MENDOCINO CO., 6/25/26 — Mendocino County supervisors on Tuesday set aside a proposal to terminate the agreement that governs how property tax is divided when a city annexes county land, voting instead to keep negotiating with the City of Ukiah over its proposed annexation.
On a 4-1 vote, with Chair Bernie Norvell the lone no, the board tabled a resolution that would have terminated the Master Tax Sharing Agreement, a framework devised in 2024 that covers the county’s four cities: Ukiah, Willits, Fort Bragg and Point Arena. The board did not vote on the termination itself; it postponed the question.
Instead, on a motion by Supervisor John Haschak, the board directed that the county hold a joint meeting with the City of Ukiah, with an independent consultant reviewing the proposed annexation’s fiscal impacts to the county, and bring the matter back to the board. Norvell dissented because he wanted the board to act rather than wait. “The decision to make today is terminating the MTSA, because we have no leverage,” he argued before the vote, adding that terminating would not stop Ukiah from pursuing annexation over the next five years. The majority chose to keep the agreement in place and continue talks.
The agreement set a formula for dividing property tax revenue when a city annexes unincorporated land. Its first test is Ukiah’s proposed annexation, which would expand the city’s footprint. County staff had recommended terminating the agreement, citing the fiscal and operational strain of the annexation; with the resolution tabled, the agreement remains in effect.
Public comment on the annexation ran long and came almost entirely from residents who live in the area Ukiah wants to absorb. They told the board they fear higher city fees and water bills and the loss of the rural life they bought into, and said the process never asked whether they want to join the city.
“Be our voice,” one resident said. “We feel like they don’t care.”
The annexation was not the only place the county’s finances came up. In morning public comment, members of SEIU Local 1021 packed the chambers over the county’s offer of a 1% raise as their contract runs out June 30.
In other business Tuesday, the board:
- Adopted the county’s final budget for fiscal year 2026-27 on a single unanimous vote, as part of the consent calendar and with no discussion. The budget had gone through a public hearing on June 2.
- Recognized employees for 15 to 35 years of service, including Human Resources Director Sherry Johnson for 15 years.
- Accepted the chief executive officer’s report. The CEO said the county met its June 18 deadline to respond to the state auditor’s findings, with those responses returning to the board July 7 along with a set of retroactive contracts for the new fiscal year.
- During supervisors’ reports, Haschak said the Mendocino County Employees’ Retirement Association’s outgoing actuary recommended lowering the assumed rate of return on the pension fund from 6.5% to 6.25%. He warned the change could add roughly $30 million to the county’s unfunded pension liability and about $3 million a year in contributions. The retirement board has not adopted the cut, asking its incoming actuarial firm to review it before a planned August decision.
The question regarding the tax-sharing agreement now returns to a joint meeting between the county and Ukiah, where a consultant is to weigh the annexation’s fiscal impact before the board takes it up again.
Correction: An earlier version of this story incorrectly reported that the Mendocino County Board of Supervisors voted to terminate the Master Tax Sharing Agreement. The board did not terminate the agreement. On a 4-1 vote, it tabled the termination resolution and instead directed a joint meeting with the City of Ukiah and an independent consultant on the proposed annexation. The story above has been corrected.