The Cupertino Courier

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Pocket change: Cupertino takes on annexation

By HUGH BIGGAR

Cupertino will consider absorbing unincorporated pockets of land this fall, thanks to possible financial incentives from Santa Clara County.

If approved by the California Legislature this month, Santa Clara County would shift more property tax revenue to Cupertino. In exchange, Cupertino has committed to pursue annexation of islands of county land surrounded by the city.

There are roughly 17 acres of such pockets under the authority of Santa Clara County. The largest pocket, though, the Creston community of about 150 homes along Foothill Boulevard, is not one of them.

"As long as I have been here, Creston has not wanted to be a part of Cupertino," said Dave Knapp, Cupertino's city manager.

Instead, Creston residents have a Los Altos address and would prefer to remain attached to that community even if unincorporated, Knapp said.

The remaining pockets, including 6 acres along Upland Way and 7 acres near Regnart Canyon Drive, have been notified by letter of the possibility of annexation.

There are pros and cons to becoming a part of Cupertino.

"For those who want to be left alone, being a part of the county may be the better thing," Knapp said, adding county inspectors are less likely to come by. "But if you want to develop, you have to annex to get the permits."

Annexation would also provide access to Cupertino's municipal services such as garbage collection. Residents of annexed land, though, would have to pay a $12 property assessment tax and a utility tax. They would also be subject to Cupertino's building rules and codes.

The city could gain up to $3 million in recovered property tax revenues if the state legislature approves a process known as tax equity allocation.

Cupertino, Los Altos Hills, Monte Sereno and Saratoga all receive among the lowest in property tax revenue in California, just 4 percent, rather than a standard 7 percent.

Cupertino has already aggressively pursued annexation in recent years, adding such communities as Garden Gate, Monta Vista and Rancho Rinconada.

The 17 acres scattered throughout the city could be next. Cupertino's city council is scheduled to hear the issue Sept. 5.