Revenue sharing agreement

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On May 18, 1983, voters in Charlottesville and Albemarle County agreed to institute a revenue sharing agreement between the two jurisdictions wherein the County agreed to use a portion of its general fund to pay the City, as a way of preventing its land from being annexed by the City. A pact was signed by then-Chairman Gerald Fisher and Charlottesville Mayor ???. Under the terms, Charlottesville stopped pursuing annexation in exchange for the County agreeing to pay a portion of its real estate tax revenue.

The agreement reads in part:

"The City Council and the Board of Supervisors realize that their jurisdictions have much in common and that the interests of their citizens often extend across jurisdictional boundaries. They are proud of many instances in which the two governments have cooperated to serve the interests of those citizens, and they share the hope of a future filled with moore cooperative measures, perhaps ultimately resulting in the combination of two jurisdictions into one."

The deal is capped at 10 cents of the County's real estate tax rate. Currently the tax rate is 68 cents per $100 assessed value, but Supervisors could vote on April 7

In Fiscal Year 2009, the City will be paid $13.6 million. Next year that will rise to $17 million because the formula is calculated on assessments that are two years old.

The first payment was $1.3 million.

Recently, Supervisors Ken Boyd (Rivanna) and Lindsey Dorrier expressed their desire to revisit the issue. Dorrier told the Daily Progress: “The county is having rough economic times and the city has a surplus,” said Dorrier, a lifelong area resident. “This is the exact reversal of what it was [in 1982] and I think county citizens can expect supervisors to do something about it. It’s probably irresponsible to just keep increasing the amount we spend … and assume everything is OK.”[1]

There were 9 separate annexations of County land by the City between 1818 and 1968[2]

City officials say they would have earned $19.4 million on the land they wanted to annex back in 1982.[3]

notes

  1. Daily Progress article
  2. Daily progress article
  3. Daily Progress article