MISSION VIEJO : City May Sue for Aegean Hills Taxes
A long-simmering dispute with the county over revenue from the proposed annexation of the Aegean Hills community appears to be headed for court.
After months of negotiations, the City Council tonight will consider asking the court to divide property tax and other income from the 7,000-resident community.
The city’s latest--and possibly final--offer was rejected last week by the county. City negotiators offered about $439,000 annually in general property taxes, asking to keep about $270,000 for street lighting and park maintenance.
County finance officers turned down Mission Viejo’s proposal, contending that it costs over $800,000 each year to pay for court, jail and social services for Aegean Hills.
At its May 26 meeting, the council asked the legal staff to prepare for a court challenge. Tonight, the council is expected to decide whether to go to court.
Mission Viejo is the first city to encounter the financially strapped county’s new, tougher policy on annexations. After losing millions of dollars in annual income from a spate of incorporations in the past five years, county officials have vowed to take a hard look at any future incorporation or annexations.
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