To: BOARD OF SUPERVISORS
From: Supervisor Williams
Meeting Date: June 24, 2025
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Department Contact: |
Supervisor Williams |
Phone: |
707-937-3500 |
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Item Type: Regular Agenda |
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Time Allocated for Item: 30 Minutes |
Agenda Title:
title
Discussion and Possible Action Including Adoption of a Resolution 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; Authorize Notification of the Signatory Cities and Mendocino LAFCo; and Direction to Staff to Notify Mendocino Local Agency Formation Commission (LAFCO) 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)
(Sponsor: Supervisor Williams)
End
Recommended Action/Motion:
recommendation
Adopt 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; Authorize notification of the signatory cities and Mendocino LAFCo; direct the Executive Office to notify Mendocino Local Agency Formation Commission (LAFCO) 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); and authorize Chair to sign same.
End
Previous Board/Board Committee Actions:
Approval of Master Tax Sharing Agreement by Resolution 24-093 on June 5, 2024.
Summary of Request:
In June 2024, the County of Mendocino entered into a Master Tax Sharing Agreement (MTSA) with its four cities to facilitate annexations through a standardized tax exchange framework. However, the first proposed annexation by the City of Ukiah has highlighted the scale and complexity of implementing the agreement and raises concerns about the County’s fiscal sustainability and ability to fulfill its state and constitutional obligations.
Although the County retains responsibility for countywide services following annexation, the demands of evaluating and processing this annexation are substantial and highlight existing shortfalls in County capacity and systems. If carried out under the MTSA’s current formula, the annexation would result in a significant revenue transfer at a time when the County is facing substantial structural funding gaps.
The projected outcome would materially impair the County’s ability to adequately staff the Sheriff’s Office and fulfill other state-mandated duties, including welfare, public safety, and emergency response functions. Article XI of the California Constitution and relevant statutory provisions require the County to ensure the general welfare and basic governance for its unincorporated areas and all residents.
This recommendation is consistent with Mendocino County Policy #13 (Annexations), which states that annexations will not be favored until a formula is developed to fund the County’s continuing obligations from public revenues generated in annexed areas. The current agreement does not sufficiently ensure such obligations can be met and instead risks impairing core County services.
This action seeks termination of the MTSA to avoid breaching the County’s public duties and ensure that annexations moving forward do not undermine core public safety and service delivery.
Alternative Action/Motion:
Defer action and direct staff to seek mutual termination or amendment of the agreement through negotiations with the cities.
Strategic Plan Priority Designation: An Effective County Government
Supervisorial District: All
Vote Requirement: Majority
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: N/A |
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current f/y cost: Savings |
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budget clarification: N/A |
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annual recurring cost: Huge Savings |
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budgeted in current f/y (if no, please describe): N/A |
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revenue agreement: N/A |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: Yes
CEO Liaison: Executive Office
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Direction Given to Ad Hoc |
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Date: June 24, 2025 |
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