If approved, Resolution 2022/10 will accept the transfer from the County the revenue previously assigned to ECCFPD for fiscal year 2022/23 and will transfer the ad valorem property tax base and increment from the County to CCCFPD beginning with fiscal year 2023/24. The property tax base and increment are associated with six tax rate areas: 60043, 60047, 60048, 60050, 60055, and 60056, excepting two small parcels within these tax rate areas (APNs 011-190-044/-045). Although it is not possible to predict future property tax revenues with certainty, the property tax revenues for fiscal year 2021/22 for the six tax rate areas at issue totaled $952,381.   

On August 10, 2016, the Contra Costa Local Agency Formation Commission (the “LAFCO”) approved the detachment of the Subject Property, which comprises approximately 480 acres, from the Byron-Bethany Irrigation District (the “BBID”) and approved the reallocation of the associated property tax base and increment to the County. On October 12, 2016, LAFCO’s order of detachment became final.  
  
On October 18, 2016, the Board of Supervisors approved the transfer of the portion of the County’s property tax base and increment that had previously been allocated to BBID to ECCFPD. (County Resolution No. 2016/332.) The transfer was authorized under a law which permits a local agency to transfer a portion of its property tax revenues to another local agency. (Rev. & Tax. Code, § 99.02.) The Board determined the contribution would help to bolster ECCFPD, which due to “a lack of sufficient funding resulting from low property tax rates” had been forced to reduce its fire and medical services.   
  
County Resolution No. 2016/506, which authorized the property tax transfer, states that if ECCFPD is dissolved by order of LAFCO, the property tax transfer will automatically terminate and, the Board of Supervisor’s intent is to reallocate the property tax revenues for fire and emergency medical services for the residents of Discovery Bay. An associated agreement between the County and ECCFPD, concerning the annual transfer of the property tax base and increment to ECCFPD, similarly provides that any transfers cease at the end of any fiscal year in which LAFCO approves the dissolution of ECCFPD.  
  
On March 9, 2022, LAFCO approved the dissolution of ECCFPD, effective at the end of June 30, 2022. On July 1, 2022, the District assumed most of the duties and obligations of ECCFPD as its successor agency. Under the statutes governing the allocation and apportionment of property tax revenues, the property tax revenues that were being transferred to ECCFPD revert to the County. As ECCFPD was dissolved at the end of the day on June 30, 2022, the transfer of the property tax revenues from the Subject Territory terminated on July 1, 2022.   
By adopting the attached Resolution No. 2022/10, the Board of Directors will determine to accept the transfer of that portion of the County’s property tax base and increment that was previously transferred to ECCFPD from the Subject Territory. This resolution would permanently transfer, beginning with fiscal year 2023/24, the base tax and increment allocation factor described in County Resolution No. 2016/332. The County has already approved the transfer of such revenues on August 2, 2022. (See County Resolution 2022/267.)   
  
The transferred property tax revenues will be used to help the District provide fire and emergency medical services to those in its service area, which now includes the Discovery Bay Community Services District. As the successor agency to ECCFPD, the District has newly assumed responsibilities to serve an additional 143,000 residents spread over 249 square miles. The recommended transfer of the property tax base and increment from the Subject Territory will provide crucial funding that will help the District to provide fire and emergency medical services throughout its service area, including the area encompassing the Discovery Bay Community Services District.  

If the resolution is not adopted and approved, the District will not receive this additional funding for providing fire and emergency medical services, including in the areas recently annexed to CCCFPD.

Speaker: No Name Given, Danville.