FROM:
Planning Department
SUBJECT:
Title
Proposed Distribution of Ad Valorem Taxes for LAFCO 3261 for reorganization and annexation of APN 0239-072-02 (Debris Basin for I-15 Logistic Project) to the City of Fontana and Detachment from County Service Area 70. The annexation area generally lies along the north side of Lytle Creek Road, and west of Sierra Avenue.
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RECOMMENDATION:
Recommendation
Adopt Resolution No. 2023-015, accepting the proposed distribution of Ad Valorem taxes as requested by the San Bernardino County auditor controller’s office for LAFCO 3261, which is for the reorganization and annexation to the City of Fontana and detachment from County Service Area 70 for APN 0239-072-02 (Debris Basin for I-15 Logistics project).
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COUNCIL GOALS:
• Concentrate on Inter-governmental relations by working cooperatively with neighboring jurisdictions.
DISCUSSION:
Background:
On June 23, 2020, the City Council approved Annexation No. 16-001 for the annexation of approximately 146.8 acres of land into the City of Fontana city limits for the purpose of construction of an industrial commerce building totaling approximately 1,171,788 square feet. The approved annexation area general lies north of Interstate 15, west of Sierra Avenue, and along the south side of Lytle Creek Road.
Subsequent to the annexation of the 146.8 acres, the applicant (I-15 Logistics LLC) for the industrial commerce center initiated a second annexation (LAFCO 3261) request through the Local Agency Formation Commission (LAFCO) to annex an approximately 5.4-acre (APN: 0239-072-02) parcel into the city limits. The 5.4-acre property is located along the north side of Lytle Creek Road and west of Sierra Avenue as seen on Attachment No. 1. The parcel will include a debris basin that will serve the project.
Property Tax Sharing Agreement:
As part of the annexation process of the approximately 5.4-acre property, the City and County must agree on how the existing Ad Valorem taxes will be redistributed. Pursuant to state law, the City and County have 60 days to negotiate and agree to a transfer of these taxes and indicated its concurrence via an adopted City Council resolution. The County Board of Supervisors adopted a similar resolution on February 28, 2023, regarding the proposed percentage distribution of Ad Valorem taxes applicable to the area contained by the subject annexation proposal. These figures, as compiled by the San Bernardino County Auditor Controller’s office, represent the estimated property tax revenue subject to transfer from the County to the City if the area is annexed. For a LAFCO hearing date to be scheduled, the City Council must adopt a resolution for this purposed property tax transfer on or before March 15, 2023. Without this resolution of acceptance, the application will be terminated from the LAFCO process. The resolution to be adopted is attached for City Council review and consideration.
Upon submittal of the resolution, LAFCO will continue to process the annexation of the approximately 5.4 acres into the City and detachment from County Service Area (CSA) 70 which provide various powers, such as, sewer, water, fire protection, weed abatement, animal control, and many other urban services. The detachment from the CSAs will assist in avoiding a duplication of service.
FISCAL IMPACT:
The existing annual Ad Valorem taxes collected by the County, on behalf of all taxing agencies, from the subject annexation area are $193.00 and will be transferred to the City upon annexation.
MOTION:
Adopt Resolution No. 2023-____, accepting the proposed distribution of Ad Valorem taxes as requested by the San Bernardino County auditor controller’s office for LAFCO 3261 for the reorganization and annexation to the City of Fontana and detachment from County Service Area 70 for APN 0239-072-02 (Debris Basin for I-15 Logistics project).