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Home My WebLink AboutMINUTES - 11152011 - C.60RECOMMENDATION(S): ACCEPT report on Crockett Co-Generation Plant Property Tax 'Return to Source' Funds. FISCAL IMPACT: No specific fiscal impact from this recommended change in policy. BACKGROUND: On November 7, 2011 the Finance Committee met and approved the following report. At the September 13, 2011 meeting of the Board of Supervisors, a referral was made to the Finance Committee to revisit the report of Board-Administered Special Revenues. Due to staffing constraints, rather than reviewing the report of Special Revenue Funds Administered by Board of Supervisors Members as one document, the Committee will review one ‘Fund’ per meeting in order of need. The Committee was asked to look at the CCFutures Fund and Transient Occupancy Taxes as soon as possible. The Finance Committee met on September 29 and discussed Transient Occupancy Taxes and County policy regarding allocating General Purpose revenue. Subsequently, on October APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 11/15/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor ABSENT:Mary N. Piepho, District III Supervisor Contact: Lisa Driscoll, County Finance Director (925) 335-1023 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: November 15, 2011 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.60 To:Board of Supervisors From:Finance Committee Date:November 15, 2011 Contra Costa County Subject:Finance Committee Report - Crockett Co-Generation Plant Property Tax 'Return to Source' 25, the Board of Supervisors adopted the Committee’s recommendation, consistent with County policy, that all general purpose revenue be deposited directly into Department 0005-General Purpose revenue. This report focuses on Crockett Co-Generation Plant Property Tax ‘Return to Source’ Funds and how those funds are allocated and administered. A recommended allocation of $244,325 from the Crockett Community Foundation is currently pending Board of Supervisors review and approval. The current request is to allocate: BACKGROUND: (CONT'D) $21,500 for the Crockett Library to continue to provide six additional hours of operation and special library programs; $54,268 for the Crockett Recreation Department for capital improvements and maintenance at the Crockett Community Center, swimming pool, and park facility; $77,894 for the Crockett Carquinez Fire Department for capital equipment and facility projects; and $90,663 for the Crockett Sanitary Department for capital improvements in wastewater collection and treatment. Annually, the Community Benefits Program is allocated monies based on property tax assessments from the Crockett Co-Generation Plant. The County’s obligation to the Crockett Community under the October 1993 contract was a contribution of $200,000, subject to discounts resulting from State tax shifts, and up to an additional $250,000 annually for police services. These obligations were based upon a pre-ERAF County property tax allocation rate and a project that was estimated at more than twice its enrolled assessed value. It does not appear that the County had a contractual obligation to divert tax increment to the Crockett community. Irrespective of the actual project value being half of the original estimate, if the County were to have discounted the $200,000 obligation in the contract in accordance with the ERAF shift, then the County’s contractual obligation to the Crockett Community Foundation was about $110,000 (21.5% of the County’s 25.4% share of increment) annually plus up to $250,000 for police services, creating a range of $110,000 -- $360,000. Any amounts granted above that amount can be considered a Board earmark. HISTORY OF CROCKETT RODEO RETURN TO SOURCE FUNDING November 3, 1992 - By Resolution No. 92/757, Board declares intent to annually dedicate during the project’s operation $200,000 of project property tax increment for general community uses, and additionally up to $250,000 of new property tax increment to enhance police services in the Crockett community. October 19, 1993 - Board approved and authorized CAO to execute an agreement with Crockett Cogeneration, LP, committing the County to annually dedicate during the project’s operation $200,000 of project property tax increment for general community uses, and additionally up to $250,000 of new property tax increment to enhance police services in the Crockett community. These amounts would be discounted by any tax losses due to state budget actions. [Though the rates don’t appear in any Board documents prior to 12/12/95, the $200,000 contribution is based on a rate of 21.5% of the County share (which was estimated at 46.5%) of the estimated $2,000,000 property tax increment.] October 17, 1995 - Board approved a revised revenue sharing formula that doubled the allocation of County General Fund property tax increment from the Crockett Cogeneration project to the Crockett community from 21.5% to 43%. This was done because the Finance Committee determined that actual revenues to be allocated to the Crockett community would be less than half originally estimated because (1) ERAF reduced the County’s share of property tax from 46.5% to 25.4% and (2) the $200 million project AV estimate for Crocket Cogeneration Plant would be closer to $105 million. December 12, 1995 - Board approved a revised revenue sharing formula increasing the allocation of County General Fund property tax increment from the Crockett Cogeneration project to the Crockett community for enhanced police services from 26.9% to 57%, with the balance of 43% going for community projects (equivalent to 100% of the County General Fund revenue). The following is a table tracking the Crockett Co-General Plant taxes and distribution since inception. Crockett Co-Generation Assessed Prop Tax Co Share (TRA)Crockett Share Sheriff P-Dist Roll Value 1%25.4%*43%57% 1995 108,787,000 1,087,866 276,318 118,818 157,500 1996 216,497,000 2,164,972 549,903 236,458 313,445 1997 234,816,000 2,348,157 596,432 256,466 339,966 1998 219,186,000 2,191,862 556,733 239,395 317,338 1999 203,617,000 2,036,169 517,187 222,390 294,797 2000 223,393,000 2,233,933 567,419 243,990 323,429 2001 227,240,000 2,272,402 577,190 248,192 328,998 2002 218,856,000 2,188,559 555,894 239,034 316,860 2003 182,230,000 1,822,299 462,864 199,032 263,832 2004 190,000,000 1,900,000 482,600 207,518 275,082 2005 200,000,000 2,000,000 508,000 218,440 289,560 2006 194,000,000 1,940,000 492,760 211,887 280,873 2007 169,000,000 1,690,000 429,260 184,582 244,678 2008 176,000,000 1,760,000 447,040 192,227 254,813 2009 180,792,195 1,807,922 459,212 197,461 261,751 2010 162,552,063 1,625,521 412,882 177,539 235,343 2011 223,700,000 2,237,000 568,198 244,325 323,873 Crockett Co-Generation Plant Property Tax Funds The purpose of this report is not to support nor debate the needs of the Crockett community but rather to focus on the source of allocation to the project. The Board of Supervisors may, of course, allocate general purpose revenues to any project as it sees fit. In the case of these monies and the Crockett Community Foundation, staff is following County policy. Appropriations, not revenues, are allocated annually to the Foundation and identified as General Fund dollars. The monies to be transferred, although calculated using an ‘earmark’ formula, are presented as a recommended appropriation as part of the annual budget. Staff recommends no change regarding these funds. Attachments: November 3, 1992 – Resolution No. 92/7571. October 19, 1993 – Board Order2. October 17, 1995 – Board Order3. December 12, 1995 – Board Order4. CONSEQUENCE OF NEGATIVE ACTION: None. CHILDREN'S IMPACT STATEMENT: None. ATTACHMENTS Report Attachments 1-4 Attachments 1 of 10 Attachments 2 of 10 Attachments 3 of 10 Attachments 4 of 10 Attachments 5 of 10 Attachments 6 of 10 Attachments 7 of 10 Attachments 8 of 10 Attachments 9 of 10 Attachments 10 of 10