WESTMINSTER : Tax-Sharing Pact to Benefit 2 Schools

The Westminster School District Board has approved a tax-sharing agreement with the city of Garden Grove that will generate at least $4 million for two schools in that city.

On Thursday, the board unanimously approved the agreement, which will funnel a portion of the income generated by a Garden Grove redevelopment project to the schools, said Barbara Winars, assistant superintendent.

The money must be used for capital facilities and deferred maintenance at the two schools, which are in Garden Grove, Winars said. The agreement will remain in effect for the life of the 40-year project and is estimated to generate at least $4 million for the two schools.

In a redevelopment project, a city defines a specific area to be improved and freezes the amount of taxes paid to the state on the property in those areas. As the area is improved, its value increases, which brings in more property tax money to the city. The city then uses that money to continue improving the area, although it must share the added income with other taxing agencies in the area such as school boards.

The agreement will be considered for final adoption by the city of Garden Grove on Tuesday