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Ms. McKeehan indicated that when property is annexed into a community there is a split of the real property taxes generated by the property being annexed. Some of the funds which were going to the County would then be transferred to the City. The City of Pleasanton has maintained that it should receive taxes for the property being annexed at the same rate as property in the rest of the community, so new property does not pay property taxes at a lower rate than other property in the City. Sales taxes are not shared. Ms. Ayala believed most citizens think the City gets all the property tax, which is untrue. Ms. McKeehan further explained that of every dollar in property tax collected, historically the City had received 25 cents, the County received 37 cents and the rest went to a variety of other public agencies. When the State became short of funds and started transferring money for educational purposes (ERAF), it took some of the property taxes in order to balance its own budget. The City's share of the property tax dollar was reduced to 18 cents and the County's share went down more than that. Ms. Ayala indicated the economy improved in the late 1990's and the State then had a surplus. What did the State do with the property taxes then? Ms. McKeehan indicated the State received pressure from cities and counties to return the money that had been taken away. Out of approximately $3 million the City of Pleasanton had lost, it has received only $160,000. It was moved by Mayor Pico, seconded by Ms. Michelotti, to adopt Resolution No. 01-094, approving an application to the Local Agency Formation Commission to undertake proceedings for the proposed Annexation No. 149 (Staples Ranch Phase II); and to adopt Resolution No. 01-095, concerning the exchange of property tax revenue for Annexation No. 149 (Staples Ranch Phase II). The roll call vote was as follows: AYES: Councilmembers - Ayala, Campbell, Dennis, Michelotti, and Mayor Pico NOES: None ABSENT: None ABSTAIN: None Item 6e (4c) Request from the Tri-Valley Business Council for Financial Support (SR 01:204) Deborah McKeehan presented the staff report. Ms. Dennis indicated the Committee she serves on brings together a variety of representatives from agriculture, trail advocates, environmental advocates, equestrians, etc. to discuss the preservation of open space, whether it is for agriculture or publicly owned, to enhance the quality of life of the urban as well as rural residents. She has attended the Tfi- Pleasanton City Council 9 08/21/01 Minutes