February f ANNEXATION

AND Rm IENUESHARING

AGREF ENTThis

Agreement is between the COUNTY OF ALBemaRLE acting through

its Board of Supervisors and the CITY OF C qARLOTTESVILLEacting

through its City Council SECTION

IPURPOSE This

agreement arises out of the annexation statutes found in

Title of theCode of Virginia The Board of Supervisors recognizes that those

statutes permit the City to initiate court proceedings to annex

County territory however the Board believes annexation tobe

ineffective as a solution to the social and financial problems of

cities and generally opposes the concept ofannexation on philosophical

grounds The CityCouncil believes that annexation has

been historically effective asamethod for cities to increasetheir tax bases and provide for effective delivery of urban

services and that the City would be justified in asking to annex

parts of the County at this time In spite of

these philosophical differences theCityCouncil and the Board

of Supervisors realize that their jurisdictions have much in common

and that the interests of their citizens often extend across jurisdiCtional

boundaries They areproud of many instances in which

their two governments have cooperated to serve the interests of

those citizens and they share the hope ofa future filled with

more cooperative measures perhaps ultimately resulting inthecombination of the two jurisdictions into one Whatever the merits

ofannexation might be an annexation suit initiated by

the City at this time would threaten the spirit of cooperation nowexisting between the City and County governments It would involvegreat expenditures of time and money and it woutd introduce an

element cf uncertainty into the political and governmental processes of

both jurisdictionS which both theCity Council and theBoard of Supervisors would prefer to avoid Recognizing all of

these circumstances the BoardofSuper visors and theCity Council have sought through negotiations to finda solution

which would lessen the City sneed toannex County territory and therebypermit the County to proceed with its planning and other

governmental processes freeof the threat of annexation Both bodies

believe that the revenue and economic growth sharing plan

described inthis agreement is an equitable so ution whichpermitsboth jurisdictions to share fairly in the

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 Areement to Contribute and Share

Pursuant to Va Code Ann foraslong as this agreement remains in

effect the County and City agree annually to contribute portionsof their respective real property tax bases and revenues toa revenue and economic growth sharing fund as described in this

Section Each agrees to transfer to the other the net amountdetermined by applying the calculations described in this Section tothe fund so created Determination of Contributions

toFund The City and

the County will each annually contribute to the revenue and economicgrowth sharing fund from their respective real property taxrevenues thirtyseven cents foreach one hundred dollars of valueoflocally assessed taxable real property improved and unimproved withintheirrespective political boundaries Thecity manager

and county executive or their designees shall meet inthe onth of Januaryin each year in which the agree ment is ineffect to determine the amount each jurisdiction will contribute to thefund in the ensuing fiscal year The sum of the contributions of theCity and County shall constitute the fund as referred tohe ow In eachyear

that this agreement is in effect the assessed values used tocalculate the respective contributions shall be those reflected onthe land boOks of the two jurisdictions for the most recentyear for which population and true tax rate figures are alsoavailable as provided in Subsection D However for any yearin which one jurisdiction conducted a general reassessment and theotherdid not the contributions of both jurisdictions shall bebased on the assessed values for the most recent year inwhich both conducted a general reassessment plus subsequent new constructionand less subsequent demolitions in both jurisdictions CDetermination of

Distribution ofFund After computing the

total conmributions to the fund the designated officia s

using thesteps set forth in Subsection

shall determine the distribution of the fund for the ensuing fiscal

year This determination shall be used by the two jurisdictionsin the preparation of their budgess and for fiscal planningpurposes

The distribution of the fund and the resulting net ansfer

of funds shall be made initially on January and on each January thereafter

that this agreement remains in effectD Procedure for

Com utqDistributionTheprocedure to

compute distribution of the fund requires the determination ofthe following figures Population of the

City Population of theCounty True Real PropertyTax Raeof theCity True Real PropertyTax Rate of the County The population figures

shall be determined by official United States Censusfigures for years in which a census has been taken For years

between censuses the population figures shall be the final

population estimates of theTayloe Murphy Institute of he University

ofVirginia True real property

tax rates shall be as determined by the Virginia Department of

Taxation In the event

the Tayloe Murphy Institute orthe Department of Taxation ceasesto make such determinations the city manager and county executiveshall jointly select another source for such figures The distributionshall

be computed as follows Step Compute relative

population indices for both jurisdictions by dividing each

jurisdiction s population by thesumofthe populations for both jUrisdictions Step Computerelative tax

effort indices for both jurisdictions by dividing each jurisdiction

strue real property axrateby the sum of the true real property tax rates

for both jurisdictions

Step Compute a composite index for each jurisdic tionby averaging the relative population indexand the relative tax effort index for the

respective jurisdictions Step

o Multiply the composite index of each juris contributionstodeter dicticnbh total mine

each jurisdictionsshare ofthe fund Step

Compute the net transfer by finding the difference between

each jurisdiction s contribution and

its share of the distribution Each time

the contribution and distribution are computed the computationshall be based on the assessment population and true taxrate figures for the most recent year for which all three such figuresare available EXAMPLE This

example

shows how such a computation would be made for the FiscalYear Julyijune using the figUresfor the most current yearfor which all three elements are available Contributions to Revenue andEconomic Growth Sharing

Fund Total Assessed ValUes ofTaxable Property JanCharlottesville Albemarle These multipled by cents per of valuation

yield thefollowingrespectivecontributions CharlottesvilleAlbemarleTotalContributions

DistribUtions based on populations and true tax rates forSt RelativePopulation Indices Jurisdiction

Population IndexCharlottesvilleAlbemarleTotals r

SteR Relative Tax Effort Indices Jut

isdiction CharlottesvilleAlbemarleTotalsTrue

Tax Rate Index

Steo

Composmte

indmcesJurisdiction

Charlottesville

Albemarle

Total

CompositeIndex

St Actual Distribution Multiply

CompositeIndicesby

amount

of Total

Contributions

to

obtainthe

foll win distributionof

the pooled amount Jurisdiction Charlottesville Albemarle Total

Composite Indexxx Distribution The net transferof funds which wilt result

fromthisformula

is

the difference

betWeen each jurisdictionscontributionand its distributionThefigures

yield

thefollowingnettransferfromAlbemarletoCharlottesvillefrom

this example Distribution Contr ibut ion Net Transfer city County

tAs can beseen frOm thisexample the

contribution of each jurisdiction will rise or fall as the

tax base rises or falls and the distribution

willincreaseordecrease

asa

combinationofrelativepopulationsandrelativetaxratesELimitatiOn

onDistributionThecontributionsdistributionsandthe

net transferof

funds for fiscal year shall be as shown in the example

in subsection IID above In all subsequent fiscal years the amount transferred to

either jurisdiction for any year shall not exceed one tenth

ofone percent of the total

locally assessed valueof

taxable real estate used to compuue the contribution of

the other juris diction for that year

F Disputes About Computations

In the event the city manager and county executive cannot

agree with regard to any computation made under this agreementor any figure to be used in such computations they shall jointlyselect a person knowledgeable about governmental finances to

resolve tke ispute

SECTION il ANNEXATION

During the time this agreement is in effect the City will

not initiate any annexation proceedings against the County with

the exception that the City may if it chooses petition for

annexation of that property presently owned by the City adjacentto its corporate limits known as Pen Park A plat of the Pen

Park property is attached to this agreement and marked as Exhibit

A If the City decides to petition for annexation of Pen Park

the County agrees that it will not oppose that annexation The

City further agrees that while the agreement is in effect it will

oppose any petitions filed by County residents or property owners

seeking to have territory annexed by the City

SECTION IV DISCRIMINATORY TAXES

The County and City agree that except for ad valorem

property taxes taxes on restaurant meals transient lodgings or

admissions to public places or events and other general or selective

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

other things to ensure that neither jUrisdiction will enact a so

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 Va Codeiorin some other manner for which special legislation

might be requested

The study committee will be comprised of two members of City

Council two members of the Board of Supervisors the city manager

and the county executive Each governing body shall select the

members to represent it on the committee The city and county

attorneys will attend the meetings of the committee and advise it

but will not be voting members

The commistee wilt begzn meening as soon as fter

its appointment and will make a preliminary report to the Board

of Supervisors and City Council within six months after its first

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

A full public report ofthe final conclusions and recommenda

tions of the study will be made to both governing bodies not latethan

January However the Board of Supervisors and City Council may jointlyagree to extend this time limit SECTION VI DURATION

OF AGREEMENT This agreement will

remain ineffect until A The City

and County are consolidated or otherwise combined intoasingle

political subdivision orBThe concept

of independent cities presently existing in Virginia is altered

by state law in such a manner that real property in the

City becomes apart of the County s tax baseorC The City

and County agree to cancel or change the agreement SECTION VII

APPROVAL

OF AGREEMENT This agreement shall

be effective when it has been signed by both jurisdictions followingthe adoption of resolutions approved by majority votesof the City Council andBoard ofSupervisors after publication of notices

and public hearings as required by Va Code and in the

caseofthe County following approval by the qualified voters ofthe Countyina referendum conducted pursuant to state law

SECTION VIII SEVERABILITY

The provisions of Sections II and Iii of this agreement are

not considered severable and any determination by a court of

competent jurisdiction that the revenue and economic rowth sharingplan or the Citys 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

each any provisionIf either party deems the other to have

it shall so notify the other in writing and the party deemed to

have breached the agreement shall have days to remedy the breach Inthe event remedial action has not been taken within the day period theaggrieved party shall be entitled to seek specific performance ofthe agreement in the circuit court ofh e Cztyor County IN

WITNESS

WHEREOF theCity Council nas authorized the Mayor to signthis agreement bya resolution adopted March and the Board ofSupervisors has authorized its Chairman to sign it by resolution adoptedFeb and pursuant to the results of a referendum of thequalified voters conduc edMay CITY OF CHARLO Tm

BY N OF

ALBE tARLE ChairmanBoar of

Supervisors

Clerk of the

STATE OF VIRGINIA

CITYCOUNTY OF Ztowit

foregoing instrument was acknowledged before me thisThe

day of by Francis L Buck Mayor on behalf theCity Of C artottesvilleMy

commission expires Public

STATE

OF VIRGINIA cITY

COUNTYOF to witThe

egoing instrument was knowledcedbefore me this day

of by Chairman of theBoard J uperVisors on bLhalf of the County of Albemarle My commission

expires ary Public

RESOLUTION

At a regular meetinE of the Board of Sueervisors ofAlbemarle County Virginia held on the ilth day of FebruaryPRESENT

James R Butler Patricia

HCooke GeraldEFisher JT Henley Jr C

Timothy Lindstrom EllenV Nash ABSENT

None After

due notice to the general public of a public hearingon a proposed annexation and revenue sharing agreement publishedin the Daily Progressa newspaper having general circulatiOnin the county once aweek for two successmve weeks onFebruary and February and public hearing thereon held on February thefollowing resolutionwas adopted by a majority ofalimembers of the Board of Supervisors by roll call vote the ayes andnays being recorded in the minutes as follows Member Vote Mr Butler AyeMrs Cooke

Aye Mr

Fisher Aye MrHenley Aye MrLindstrom Aye MissNash Aye WHEREASthe Board ofSupervisors of A

bemarle County finds it advisable to enterinto anAnnexation and Revenue Sharing Agreement with the Cityof Charlottesville thatprovides for the sharing of Albemarle County s presentandfuture 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 enter into an Annexation and Revenue Sharing Agreementwith the City of Charlot esvilehprovides for the sharing

of Albemarle County spresent and futnre Tax bases the terms

of which agreemen are se forth in a document entitled nnenan Revenue Sharing o ExhibitA and made apart of this rese utionThe

Circuit Court of Albemarle County or the Judge thereof ishereby requested to order an election upon the question of AlbemarleCountysenteringinto such agreement such election preferably to

be held on May The Clerk of this

Board is hereby authorized and directed to causea certified

copy of this resolution tobe pre sented to the Circuit CourtofAlbemarle County This resolution shall take effect

immediately The undersigned Clerk of the Board

of Supervisors of Albemarle County Virginia hereby certifies that

the foregoing constitutes a true and correct extractfrom the minutes ofaregular meeting of the Board of

Supervisors held on the th day of February and of the wholethereof so far as applicable to the matters referred to in suchextract WITNESS myhand and seal of Albemarle

County this th day of February Clerk

A RESOLUTION APPROVING

A PROPOSED ANNEXATION ANDREVENUE SHARING AGREEMENT

WITH THE COUNTY OF ALBERLE

WHEREAS the negotiators appointed by this Council andb the Board of Supervisors of Albemarle County have proposedts hese nwo bodies an agreement whereby the Citv would

in return or Ehe participation by the County in a revenue andeconomic growth sharing plan and

WHEREAS that proposed agreement has been the subject ofa public hearing before this Council on March advertised asrequired by Virginia CodetiandWHEREAStheCouncil finds

such proposed agreement to bein the best interestof the City and its citizens now there fore be it RESOLVEDby the Council

ofthe City of Charlottesville Virginia that the Councilherebyapproves and ratifies the document styled Annexation andRevenue Sharing Agreement dated January and authorizesthe Mayor to execute the same and be it furtherRESOLVED that a urue and correct

copy of such agreement shall be filed with the minutesof the Council meeting of March ADOPTED BY COUNCIL MARCH ATTESTECOUNCIL