To: Sonoma County Board of Supervisors
Department or Agency Name(s): County Administrator’s Office
Staff Name and Phone Number: Maggie Luce, 565-1796
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Addendum to Gold Ridge Fire Protection District Revenue Sharing Agreement
End
Recommended Action:
Recommended action
Approve and authorize the Board Chair to execute an addendum to the January 25, 2022, Revenue Sharing Payment Agreement between the Gold Ridge Fire Protection District and the County of Sonoma.
end
Executive Summary:
The Board of Supervisors unanimously approved a series of agreements on January 25, 2022 intended to improve the effectiveness, efficiency and sustainability of fire services in Sonoma County by reorganizing certain fire agencies, which included the annexation of County owned County Service Area 40 (CSA-40) territory, and revamping the way they are funded. This included an agreement with the Gold Ridge Fire Protection District (“District”) to facilitate the reorganization and to ensure that the District has a sustainable source of revenue into the future. The base revenue sharing payment amount in the District’s January 2022 agreement was $3,862,626. This amount needs to be modified to reflect the January 2022 San Francisco Area Consumer Price Index (CPI) adjustment of 4.2%. The recommended addendum to the Agreement establishes that the County’s base Revenue Sharing Payment amount will be $4,024,856.
Discussion:
On January 25, 2022, the Sonoma County Board of Supervisors approved a series of tax exchange and revenue sharing agreements to support fire agency consolidations, including areas located within CSA40. These agreements included a property tax allocation and revenue sharing agreement with the District (Attachment A).
In addition to the distribution of CSA-40 property taxes for the territories annexed by the District, the County agreed to invest supplemental funds to encourage a reduction in the number of fire agencies in the County with the purpose of improving efficiency and effectiveness and to address equity issues related to the funding of various fire agencies. The original base revenue sharing amount for these supplemental funds in the Agreement with District was $3,862,626 plus any annual San Francisco Area Consumer Price Index (CPI) adjustment accrued between the Date of Execution of the Agreement and the Effective Date of the Agreement. The source of these funds is the Fire Services Project Fund balance.
To reach an agreement with the District, to facilitate the reorganization, and to ensure that the District has a sustainable source of revenue into the future, the County agreed to increase the base supplemental funding amount to include the January 2022 San Francisco Area CPI adjustment. With this increased base revenue sharing amount, the addendum (Attachment B) establishes that the amount of the County’s initial Revenue Sharing Payment will be $4,024.856.00 (plus any annual CPI adjustment accrued between the Date of Execution of the Agreement and the Effective Date of the Agreement).
On June 7, 2023, the Sonoma County Local Agency Formation Commission (LAFCO) approved the annexation of CSA40 territories to the District. LAFCO filed the Certificate of Completion on June 21, 2023. Per the Agreement with the District, the County will issue the initial Revenue Sharing Payment, prorated for the period from June 21, 2023 until the last day of the then-current fiscal year, to the District within 60 days of the issuance of LAFCO’s Certificate of Completion. This pro-rated amount will be $104,106. The FY23/24 payment to the District will be $4,222,073.94, which is the base payment of $4,024,856 plus the 4.9% adjustment for the January 2023 CPI. The projected payment to the district in FY24/25 assumes a 4% CPI adjustment.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
January 25, 2022 - Approved Fire Agency Consolidation/Stabilization Agreements and Update on Funding Efforts
Fiscal Summary
|
Expenditures |
FY 22-23 Adopted |
FY23-24 Adopted |
FY 24-25 Projected |
|
Budgeted Expenses |
$104,106 |
$4,222,073.94 |
$4,185,850.24 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$104,106 |
$4,222,074 |
$4,185,850 |
|
Funding Sources |
|
|
|
|
Fire Services Project Fund |
$104,106 |
$4,222,074 |
$4,185,850 |
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
|
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$104,106 |
$4,222,074 |
$4,185,850 |
Narrative Explanation of Fiscal Impacts:
There are sufficient funds within the Fire Services Project Fund to cover costs for the amended revenue sharing payment amount. There are not changes to the tax exchange provisions of the agreement.
Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Attachment A: 2022 Gold Ridge Revenue Sharing Tax Exchange Agreement
Attachment B: Addendum to Gold Ridge Property Tax Allocation and Revenue Sharing Agreement
Related Items “On File” with the Clerk of the Board:
None