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Los Altos council agrees to property-tax exchange as part of County Fire annexation effort
Summary
The council unanimously approved a resolution agreeing to a negotiated property-tax exchange with the Santa Clara County Central Fire Protection District to facilitate a planned annexation; staff said the formula would equate to approximately $9.6 million in the current year and will protect ERAF and VLF allocations. LAFCO review is expected June 3.
Los Altos City Council unanimously approved a resolution on April 14 agreeing to a negotiated property-tax exchange with the Santa Clara County Central Fire Protection District as part of a planned annexation of the city's fire services.
Assistant City Manager Mr. Maginot told the council that staff submitted a LAFCO application on April 2 and had negotiated a multi-component property-tax exchange formula that, if applied to the current year, would amount to approximately $9.6 million. He said the agreement protects the city's ERAF (Educational Revenue Augmentation Fund) and VLF (Vehicle License Fee) allocations and will serve as the base for future years, though those allocations can be more volatile than standard Prop 13 property-tax allocations.
Maginot said staff was continuing to negotiate the transfer of the two city-owned fire stations and expected to return in two weeks with an agreement for the council’s approval; a LAFCO hearing is anticipated on June 3. The council voted unanimously to adopt the resolution and found the action categorically exempt from CEQA.
The action advances the procedural steps required for annexation and service transition; staff said further implementation details, including station transfer agreements and transition logistics, will be presented for council approval in subsequent meetings.
