AGENDA DATE: 8/9/2017
TITLE:
Title
Revenue Sharing Agreement
BODY
SUBJECT/PROPOSAL/REQUEST: Presentation on Issues Pertaining to the Revenue Sharing Agreement
ITEM TYPE: Regular Information Item
STAFF CONTACT(S): Walker, Kamptner
PRESENTER (S): Greg Kamptner
LEGAL REVIEW: Yes
REVIEWED BY: Douglas C. Walker
BACKGROUND: One of the tools by which cities increase their tax base and generate additional revenue is to annex the lands of surrounding counties. The lawsuits that were part of the annexation process in Virginia were often bitter. At the end of a near decade-long statewide moratorium on annexations by cities, the City of Charlottesville approached the County in 1980 to consider an alternative approach to annexation. The negotiations between the City and the County over the next two years resulted in the Revenue Sharing Agreement (the "Agreement") (See Attachment A).
The City Council and the County Board of Supervisors agreed to the terms of the Agreement in early 1982. The voters of the County approved the Agreement in a referendum in May 1982, with 63% of the voters voting in favor of revenue sharing.
The Agreement prohibits the City from initiating any annexation proceedings against the County (with an exception in the Pen Park area), and requires the City to oppose any petitions by County residents or property owners seeking to have territory annexed to the City. In exchange, the County transfers revenue each year to the City under a formula in the Agreement. To date, the County has transferred $311,803,547 to the City under the Agreement.
The Agreement continues to this day, even though the General Assembly imposed a moratorium on annexations by cities effective January 1, 1987. The moratorium has been extended multiple times since then and continues to this day.
STRATEGIC PLAN: Mission: To enhance the well-being and quality of life for all citizens through the provision of the highest level of public service consistent with...
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