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File #: ID 25-987    Version: 1 Name:
Type: Action Item Status: Agenda Ready
File created: 7/7/2025 In control: City Council
On agenda: 7/17/2025 Final action:
Title: Approve a Property Tax Allocation Agreement between the City of Fresno and the Fresno County Fire Protection District
Sponsors: Office of Mayor & City Manager
Attachments: 1. 25-987 Property Tax Allocation Agreement
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REPORT TO THE CITY COUNCIL


FROM: GEORGEANNE A. WHITE, City Manager
Office of Mayor and City Manager

RUTH F. QUINTO, CPA, Assistant City Manager
Office of Mayor and City Manager

SUBJECT
Title
Approve a Property Tax Allocation Agreement between the City of Fresno and the Fresno County Fire Protection District

Body
RECOMMENDATION

Staff recommend that the Fresno City Council approve a Property Tax Allocation Agreement between the City of Fresno and the Fresno County Fire Protection District.

EXECUTIVE SUMMARY

As a condition of annexation, the Fresno Local Agency Formation Commission ("LAFCo") requires a Property Tax Allocation Agreement ("Allocation Agreement") between a city and the Fresno County Fire District ("District"). The current Allocation Agreement between the City of Fresno ("City") and the District expires on August 19, 2025. A renegotiated or extended Allocation Agreement is required as a condition of the Memorandum of Understanding between the City and the County of Fresno relating to property tax sharing, sales tax sharing, annexation, and development within the City's sphere of influence ("Tax Sharing MOU"). The most recent Tax Sharing MOU was approved by the City Council on December 13, 2024.

BACKGROUND

[The Local Agency Formation Commission (LAFCo) has taken the position that they will approve annexations only when there is an Allocation Agreement, often referred to as a "Transition Agreement", in place between a city and the Fresno County Fire District. As a result, the City has had an active Allocation Agreement since 2003. The current Allocation Agreement between the City of Fresno ("City") and the District expires on August 19, 2025.

A renegotiated or extended Allocation Agreement is required as a condition of the Memorandum of Understanding between the City and the County of Fresno relating to property tax sharing, sales tax sharing, annexation, and development within the City's sphere of influence ("Tax Sharing MOU"...

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