CA Gov't Code Section 57087.3

The merger of a subsidiary district with a city, of which the city council is also the governing board of that subsidiary district, shall not be subject to Sections 99 and 99.01 of the Revenue and Taxation Code if the city council adopts a resolution that states that the city shall do all of the following:

(a)

Continue providing the services of the subsidiary district at the same level to those areas outside the city’s boundaries, but within the territory of the subsidiary district, as the services provided for territory within the city limits.

(b)

Assume all assets of the subsidiary district.

(c)

Assume all liabilities of the subsidiary district.

(d)

Assume all ad valorem taxes, other accounts receivable, and other revenues of the subsidiary district.