City Council Agenda Report
June 16, 2026
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Jana Stuard, Director of Finance/City Treasurer
Allan Perdomo, Director of Recreation and Parks
SUBJECT: RESOLUTION NO. 26-40 - NEGOTIATED TAX EXCHANGE - ANNEXATION OF PM 73574 TO COUNTY LIGHTING MAINTENANCE DISTRICT 10045A Background:
The City’s Recreation & Park’s Department received correspondence from the County of Los Angeles (County), Department of Public Works requesting approval of a joint resolution to exchange property tax revenue with the County in conjunction with the annexation of the territory known as PM 73574 to County Lighting Maintenance District (CLMD) 10045A.
For new annexations to a CLMD, the State requires the County to process the exchange of property tax revenues with all nonexempt taxing agencies. Under Section 99.01 of the California Revenue and Taxation Code, special districts providing new services to an area because of a jurisdictional change are entitled to a share of the annual tax increment generated in the areas being annexed.
Attached is a Joint Resolution between Los Angeles County and the City of Norwalk as Successor of Interest to the Norwalk-Southeast Recreation and Park District approving and accepting the negotiated exchange of property tax revenues resulting from the annexation of the subject territory to CLMD 10045A.
The County Auditor-Controller and County Counsel created tax-sharing ratios for each agency involved in the exchange of property tax revenues. Based on the City’s tax share ratio, a $10,000 increment in assessed valuation of a parcel means that the parcel will pay an additional $100 in property taxes, of which the City of Norwalk, as successor to the Southeast Recreation and Parks District, would receive $3.0045 and CLMD 10045A would receive $0.0273.
City Council June 16, 2026
Resolution No. 26-40 - Exchange of Property Tax
Revenues
Page No. 2
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The County’s request for approval of a joint resolution for sharing property tax is similar to requests the City has received and approved in the past.
Fiscal Impact:
The negotiated tax exchange will result in all taxing entities, including Norwalk, receiving a lesser share of the tax revenue from two parcels of the small shopping center that is requested to be annexed into the Los Angeles County’s lighting district. Because of the small amount of assessed value on these parcels and the small share possessed by the Recreation and Parks District, the financial impact to the City is immaterial.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
N/A
Recommended Action:
Staff recommend City Council adopt Resolution No. 26-40, A JOINT RESOLUTION OF THE
BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES, THE BOARD OF
TRUSTEES OF THE GREATER LOS ANGELES COUNTY VECTOR CONTROL DISTRICT, COUNTY SANITATION DISTRICT NO. 18, CITY OF LA MIRADA, LA MIRADA RECREATION
AND PARKS, CITY OF NORWALK, AND THE WATER REPLENISHMENT DISTRICT OF
SOUTHERN CALIFORNIA APPROVING AND ACCEPTING THE NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM ANNEXATION OF PM 73574 TO COUNTY LIGHTING MAINTENANCE DISTRICT 10045A.
Attachments:
1. Resolution No. 26-40
2. Map