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RESOLUTION NO. 2022-49
A RESOLUTION OF THE CITY OF PATTERSON CITY COUNCIL
APPROVING A MASTER PROPERTY TAX REVENUE AGREEMENT
BETWEEN STANISLAUS COUNTY AND THE CITY OF PATTERSON
WHEREAS, Section 99 of the California Revenue and Taxation authorizes local agencies, such as the City of Patterson (the “City”) and the County of Stanislaus (the “County”), to enter into master property tax sharing agreements to provide adjustments to the allocation of property taxes upon annexation; and
WHEREAS, the purpose of the master property tax revenue agreement is to adjust the allocation of property tax revenue between the City and the County and address the requirements under Revenue and Taxation Code Section 99 and adjustment of the appropriation limits of the affected governmental agencies pursuant to Section 3(b) of Article XIII B of the Constitution of the State of California (the “Agreement”); and
WHEREAS, the City and the County recognize the importance of a standing master property tax revenue sharing agreement to facilitate sound planning for development and the continued provision of services as a result of development, and it is the intent and purpose of the City and the County to accomplish this goal to the greatest extent possible; and WHEREAS, the City and the County previously entered into an agreement, known as the Master Property Tax Sharing Agreement, effective May 7, 1996, for the purpose of adjusting the allocation of property tax revenue pursuant to Section 99 of the Revenue and Taxation Code upon a change of organization (“1996 Agreement”); and
WHEREAS, under the 1996 Agreement, which was entered into by the County and all nine cities of the County, the County agreed to share future increases in real property tax revenue above the base amount with 70% of the tax growth going to the County and 30% to the cities; and WHEREAS, in 2006 the parties entered into Amendment No. 1 of the 1996 Agreement to clarify technical issues and the intent of that agreement; and WHEREAS, the City and the County have worked together to develop a revised approach to property tax sharing, improving locally available revenues; and WHEREAS, the City and the County seek to align the interests of their respective jurisdictions in a way that promotes and financially encourages future economic development and the provision of housing; and
WHEREAS, as provided for in the Agreement, the City and the County intend to ensure the timeliest, most efficient, and most cost-effective delivery of services provided to the public; and {CW114592.1}
WHEREAS, it is the intent of the City and the County to identify and include all annexations which were subject to the 1996 Agreement; to identify any annexations after 1996 that were separately negotiated and include those in this Agreement where applicable; and to identify unincorporated areas which will be specifically excluded from the Agreement; and WHEREAS, the annexation areas identified in Exhibit A of the Agreement comprise only those tax rate areas for which the parties intend to modify the sharing of future annual property tax increment; and
WHEREAS, the annexations and unincorporated areas identified in Exhibit B of the Agreement, comprise those areas which are specifically excluded from the Agreement; and WHEREAS, the City and the County intend by the Agreement, that beginning with the 2022 Assessment Roll, for all tax rate areas identified in Exhibit A of the Agreement, the City and the County will share equally the County’s future annual tax increment, as that term is defined in Section 98 of the Revenue and Taxation Code; and
WHEREAS, the City and the County intend to share equally the annual tax increment, for all future annexations which are not specifically excluded by this Agreement, that occur after the effective date of this Agreement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Patterson hereby approves the Agreement with the County and authorizes the City Manager to execute the Agreement (attached hereto as Exhibit A), subject to any minor edits based on the advice of legal counsel for the County and the City.
PASSED AND ADOPTED AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF PATTERSON ON THE 5TH DAY OF JULY 2022, BY THE FOLLOWING ROLL CALL VOTE:
AYES:
NOES:
EXCUSED:
APPROVED:
Dennis McCord
Mayor of the City of Patterson
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ATTEST:
Aracely Alegre
City Clerk of the City of Patterson
I hereby certify that the foregoing is a full, correct, and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 5 th day of July 2022, and I further
certify that said resolution is in full force and effect and has never been rescinded or modified.
DATE:
_____________________________
City Clerk of the City of Patterson
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EXHIBIT A
Master Tax Sharing Agreement