Rose, Corine Demetreos, Walter Smith, Will Oliver, and Ethan Smith.
Actions pertaining to a Memorandum of Understanding between the City of
Fresno and the County of Fresno (Sphere of Influence):
1. Adopt a finding that the Memorandum of Understanding between
the City of Fresno and the County of Fresno relating to property
tax sharing, sales tax sharing, annexation, and development
within the City’s sphere of influence is exempt from the California
Environmental Quality Act (CEQA) pursuant to the common
sense exemption in that it can be seen with certainty that there is
no possibility the Memorandum of Understanding will have a
significant effect on the environment pursuant to Section
15061(b)(3) of the California Environmental Quality Act
Guidelines; and
2. Approve a Memorandum of Understanding substantially in the form
attached between the City of Fresno and the County of Fresno
relating to property tax sharing, sales tax sharing, annexation,
and development within the City’s sphere of influence.
Council discussion included: expressions of gratitude toward the ad hoc
committee, City staffers, county supervisors, and the mayor's administration;
the need for increased housing construction across income levels;
clarification that the Memorandum of Understanding (MOU) does not
approve any development, including the Southeast Development Area
(SEDA); how the MOU increases revenue for essential City services; the
challenges and complexities of reaching an agreement; discussions of
development standards and fire transition fees; the importance of updating
the tax revenue-sharing agreement to reflect current City needs; the
definition and application of "substantially developed" land; the annexation
of county islands and conditions for initiation; fire district fees; concerns
about the timing and transparency of the meeting notice; compliance with
Brown Act and California Environmental Quality Act (CEQA) regulations;
whether there was a financial emergency or critical reason to approve the
agreement immediately; concerns about the short notice for
Councilmembers and the public to review the document; the impact on
development projects; an explanation of the 10-year property tax payment to
the Fresno County Fire Protection District under the current agreement; the
property tax revenue splits, and a breakdown of tax rate adjustments for new
annexations in specific areas; financial incentives for expediting
development in SEDA; the County’s role in rezoning for high-density
development; the financial feasibility of expanding the city eastward, and
potential public subsidies for developers; and a comparison of the revenue
generated versus potential infrastructure costs.