DATE: July 3, 2018
TO: Mayor and City Council
FROM: Director of Utilities & Environmental Services
SUBJECT
Title
Exchange of Property Taxes Related to Adjustment of Water Service Boundaries Between the City of Hayward and East Bay Municipal Utility District
End
RECOMMENDATION
Recommendation
That Council adopts a resolution authorizing the City Manager to execute an agreement with the East Bay Municipal Utility District (EBMUD) regarding the exchange of property taxes related to adjustment of water service boundaries.
End
SUMMARY
On January 26, 2016, the City Council approved a water service area rearrangement with EBMUD to resolve issues related to the provision of water service to properties within both the City of Hayward corporate boundaries and the EBMUD service area. The rearrangement was formalized in a letter agreement. On July 18, 2017, the City Council consented to EBMUD’s filing of a Change of Organization application to the Alameda County Local Agency Formation Commission (LAFCo) to update EBMUD’s service area boundaries. In order to complete the application, it is necessary for the City and EBMUD to execute a property tax revenue exchange agreement so that Alameda County may appropriately allocate property tax revenue to the water service provider. The net impact of the proposed tax exchange agreement is expected to be an increase to the City of about $700 in property tax revenue.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution