According to a city report, the Santa Clara County Board of Supervisors has agreed to subsidize the costs of the survey mapping and Board of Equalization fees and provide street improvements in order to encourage annexation of the unincorporated county land.

At the Feb. 15 meeting of the Saratoga City Council, residents in the areas proposed for annexation spoke out about being left out of the loop in decisions being made about where they live. Three residents on Rolling Hills Road told the council they had found out about the annexation proposal that morning and were concerned about not being informed about decisions that would affect them. If Saratoga goes forward with annexation, they wanted to know if zoning and planning ordinances they were now under would change. Most of all, they wanted neighbors to be involved in the decision-making process.

But for the council, it was still too early to decide whether the city wants to annex the county land. Community development director John Livingstone told the council that for a $1 million home, the city gets about $350 a year in property taxes. If it were to annex the proposed 124 acres of county land, the city would see an increase of about $15,000 a year in property tax revenue. This amount would not cover the costs of one big landslide on the acquired land, Livingstone said.

"I'd be very cautious about accepting Prospect Road," John Cherbone, public works director, said. "In terms of engineering and in terms of condition, I'd be wary about that. It only takes one landslide before we wish we didn't do it."

Councilwoman Ann Waltonsmith said the county allows homes to be built that do not always match Saratoga's standards. While increased tax revenue was one reason for annexation, Waltonsmith said that by annexing the land in question, the city could control growth there.

Councilman Nick Streit said he would like to negotiate for more money from the county for road improvements before the city even considered annexation.

Mayor Norman Kline, who is currently involved in negotiations with the county over Tax Equity Allocation funding, said the city should delay any decision on annexation of land from the county while TEA negotiations continue. Kline and negotiators from Los Altos Hills, Monte Sereno and Cupertino are trying to get back about $4 million in annual property tax revenue that the four cities turn over to the county. The four cities negotiated an agreement in the 1980s that sent a portion of their property taxes to the county, but the reasons for the agreement have since disappeared. However, the agreement remains in place, meaning that the four cities receive the lowest proportion of their property taxes compared to any other city in state.

If the cities can successfully negotiate with the county for the return of their TEA funding, the city of Saratoga could expect to see an extra $1.2 million to
$1.5 million added to its general fund per year. Kline said that it would be best to wait until after the next TEA funding meeting with the county on Feb. 28 before any decision on annexation of county land is made.

The city council voted unanimously to postpone any annexation decision for 30 days while TEA negotiations continue. Residents in the areas being discussed for annexation were invited to sign up for an email list that will be created to notify them of any new information concerning the annexation proposal.