The city of Galt and the Cosumnes Community Services District have reached a tentative settlement in the district's lawsuit over the distribution of redevelopment agency funds, according to the city and the district.
The settlement calls for the district, which provides fire protection and emergency medical service for Galt, to charge developers of new homes a fee ranging from $95 to $210 per year per residence for fire protection and emergency medical services over the next 50 years, Community Services District spokesman Steve Capps said.
The district sued the city of Galt in 2007 after the city sought to expand its redevelopment agency boundaries. District officials argued that the redevelopment expansion would cost the Community Services District revenue for fire protection and medical service for Galt.
With the agreement in place, pending the City Council's approval on Tuesday, the city of Galt is expected to collect approximately $238 million over the next 40 years for redevelopment projects in Galt, Capps said.
The Community Services District's fire department is expected to collect an estimated $36 million through the redevelopment process for its projects in Galt over the same time period, Capps said.
"It took some compromise on both sides," Galt Assistant City Manager Jason Berhman said Thursday. "We never wanted to spend a dime (in legal fees) on the fight."
The district's board approved the settlement at a special meeting Wednesday night, Capps said.
Settlement at a glance
- The Cosumnes Community Services District will charge a fee
ranging for newly constructed homes ranging from $95 to $210 per
year per residence for fire protection and emergency medical
services over the next 50 years.
- The city of Galt will pass through current and future fire
development fees directly to the Community Services
- The district will support Galt in its 2030 General Plan update
and will not oppose future development projects that are consistent
with the new General Plan.
- The city and district will support state legislation that would
set forth greater flexibility in state redevelopment law with
regard to tax revenue earmarked for fire service.
Source: Cosumnes Community Services District
"This new management relationship will both strengthen the fire service in Galt and allow for the city to continue its critical efforts to revitalize sections of Galt through the redevelopment process," Mayor Andrew Meredith said in a prepared statement.
"The settlement also begins a collaborative relationship between the city and district by strengthening fire service throughout the district," Keith Grueneberg, president of the Community Services District board of directors, said in a written statement.
"The real winners in this agreement are the people of Galt," Meredith said in a prepared statement. "They will benefit from this new relationship for generations to come."