To continue the ability of annexing county land into Hollister’s
city limits, the Hollister City Council is considering a new
tax-sharing agreement with San Benito County and would await
approval of the county’s board of supervisors. The council decided
to continue the item to a future date during last week’s
meeting.
To continue the ability of annexing county land into Hollister’s city limits, the Hollister City Council is considering a new tax-sharing agreement with San Benito County and would await approval of the county’s board of supervisors. The council decided to continue the item to a future date during last week’s meeting.
The agreement would allow the city to “provide services and governance to the community” as the city is expected to grow in the upcoming years, according to a staff report. The proposed agreement, which is awaiting approval from both the county and city, would expire on Jan. 1, 2020.
The contract’s purpose is to balance the loss and gains of exchanging land, said Rich Inman, county administrative officer.
“It works to make the city and county equal,” Inman said. “When there is an annexation of land, it makes sure there is not a negative impact on the county.”
Under the contract the county would receive 75 percent of the county’s base tax after land annexation to the city. In addition, if the land is used for residential housing, such as apartment complexes or housing, the city will reward the county $9,500 for each single-family dwelling. For multiple-family units, the price will increase. For duplex the fee is $19,000 and for a triplex the amount totals $28,500.
The additional amount will fluctuate according to the Consumer Price Index, starting at April 2010’s index of 227.697, according to the contract.
The original contract between the city and county expired Dec. 31, 2009.
Since that time there as been no annexation of land and the contract was never needed, Inman said. The new contract took time because of fiscal analysis the city and county did on the original contract.
“The analysis took some time,” Inman said.
The contract is different, as the city will owe more money when land in annexed from the county, Inman said.
“It’s only slightly different,” he said.
The county’s board of supervisors is expected to review the contract in June, Inman said.
Calls to City Manager Clint Quilter were not returned before press time.
