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Adopt three separate resolutions approving and accepting the exchange of property tax revenue between Solano County and the City of Vacaville resulting from the detachment of those territories from Solano Irrigation District identified by their LAFCO application number as: 2023-07 Lower Lagoon Valley; 2025-02 Brighton Landing Kairos School; and 2025-07 Lower Lagoon Valley 2
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The County Administrator recommends that the Board of Supervisors adopt three separate resolutions approving and accepting the exchange of property tax revenue between Solano County and the City of Vacaville resulting from the detachment of those territories from Solano Irrigation District identified by their LAFCO application number as:
• 2023-07 Lower Lagoon Valley;
• 2025-02 Brighton Landing Kairos School; and
• 2025-07 Lower Lagoon Valley 2
SUMMARY:
The Solano Irrigation District (SID) has submitted three detachment requests to the Local Agency Formation Commission (LAFCO) for three separate territories that are within the City of Vacaville boundaries, known by their LAFCO application numbers as: 2023-07 Lower Lagoon Valley, 2025-02 Brighton Landing Kairos School, and 2025-07 Lower Lagoon Valley 2. Each of these project territories were previously annexed into the City but were not detached from SID at that time in order to allow SID to continue to provide services to the territories until such time as the properties were ready to be developed. Pursuant to Revenue and Taxation Code § 99, Solano County and the City must negotiate and approve an exchange of property tax revenue before LAFCO may act on the proposals. County and City staff have completed the required negotiations and agreed to the allocation percentages set forth in the attached resolutions. Approval of the negotiated exchange will allow the LAFCO process to proceed and the properties available for development
FINANCIAL IMPACT:
These negotiated tax sharing arrangements will transfer SID’s respective annual share the 1% property tax in each of the affected areas to the County currently estimated at $1,830.80. The cost of preparing these resolutions is nominal and included in the Department’s FY2025/26 Working Budget.
DISCUSSION:
The Solano Irrigation District (SID) has submitted three detachment requests to the Local Agency Formation Commission (LAFCO) for three separate territories that are within the City of Vacaville boundaries, known by their LAFCO application numbers as: 2023-07 Lower Lagoon Valley, 2025-02 Brighton Landing Kairos School, and 2025-07 Lower Lagoon Valley 2. For the two Lower Lagoon Valley projects, this area was annexed into the City of Vacaville in 1991 while the area known as Brighton Landing was annexed into the City in 1972. Despite these uninhabited lands being annexed to the City, these territories remained in SID’s service area until the City was ready to approve a development project and serve as the water purveyor to the area. Staff has been approached by the City advising that a developer is ready to begin construction in Lower Lagoon and Kairos School would like to begin building a school in the Brighton Landing area. Therefore, detachment from SID’s service area is necessary to eliminate the potential for duplication of two service providers to the proposed areas.
Revenue and Taxation (R&T) Code section 99 requires that before a jurisdictional change such as a city annexation of territory, and corresponding detachment from a special district, can occur, the affected local public agencies must come to an agreement regarding the amount of property tax to be exchanged. This section establishes a process whereby the County Auditor estimates the amount of property tax generated by the property subject to the annexation/detachment and what proportion of that amount of property tax is attributable to each affected jurisdiction, including what amount of the tax revenue is subject to negotiation.
With the detachment from SID, the County and the City must negotiate a redistribution of SID’s share of the 1% property tax within the affected detachment tax rate areas (TRA) which includes the following:
• 2023-07 Lower Lagoon Valley
o TRA 6146: 0.026283
o TRA 6157: 0.027814
• 2025-02 Brighton Landing Kairos School
o TRA 6020 0.024549
• 2025-07 Lower Lagoon Valley 2
o TRA 6146: 0.026283
o TRA 6157 0
County and City staff evaluated the existing allocation percentages within the affected tax rate areas and the appropriate redistribution of SID’s property tax share upon detachment using the previously negotiated methodologies for prior detachments and concluded that SID’s share should be distributed to the County. Adoption of the three resolutions would affect that change and ensure that SID’s share is removed and redistributed as negotiated.
ALTERNATIVES:
The Board could choose not to adopt the resolutions; however, that is not recommended since the County and City have negotiated this tax exchange and failure to adopt the resolutions would delay LAFCO’s ability to process the detachment.
OTHER AGENCY INVOLVEMENT:
County Counsel and the Auditor-Controller were consulted in the preparation of the resolutions and allocation of property taxes.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION