During the run up to the election, Coy, host of Charlottesville...Right Now, argued Albemarle County residents have a real investment in the outcome of the election because of the revenue sharing agreement between the County and the City. I agree Albemarle residents are affected by the results of the elections in the City but the revenue sharing agreement is hardly the reason why.
My understanding of the revenue sharing agreement is it came about as consideration for the City not annexing any additional County land. I have not been able to listen to every show so perhaps Coy addressed this since the election. I want to be clear this money is not haphazardly thrown at the City for no reason as sometimes Coy seemed to suggest.
A search found an Albemarle County proposed budget with the following language:
"An Annexation and Revenue Sharing Agreement dated February 17, 1982, between the County of Albemarle and the City of Charlottesville was approved in a public referendum on May 18, 1982. The agreement required the County and the City to annually contribute portions of their respective real property tax bases and revenues to a Revenue and Economic Growth Sharing Fund. Distribution of the fund and the resulting net transfer of funds shall be made on each January 31 while this agreement remains in effect. During the time this agreement is in effect, the City will not initiate any annexation procedures against the County. Also, pursuant to this agreement, they created a committee to study the desirability of combining the governments and the services currently provided."
County residents receive a benefit from this agreement, apparently at one time the County felt it very important not to have the City annex any more of its land & the City cannot under this agreement. Is the agreement relevant today? I would like to know why it was needed in the first place. Anybody...anybody?
Everyone knows I love Coy's show, those little comments about the revenue sharing agreement frustrated me a bit because it was not presented with the benefits the County receives with that agreement. Frankly I would have called in my comment but I dont have the time between 4-6 to get on the phone.
7 comments:
Jennifer,
there are parts of the county, just outside the city border, that bring in a lot of tax revenue that the city would very much like to get ahold of; Pretty much everything on 29, especially the Fashion Square Mall, parts of pantops, etc.
The previous setup required the city to pay the county a fair price for annexed land, but the county didn't have much of a choice in the matter. The city didn't have the funds to buy a plot of land like the FSM, but if it ever did get them, it would mean a serious hit to county revenue.
The current agreement keeps the city from cherry-picking the most productive segments of the county to boost revenue at the county's expense, but it also keeps the city from expanding its centralized services to areas where it might otherwise be efficient to do so, which was the essential purpose of the original annex-enabling system.
In short, it helps keeps things as they are, for better and for worse. This is one reason why it is important for the city and county to continue to work together on fire-dept and rescue squad coverage, among other things.
This explanation is certainly incomplete. Most of it comes from what I got out of my mom as a child on the way home from the FSM.
The county did have a choice when facing an annexation attempt by the county. They could turn to the courts and county's in Virginia often did. The result was often a contentious and expensive legal battle. One of the reasons that the revenue sharing agreement was created was to stop the battles. What is ironic is that not long after Charlottesville and Albemarle signed their agreement the state legislature put an end to all annexations in Virginia. If Albemarle had waited they would have gotten what they wanted but without having to pay the city millions every year. The revenue sharing agreement cannot be terminated without the mutual agreement of both parties. The city will never let that golden goose free.
I think we'd all be better off if the two bodies merged, which is very different from reversion. It'll be a cold day in hell though, before the politicians give up any power.
This is great information. Now I can see why the agreement would generate resentment among County residents. I wonder why the State said no more annexation- perhaps to subordinate the interests of cities in general?
Since World War II there has been a huge migration of people from Virginia's cities to their suburbs,which are actually in the counties. Many people left Charlottesville for Albemarle after the 1960 vote to demolish Vinegar Hill and create Westhaven and that exodus continues. It is amazing how many people who were active in city politics have left to live in Albemarle.
The counties gained immense political power with this new population and they also saw a dramatic change in the value of their tax base. They wanted to keep that tax base so they flexed their political muscle and the result was the moratorium on annexation, which has been renewed 7 times since 1987. The moratorium has not been good for cities but the counties love it.
I searched for "Virginia annexation moratorium" and there's a lot more to this than I remember. I am not sure of the timeline of the moratorium. Apparently it was around earlier, expired in 1979 and then was renewed later.
Jennifer,
Here's something that you may find interestingt.I had to cut and paste it into a word document to make it easier to read. http://listlva.lib.va.us/cgi-bin/wa.exe?A2=ind0202&L=va-hist&T=0&P=21452
I also discovered that the moratorium is going to expire in 2010. Well, I think it is. I am not totally certain.
We are now witnessing a reversal of the migration out of cities. People with influence and money are returning to the citites. This is bound to influence the pending battle over the annexation moratorium.
Roll Tide,
Thanks for the informative post. I'd like to hear more of your opinion on annexation and city/county issues in Virginia.
Do you think that the Commonwealth is better off now that cities cannot annex or would it have been better to leave things alone?
Counties in Virginia are evolving into large city-like entities as the demand for more and higher quality services increases. I think that this had begun to happen before the moratorium. Has it been accelerated by the moratorium? Counties do not have to provide all the services that cities do. Roads and highways are the responsibilities of the cities but the state takes care of them in the counties for example. Cities often have a greater percentage of low income residents than counties and face the challenges of providing services to residents who don't pay a lot into the budget. It's only logical that the poor live in the cities since it takes a car to live in the suburbs and cities usually have some form of mass transit. Cities face a greater economic "challenge" than the counties and this is reflected in local taxes. Charlottesville's taxes are higher than Albemarle's and many people choose to live in the county for this reason. This seems unfair and unwise in that it encourages rural development and the degradation of urban areas. Is there any hope of legislative steps to level the playing field?
I am encouraged by the trend we are witnessing now of upper income people choosing to move into cities. I think it will give the cities more power and influence. It will be interesting to see how this is reflected in coming years in the state legislature.
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