When a jurisdictional change occurs, the Ad Valorem Property Tax revenue attributable to the territory Annexed to the City, for all land use types, shall be adjusted in the following manner:
(a) For Annexations other than County unincorporated islands or properties identified in Exhibit B, County shall retain its one hundred percent (100%) share of the Ad Valorem Property Tax revenue attributable to the Base Property Tax Year amount. After Annexation, the annexing City shall receive a fifty percent (50%) share of the County’s Incremental Property Tax Revenue.
County shall retain the remaining fifty percent (50%) share of the County’s Incremental Property Tax Revenue.
(b) Where an Annexation includes land served by a special district, City shall receive the entire amount of the Ad Valorem Property Tax allocated to the special district upon the detachment of the annexed territory from the special district or the dissolution of the special district.
8.3.b
Packet Pg. 317 Attachment: Patterson-Stan County Master Tax Sharing Agreement (CW114591xDCB25) (Master Property Tax Revenue Agreement) {CW112700.6} Page 4 of 12
(c) Except as set forth in subsection (d) below, for any Annexation effecting an unincorporated County island or listed in Exhibit B, the annexing City shall meet and confer with County to determine the allocation of the Ad Valorem Property Tax revenue of the unincorporated County island when each such island is considered for Annexation. (d) For an Annexation requested or initiated by County or required by state or federal law pertaining to, in whole or part, any unincorporated County island or disadvantaged community, the annexing City shall meet and confer with County to determine the allocation of the Ad Valorem Property Tax revenue of the unincorporated County area considered for Annexation.
The provisions of this Section 4 shall survive and remain in effect following any termination of this Agreement, i.e., there will be no reversion back to the 1996 Agreement tax sharing rates.
Section 5. Allocation of Incremental Property Tax Revenue. Beginning with the property assessments included in the 2022 Assessment Roll based on property values established as of January 1, 2022, and delivered by the County Assessor to the County Auditor-Controller by July 1, 2022, the County’s Incremental Property Tax Revenue for all Tax Rate Areas identified in Exhibit A, shall be shared evenly between City and County: fifty percent (50%) to City and fifty percent (50%) to County. The County’s Incremental Property Tax Revenue sharing established under this Section 5 is calculated prior to any property tax revenue shift for ERAF. This Section 5 is prospective only and shall begin being applied by the County Auditor-Controller when property tax revenues are distributed during Fiscal Year 2022/2023. An example of the calculation performed by the Auditor-Controller to implement this agreement is attached as Exhibit C.
The provisions of this Section 5 shall survive and remain in effect following any termination of this Agreement, i.e., there will be no reversion back to the 1996 Agreement tax sharing rates.
Section 6. Adjustment of Appropriation Limit. Pursuant to Section 3(b) of Article XIII of the Constitution of the State of California, City shall increase its appropriation limit by the amount of Ad Valorem Property Tax revenue received after the adjustment provided for in Section 4 is completed. County shall decrease its appropriation limit by the amount of Ad Valorem Property Tax revenue that is transferred to City. It is also expected that any special district will decrease its appropriation limit by the amount of Ad Valorem Property Tax revenue it has had transferred to City upon detachment or dissolution.
Section 7. Additional Property Tax Agreement Discussions. County agrees to continue to meet and confer with City to address alternatives models of Ad Valorem Property Tax distribution to lessen the impact of ERAF.
Section 8. Term of This Agreement. The term of this Agreement shall commence as of the Effective Date and continue thereafter until one of the parties terminates this Agreement.
Any party may terminate this Agreement by formal action upon no less than 60 days’ notice and termination shall be effective on the first day of July following service of the notice of termination.
8.3.b
Packet Pg. 318 Attachment: Patterson-Stan County Master Tax Sharing Agreement (CW114591xDCB25) (Master Property Tax Revenue Agreement) {CW112700.6} Page 5 of 12
Section 9. Modification This Agreement constitutes the entire agreement between the Parties hereto. To be effective, any amendment, modification, or revision of this Agreement must be a writing duly authorized and signed by both Parties.
Section 10. Entire Agreement With respect to the subject matter hereof only, this Agreement replaces and supersedes the 1996 Agreement, as well as any and all previous negotiations, proposals, commitments, writings, and understanding of any nature whatsoever between County and City.
Section 11. Notices Any notice or communication required hereunder between the parties must be in writing, and may be given either personally, by electronic mail (“email”) (with original forwarded by regular U.S. Mail), by registered or certified mail (return receipt requested), or by Federal Express or other similar courier promising overnight delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the party to whom it is addressed. If given by email transmission, a notice or communication shall be deemed to have been given and received upon actual receipt of the entire document by the receiving party's email server. Notices transmitted by email after 5:00 p.m. on a normal business day, or on a Saturday, Sunday or holiday, shall be deemed to have been given and received on the next normal business day; if given by registered or certified mail, such notice or communication shall be deemed to have been given and received on the first to occur of (i) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, or (ii) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If given by Federal Express or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered as shown on a receipt issued by the courier. Any party hereto may at any time, by giving ten (10) days written notice to the other party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the parties at their addresses set forth below:
County of Stanislaus City of Patterson
Chief Executive Officer City Manager
County Counsel City Attorney
County of Stanislaus City of Patterson
1010 Tenth Street, Suite 6800 P.O. Box 667
Modesto, CA 95354 Patterson, CA 95363
Section 12. General Provisions
(a) Governing Law. The validity, interpretation and performance of this Agreement shall be controlled by and construed pursuant to the laws of the State of California. (b) Venue. Venue for all legal proceedings shall be in the Superior Court for the County of Stanislaus.
8.3.b
Packet Pg. 319 Attachment: Patterson-Stan County Master Tax Sharing Agreement (CW114591xDCB25) (Master Property Tax Revenue Agreement) {CW112700.6} Page 6 of 12
(c) Severability. This Agreement shall automatically terminate if this Agreement, in its entirety, is determined by a court of competent jurisdiction to be invalid or unenforceable. If any discrete provision of this Agreement shall be determined by such court to be invalid and unenforceable, or if any discrete provision of this Agreement is rendered invalid or unenforceable according to the terms of any federal or state statute, which becomes effective after the Effective Date of this Agreement, the remaining provisions shall continue in full force and effect and shall be construed to give effect to the intent of this Agreement. (d) Waiver. A waiver by any Party of any breach of any term, covenant, or condition herein contained or a waiver of any right or remedy of such Party available hereunder at law or in equity shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition herein contained or of any continued or subsequent right to the same right or remedy. No Party shall be deemed to have made any such waiver unless it is in writing and signed by the Party so waiving.
(e) Captions. The captions of this Agreement are for convenience and reference only and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this Agreement. (f) Mandatory and Permissive. “Shall” and “will” and “agrees” are mandatory. “May” or “can” are permissive.
(g) Successors and Assigns. All representations, covenants and warranties specifically set forth in this Agreement, by or on behalf of or for the benefit of any or all of the Parties hereto, shall be binding upon an inure to the benefit of such Party, its successors, and assigns. The Parties warrant and represent that they have the right and authority to execute this Agreement and that they have not assigned or transferred, or purported to assign or transfer, to any person or entity this Agreement or any portion thereof. The Parties shall not assign or transfer this Agreement without the written consent of the other Party.
(h) Counterparts. This Agreement may be executed simultaneously and in several counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.
(i) Other Documents. The Parties agree that they shall cooperate in good faith to accomplish the objectives of this Agreement and, to that end, agree to execute and deliver such other instruments or documents as may be necessary and convenient to the fulfill the purposes and intentions of this Agreement.
(j) Authority. The signatories to this Agreement warrant and represent that they have the power and authority to enter into this Agreement on behalf of their respective Party, and all formal requirements necessary or required to enter into this Agreement have been fulfilled.
8.3.b
Packet Pg. 320 Attachment: Patterson-Stan County Master Tax Sharing Agreement (CW114591xDCB25) (Master Property Tax Revenue Agreement) {CW112700.6} Page 7 of 12
(k) Document Preparation. This Agreement will not be construed against the Party preparing it, but will be construed as if prepared by all Parties. (l) Advice of Legal Counsel. Each Party acknowledges that it has reviewed this Agreement with its own legal counsel and, based upon the advice of that counsel, freely entered into this Agreement.
(m) No Joint Venture. Neither this Agreement, nor payment, shall constitute or create any form of association, joint venture, partnership, or cooperative activity, of any nature whatever, for any purpose between the City and the County.
[Signatures on following page]
8.3.b
Packet Pg. 321 Attachment: Patterson-Stan County Master Tax Sharing Agreement (CW114591xDCB25) (Master Property Tax Revenue Agreement) {CW112700.6} Page 8 of 12
IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth above.
COUNTY OF STANISLAUS
By: ____________________
Jody L. Hayes
Chief Executive Officer
“County"
CITY OF PATTERSON
By: ____________________
Ken Irwin
City Manager
"City"
APPROVED AS TO FORM:
Thomas E. Boze, County Counsel
By: ____________________
Thomas E. Boze
County Counsel
APPROVED AS TO FORM:
By: ____________________
Nubia Goldstein
Patterson City Attorney
Authorized by Resolution No.2022-0298
Adopted June 14, 2022, by the
Stanislaus County Board of Supervisors
Authorized by Resolution No.
Adopted ,2022, by the
Patterson City Council
8.3.b
Packet Pg. 322 Attachment: Patterson-Stan County Master Tax Sharing Agreement (CW114591xDCB25) (Master Property Tax Revenue Agreement) {CW112700.6} Page 9 of 12
EXHIBIT A
Board of
Annexation Tax Rate Equalization
Annexation Date Area Roll Year
1. North-South Reorganization (Area 1) 03/10/1997 005-026, 005-027 1998/1999
2. North-South Reorganization (Area 2) 03/10/1997 005-040** 1998/1999
3. West Patterson Reorganization 06/05/2003 005-043, 005-045 2004/2005
4. West Patterson Business Park Reorg. 02/08/2005 005-046, 005-047, 2006/2007 005-048, 005-049,
005-050, 005-052
5. Villages of Patterson Reorganization 06/29/2007 005-054, 005-055 2008/2009
6. City Facilities Reorganization 04/27/2010 005-057, 005-058, 2011/2012 005-059
7. Southeast Industrial Reorganization 06/08/2010 005-056 2011/2012
8. Arambel-KDN Business Park Reorg. 01/08/2014 005-051, 005-060, 2015/2016 005-061, 005-062
** Redevelopment Areas as Identified by State Board of Equalization
8.3.b
Packet Pg. 323 Attachment: Patterson-Stan County Master Tax Sharing Agreement (CW114591xDCB25) (Master Property Tax Revenue Agreement) {CW112700.6} Page 10 of 12 PATTERSON Areas Annexed Subsequent to the 1996 Master Property Tax Share Agreement »«• Re 005058 005054 "I Zach*- 1 Kc ^005062 S
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8.3.b
Packet Pg. 324
Attachment: Patterson-Stan County Master Tax Sharing Agreement (CW114591xDCB25) (Master Property {CW112700.6} Page 11 of 12
EXHIBIT B
THERE ARE NO AREAS EXCEPTED FROM THIS AGREEMENT
8.3.b
Packet Pg. 325 Attachment: Patterson-Stan County Master Tax Sharing Agreement (CW114591xDCB25) (Master Property Tax Revenue Agreement) {CW112700.6} Page 12 of 12
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8.3.b
Packet Pg. 326 Attachment: Patterson-Stan County Master Tax Sharing Agreement (CW114591xDCB25) (Master Property Tax Revenue Agreement)