HomeMy WebLinkAbout5/18/2021 Item 14, Cross
Wilbanks, Megan
From:Brett Cross <
To:E-mail Council Website
Subject:Item #14 AUTHORIZE A TAX EXCHANGE AGREEMENT WITH THE COUNTY
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Dear Council Members,
I think it's well past time for a complete review of the 1996 Tax Sharing Agreement with the County. The issue was
brought up during the 2011 Fiscal Sustainability Task Force meetings and had been discussed prior to that. Apparently
no one wants to take this issue on.
By following this Agreement with the County the Jobs/Housing imbalance is nearly impossible to solve as most of the
property taxes from new annexations go to the County (66% for residential and 100% for commercial) resulting in the City
having to approve commercial projects that provide sales tax or Transient Occupancy Tax revenue to pay for City services
worsening the Jobs/Housing imbalance. Continuing the cycle of having to approve more commercial and to pay for
services that can't be paid for through property taxes as those revenue stream goes to the County either all or 66%.
Now what is happening is Mello-Roos districts are needed to be formed to pay for infrastructure projects, which
depending on housing market conditions can add to the selling price of homes and definitely adds to the cost of home
ownership.
Sincerely,
Brett Cross
San Luis Obispo
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