In a move that could derail the ambitious annexation plans the city of Ukiah has launched, the Mendocino County Board of Supervisors will consider terminating its tax-sharing agreement with the county’s four cities, including Ukiah, at its next meeting Tuesday “due to significant fiscal concerns and public service obligations.”
On the board’s June 24 agenda is an item described as “discussion and possible action Including adoption of a resolution to terminate BOS Agreement No. 24-085 (Master Tax Sharing Agreement) between the county of Mendocino and the cities of Ukiah, Willits, Fort Bragg, and Point Arena, due to fiscal and operational impacts arising from the first proposed annexation under the Agreement.”
Sponsored by 5th District Supervisor Ted Williams, the agenda item would, if approved, direct county staff to “notify (the) Mendocino Local Agency Formation Commission that the county anticipates the proposed annexation would create a substantial risk to the provision of mandated public protection services, consistent with the framework established by Mendocino County Policy #13 (Annexations).”
According to the resolution, on June 5, 2024, the County of Mendocino adopted Resolution 24-093 and entered into Agreement 24-085, a Master Tax Sharing Agreement (MTSA) with the Cities of Ukiah, Willits, Fort Bragg, and Point Arena to govern the distribution of tax revenues upon annexation of unincorporated territory, (with) the intent of promoting balanced annexations, supporting housing development, and facilitating an orderly, financially viable transition of municipal services while preserving the county’s ability to fulfill its obligations to provide countywide services.”
However, the resolution also notes that “the first annexation proposal by the city of Ukiah has revealed unforeseen implementation burdens, including significant workload, financial strain, and administrative overhead… and the projected loss of property tax revenue under the MTSA’s formula, coupled with the magnitude of work needed to process and evaluate the annexation, threaten the county’s ability to maintain adequate staffing for core public safety services including the (Mendocino County) Sheriff’s Office, which is essential to fulfill the county’s constitutional and statutory obligations to provide for the public welfare.”
Also, the resolution states, “the county believes the purpose of the MTSA—namely, equitable, coordinated service delivery across jurisdictions – is jeopardized by the first annexation’s disproportionate financial impact… and the county desires to formally terminate the MTSA to preserve its fiscal integrity and ensure it can continue to fulfill mandated public service responsibilities.”
The meeting is scheduled to begin at 9 a.m. June 24, and will be held both in-person at the Board Chambers in the county administration building at 501 Low Gap Road, and on Zoom: mendocinocounty.zoom.us/j/85065319342
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