Agenda

Return

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'

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,

BY:	, Deputy

RECOMMENDATION(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.

BACKGROUND: (CONT'D)

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 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:

$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. 92/757

October 19, 1993 – Board Order

October 17, 1995 – Board Order

December 12, 1995 – Board Order





CONSEQUENCE OF NEGATIVE ACTION:

None.

CHILDREN'S IMPACT STATEMENT:

None.