CITY COUNCIL AGENDA
ITEM NO. 22
Meeting Date: June 22, 2004
Subject/Title: Revised Tax Sharing Agreement with Contra Costa County for
the Proposed Vineyards at Marsh Creek Annexation
Prepared by: Mike Leana, Chief of Planning
Submitted by: Howard Sword, Director of Economic Development
Pass a Resolution approving a tax sharing agreement for the proposed
Vineyards at Marsh Creek Annexation.
At its meeting on April 13, 2004, the City Council initiated annexation
proceedings for property referred to as the Vineyards at Marsh Creek. The
subject annexation is planned for LAFCO action in July, 2004.
Section 99 of the State Revenue and Taxation Code provides that a city and
county shall agree by resolution to share property tax revenues among
themselves and any affected agencies in the event of a jurisdictional
The proposed tax sharing agreement for the Vineyards at Marsh Creek
annexation stipulates that the master tax transfer agreement will apply with
regard to the property tax, subject to the condition that the combined sales
and transient occupancy tax revenue generated in the annexed area is divided
on a 55% (City of Brentwood) to 45% (Contra Costa County) basis.
The County Board of Supervisors action on this same agreement will be taken
at its meeting on June 22, 2004. Action by both bodies is required before
LAFCO may consider the Vineyards at Marsh Creek annexation.
Action by the City Council tonight, following action by the Board of
Supervisors earlier in the day, will enable action on the annexation by
LAFCO in July, and the resultant relocation of PG&E pipelines in the
vicinity of the project site this summer, instead of next summer.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING A TAX
SHARING AGREEMENT FOR THE PROPOSED VINEYARDS AT MARSH CREEK ANNEXATION TO
THE CITY OF BRENTWOOD (LAFC 04-14)
WHEREAS, on April 13, 2004, by Resolution No. 2004-84, the City Council of
the City of Brentwood approved the initiation of an annexation application
for property referred to as the Vineyards at Marsh Creek; and
WHEREAS, Section 99 of the State Revenue and Taxation Code provides that a
city and county shall agree by Resolution to exchange property tax revenues
among themselves and any affected agencies in the event of a jurisdictional
WHEREAS, the City of Brentwood and Contra Costa County have agreed that for
the Vineyards at Marsh Creek Annexation (LAFC 04-14), the Master Property
Tax Transfer Agreement, subject to additional terms and conditions regarding
the exchange of transient occupancy and sales tax revenues as set forth
herein, shall apply; and
WHEREAS, the City of Brentwood and Contra Costa County have agreed that this
annexation is subject to the condition that the total amount of property tax
revenues the City is to receive from the County, in any tax year pursuant to
the provisions of the master agreement from the subject annexation, shall be
reduced by an amount equal to 45% of the sum of the sales tax revenue and
transient occupancy tax revenue received by the City during the preceding
tax year from the area to be annexed. Any such reduction, however, shall not
result in a “negative transfer” (i.e.-a net transfer from City to County).
The total amount of transient occupancy tax and sales tax revenue received
by the City from the territory of the subject annexation during the
preceding tax year, as specified above, shall be reported to the County
Auditor-Controller by August 1 of each year, and the Auditor-Controller
shall have the right to audit the City’s books to verify such amount.
NOW, THEREFORE BE IT RESOLVED that, in accordance with Section 99 of the
State Revenue and Taxation Code, the property tax transfer for the affected
agencies for the area of the Vineyards at Marsh Creek Annexation to the City
of Brentwood (LAFC 04-14) shall be in accordance with the master property
tax agreement subject to the sales and transient occupancy tax offset
condition specified above. Said property tax transfer agreement applies to
the affected territory as submitted or revised by the Local Agency Formation
Commission. This resolution does not change the property tax revenues
accruing to other agencies serving the subject territory or the affected
districts’ rights to collect taxes for existing bonded indebtedness.
PASSED AND APPROVED by the City Council of the City of Brentwood at a
regular meeting on June 22, 2004, by the following vote: