San Joaquin County and Lathrop finalize new property tax sharing agreement

In a pivotal move for local governance, the San Joaquin County Board of Supervisors approved a series of property tax sharing agreements with the City of Lathrop during their regular meeting on April 22, 2025. This decision marks a significant shift in the financial relationship between the county and the city, aiming to foster economic growth and development in the region.

Assistant County Administrator Brenda Kiley presented the agreements, which include a new tax allocation framework for the North Central Lathrop and Singh areas. The proposed split allocates 60% of property tax revenue to the county and 40% to the city for new developments, while maintaining a 90% county and 10% city split for existing properties. This change is expected to enhance Lathrop's financial independence and support its infrastructure needs as the city continues to grow.

The agreements build on previous arrangements, including a master tax sharing agreement established in 2012, which is set to expire in 2029. The new terms extend the agreement through July 31, 2035, providing a decade of stability for both parties. Kiley emphasized that the proposed tax split is backed by an independent consultant's analysis and aligns with similar agreements made with other cities in the county.

Supervisor Rickman expressed strong support for the new agreements, highlighting the need for fair tax sharing to promote economic development. He noted that the previous agreements were among the least favorable in California, and this new structure would better reflect the realities of urban growth and infrastructure costs.

The board unanimously approved the agreements, signaling a collaborative effort to enhance Lathrop's economic landscape while ensuring that the county's financial interests are also protected. As the city prepares for future developments, this agreement is poised to play a crucial role in shaping its fiscal health and community services.

In addition to the tax agreements, the board also authorized the appointment of retired San Joaquin County Employees Retirement Association Board Secretary Elena Peterson on a part-time basis, further demonstrating the county's commitment to maintaining effective governance and operational continuity.