachel DeBord
Clerk of the Board
By:
Salvador Navarrete Edward J. Kiernan
City Attorney County Counsel
Attachment " H"
2 TAX ALLOCATION AGREEMENT BETWEEN THE CITY OF LATHROP AND
COUNTY OF SAN JOAQUIN FOR THE ALLOCATION OF PROPERTY TAX FOR
THE NORTH CENTRAL LATHROP AREA
This Tax Revenue Allocation Agreement between the CITY OF LATHROP, a municipal corporation (" City"), and the COUNTY OF SAN JOAQUIN, a political subdivision of the State of California (" County"), for the North Central Lathrop (NCL) area, is entered into this day of April 2025 pursuant to Resolution No. adopted by the Board of Supervisors of County and Resolution No. adopted by the City Council of City.
RECITALS
A. City and County staff wish to amend the Revenue Sharing Upon Annexation Agreement ( A- 96- 341) to adopt a revised allocation for property developed on or after April 1, 2025, in the NCL area.
B. This Agreement involves the following Tax Rate Area (TRA): 007-14.
C. The City and County recognize that the purpose of this agreement is to make equitable allocation and distribution of available revenues consistent with the terms of existing law as mutually understood by the parties and to maximize each party' s ability to deliver essential government services in the NCL area.
D. This Agreement is intended to satisfy the requirements of Revenue and Taxation Code § 99( b).
AGREEMENT
NOW, THEREFORE, in consideration of the promises and acts described herein, the City and County agree as follows:
Section 1. Recitals
1.. The foregoing recitals are true and correct and are part of this agreement.
Section 2. Establishment of Separate Tax Rate Area
2. 1. County will work with the County Auditor -Controller to establish a separate Tax Rate Area ( TRA) for a portion of NCL Area and will report to City the actual amount 1 Attachment " I"
of the 1% ad valorem property tax revenues' available for allocation and distribution from the TRA under this agreement.
2.. All currently developed property2 in the NCL Area, which is currently in TRA 007-14 as of April 1, 2025, shall remain in TRA 007-14.
2. 3. All currently undeveloped property in the NCL Area, which is currently in TRA 007-14 as of April 1, 2025, shall be transferred to the new TRA created under Section 2. 1.
Section 3. Property Tax Allocation
3. 1. Base Allocation: Shall mean the assessed valuation applicable to property and improvements within the TRA created in Section 2. 1 and referenced in Section 2. 3 being annexed at the time the application for annexation was submitted to the Local Agency Formation Commission ( LAFCo), and shall be allocated pursuant to the ratio of 90% County and 10% City.
3. 2. Excess of Base Allocation: That portion of the taxes levied each year in excess of the Base Amount, shall be allocated pursuant to the ratio of 60% County and 40% City and is applicable to the TRA created in Section 2. 1 and referenced in Section
2. 3.
3.. Property Tax Allocation Agreement. City and County agree that this Agreement shall apply to determine the allocation between the parties of property tax and revenue generated from the NCL area in lieu of the negotiation process set forth in California Revenue and Taxation Code Section 99( e).
Section 4. Additional Documents
1% AD VALOREM PROPERTY TAX REVENUES is defined to mean: The 1% ad valorem property tax authorized by Article 13A, section 1 of the California Constitution, assessed on the full value of the property in the Annexation Areas, to include both the base property tax revenues and the incremental property tax revenues. " Base property tax revenues" means property tax revenues accruing to each affected agency in the applicable fiscal year, based on the AB -8 gross levy prior to adjustments and revenue transfers relative to the Educational Revenue Augmentation Fund ( ERAF). "Incremental property tax revenues" means the amount of property tax revenues attributable to growth in assessed valuation for the affected tax rate area identified for the Annexation Areas.
z DEVELOPED PROPERTY is defined to mean ( a) any residential property for which a building permit has been issued in accordance with the zoning of the areas mentioned in this agreement and ( b) any non- residential property ( mixed use, employment center, transit oriented development, etc.) that is within the boundaries of a final subdivision map that is intended to create individual development parcels or is otherwise recorded for purposes of development in accordance with the zoning of the areas mentioned in this agreement. 2 Attachment " I"
4.1. City and County agree to cooperate in the execution of any additional documents which may be required to carry out the terms of this agreement.
Section 5. Effective Date
5. 1. This agreement shall become effective upon the latest of the dates it is signed below by the City Mayor and the County Chair of the Board.
Section 6. Termination
6. 1. This Agreement governs the revenue sharing between City and County for the NCL area and may be terminated by either party hereto upon six months' notice. Said termination shall not affect annexations for which the LAFCo Executive Officer has issued a certificate of completion prior to the effective date of termination.
Section 7. Indemnification
7. 1. In the event that this agreement is the subject of a legal challenge, each party will provide for their own defense and will cooperate in the defense of the terms of this agreement and the implementation of any judgement issued in such a lawsuit.
Section 8. Counterparts
8. 1. This agreement may be executed in two counterparts, each of which shall constitute an original.
3 Attachment " I"
IN WITNESS WHEREOF, the City of Lathrop has authorized the execution of this Agreement by its Mayor, and San Joaquin County has authorized its execution by the Chairman of its Board of Supervisors in accordance with Resolution No. on the dates set forth below.
CITY OF LATHROP COUNTY OF SAN JOAQUIN
By:
Paul Akinjo
Mayor
By:
Paul Canepa
Chair, Board of Supervisors
Dated: Dated:
ATTEST: ATTEST:
By: By:
Teresa Vargas
City Clerk
APPROVED AS TO FORM:
By:
Salvador Navarrete
City Attorney
Rachel DeBord
Clerk of the Board
By:
Edward J. Kiernan
County Counsel
Attachment " I"
4 TAX ALLOCATION AGREEMENT BETWEEN THE CITY OF LATHROP AND
COUNTY OF SAN JOAQUIN FOR THE ALLOCATION OF PROPERTY TAX FOR
THE SINGH PETROLEUM AREA
This Tax Revenue Allocation Agreement between the CITY OF LATHROP, a municipal corporation (" City"), and the COUNTY OF SAN JOAQUIN, a political subdivision of the State of California (" County"), for the Singh Petroleum ( Singh) area, is entered into this day of April 2025 pursuant to Resolution No. , adopted by the Board of Supervisors of County and Resolution No. , adopted by the City Council of City.
RECITALS
A. City and County staff wish to amend the Revenue Sharing Upon Annexation Agreement ( A- 96- 341) to adopt a revised allocation for property developed on or after April 1, 2025, in the Singh area.
B. This Agreement involves the following Tax Rate Area ( TRA): 102- 044.
C. The City and County recognize that the purpose of this agreement is to make equitable allocation and distribution of available revenues consistent with the terms of existing law as mutually understood by the parties and to maximize each party' sability to deliver essential government services in the Singh area.
D. This Agreement is intended to satisfy the requirements of Revenue and Taxation Code § 99( b).
AGREEMENT
NOW, THEREFORE, in consideration of the promises and acts described herein, the City and County agree as follows:
Section 1. Recitals
1.. The foregoing recitals are true and correct and are part of this agreement.
Section 2. Establishment of Separate Tax Rate Area
2. 1. Upon completion of the annexation process, the County Auditor -Controller shall establish a separate Tax Rate Area ( TRA) for the Singh area, currently in TRA 102- 1 Attachment " J"
044, and will report to City the actual amount of the 1% ad valorem property tax revenues' available for allocation and distribution from the TRA under this agreement.
Section 3. Property Tax Allocation
3. 1. Base Allocation: Shall mean the assessed valuation applicable to property and improvements within the Singh area being annexed at the time the application for annexation was submitted to the Local Agency Formation Commission ( LAFCo), and shall be allocated pursuant to the ratio of 90% County and 10% City.
3. 2. Excess of Base Allocation: That portion of the taxes levied each year in excess of the Base Amount, shall be allocated pursuant to the ratio of 60% County and 40% City.
3.. Property Tax Allocation Agreement. City and County agree that this Agreement shall apply to determine the allocation between the parties of property tax and revenue generated from the Singh area in lieu of the negotiation process set forth in California Revenue and Taxation Code Section 99( e).
Section 4. Additional Documents
4. 1. City and County agree to cooperate in the execution of any additional documents which may be required to carry out the terms of this agreement.
Section 5. Effective Date
5. 1. This agreement shall become effective upon the latest of the dates it is signed below by the City Mayor and the County Chair of the Board.
Section 6. Termination
6. 1. This Agreement governs the revenue sharing between City and County for the Singh area and may be terminated by either party hereto upon six months' notice. 1% AD VALOREM PROPERTY TAX REVENUES is defined to mean: The 1% ad valorem property tax authorized by Article 13A, section 1 of the California Constitution, assessed on the full value of the property in the Annexation Areas, to include both the base property tax revenues and the incremental property tax revenues. " Base property tax revenues" means property tax revenues accruing to each affected agency in the applicable fiscal year, based on the AB -8 gross levy prior to adjustments and revenue transfers relative to the Educational Revenue Augmentation Fund ( ERAF). "Incremental property tax revenues" means the amount of property tax revenues attributable to growth in assessed valuation for the affected tax rate area identified for the Annexation Areas.
2 Attachment " J"
Said termination shall not affect annexations for which the LAFCo Executive Officer has issued a certificate of completion prior to the effective date of termination.
Section 7. Indemnification
7. 1. In the event that this agreement is the subject of a legal challenge, each party will provide for their own defense and will cooperate in the defense of the terms of this agreement and the implementation of any judgement issued in such a lawsuit.
Section 8. Counterparts
8. 1. This agreement may be executed in two counterparts, each of which shall constitute an original.
IN WITNESS WHEREOF, the City of Lathrop has authorized the execution of this Agreement by its Mayor, and San Joaquin County has authorized its execution by the Chairman of its Board of Supervisors in accordance with Resolution No. on the dates set forth below.
3 Attachment " J"
CITY OF LATHROP COUNTY OF SAN JOAQUIN
By:
Paul Akinjo
Mayor
By:
Paul Canepa
Chair, Board of Supervisors
Dated: Dated:
ATTEST: ATTEST:
By: By:
Teresa Vargas
City Clerk
APPROVED AS TO FORM:
By:
Rachel DeBord
Clerk of the Board
By:
Salvador Navarrete Edward J. Kiernan
City Attorney County Counsel
Attachment " J"
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