Difference between revisions of "Revenue Sharing Agreement"

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* Even though the [[Virginia General Assembly]] has maintained a moratorium on annexations since the 1980s, Albemarle can never exit the revenue sharing agreement without the City's consent (or until such a time that the City reverts to a town within Albemarle County).
 
* Even though the [[Virginia General Assembly]] has maintained a moratorium on annexations since the 1980s, Albemarle can never exit the revenue sharing agreement without the City's consent (or until such a time that the City reverts to a town within Albemarle County).
  
==Recent News==
 
{{stub|section}}
 
[http://cvilletomorrow.typepad.com/charlottesville_tomorrow_/2008/03/revenue_sharing.html Chairman Boyd calls for renegotiation of City-County revenue sharing agreement]  Charlottesville Tomorrow, March 5, 2008
 
  
Note: Also need to link letters on revenue sharing written in 2009 by Ken Boyd and Dave Norris and published in The Daily Progress. They may not be available online. {{fact}}
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==Composite index==
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In early 2010, the Albemarle County School Board asked Delegate [[Rob Bell]] to insert an amendment that would change the way the [[composite index]] is calculated in order to factor in the amount Albemarle pays to Charlottesville in revenue sharing. Though the amendment failed, the issue caused friction between the two communities. In April 2010, both school board met with the City Council and the Board of Supervisors to discuss the issue. An [[Revenue Sharing/Annexation Agreement and the Local Composite Index Committee|committee]] was appointed to further discuss the issue. They held their first meeting on August 25, 2010<ref>"Meeting of the Revenue Sharing/Annexation Agreement and the Local Composite Index Committee." Letter. 27 Aug. 2010. Charlottesville Tomorrow's Online Document Storage. Web. 27 Aug. 2010. <http://www.cvilletomorrow.org/docs/20100827-Joint-Statement-Revenue-Sharing.pdf>.</ref>.  
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==Historical data==
 
==Historical data==

Revision as of 16:47, 27 August 2010

The Revenue Sharing Agreement refers to a legal agreement between the City of Charlottesville and Albemarle County that prohibits annexation efforts by the city in exchange for a share of the county's revenue.

Background

The agreement is the product of a series of conversations between the city and county designed to limit the city's annexation efforts. A committee formed in mid-1977 to discuss ways to increase cooperation before the two jurisdictions. Talks to develop increased in 1980 when the city explored another round of annexation[1].

This description of the revenue sharing agreement between the City of Charlottesville and Albemarle County appears in Albemarle's annual budget.[2]

An Annexation and Revenue Sharing Agreement dated February 17, 1982, between the County of Albemarle and the City of Charlottesville was approved in a public referendum on May 18, 1982. The agreement required the County and the City to annually contribute portions of their respective real property tax bases and revenues to a Revenue and Economic Growth Sharing Fund. Distribution of the fund and the resulting net transfer of funds will be made on each January 31 while this agreement remains in effect.

During the time this agreement is in effect, the City will not initiate any annexation procedures against the County. Also, pursuant to this agreement, a committee was created to study the desirability of combining the governments and the services currently provided. The agreement became effective on July 1, 1982 and remains in effect until:

  • The County and City are consolidated into a single political subdivision; or
  • The concept for independent cities presently existing in Virginia is altered by the State law in such a manner that real property in the City becomes part of the County’s tax base; or
  • The County and City mutually agree to cancel or change the agreement.

Financial Information

"Revenue Sharing with the City of Charlottesville: In FY 09/10, the County will pay $18,038,878 to the City of Charlottesville in fulfillment of the revenue sharing agreement provisions, an increase of $4.4 million over the FY 08/09 payment. This payment is at the agreed-upon cap of 10% of the total assessed property values based on the 2007 calendar year."[2]

Between the 1982-83 and the 2009-10 budgets, Albemarle County has transferred $160,803,093 to the City of Charlottesville.[3]

Implications for Albemarle County

  • 10 cents of the real estate property tax rate collected in Albemarle is transferred on an annual basis to the City of Charlottesville
  • The composite index, the formula that determines state funding to Albemarle County, does not take into account the revenue sharing agreement. Albemarle is thus assumed in the state budget to have more local revenue than it actually does, and as a result, receives less revenues from the state in each biennial budget.
  • Real estate assessments in Albemarle County, for the purposes of this agreement, are calculated at the full value and not the land use value. Thus for properties getting the land use tax subsidy, Albemarle pays more to Charlottesville than it collects from the property owners.
  • Even though the Virginia General Assembly has maintained a moratorium on annexations since the 1980s, Albemarle can never exit the revenue sharing agreement without the City's consent (or until such a time that the City reverts to a town within Albemarle County).


Composite index

In early 2010, the Albemarle County School Board asked Delegate Rob Bell to insert an amendment that would change the way the composite index is calculated in order to factor in the amount Albemarle pays to Charlottesville in revenue sharing. Though the amendment failed, the issue caused friction between the two communities. In April 2010, both school board met with the City Council and the Board of Supervisors to discuss the issue. An committee was appointed to further discuss the issue. They held their first meeting on August 25, 2010[4].


Historical data

Year Amount paid to Charlottesville % change
FY2001 $6,482,712.00
FY2002 $6,692,811.00 3.24%
FY2003 $7,726,021.00 15.44%
FY2004 $8,004,461.00 3.60%
FY2005 $9,742,748.00 21.72%
FY2006 $10,134,816.00 4.02%
FY2007 $13,212,401.00 30.37%
FY2008 $13,633,950.00 3.19%
FY2009 $18,038,878.00 32.31%
FY2010 $18,454,658.00 2.30%


Charlottesville Tomorrow's News Center

External Links

Notes

  1. Daugherty, Virginia, Elizabeth B. Gleason, and Nancy O'Brien. "Revenue Sharing—how It Came to This | Charlottesville Daily Progress." Charlottesville Daily Progress. 21 Mar. 2010. Web. 12 Apr. 2010. <http://www2.dailyprogress.com/cdp/news/opinion/columnists/article/revenue_sharing_--_how_it_came_to_this/53901/#When:04:01:13Z>.
  2. 2.0 2.1 Albemarle County. County Executive. FY 09/10 RECOMMENDED OPERATING BUDGET. 18 Feb 2009. 5 May 2009: 173 <http://www.albemarle.org/upload/images/forms_center/departments/budget/forms/FY10_Recommended_O_Non_Departmental.pdf>.
  3. Albemarle County. County Executive. FY 09/10 RECOMMENDED OPERATING BUDGET. 18 Feb 2009. 5 May 2009: 174 <http://www.albemarle.org/upload/images/forms_center/departments/budget/forms/FY10_Recommended_O_Non_Departmental.pdf>.
  4. "Meeting of the Revenue Sharing/Annexation Agreement and the Local Composite Index Committee." Letter. 27 Aug. 2010. Charlottesville Tomorrow's Online Document Storage. Web. 27 Aug. 2010. <http://www.cvilletomorrow.org/docs/20100827-Joint-Statement-Revenue-Sharing.pdf>.