February f ANNEXATION

AND Rm SHARING
IENUE

AGREF This
ENT

Agreement between the COUNTY OF ALBemaRLE acting through

is
the CITY OF C acting
qARLOTTESVILLE
its Board of Supervisors and
through its City Council SECTION

IPURPOSE This

annexation statutes found in

agreement out of the
arises
Title of the
Code of Virginia The Board of Supervisors recognizes that those
City to initiate court proceedings to annex
statutes permit the
to be
County the Board believes annexation
territory however

ineffective as a solution to the social and financial problems of

philosophical
cities and generally opposes the concept of annexation on
has
grounds The
City Council believes that annexation
been historically amethod for cities to increase effective as

their tax bases and provide for effective delivery of urban

annex
services and that the City would be justified in asking to
parts of at this time In spite of
the
County

these philosophical dif erences City Council and the Board

the
of Supervisors realize that their jurisdictions have much in common
and that the interests of their citizens often extend across jurisdiCtional

boundaries They instances in which

are proud of many

their two governments have cooperated to the interests of serve

those citizens and they share the hope of a future filled with
more cooperative measures perhaps ultimately resulting in the
of the two jurisdictions into one Whatever the merits
combination

of annexation might be an annexation suit initiated by

the City at this time would threaten the spirit of cooperation now
existing between the City and County governments It would involve
great of time and money and it woutd introduce an
expenditures
element cf uncertainty into the political and governmental processes of

both jurisdictionS which both the City Council and the

Board of Supervisors would prefer to avoid Recognizing all of

these circumstances the Board of Super visors and the

City Council have sought through negotiations to find a solution
which would lessen the City s need to annex County territory and thereby
permit the County to proceed with its planning and other
governmental processes free of the threat of annexation Both bodies
believe that the revenue and economic growth sharing plan

described in this agreement is an equitable so ution which

both jurisdictions to share fairly in the
permits
 property tax revenues created by future economic growth in the
community regardless of whether that growth occurs in the City or

County

SECTION II REVENUE AND ECONOMIC GROWTH SHARING PLAN

A to Contribute and Share

reement
A

Pursuant to Va Code Ann long as

as
for in
this
agreement remains

effect the County

and City agree annually to contribute portions
of their respective real property tax bases and revenues to
a revenue and economic growth sharing fund as described in this

Section Each agrees to to the other the net amount

transfer
determined by applying the calculations described in this Section to
the fund so created Determination of Contributions

toFund The City and

the County will each

annually contribute to the revenue and economic
growth sharing fund
from their respective real property tax
revenues thirty seven cents for each one hundred dollars of value
of locally assessed taxable real property improved and unimproved within
theirrespective
political boundaries The city manager

and county
executive or their designees shall meet in
the onth of
in each year in which the agree ment is in
January
effect to determine the amount each jurisdiction will contribute to the
fund in the ensuing fiscal year
The sum of the contributions of the
City and County shall constitute the fund as referred to
he ow In each year

that this agreement is in effect the assessed values used to

calculate the respectivecontributions shall be those reflected on
the land boOks of the two jurisdictions for the
most recent
year for which population and true
tax rate figures are also
available as provided in Subsection D However for any year
in which one jurisdiction conducted a general reassessment and
the
other did not the contributions of both jurisdictions shall be
based on the assessed values for the most recent year in
which both conducted a general reassessment plus
subsequent new construction
and less subsequent demolitions in both jurisdictions C
Determination of

Distribution ofFund After computing the

total
conmributions to the fund the designated officia s
using the
steps set forth in Subsection
 shall determine the distribution of the fund for the ensuing fiscal
year This determination shall be used by the two jurisdictions
in the preparation of their budgess and for fiscal planning
purposes

The distribution of the fund and the resulting net ansfer

of funds shall be made initially on
January and on each January thereafter
this agreement remains in effect D Procedure for
that

Com ut q DistributionThe to
procedure

compute distribution of the fund requires the determination of

the following figures Population of the

City Population
the of

County True
Property Real

Tax Ra e of theCity True Real Property

Tax Rate of the County The population figures

shall be determined by official United States Census

figures for years which
a census has been taken For years
in
between censuses the population figures shall be the final
population estimates of the Tayloe Murphy Institute of he University
Virginia
of True real property

tax rates shall be as determined by the Virginia Department of

Taxation In the event

the Tayloe Murphy Institute or the Department of Taxation ceases

to make such determinations the city manager and county executive
shall
jointly select another source for such figures The distribution
shall

be computed as follows relative

Step Compute

population indices for both jurisdictions by dividing each

jurisdiction s population sum
the by

of the populations for both jUrisdictions Step Compute

relative tax

effort indices for both jurisdictions by dividing each jurisdiction

s true real property rate

ax
by the sum real tax
of the true property rates
for both
jurisdictions
 Step Compute a composite index for each jurisdic tion
by averaging the relative population index
and the relative tax effort index for the
respective jurisdictions Step

o Multiply the composite index of each juris contributions

b h total mine todeter dicticn
each jurisdiction share
s of the fund Step

Compute the net transfer by finding the difference between

each jurisdiction s bution and
contri
its share of the distribution Each time

the contribution and distribution are computed the

computation
shall
be based on the assessment population and true tax
ratefigures for the most recent year for all three such figures
which
are available EXAMPLE This

example

shows how such a computation would

be made for the Fiscal
Year July ijune using the for the
figUres most current year
for which all three elements are available Contributions to Revenue and
Economic Growth Sharing

Fund Total Assessed ValUes of Taxable Property Jan

Charlottesville Albemarle These multipled by per of
cents valuation

yield respective
following
the
contributions Contributions
Total
Albemarle
Charlottesville

DistribUtions
based on populations and true tax rates for St Relative
Population Indices Jurisdiction

Population Albemarle
Charlottesville
Index
Totals r
 Effort Indices Jut
SteR Relative Tax

Tax Rate Index Charlottesville

isdiction Charlottesville
Steo Albemarle
Albemarle
Composmte Total
Totals
Jurisdiction
indmces Index
Composite
True

Actual Multiply
St Distribution

Total
Composite of
Contributions
Indices
to
by
the
obtain
amount

distribution of
foll win
Charlottesville Albemarle Total
the pooled amount Jurisdiction
x Distribution
Composite Index The net transfer
result
of funds which wilt

difference yield
from the
this betWeen each jurisdiction
c
s ontribution the
net
following
formula and its figures
The
distribution Albemarle
from
transfer
is from
Charlottesville
to

ibut ion Net Transfer city County

this example Distribution Contr
t As can be seen frOm this example the
contribution of each jurisdiction will rise or fall as the
tax base rises or falls and the distribution

combination on
will of
populations
relative contributions
The
Distribution
increase or decrease tax
relative
and the
and
distributions
as a LimitatiOn
E
rates net of
transfer

fiscal year shall be as shown in the example

funds for

In subsequent fiscal years the amount transferred to

in subsection IID above all

shall not exceed one tenth

either jurisdiction for any year

of the total
of one percent

locally assessed value of

estate used to compuue the contribution of

taxable real
the other diction for that year
juris
 F Disputes About Computations

cannot
In the event the city manager and county executive
this agreement
agree regard to any computation made under
with
shall jointly
or any figure to be used in such computations they
to
select a person knowledgeable about governmental finances
resolve tke ispute

SECTION il ANNEXATION

this is in effect the City will

During the time agreement
the County with
not initiate any annexation proceedings against
the exception that the City may if it chooses petition for
annexation of that property presently owned by the City adjacent
Pen Park A plat of the Pen
corporate limits known as
to its
Park property is attached to this agreement and marked as Exhibit
A If the City decides to petition for annexation of Pen Park
that annexation The
the County agrees that it will not oppose
is in effect it will
City further agrees that while the agreement
residents owners
oppose any petitions filed
by County or property
seeking to have territory annexed by the City

SECTION IV DISCRIMINATORY TAXES

The County and City agree that except for ad valorem

taxes on restaurant meals transient
lodgings or
property taxes
events and other general or selective
admissions to public places or

sales or excise taxes neither jurisdiction will during the life

of this agreement impose or increase any tax that would affect
residents of the other jurisdiction if the other jurisdiction is
not legally empowered to enact that tax at the same rate and in

the same manner This provision is specifically intended among

that neither jUrisdiction will enact a so
other things to ensure

called commuter or
payroll tax unless the other jurisdiction has

the legal authority to do so

SECTION V CONSOLIDATION STUDY

The City Council and Board of Supervisors agree that immedi

ately after the approval of this agreement pursuant to Section VII

they will appoint a committee to study the desirability of combin

ing the governments of the two jurisdictions or some of the

services presently provided by them either in a consolidation as

provided in Code Va or
i
in other manner for some which special legislation

might be requested
 The committee will be comprised of two members of City
study
Council two members of the Board of Supervisors the city manager

and the county executive Each governing body shall select the

members it the committee The city and county

to represent on

of the committee and advise it

attorneys will attend the meetings
but will not be voting members

soon as fter
The commistee wilt begzn meening as

to the Board
its appointment and will make a preliminary report
of Supervisors and City Council within six months after its first

meeting to set forth the manner in which it thinks the study

should proceed including a request for whatever staff or other
assistance it anticipates will be needed The City Council and

Board of Supervisors agree to act on the preliminary recommenda

tions within thirty days after receiving them

final conclusions and recommenda

A full public report of
the
bodies not than
late
tions of the study will be made to both governing
January However the Board of Supervisors and City Council may jointly
time limit SECTION VI DURATION
agree to extend this

OF AGREEMENT This agreement will

remain until A The City

in effect

a single
and are consolidated or otherwise combined
County into

political subdivision or B The concept

independent in Virginia is altered

of cities presently existing
by state law in such a manner that real property in the

becomes of County s tax or

base C The City
City a part the

to change the agreement SECTION VII

and County agree cancel or
APPROVAL

OF AGREEMENT This agreement shall

be effective when it has been

jurisdictions following signed by both

the adoption of resolutions approved by majority votes

of the City Council and Board of Supervisors after publication of notices
and public hearings as required by Va Code and in the
the County following approval by the qualified voters of the County
of
case
in a referendum conducted pursuant to state law
 SECTION VIII SEVERABILITY

The of Sections II and Iii of this agreement are

provisions
not considered severable and any determination by a court of

sharing
that the and economic rowth
competent jurisdiction revenue

plan or the City

s agreement not to initiate or suppor annexation

petitions except for Pen Park is invgiid shall cause this entire
agreement to be null and void All onker provisions are considered

severable and a determination that any of them is invalid shall

not affect the remaining provisions

SECTION IX BREACH OF AGREemENT

If either party deems the other to have each any provision

it shall notify the other in writing and the to
so
party deemed
have breached the agreement shall have days the breach In
to remedy

the event remedial action has not been taken within the day
the period

aggrieved shall be party entitled to seek specific performance of

the agreement in the circuit court of h e Czty
or County IN

WITNESS

WHEREOF the City Council nas authorized the Mayor to sign

this agreement by a resolution adopted March and the Board of
Supervisors has authorized its Chairman to sign it by resolution adopted
Feb pursuant the results
and to of a referendum of the
qualified voters conduc ed May CITY OF CHARLO m
T

BY N OF

ALBE tARLE Boar

Chairman of

Supervisors
Clerk of the

STATE OF VIRGINIA

COUNTY
CITY OF to
Z
wit
The foregoing instrument before this
was
acknowledged me

day of by L Buck Mayor

Francis on behalf the
City Of C artottesville
My

commission expires Public

STATE

OF VIRGINIA cITY

OF to
COUNTY The
wit

egoing was
instrument before
knowledced me this day
of by Chairman of the
Board J uperVisors on bLhalf of the County of Albemarle My commission

expires ary Public

 RESOLUTION

At a
regular meetinE of the Board of Sueervisors of
Albemarle County held the ilth of February
Virginia on day
PRESENT

James R Butler Patricia

HCooke Gerald
E Fisher J
T Henley Jr C
Timothy Lindstrom Ellen
V Nash ABSENT

None After

due notice to the general public of a public hearing

on a proposed annexation and revenue sharing agreement published
in the Daily
Progress a newspaper
having general circulatiOn
in the county once aweek for two successmve weeks on
February
and February
and public hearing thereon held on February the
following resolution adopted by a majority of ali
was
members
of the Board of Supervisors by roll call vote the ayes and
nays being recorded in the minutes as follows Member Vote Mr Butler Aye
Mrs Cooke

Aye Mr

Fisher Aye
Mr
Henley Aye Mr
Lindstrom Aye Miss
Nash Aye WHEREAS
the Board of
Supervisors of
A

bemarle County finds it to advisable

an into
enter
Annexation and Revenue Sharing Agreement with
City of Charlottesville that
the

provides for the sharing of Albemarle County s presentand

future tax bases
 BE IT RESOLVED by he Board of Supervisors of Albemarle
County Virginia

It is hereby determined that it is advisable for Albemarle

County to into enter Sharing Agreement an Annexation and Revenue

with the hprovides for the sharing

of Charlot esvil
eCity

of Albemarle present and futnre Tax bases the terms

County s
of which agreemen are se forth in a document entitled nne
an Revenue
n Sharing o Exhibit
A and made a part of this rese The
ution

Circuit Court of Albemarle County or the Judge thereof is

hereby requested to order an election upon the question of Albemarle
County sentering
into such agreement such election preferably to
be held on May The Clerk of this

Board is authorized and directed to cause a certified

hereby
copy of to be pre sented to the Circuit Court
this resolution

of Albemarle County This resolution shall take effect

immediately The undersigned Clerk of the Board

of County
Virginia hereby certifies that
Supervisors of Albemarle
the foregoing constitutes a true and correct extract
from the minutes of aregular meeting of the Board of

Supervisors held th day of February on the and of the whole

thereof so far to the matters referred to as applicable in such
extract WITNESS my hand and seal of Albemarle

County this th day of February Clerk

 A RESOLUTION APPROVING
A PROPOSED ANNEXATION AND
REVENUE SHARING AGREEMENT
WITH THE COUNTY OF RLE
ALBE

WHEREAS the negotiators appointed by this Council and

b the Board of Supervisors of Albemarle County have proposed
ts hese nwo bodies an agreement whereby the Citv would

in return or Ehe participation by the County in a revenue and

economic growth sharing plan and

WHEREAS that proposed agreement has been the subject of

a public hearing before this Council on March advertised as
required by Virginia Code t i Council finds
the
WHEREAS
and

such proposed agreement to be

in the best interest
of the City and its citizens now there fore be it RESOLVED
by the Council

ofthe City of Charlot esvil e Virginia

that the Council
hereby and ratifies the document styled Annexation and
approves
Revenue Sharing Agreement dated January
and authorizes
the Mayor to execute the same and be it further
RESOLVED that a urue and correct

copy of such agreement shall be filed with the minutes

of the Council meeting of March ADOPTED BY COUNCIL
MARCH ATTESTE
COUNCIL