RESOLUTION NO. 2026-
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF MERCED, CALIFORNIA,
APPROVING THE FIRST AMENDMENT TO
THE PROPERTY TAX SHARING AGREEMENT
WITH THE COUNTY OF MERCED, DATED
AUGUST 16, 2016
WHEREAS, annexation results in the reallocation of certain local revenues between the City of Merced ("City") and the County of Merced ("County"', including property taxes and other revenues authorized by law; and
WHEREAS, California Revenue and Taxation Code section 99 authorizes counties and local agencies to enter into agreements establishing the allocation of property tax revenues for future jurisdictional changes, including annexations; and WHEREAS, the City and County entered into a ten (10) year Property Tax Sharing Agreement approved on August 16, 2016, which expires on August 16, 2026; and WHEREAS, the City and County desire to approve the First Amendment to the Property Tax Sharing Agreement to extend the Agreement through August 16, 2029, while allowing either party to terminate the Agreement at the end of any fiscal year upon at least six (6) months' prior notice, thereby providing an opportunity to reevaluate the property tax sharing formula before committing to a longer-term agreement.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MERCED DOES HEREBY RESOLVE, DETERMINE, FIND, AND ORDER AS FOLLOWS:
SECTION 1. That the City Council finds that approving the First Amendment to the Property Tax Sharing Agreement serves the public interest by preserving a long-standing arrangement between the City and County, providing continuity in the allocation of property tax revenues and supporting the orderly consideration of future annexations.
SECTION 2. That the City of Merced is authorized to execute the First Amendment to the Property Tax Sharing Agreement, attached hereto as Exhibit A, and to take all actions necessary to carry out this Resolution.
PASSED AND ADOPTED by the City Council of the City of Merced at a regular meeting held on the day of August 2026, by the following vote:
X:IResolutions|2026\City Attorney|Tax Sharing Agreement Extension Res.docx 1 AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
APPROVED:
MATTHEW SERRATTO, MAYOR
Mayor
ATTEST:
D. SCOTT MCBRIDE, CITY CLERK
BY:
Assistant/Deputy City Clerk
(SEAL)
APPROVED AS TO FORM:
CRAIG J. CORNWELL, CITY ATTORNEY
1 Caniell 2-24-2026
City Attorney
X: Resolutions\2026\City Attomey\Tax Sharing Agreement Extension Res.docx 2 FIRST AMENDMENT TO
PROPERTY TAX SHARING AGREEMENT
BETWEEN THE CITY OF MERCED AND COUNTY OF MERCED
THIS First Amendment is entered into this day of August, 2026 by and between the County of Merced, a political subdivision of the State of California, (hereinafter referred to as "County"), and the City of Merced, a Municipal Corporation incorporated under the laws of the State of California (hereinafter referred to as "City").
This Amendment is hereby annexed to and made a part of that certain Property lax Sharing Agreement Between the City of Merced and County of Merced, dated Augus 2016. In each instance in which the provisions of this Amendment shall contradic or be inconsistent with the provisions of the printed portion of the original Agreement and any previous amendments, the provision of this Amendment shall prevail and govern, and the contradicted or inconsistent provisions shall be deemed amended accordingly. Both parties agree that there is new and adequate consideration for this Amendment.
This Amendment shall be deemed to have been duly approved when executed by both parties to the original Agreement. Once duly approved, this Amendment shall become effective as of the date signed by the Chairman of the Merced County Board of Supervisors.
MODIFICATIONS:
Section 8, entitled "Term of this Agreement", is amended as follows:
This Agreement shall continue for a period of three (3) additional years, to August 16th, 2029, provided that either party may terminate this Agreement at the end of any fiscal year, by providing at least six months' notice to the other party prior the end of any fiscal year (June 30).
Except as herein modified, all terms and conditions in said Agreement as heretofore approved remain unchanged and in full force and effect.
Signature page to follow
County of Merced City of Merced
By. By
Daron McDaniel Matthew Serato
Chair of the Board Mayor
Dated Dated
APPROVED AS TO LEGAL FORM APPROVED AS TO LEGAL FORN
MERCED COUNTY COUNSEL MERCED CITY ATTORNEY
By - y Graig Conwell
Forrest Hansen Craig Cofnwe
County Counsel City Attorney
7-24-2026
Dated Dated