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HomeMy WebLinkAboutRESOLUTIONS - 07222008 - 08-529 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on (date), by the following vote: ` AYES: Cr-)o IA:-1 (A t LK E NOES: -- ABSENT: p� /�p T�aN t LLA ABSTAIN: Resolution No. 2008/529 Subject: Proposed Incorporation of the ) Town of Alamo ) WHEREAS, on August 27, 2007, Alamo Incorporation Proponents submitted to the Contra Costa Local Agency Formation Commission (LAFCO) a Notice of Intent to Circulate a Petition pursuant to Government Code section 56700.4 proposing to incorporate the Town of Alamo. On November,5, 2007, a petition and an application were submitted to LAFCO proposing the incorporation of the Town of Alamo ("incorporation"). The petition signatures were found to be sufficient; and WHEREAS, California Government Code section 56815 expresses the intent of the State Legislature that any incorporation should result in a similar exchange of both revenue and responsibility for service, delivery between the affected county and the proposed town. The Contra Costa LAFCO adopted policies and standards relating to incorporations and revenue neutrality pursuant to the Government Code. The express intent of the LAFCO policies and of this Agreement is to mitigate potential fiscal losses to the County without making incorporation impossible for local communities ready for self-governance or precluding an adequate fiscal base for new cities/towns; and WHEREAS, under LAFCO policies, LAFCO shall not approve an incorporation unless it finds that revenue currently received by the County which would accrue to the Town is substantially equal to the expenditures currently made by the County for the services which will be assumed by the Town or if it determines that the negative fiscal impacts of the proposed incorporation on the County have been mitigated by tax sharing agreements, lump-sum payments, payments over a fixed period of time, or any other terms and conditions pursuant to LAFCO policies or the County and all the subject agencies agree to the terms of the proposed transfer; and WHEREAS, the County is'currently responsible for providing both municipal and countywide services including, but not limited to, health and welfare services, probation services, operation of the County jail, District Attorney and indigent defense. The tax revenue currently received by the County from within the area proposed for incorporation is used to fund both municipal and countywide services. Incorporation of the Town will relieve the County of the responsibility for providing certain municipal services. However, the County will continue to be responsible for providing countywide services within the boundaries of the Town and all other areas of the incorporated and unincorporated County; and WHEREAS, pursuant to LAFCO policies, the Alamo Incorporation Committee funded and LAFCO caused to be prepared a "preliminary" draft Comprehensive Fiscal Analysis ("CFA") of the Proposed Incorporation of the Town of Alamo to serve as the basis for revenue neutrality negotiations between the County and the Alamo Incorporation Proponents. The "preliminary" draft CFA analyzed the initial study area (Area 1) and one alternative study area (Area 2). LAFCO staff, the incorporation proponents and the County!agree that Area 1 would be the alternative proposed for incorporation and would serve as the basis for the revenue neutrality negotiations; and WHEREAS, based-upon a careful review of the "preliminary" draft CFA, including County records utilized in the preparation of the "preliminary" draft CFA relating to revenue projections for the area included in the incorporation, the present and projected costs of law enforcement, road maintenance and other County services transferred to the Town, and the . costs of services retained by the County, County staff and the Alamo Incorporation Proponents have agreed upon the terms that would mitigate the fiscal impacts of the incorporation on the County. Today's Board action is requesting that the Board consider directing the execution of the Revenue Neutrality Agreement ("Agreement") negotiated by staff; and WHEREAS, this Agreement represents a compromise between the County and the Alamo Incorporation`Proponents and is intended to resolve all fiscal issues between the County and the proposed Town with respect to the incorporation of the Town of Alamo. The County agrees not to challenge LAFCO's approval of the incorporation proposal or to seek to further mitigate the fiscal impact of the Town's incorporation in the form of a larger share of the Town's tax revenue in perpetuity. In the event the CFA upon which this Agreement is modified or revised, the parties agree to amend this Agreement based on the modified or revised CFA; and WHEREAS, it is anticipated that LAFCO will find 1) that the approval and execution of this Agreement by the County, and the lump-sum payments, installment payments, and other terms and conditions set forth herein adequately mitigate the negative fiscal effects of the incorporation:on the County, 2) that but for the conditions contained herein, that LAFCO . would be unable to make the required findings under Government Code section 56815 and approve the incorporation; and (3) that this Agreement is integral to LAFCO's determinations approving the incorporation under the Government Code; and WHEREAS, the transfer of funds and responsibilities set forth in the attached will be used as part of the incorporation process as provided by law. Approval of this Agreement by an affirmative vote of the people casting votes at the incorporation election held in accord with all applicable provisions of California law shall be binding on the Town. The terms of this Agreement shall take effect upon certification of the results of that successful incorporation election without further action by any party; and WHEREAS, the "preliminary" draft CFA finds that for revenue neutrality, the forecasted revenues minus expenditures for FY 2009/10 through FY 2018/19 average an approximate $573,000 annual deficit for the County General Fund and $311,000 annual surplus for the County Road:Fund. Additionally, the draft finds that transition year 'net cost' of providing services to the Town by the County will be a deficit (cost to the County) of approximately $274,000 from the General Fund and a surplus (credit to the County) of approximately $283,000 for Road Fund. The transition period is defined as the period commencing with the effective date on which the Town comes into existence under State Law (anticipated to be either June 30, 2009 or July 1, 2009) and ending on June 30, 2010; and WHEREAS, the.Agreement covers two revenue neutrality areas 1) annual loss of revenue over a 10 year period and 2) transition year costs. The terms of the Agreement call for the Town to make a lump sum payment of $3 million to the County no later than FY 2018/19 from Town General Fund accumulated reserves. The Town waives a transfer from the Road Fund. The County will pay the net credit for costs of services for the General Fund transition year to the Town in FY 2010/11 (approximately $274,000). In the unlikely event that the actual net of revenues/service costs reflects a net cost, the Town will have the option to repay the County over a 5 year,period.,- The County waives reimbursement by the Town for the transition year net cost of providing road and traffic signal maintenance (approximately $283,000), which will be paid by the Road Fund. The County, using Park Funds, will pay the net credit for costs of services (approximately $398,000) for the Park Fund Transition Year to the Town in FY 2010/11. NOW, THEREFORE, BE IT RESOLVED that the Board of Supervisors approves and authorizes the County Administrator to execute the attached Revenue Neutrality Agreement by and between the County of Contra Costa and petitioners for incorporation of the Town of Alamo, and to be binding on the Town of Alamo upon incorporation. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown: ATTESTED: ���-Z�O 6 JOHN CULLEN, Clerk of the Board of Supervisors and County Administrator By Deputy Contact: Lisa Driscoll (335-1023) cc: Lou Ann Texeria, LAFCO Julie Bueren, Public Works Steve Ybarra, Auditor-Controller RESOLUTION NO. 2008/529