REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT
AND RECORD OF ACTIONS
October 20, 2026
FROM
MATTHEW ERICKSON, Chief Management Officer, County Administrative Office
DAN MUNSEY, Fire Chief/Fire Warden, San Bernardino County Fire Protection District
SUBJECT
Title
Property Tax Revenue Sharing Agreement and Property Tax Exchanges for LAFCO 3280 and 3281 Barstow Reorganizations
End
RECOMMENDATION(S)
Recommendation
1. Acting as the governing body of San Bernardino County:
a. Adopt Resolution approving the property tax revenue amounts that would be transferred as a result of the pending jurisdictional change related to Local Agency Formation Commission proposal LAFCO 3280 - Reorganization to Include Annexations to the City of Barstow, Barstow Fire Protection District, and Odessa Water District, and Detachments from the San Bernardino County Fire Protection District, its North Desert Service Zone, and its Zone FP-5, and County Service Area 70 (Area A).
b. Approve the permanent Property Tax Revenue Sharing Agreement between San Bernardino County, San Bernardino County Fire Protection District, City of Barstow, and Barstow Fire Protection District related to property tax revenue sharing for the Barstow International Gateway Project, effective upon completion of LAFCO 3280.
c. Adopt Resolution approving the property tax revenue amounts that would be transferred as a result of the pending jurisdictional change related to Local Agency Formation Commission proposal LAFCO 3281 - Reorganization to Include Annexations to the City of Barstow and Odessa Water District, and Detachment from County Service Area 70 (Area B).
2. Acting as the governing body of the San Bernardino County Fire Protection District, approve the permanent Property Tax Revenue Sharing Agreement between San Bernardino County, San Bernardino County Fire Protection District, City of Barstow, and Barstow Fire Protection District related to property tax revenue sharing for the Barstow International Gateway Project, effective upon completion of LAFCO 3280.
(Presenter: Diana Atkeson, County Chief Financial Officer, 387-4883)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Foster Sustainable Development Through Strategic Partnerships.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Upon completion of LAFCO 3280 and LAFCO 3281 as proposed, the County General Fund will experience an estimated ongoing decrease of $5,254 in property tax revenue. The proposed transfers do not affect County Service Area (CSA) 70 as this entity currently does not receive property tax revenue for the reorganization areas.
For LAFCO 3280, the property tax exchange will transfer $2,699 in current annual property tax revenue from the San Bernardino County Fire Protection District (SBCFPD) to the Barstow Fire Protection District (BFPD) as the annexing fire protection agency. Under the recommended Property Tax Revenue Sharing Agreement, BFPD will transfer to SBCFPD an amount equal to SBCFPD's former fire-service share of property tax revenue from the affected territory, including future increases, following completion of the reorganization. The actual amount transferred to SBCFPD may vary in future years based on the property tax revenue allocated to the applicable successor Tax Rate Areas and the transfer percentages and revenue components established in the Agreement.
The property tax exchanges associated with these actions will only be effective upon satisfactory completion of the respective reorganization proceedings.
The recommended redistribution of annual property tax revenue associated with LAFCO 3280 is as follows:
|
Affected Agency |
Transfer From |
Transfer To |
|
County General Fund |
$4,653 |
|
|
San Bernardino County Fire Administration |
$2,699 |
|
|
City of Barstow |
|
$4,653 |
|
Barstow Fire Protection District |
|
$2,699 |
The recommended redistribution of annual property tax revenue associated with LAFCO 3281 is as follows:
|
Affected Agency |
Transfer From |
Transfer To |
|
County General Fund |
$601 |
|
|
City of Barstow |
|
$601 |
BACKGROUND INFORMATION
LAFCO 3280 and LAFCO 3281 involve two related reorganization areas within the City of Barstow's Sphere of Influence.
LAFCO 3280 (Area A) proposes a reorganization that includes annexations to the City of Barstow, Barstow Fire Protection District, and Odessa Water District, and detachments from the San Bernardino County Fire Protection District, its North Desert Service Zone and its Zone FP-5, and County Service Area (CSA) 70. The overall reorganization area for LAFCO 3280 encompasses approximately 2,702 acres. The area proposed for annexation to the City of Barstow and Odessa Water District and detachment from CSA 70 is approximately 2,686 acres. The area proposed for annexation to the Barstow Fire Protection District and detachment from SBCFPD, its North Desert Service Zone, and its Zone FP-5 is approximately 2,609 acres.
The reorganization area is generally located west of Interstate 15 and south and west of State Route 58, more specifically north and south of Main Street and east and west of Delaney Road, within the City of Barstow's Sphere of Influence. The area includes a portion of the project known as the Barstow International Gateway (BIG). BIG is a state-of-the-art master-planned integrated rail facility to be developed by Burlington Northern and Santa Fe Railway for transloading freight from international containers arriving at the Ports of Los Angeles and Long Beach to domestic containers.
Because BFPD will become the fire protection agency for the affected territory upon completion of the reorganization, the property tax exchange for LAFCO 3280 provides for the transfer of SBCFPD's applicable property tax allocation to BFPD. The Property Tax Revenue Sharing Agreement does not alter BFPD's responsibility for providing fire protection services within the affected territory following completion of the reorganization or otherwise expand SBCFPD's jurisdiction within the detached territory.
In connection with LAFCO 3280, SBCFPD, the City of Barstow, and BFPD submitted a joint Letter of Understanding expressing their intent regarding a revenue arrangement, signed by SBCFPD Fire Chief Dan Munsey and City of Barstow City Manager/BFPD Manager Rochelle Clayton. Prior to issuance of the Certificate of Completion for LAFCO 3280, San Bernardino County, SBCFPD, the City of Barstow, and BFPD will be required to enter into a permanent Property Tax Revenue Sharing Agreement that provides for the transfer of property tax revenue to SBCFPD, a signed copy of which will be provided to the LAFCO Executive Officer. The Agreement, which is recommended for approval in this item, memorializes the parties’ understanding that SBCFPD will continue to receive an amount equal to its former fire-service share of property tax revenue from the affected territory, including future increases, following completion of LAFCO 3280. The revenue-sharing arrangement is separate from the property tax exchange required under Revenue and Taxation Code section 99. Auditor-Controller/Treasurer/Tax Collector (ATC) will calculate and administer the ongoing revenue transfer in accordance with the methodology established in the Agreement and its Exhibit B.
The revenue-sharing arrangement recognizes SBCFPD's continued provision of comprehensive fire, rescue, emergency medical, and specialized incident-response capabilities serving the surrounding area, as well as mutual aid provided within the affected territory.
LAFCO 3281 (Area B) proposes a reorganization that includes annexation to the City of Barstow and Odessa Water District and detachment from CSA 70. The reorganization area encompasses approximately 99 acres and is generally bordered by a combination of Main Street, Castle Court and parcel lines along the boundary of LAFCO 3280 to the north; Delaney Road, an existing City of Barstow boundary, to the east; Gazana Street, an existing City of Barstow boundary, to the south; and Amarylis Street to the west, within the City of Barstow's Sphere of Influence.
On July 14, 2026, LAFCO issued Notices of Filing notifying affected and interested agencies of the proposed reorganizations. The Notices of Filing require the San Bernardino County ATC to estimate the property tax revenue and proportions by agency, which are used to establish the property tax revenue amounts to be transferred. A determination of the property tax revenue exchange associated with each jurisdictional change must occur prior to issuance of the Certificate of Filing by LAFCO. In accordance with section 99 of the California Revenue and Taxation Code, the Board of Supervisors (Board) must, on behalf of any impacted special district, negotiate any exchange of property tax revenues and adopt a resolution related to the property tax exchange.
If either LAFCO proposal is subsequently modified, the applicable exchange of property tax revenues would be reviewed and potentially revised. Any modified proposal requiring an updated property tax exchange would be presented to the Board for adoption of a new resolution superseding the applicable prior resolution. The property tax exchanges associated with these actions will only become effective upon completion of the respective reorganization proceedings by LAFCO.
Approval of the property tax exchange associated with LAFCO 3280, under Revenue and Taxation Code section 99, does not itself change the boundaries of SBCFPD's North Desert Service Zone or Service Zone FP-5, or repeal or modify the FP-5 special tax. As a condition of completing LAFCO 3280, SBCFPD is expected to separately approve the necessary boundary changes to the North Desert Service Zone and Service Zone FP-5 before LAFCO issues the Certificate of Completion. Upon removal of the affected territory from Service Zone FP-5, the FP-5 special tax may no longer be levied, assessed, or collected within that territory pursuant to Health and Safety Code section 13955.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Julie Surber, Principal Assistant County Counsel, and Aaron Gest, Deputy County Counsel, 387-5455) on October 2, 2026; and LAFCO (Samuel Martinez, Executive Officer, 388-0480) on October 2, 2026; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, and Eduardo Mora, Administrative Analyst, 387-4376) on October 2, 2026;