ATTACHMENT A
FIRST AMENDMENT TO THE
TAX SHARING AGREEMENT AND APPROPRIATIONS LIMIT ADJUSTMENT
BETWEEN THE CITY OF MARYSVILLE AND THE LINDA FIRE PROTECTION DISTRICT
FOR THE ANNEXATION OF FIRE SERVICES INTO LINDA FIRE PROTECTION DISTRICT THIS FIRST AMENDMENT ("First Amendment") is made and entered into this ____ day of ____________, 2026, by and between the CITY OF MARYSVILLE, a municipal corporation and charter city of the State of California ("City"), and the LINDA FIRE PROTECTION DISTRICT, an independent fire protection district organized and operated pursuant to the Fire Protection District Law of 1987 ("District").
RECITALS
WHEREAS, the City and District entered into that certain Tax Sharing Agreement and Appropriations Limit Adjustment Between the City of Marysville and the Linda Fire Protection District for the Annexation of Fire Services into Linda Fire Protection District dated August 12, 2025 ("Agreement"); and
WHEREAS, the Agreement was approved in connection with the annexation of fire protection services from the City into the District; and WHEREAS, Section 3 of the Agreement provides for the exchange of Property Tax Revenue, and Section 4 of the Agreement provides for the exchange of Sales Tax Revenue; and WHEREAS, following approval of the Agreement and during implementation of the annexation, the parties reviewed the financial assumptions utilized in calculating the Sales Tax Revenue allocation percentage contained in Section 4 and mutually determined that certain revenue data utilized in the calculation should be corrected to accurately reflect the revenue information available to the parties; and
WHEREAS, application of the originally agreed-upon methodology using the corrected revenue data results in a revised Sales Tax Revenue allocation percentage of 31.0 percent rather than 41.5 percent; and
WHEREAS, the parties desire to amend Section 4 of the Agreement to accurately reflect the corrected Sales Tax Revenue allocation percentage while leaving Section 3 and all other provisions of the Agreement unchanged.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:
1. Incorporation of Recitals.
The foregoing recitals are not merely recitals but are contractual in nature and are incorporated into this First Amendment as though fully set forth herein.
2. Amendment to Section 4.
Section 4 of the Agreement, entitled "Exchanges of Sales Tax Revenue," is hereby amended to read as follows:
"4. Exchanges of Sales Tax Revenue. The City agrees to share with the District 31.0% of the Sales Tax Revenues generated in areas annexed by the District beginning July 1, 2026. a. The percentage of sales taxes shall be determined from information received from the California State Board of Equalization. The amount of sales taxes generated within the area annexed by the District shall be determined from the monthly, quarterly, or annual individual sales tax allocation information forwarded to the State Board of Equalization by each tax paying entity in the annexed area. This information is supplied to the City on a quarterly basis. The calculated amount shall be forwarded by the City to the District no later than 30 days after the quarterly information is received and shall begin on the first day of retail sales by the new development as determined by information received from the State Board of Equalization.
i. If in the future, the State Board of Equalization develops a method of distributing the information on a monthly basis, the frequency of payment will become monthly."
3. No Change to Section 3.
The parties acknowledge and agree that Section 3 of the Agreement, entitled "Exchange of Property Tax Revenue Dollars," shall remain unchanged and in full force and effect. Nothing contained in this First Amendment modifies the allocation of Property Tax Revenue pursuant to Section 3 of the Agreement.
4. Purpose of Amendment.
The parties acknowledge that this First Amendment is intended solely to revise the Sales Tax Revenue allocation percentage in Section 4 to reflect the corrected revenue data and application of the methodology originally utilized by the parties in developing the Agreement. Except as expressly provided herein, no other provision of the Agreement is modified.
5. Ratification.
Except as expressly amended by this First Amendment, all terms, conditions, and provisions of the Agreement shall remain in full force and effect and are hereby ratified and reaffirmed.
6. Effective Date.
This First Amendment shall become effective upon approval by resolution adopted by the governing bodies of both parties and execution by their authorized representatives.
IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to the Tax Sharing Agreement and Appropriations Limit Adjustment to be executed by their duly authorized representatives.
CITY OF MARYSVILLE LINDA FIRE PROTECTION
DISTRICT
____________________________ ____________________________ Jim Schaad Kyle Heggstrom
City Manager Fire Chief
Date: ________________________ Date: ________________________
APPROVED AS TO FORM
_____________________________ _____________________________ Brant Bordsen Name:________________________
City Attorney District Legal Counsel
Date: ________________________ Date: ________________________ ATTEST:
_____________________________
Maggie Sanchez
City Clerk
City of Marysville
Date: ________________________