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  Consent-General Government   # 9.       
Board of Supervisors County Administrator  
Meeting Date: 09/27/2016  
Brief Title:    MERCSA Property Tax Transfer
From: Patrick Blacklock, County Administrator
Staff Contact: Alexander Tengolics, Legislative & Government Affairs Specialist II, County Administrator's Office, x8068

Subject
Adopt resolutions related to the exchange and transfers of revenue in accordance with the dissolution of the Madison Esparto Regional County Service Area (General fund impact of approximately $45,712 in perpetuity, potentially increasing in future years) (Blacklock/Tengolics)
Recommended Action
  1. Adopt resolution of property tax revenue exchange related to the dissolution of the Madison-Esparto Regional County service Area and the transfer of responsibilities and revenue related to slough cleaning and maintenance to the Yolo County Flood Control and Water Conservation District.
  2. Adopt resolution of transfer of assessment monies and revenues generated by the Esparto Park and Maintenance and Operation Assessment District to Yolo County due to dissolution of the Madison-Esparto Regional County Service Area.
Strategic Plan Goal(s)
Operational Excellence
Safe Communities

 
Reason for Recommended Action/Background
The Yolo County Board of Supervisors requested a change of organization for the Yolo Local Agency Formation Commission (LAFCo) to dissolve the Madison-Esparto Regional County Service Area (MERCSA) in September 2015. Following the requested dissolution, County staff worked with Esparto Community Service District (ECSD) and the Yolo County Flood Control and Water Conservation District (YCFCWCD) to outline the transfer of services following the dissolution of MERCSA.

YCFCWCD has agreed to assume the service responsibilities and revenue related to slough cleaning and maintenance of the historic Madison County Service Area of MERCSA. Revenue for this services will continue to be generated via an apportionment of the ad valorem property tax, as it is currently, which will be directly apportioned to YCFCWCD. Given this action involves a redirection of the ad valorem property tax, LAFCo staff will notify the Board of Equalization of this change to ensure the ad valorem property tax is properly apportioned. Staff anticipates the formal transfer of this apportionment and completion of this administrative process by July 1, 2017. The Board of YCFCWCD approved a resolution to assume these responsibilities and revenue in May 2016 (Att. A). The attached resolution (Att. B) will formally transfer this tax revenue (approximately $45,713 in the current fiscal year, per Department of Financial Services memo, Att. C) the County receives for MERCSA related slough cleaning and maintenance activities to YCFCWCD in perpetuity. 

Similarly, ECSD has agreed to assume the service responsibilities and revenue related to median and public space landscaping services and the maintenance of the storm drainage basin for properties within the existing special assessment district in Esparto; these services will continued to be funded by the existing special assessment.The Board of Esparto CSD approved a resolution to assume these responsibilities and revenue in May 2016 (Att. D).  Additionally, transferring these duties to Esparto CSD will resolve the structural deficient within MERCSA’s Esparto subaccount due to costs associated with watering the median and public spaces, as Esparto CSD currently provides water to properties within the special assessment district. The transfer of the special assessment revenue from the County to Esparto CSD in perpetuity will occur through the LAFCo process.

In addition to the previously discussed responsibilities/revenue, MERCSA is also the recipient of revenue generated by the Esparto Park and Maintenance and Operation Assessment District for the purposes of the construction of and maintenance of a pool and aquatic center in Esparto. The attached resolution will redirect monies and monies and revenues generated by the Esparto Park and Maintenance and Operation Assessment District to the County due to dissolution of MERCSA. This administrative change will have no effect on the project (Att. E). 
Collaborations (including Board advisory groups and external partner agencies)
The County Administrator's Office worked closely with the Department of Financial Services; Assessor, Clerk-Recorder, and Elections, County Counsel, Yolo County Flood Control and Water Conservation District and Esparto CSD on this issue. 

Fiscal Impact
Fiscal impact (see budgetary detail below)
Fiscal Impact (Expenditure)
Total cost of recommended action:    $   45,713
Amount budgeted for expenditure:    $   0
Additional expenditure authority needed:    $  
On-going commitment (annual cost):    $   45,713
Source of Funds for this Expenditure
$45,713
Attachments
Att. A. YCFCWCD Resolution
Att. B. YCFCWCD Transfer Resolution
Att. C. DFS Memo
Att. D. ECSD Resolution
Att. E. Esparto Park and Maintenance and Operation Resolution

Form Review
Inbox Reviewed By Date
Financial Services dolander 09/22/2016 01:46 PM
County Counsel Hope Welton 09/22/2016 02:20 PM
Form Started By: Alexander Tengolics Started On: 09/12/2016 08:27 AM
Final Approval Date: 09/22/2016

    

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