UKIAH, CA., 6/24/25 — After a packed meeting last week in which Ukiah city officials tried to assuage concerns by residents and business owners about the impact of annexation on sales and property tax revenue split between Mendocino County and the city, as well as the county’s viability if that revenue is lost, all seems to be collapsing at once.
Ukiah city officials went through minute detail of its Master Tax-Sharing Agreement with the county at Thursday’s meeting, explaining that annexation would create efficiencies and be a win for those in the annexed areas. But residents and business owners felt the loss of sales and property taxes to the county over the course of 15 years could send the already cash-strapped county into a further downward spiral.
And on Tuesday, the Mendocino County Board of Supervisors is discussing terminating that Master Tax-Sharing Agreement with the city of Ukiah. Termination would also apply to Fort Bragg, Willits, and Point Arena. The board says the loss of revenue from annexation could “create a substantial risk to the provision of mandated public protection services.”
On Monday, Ukiah Deputy City Manager Shannon Riley sent out a press release canceling a previously planned meeting for Wednesday on zoning and land use issues. Riley wrote, “The City is taking this step to ensure that there is adequate time to continue engaging with the community and to further explore potential alternatives to the original proposal. In addition, the City believes that more time is needed to allow for ongoing discussion with public partners to support a thoughtful, coordinated approach to land use planning and annexation.”
The Mendocino Voice will continue to report on this issue as the dust settles.