DISCUSSION
City of San Bernardino
Request for Council Action
Date: December 17, 2025
To: Honorable Mayor and City Council Members
From: Gabriel Elliott, Director of Community Development and Housing Department: Community Development & Housing
Subject: Property Tax Resolution for LAFCO 3275, a 26-acre totally surrounded island generally located northerly of Meyers Road and easterly of Martin Ranch Road, known as the
Spring Trails Specific Plan project.
Recommendation:
It is recommended that the City Council adopt Resolution No. 2025-408 of the Mayor and City Council of the City of San Bernardino, California, determining the amount of property tax revenue to be exchanged between the City of San Bernardino, the County of San Bernardino, San Bernardino County Fire Protection District and its Valley Service Zone and County Service Area 70, for the jurisdictional change described in LAFCO 3275, a 26-acre island generally located southerly of LAFCO 3274, generally northerly of Meyers Road and easterly of Martin Ranch Road (known as the Spring Trials Specific Plan Project).
City Manager's Comments
No recommendation.
Executive Summary
Through dispute resolution spelled out in the Revenue and Taxation Code Section 99, the City of San Bernardion must approve the property tax exchange between the City of San Bernardino, the County of San Bernardino, San Bernardino County Fire Protection District and its Valley Service Zone and County Service Area 70 for LAFCO 3275 before the proposed annexation can move forward.
The assessed value for LAFCO 3275 is $2.38 million. The tax revenue is $23,778.98. Of this amount, the City of San Bernardino receives $0.00, the San Bernardino County Fire Department receives 17.82% (LAFCO 3275 Exhibit A). The remainder of the disbursement is included in Exhibit A.
On November 6, 2024, the City of San Bernardino adopted City Council Resolution 2024-220 making an application to LAFCO for the annexation of the Spring Trails Specific Plan project to the City of San Bernardino and detachment from County Service Area 70. By adoption of Resolution No. 2025-338 on July 16, 2025, the City Council adopted a tax sharing agreement for LAFCO 3274, known as the Spring Trails Specific Plan Project. LAFCO 3275 is the 26-acre island located southerly of LAFCO 3274.
Background
The Spring Hills Specific Plan Project, approved in March 2013, requires annexation into the City limits. Subsequent to the approval, an application was submitted to the County of San Bernardino’s Local Agency Formation Commission (LAFCO) for the annexation. In order for the Spring Trails Specific Plan Project to be annexed into the City of San Bernardino, LAFCO requires the City to initiate the annexation of both the Spring Trails Specific Plan and the 26-acre totally surrounded island area.
At that time, LAFCO conducted an election of property owners for the 26 acres of totally surrounded island area, and the election failed to pass. However, the project proponent's legal counsel sent a letter to the City requesting to follow through on the annexation. This report outlines the history and includes the proposed action for adopting resolutions to initiate the actions and transmit the resolutions to LAFCO.
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 5, Location Map (Exhibit A-1).
The request is for the City to initiate the annexations for the Spring Trails Specific Plan Project (Exhibits A and A-1) and the 26 acres of properties located between the Specific Plan boundary and the City limits (Exhibits C and C-1). This process is routinely done for projects within a city’s sphere of influence. This area between the City boundary line and the project would be a county area, which, if the Specific Plan were to be annexed, would create a County “unincorporated island” within the City’s boundary. The Local Agency Formation Commission (LAFCO) does not support these County islands within cities, primarily from a services provision standpoint.
The Spring Hills Specific Plan Project, approved in March 2013, requires annexation into the City limits. Subsequent to the approval, an application was submitted to the County of San Bernardino’s Local Agency Formation Commission (LAFCO) for the annexation. In order for the Spring Trails Specific Plan Project to be annexed into the City of San Bernardino, LAFCO requires the City to initiate the annexation of both the Spring Trails Specific Plan and the 26-acre totally surrounded island area.
At that time, LAFCO conducted an election of property owners for the 26 acres of totally surrounded island area, and the election failed to pass. However, the project proponent's legal counsel sent a letter to the City requesting to follow through on the annexation. This report outlines the history and includes the proposed action for adopting resolutions to initiate the actions and transmit the resolutions to LAFCO.
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).
The request is for the City to initiate the annexations for the Spring Trails Specific Plan Project (Exhibits A and A-1) and the 26 acres of properties located between the Specific Plan boundary and the City limits (Exhibits C and C-1). This process is routinely done for projects within a city’s sphere of influence. This area between the City boundary line and the project would be a county area, which, if the Specific Plan were to be annexed, would create a County “unincorporated island” within the City’s boundary. The Local Agency Formation Commission (LAFCO) does not support these County islands within cities, primarily from a services provision standpoint.
Discussion
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.
The City initiated the annexations for the Spring Trails Specific Plan Project and the 26 acres of properties located between the Specific Plan boundary and the City limits.
This process is routinely done for projects within a city’s sphere of influence. This area between the City boundary line and the project would be a county area, which, if the Specific Plan were to be annexed, would create a County “unincorporated island” within the City’s boundary. The Local Agency Formation Commission (LAFCO) does not support these County islands within cities, primarily from a services provision standpoint.
As stipulated by LAFCO, the city of San Bernardino must approve the property tax exchange agreement before the proposed annexation can move forward. A condition was placed on the annexation process by LAFCO, which requires them (LAFCO) to proceed with the annexation.
As part of the proposed annexation, LAFCO imposed Condition of Approval No. 4, which states the following:
The City of San Bernardino shall be required to initiate annexation of the totally surrounded island within one year of the Commission’s approval of LAFCO 3188A (a copy of which is attached as Exhibit B). A resolution by the City Council of the City of San Bernardino shall be submitted to the Executive Officer of LAFCO outlining the City’s commitment to fulfilling this requirement prior to the issuance of the Certificate of Completion for LAFCO 3188A. A status report shall be provided to the Commission at the six-month date outlining the progress of the City of San Bernardino in fulfilling its obligation. Failure on the part of the City of San Bernardino to fulfill its commitment to annex the totally surrounded island shall require that the next annexation proposed to the City of San Bernardino, either by the City through resolution or by the property owner/registered voter petition to include a condition requiring the initiation of the annexation of the totally surrounded island. Said condition of approval shall be deemed completed upon the issuance of the Certificate of Filing for said island.
At the City Council meeting of July 16, 2025, the Mayor and City Council adopted Resolution 2025-338 allowing for LADCO 3274 to move forward. Adopting a resolution for LAFCO 3275 will allow the annexation to move forward.
As part of the proposed annexation, LAFCO imposed Condition of Approval No. 4, which states the following:
The City of San Bernardino shall be required to initiate annexation of the totally surrounded island within one year of the Commission’s approval of LAFCO 3188A (a copy of which is attached as Exhibit B). A resolution by the City Council of the City of San Bernardino shall be submitted to the Executive Officer of LAFCO outlining the City’s commitment to fulfilling this requirement prior to the issuance of the Certificate of Completion for LAFCO 3188A. A status report shall be provided to the Commission at the six-month date outlining the progress of the City of San Bernardino in fulfilling its obligation. Failure on the part of the City of San Bernardino to fulfill its commitment to annex the totally surrounded island shall require that the next annexation proposed to the City of San Bernardino, either by the City through resolution or by the property owner/registered voter petition to include a condition requiring the initiation of the annexation of the totally surrounded island. Said condition of approval shall be deemed completed upon the issuance of the Certificate of Filing for said island.
At the City Council meeting of July 16, 2025, the Mayor and City Council adopted Resolution 2025-338 allowing for LADCO 3274 to move forward. Adopting a resolution for LAFCO 3275 will allow the annexation to move forward. 2021-2025 Strategic Targets and Goals
The proposed Annexation is consistent with Key Target No. 1: Improved Operational & Financial Capacity - Continue to seek opportunities to secure long-term revenue sources. 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: Economic Growth & Development - 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. However, the attached Plans for Service and Fiscal Impacts identify the benefits of the proposed annexed areas in terms of surplus to the City’s General Fund. The Plans for Service also identify recurring General Plan costs based on the 2022-2023 City Budget.
Conclusion
It is recommended that the City Council adopt Resolution No. 2025-408 of the Mayor and City Council of the City of San Bernardino, California, determining the amount of property tax revenue to be exchanged between the City of San Bernardino, the County of San Bernardino, San Bernardino County Fire Protection District and its Valley Service Zone and County Service Area 70, for the jurisdictional change described in LAFCO 3275, a 26-acre island generally located southerly of LAFCO 3274, generally northerly of Meyers Road and easterly of Martin Ranch Road (known as the Spring Trials Specific Plan Project).
Attachments
Attachment 1 – Resolution No. 2025-408
Attachment 2 – Resolution No. 2025-408, Exhibit A
Attachment 3 – Resolution No. 2025-408, Exhibit A-1
Attachment 4 – Resolution No. 2025-408, Exhibit B
1. Attachment 5 - Location Map
Attachment 5 – Spring Trails Plan for Service
Attachment 6 – LAFCO Exhibit A
Attachment 7 – LAFCO Memo on Property Tax
Attachment 8 – Resolution No. 2025-338
Ward:
Fifth Ward
Synopsis of Previous Council Actions:
March 2013 - The City of San Bernardino approved the Spring Trails Specific Plan (SP 10-01), which included a variety of underlying entitlements, the adoption of Resolution No. 2013-34 that certified the Final Environmental Impact Report, the adoption of a Mitigation Monitoring and Reporting Plan, and the adoption of a General Plan Amendment (GPA 02-09) (including the pre-annexation of the Specific Plan area); approval of Tentative Tract Map No. 15576; and approval of a Development Agreement.
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 on the matter, the City Council tabled the item to an unspecified date.
March 18, 2020 - The Mayor and City Council discussed this item in a Closed Session meeting based on a threat of litigation. Based on City Council direction, this item would be scheduled for an upcoming City Council meeting for consideration.
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. Subsequent to discussion on the matter, the City Council tabled the item a second time to an unspecified date.
July 16, 2025 – The Mayor and City Council approved Resolution No. 2025-338, determining the amount of property tax revenue to be exchanges between the City of San Bernardino, the County of San Bernardino, the San Bernardino County Fire Protection District and its Valley Service Zone, and County Service Area 70, for the jurisdictional exchange described in LAFCO 3274. generally northerly of Meyers Road, and easterly of Martin Ranch Road (known as the Spring Trails Project).
CC : Eric Levitt, City Manager