MISSION VIEJO : Council to Vote on Aegean Hills Pact

The long-delayed annexation of Aegean Hills will move closer if the City Council decides tonight to ratify an agreement with the county over how property taxes from the unincorporated community should be divided.

After several months of dispute, the two sides have struck a tentative bargain. The County Board of Supervisors is expected to consider its version of the agreement Tuesday.

If both government agencies put a stamp of approval on the compromise, the Local Agency Formation Commission will consider the annexation request at its Nov. 4 meeting. Known as LAFCO, the county agency oversees incorporations and annexations.

In the past, annexations were generally rubber-stamped by the county. But with the incorporation of five cities in the last five years, officials say, the county lost millions in property tax revenue. Starting with Aegean Hills, a community of about 7,000, the county began taking a harder line on annexation proposals.

The county had asked for about $800,000 in annual property taxes. The tentative agreement would have the county receiving about $572,000 and agreeing to pay Mission Viejo $89,000 during fiscal 1992-93, plus another $106,000 over the next four years, city officials say.

Councilwoman Susan Withrow called the tentative pact “a happy ending for both sides. I’m glad we were able to come to an agreement.”