Fillmore council directs staff to develop Mills Act program; will partner with Ventura County for administration

The Fillmore City Council directed staff to develop and implement a formal Mills Act property-tax abatement program and to work with Ventura County for program administration, after staff presented research on other local jurisdictions and explained administrative requirements.

Staff presented an overview of the Mills Act process and its requirements, saying the program requires a historic designation, a preservation covenant and a contractual 10-year period of maintenance and review. The staff report listed 11 Fillmore properties already designated by the Ventura County Cultural Heritage Board and noted that any non-designated property would need a third-party historic-resource report (typically several thousand dollars) before the county would consider contracting. Staff recommended partnering with Ventura County, which already administers Oxnard’s Mills Act contracts, to avoid building a parallel administrative program.

Planning and finance staff explained that the county uses a three-step valuation approach to estimate tax impacts: a restricted value (income-based), fair-market value as of application date, and the Proposition 13 base value; outcomes vary by property and some owners might receive larger or smaller tax savings. The county bills cities for inspection and administration work; staff said typical county hourly charges would need to be passed through to applicants and the city would also need to recover its overhead. Staff recommended waiting to finalize a city fee schedule until completion of the city’s broader fee study.

Council discussed potential benefits—such as encouraging preservation in downtown commercial areas—and risks—such as reduced flexibility for owners who sign the 10-year contract or higher renovation costs required under strict preservation terms. After discussion, the council voted to direct staff to develop guidelines, amend contracts with Ventura County as needed, craft a fee structure and permit property owners to pursue Mills Act contracts voluntarily. Councilmembers emphasized the program would be optional and that property owners must opt in and proceed with due diligence.

Staff said next steps would include drafting application guidelines, negotiating administrative terms with Ventura County, incorporating Mills Act fees into the upcoming fee study and conducting community outreach for historic-property owners.