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Home My WebLink AboutMINUTES - 08062013 - SD.1RECOMMENDATION(S): 1. ACKNOWLEDGE that Tax Rate Area (“TRA”) 66343 is located in Contra Costa County Service Area M-23 (“CSA M-23”), and that no base property tax revenues or incremental property tax revenues in TRA 66343 are allocated to CSA M-23. 2. ACKNOWLEDGE that notwithstanding that none of the property tax revenues allocated in TRA 66343 are allocated to CSA M-23, the parcels of property located in TRA 66343 receive the services provided by CSA M-23, including specifically the services performed by the Blackhawk Geologic Hazard Abatement District that are funded by CSA M-23. 3. ACKNOWLEDGE that an adjustment of the allocation of property tax revenues in the other TRAs in CSA M-23 is necessary so that each TRA within CSA M-23 allocates a percentage of property taxes to support the operations of CSA M-23. 4. ACKNOWLEDGE that the County duly gave notice of a public hearing pursuant to Government Code section 6061. 5. OPEN a public hearing pursuant to Revenue & Taxation Code section 99.02, subdivision (e), to consider the effect of the proposed transfer of general property tax revenues on fees, charges, assessments, taxes or other revenues, RECEIVE and CONSIDER all public comments, and CLOSE the public hearing. 6. ADOPT Resolution No. 2013/332, authorizing: (i) the transfer of base revenue from the County to CSA M-23 for TRA 66343, and the establishment of base revenue for the County for TRA 66343; (ii) the transfer of base revenue from CSA M-23 to County for TRAs 66050, 66162, and 66166; and (iii) the establishment of base revenues and incremental allocation factors for TRAs 66343, 66050, 66162 and 66166 so that each TRA within CSA M-23 allocates a percentage of property tax revenues to support the operations of CSA M-23. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/06/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Brian Balbas, 925-313-2284 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: August 6, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: SD.1 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:August 6, 2013 Contra Costa County Subject:HEARING to consider adoption of Resolution authorizing adjustment of property tax revenues for Contra Costa County Service Area M-23 FISCAL IMPACT: There is no material impact to the General Fund. The proposed property tax revenue adjustment is intended to be revenue neutral. The cost to implement the adjustment will be paid for with CSA M-23 funds. BACKGROUND: On June 14, 1977, the Board of Supervisors adopted Resolution 77/477, establishing County Service Area M-23 (“CSA M-23”), to fund a number of specified extended services in CSA M-23, including drainage maintenance. At the request of the owners of all of the real property in CSA M-23, on September 20, 1977, the Board adopted Resolution 77/767, calling a maximum tax rate election for CSA M-23 to be held on September 27, 1977, to determine whether to establish a maximum tax rate of $.70/$100 assessed valuation for fiscal year 1978-79 and thereafter until changed as provided by law. The proposed maximum tax rate was approved. On April 22, 1986, the Board adopted Resolution 86/209, adding geologic hazard abatement to the list of extended services to be provided in CSA M-23. On the same day, in response to a petition by property owners, the Board adopted Resolution 86/210, approving the formation of a geologic hazard abatement district for the Blackhawk area (the “Blackhawk GHAD”), with boundaries coterminous with the boundaries of CSA M-23. On April 22, 1986, the Board also adopted Resolution 86/211, approving a joint exercise of powers agreement (“JEPA”) between the County and the Blackhawk GHAD, which provided for the funding of the Blackhawk GHAD by the transfer of surplus CSA M-23 revenues, as defined in the JEPA. The JEPA was terminated and replaced by an August 14, 2007, funding agreement, as amended on May 24, 2011, under which the County continues to transfer surplus CSA M-23 revenues to the Blackhawk GHAD. On September 20, 1990, the Board approved the Blackhills development project, now known as The Canyons at Blackhawk (“The Canyons”). The conditions of approval for the project did not require participation in, or funding into, the Blackhawk GHAD. On October 10, 1990, in response to a landowner petition, the Contra Costa Local Agency Formation Commission (“LAFCO”) adopted resolution LAFC 90-29, approving the “Blackhills Boundary Reorganization.” Among other things, LAFC 90-29 included the annexation of the developed portions of the Blackhills development into CSA M-23. However, on September 11, 1990, prior to the Blackhills Boundary Reorganization being approved, the Board adopted Resolution 90/589, and determined that there would be no transfer of property tax revenues to CSA M-23 as a result of the Blackhills Boundary Reorganization. After the approval of the Blackhills Boundary Reorganization, the boundaries of CSA M-23 and the Blackhawk GHAD were no longer coterminous. In 1998, discussions ensued regarding the possibility of The Canyons becoming a part of the Blackhawk GHAD. Public Works staff advised the Board in 1999 that before The Canyons could be annexed into the Blackhawk GHAD, a source of revenue would be needed to support Blackhawk GHAD operations. One option proposed was to obtain approval of a new property assessment. This option was not pursued. On September 26 2006, the Board, in its capacity as the Blackhawk GHAD Board, accepted a petition from the property owners in The Canyons to annex The Canyons into the Blackhawk GHAD, and set a hearing on the petition. At the time the petition was considered, it was erroneously assumed that since The Canyons was within CSA M-23, that a portion of property taxes from The Canyons TRA (66343) was being allocated to CSA M-23, and into the Blackhawk GHAD, without the owners receiving the benefits provided by the Blackhawk GHAD. The Board was so advised, and the annexation of The Canyons into the Blackhawk GHAD was approved on October 17, 2006. In December 2012, Blackhawk GHAD management determined that property owners in The Canyons were not contributing property tax revenue into CSA M-23, and therefore were not paying for Blackhawk GHAD services, and notified the Blackhawk Homeowners Association of the same. The Blackhawk Homeowners Association, through its counsel, has asked that the Blackhawk GHAD continue providing services to The Canyons while the issue regarding allocation of property tax revenues to CSA M-23 is sorted out. It has been determined that the transfer of base revenue and adjustment of the incremental allocation factors between the County and CSA M-23 in the four TRAs located in CSA M-23 will create a base revenue and incremental allocation factor for CSA M-23 in TRA 66343. Public Works staff therefore recommends that the Board adopt Resolution No. 2013/332, authorizing: (i) the transfer of base revenue from County to CSA M-23 for TRA 66343, and the establishment of base revenue for the County for TRA 66343; (ii) the transfer of base revenue from CSA M-23 to County for TRAs 66050, 66162, and 66166; and (iii) the establishment of base revenues and incremental allocation factors for TRAs 66343, 66050, 66162 and 66166 so that the incremental allocation factor is the same for properties in all of the TRAs within the CSA M-23 boundaries. The County’s base revenues and incremental allocation factor in TRA 66343 will decrease, but the County’s base revenue and incremental allocation factors in the three other TRAs will increase. The property tax revenue adjustment is intended to be a revenue neutral adjustment. The purpose is to have all properties within CSA M-23, including the Canyons, contribute an equitable share to CSA M-23. After the adjustment of property tax revenues pursuant to the resolution, there will be no material difference in the total amounts allocated to CSA M-23 and the County. Each TRA within CSA M-23 will have an equal incremental allocation factor to support the operations CSA M-23, including the services provided by the Blackhawk GHAD. Exhibit A to Resolution No. 2013/332 attached hereto shows (i) the amount of base revenue to be transferred from County to CSA M-23 for TRA 66343, (ii) the amount of base revenue to be transferred from CSA M-23 to County for TRAs 66050, 66162, and 66166, and (iii) the resulting base revenues and incremental allocation factors for TRAs 66343, 66050, 66162 and 66166. CONSEQUENCE OF NEGATIVE ACTION: If the incremental allocation factors of the TRAs within CSA M-23 are not adjusted, there will continue to be no property tax allocation from TRA 66343 to support the operations of CSA M-23, including the services provided by the Blackhawk GHAD. CHILDREN'S IMPACT STATEMENT: Not applicable. CLERK'S ADDENDUM Speakers: Mark Goldberg, Blackhawk Homeowners Association. ATTACHMENTS Resolution No. 2013/332 Exhibit A Exhibit A Base Revenue and Incremental Allocation Factor Adjustments Current Fiscal Year (2012/2013) County General Fund CSA M-23 Tax Rate Area Total Base Revenue in TRA Incremental Allocation Factor Total Base Revenue1 Incremental Allocation Factor Total Base Revenue 66343 $403,608.42 15.399820% $62,311.07 0.000000% $0.00 66050 $6,966,634.49 14.429260% $1,005,234.44 6.920400% $482,118.94 66162 $5,583,995.84 14.439750% $806,496.87 6.841090% $381,824.55 66166 $11,620,974.83 14.315380% $1,663,762.08 6.862030% $797,257.94 Total 58.58421% $3,537,804.46 20.623520% $1,661,201.43 Average IAF 14.646053% 5.155880% With Adoption of Resolution No. 2013/332 County General Fund CSA M-23 Tax Rate Area New Incremental Allocation Factor Base Revenue Adjustment New Base Revenue Amount New Incremental Allocation Factor Base Revenue Adjustment New Base Revenue Amount 66343 8.599820% ($27,514.30) $34,796.77 6.800000% $27,514.30 $27,514.30 66050 14.549660% $7,985.28 $1,013,219.72 6.800000% ($7,985.28) $474,133.66 66162 14.480840% $6,324.12 $812,820.99 6.800000% ($6,324.12) $375,500 66166 14.377410% $13,204.90 $1,676,966.98 6.800000% ($13,204.90) $784,053.04 Totals 52.007730% $0.00 $3,537,804.46 27.200000% $0.00 $1,661,201.43 Average IAF 13.001933% 6.800000% decrement 1 Note – The base revenue for an agency (i.e., County and CSA M-23) in a TRA is not the result of multiplying the total property tax revenue in the TRA by the agency’s Incremental Allocation Factor, but is equal to the sum of base property tax revenue allocation received by the agency from the prior year plus/minus any incremental growth/decline in property tax revenues in the TRA that are allocable to the a gency.