DISCUSSION
City of San Bernardino
Request for Council Action
Date: July 16, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager;
Gabriel Elliott, Director of Community Development & Housing Department: Community Development & Housing
Subject: Property Tax Transfer Resolution for LAFCO 3274 – Reorganization to Include Annexation to the City of San Bernardino and Detachment from the County Service
Area 70 (Spring Trails Specific Plan Project) (Ward 5)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California Adopt:
1. Resolution No. 2025-338 of the Mayor and City Council of the City of San Bernardino, California, transferring property taxes in conjunction with the Reorganization and Annexation to the City of San Bernardino and Detachment from County Service Area 70, property known as the Spring Trails Specific Plan project, generally located northerly of Meyers Road and Easterly of Martin Ranch Road; and
2. Direct the City Manager to transmit the Resolution to the Director of the Local Agency Formation Commission.
Executive Summary
Per the State of California Revenue and Taxation Code Section 99, the City of San Bernardino and the County of San Bernardino must adopt property tax transfer resolutions when property is being annexed from one jurisdiction and detached from another. In this case, LAFCO 3274 would annex the Spring Trails Specific Plan into the City of San Bernardino and detach from County Service Area 70. Without these approved resolutions by both agencies, LAFCO cannot consider the annexation and a certificate of filing cannot be issued. The processing of the tax transfer for LAFCO 3275 will be placed on hold pending consideration of LAFCO 3274 by the Commission.
Background
On November 6, 2024, the Mayor and City Council approved Resolution 2024 – 220, making application to the Local Agency Formation Commission for San Bernardino County (LAFCO) for Reorganization to include Annexation to the City of San Bernardino and Detachment from County Service Area 70, the Spring Trails Project Specific Plan, generally located northerly of Meyers Road and easterly of Martin Ranch Road.
The Spring Trails Project Specific Plan, approved in March 2013, is located in the northwestern part of the City in the Verdemont area, outside the city limits but inside the city’s Sphere of influence. The Specific Plan proposes the development of 199 acres, allowing the creation of 215 residential lots. Due to site constraints, the original project was amended, reducing the project's scope by 43 acres and 92 residential lots. See Attachment 3, Location Map (Exhibit A-1).
Discussion
As indicated in the Executive Summary, the City’s action of November 6, 2024, approving City Council Resolutions 2024-220 and 2024-221, making application to the County’s LAFCO, triggers a Property Tax Exchange Resolution for LAFCO 3274 and LAFCO 3275. However, the processing of LAFCO 3275’s Property Tax Exchange will be placed on hold pending consideration of LAFCO 3274 by the Commission.
For LAFCO 3274, the County of San Bernardino determined the assessed value of the project at $2.6M with an anticipated tax revenue of $26,000. Based on prior agreements, there is $0 (zero) being transferred to the City of San Bernardino. Please see Exhibit C1 below.
EXHIBIT C1
2021-2025 Strategic Targets and Goals
The proposed Annexation is consistent with Key Target No. 1: Secure a Long-Term Revenue Source. Specifically, the area considered for annexation is within the City’s sphere of influence and has been anticipated for development as identified in the City’s General Plan. Future in-fill development, such as that proposed as a part of the Spring Trails project, will be a catalyst to encourage new development in the city that will generate additional revenue. Key Target No. 4b: Update the General Plan and Development Code as it ensures this property meets the General Plan uses and will be included in a future City annexation of this unincorporated area.
Fiscal Impact
The adoption of the Resolutions committing to the annexation does not require the expenditure of General Fund revenues at this time.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California Adopt:
1. Resolution No. 2025-338 of the Mayor and City Council of the City of San Bernardino, California, for property tax transfer in conjunction with the Reorganization to include Annexation to the City of San Bernardino and Detachment from County Service Area 70, generally northerly of Meyers Road and Easterly of Martin Ranch Road (known as the Spring Trails Specific Plan project);and
2. Direct the City Manager to transmit the Resolutions to the Director of the Local Agency Formation Commission.
Attachments
Attachment 1 Resolution No. 2025 -338 Property Tax Exchange Resolution for LADCO 3274 (Spring Trails Specific Plan Project)
Attachment 2 Exhibit A
Attachment 3 Exhibit B
Attachment 4 Exhibit C
Attachment 5 Resolution No. 2024-220
Attachment 6 Resolution No. 2024-221
Ward:
Fifth Ward
Synopsis of Previous Council Actions:
1. November 6, 2024 – The Mayor and City Council adopted Resolution 2024-220and 2024-221, making application to LAFCO for Annexation 3274 and 3275.
2. May 6, 2020 – The Mayor and City Council considered the annexation of the remaining unincorporated island of the land abutting the Spring Trails Specific Plan Project Area (the 26-acres totally surrounded island). Subsequent to the discussion of the matter, the City Council tabled the item a second time to an unspecified date.
3. March 18, 2020 – The Mayor and City Council discussed this item in a closed session based on a threat of litigation. Based on City Council direction, the item was rescheduled for an upcoming City Council meeting for consideration.
4. January 15, 2020 – The Mayor and City Council considered the annexation of the remaining unincorporated island abutting the Spring Trails Specific Plan Project area. Subsequent to discussion of the matter, the City Council tabled the item to an unspecified date.