TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Andrew M. Mize, Legislative & Policy Analyst
SUBJECT: Resolution Accepting the Exchange of Property Tax Revenues for Paoli-Watson and Hess-Laird Affected Territories
RECOMMENDATION
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Adopt the following two resolutions pursuant to California Revenue and Tax Code, Sec. 99, subdivision (b)(6) for presentation to the Local Agency Formation Commission of Napa County in connection with proposed annexations: (1) a resolution regarding adjustments in the allocation of property taxes associated with the proposed annexation of the Paoli-Waston Lane Affected Territory to the City of American Canyon; and (2) a resolution regarding adjustments in the allocation of property taxes associated with the proposed annexation of the Hess-Laird Affected Territories to the City of American Canyon and the American Canyon Fire Protection District. (No Fiscal Impact; Discretionary.)
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BACKGROUND
On May 5, 2026, this Board approved Agreement No. 260378B related to the proposed annexation by the City of American Canyon of the Paoli Loop-Watson Lane Affected Territory and Agreement No. 260379B related to the proposed annexation by the City of American Canyon and the American Canyon Fire Protection District of the Hess-Laird Affected Territories. The two territories are located east of the Napa-Vallejo Highway, south of Eagle Vines Golf Club, totaling approximately 364 acres.
California law provides that a local agency formation commission executive officer “shall not issue a certificate of filing pursuant to Section 56658 of the Government Code until the local agencies included in the property tax revenue exchange negotiation, within the negotiation period, present resolutions adopted by each such county and city whereby each county and city agrees to accept the exchange of property tax revenues.” (CA Rev. and Tax Code § 99(b)(6).)
Resolutions for adoption outlining the tax revenue exchange agreements for both the Paoli Loop-Watson Lane Affected Territory and Hess-Laird Affected Territory are attached pursuant to the requirement in California Revenue and Tax Code Sec. 99, subdivision (b)(6) for their presentation to the Local Agency Formation Commission of Napa County.
FISCAL IMPACT
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of the resolutions is required for the Napa County Local Agency Formation Commission to consider the annexation applications for the Paoli Loop-Watson Lane and Hess-Laird Affected Territories. |
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Future fiscal impact: |
There will be a fiscal impact upon annexation caused by the loss of part of the County’s current property tax revenue allocation for the affected parcels, offset to an uncertain degree by reduced costs associated with the City of American Canyon assuming a portion of Napa County’s Regional Housing Needs Allocation obligations pursuant to the related Urban Limit Line and Regional Housing Needs Allocation Agreement between the City of American Canyon and Napa County. |
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Consequences if not approved: |
The Napa Local Agency Formation Commission will not have the documentation legally required to consider the annexation applications. |
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Additional Information |
Strategic Initiative: Build Healthy, Connected Communities. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.