Wa te r Sto ra g e (4-c e nt) T a x ra te Re so lutio n fo r - PDF document

FAP Agenda Number 4. Attachment. 2016/ 2017 Pr oper ty T ax R ates F inanc e , Audit and Powe r Committe e Do ug Dunla p Ma y 19, 2016 Pr oposals for Conside r ation Ge ne ra l Ad Va lo re m T a x ra te • “Wa te r Sto ra g e ” (4-c e nt) T a x ra te • Re so lutio n fo r use o f “Wa te r Sto ra g e ” • ta x 2 5/19/2016 1

CAWCD Pr ope r ty T axe s Autho rize d unde r § A.R.S. T itle 48, Cha pte r 22 • “Multi/ Co unty Wa te r Co nse rva tio n Distric ts” T wo ta xe s a utho rize d: • – Ge ne ra l Ad Va lo re m T a x no t to e xc e e d 10 c e nts pe r $100 o f a sse sse d va luatio n – T a x “fo r Wa te r Sto ra g e ” no t to e xc e e d 4 c e nts pe r $100 o f a sse sse d va luatio n CAWCD pro pe rty ta xe s a re b a se d o n L imite d Pro pe rty • Va lue (L PV) a s a re sult o f Pro po sitio n 117 3 5/19/2016 CAWCD Ge ne r al Ad Valor e m Pr ope r ty T ax Ge ne ra l Ad Va lo re m T a x ma y b e use d fo r a ny • a utho rize d purpo se e xc e pt a s a ple dg e to wa rds re pa yme nt o f re ve nue b o nds – Use s ha ve inc lude d c re a tio n o f re se rve s, Ope ra tio ns & Ma inte na nc e , Re pa yme nt a nd c a pita l e xpe nditure s Histo ric a l Ge ne ra l Ad Va lo re m T a x ra te s: • – 1987/ 1988 thro ug h 1999/ 2000 10 c e nts – 2000/ 2001 thro ug h 2002/ 2003 9 c e nts – 2003/ 2004 thro ug h 2006/ 2007 8 c e nts – 2007/ 2008 thro ug h 2011/ 2012 6 c e nts – 2013/ 2014 thro ug h 2015/ 2016 10 c e nts 4 5/19/2016 2

Sour c e s and Use s of F unds (Gener al F und) CAP Sources and Uses of Revenue USES Federal M&I Ag Pool Repayment Reserves OM&R OM&R OM&R      Power & Basin Fund Revenues      M&I Capital Charges      Water Delivery Charges ‐ Federal SOURCES      Water Delivery Charges ‐ M&I      Water Delivery Charges ‐ Ag Pool      Property Taxes & Interest     Reserves  Must Do ‐ Primary Source  Cannot do  Can do ‐ discretionary  Can do ‐ some is committed 5 5/19/2016 al Ad Valor em Pr Ge ne r ope r ty T ax Va lue o f o ne c e nt o f ta x c o lle c tio n to CAWCD: • – $4.8 millio n in 2016/ 2017 At a ra te o f 10 c e nts, CAP Ad Va lo re m ta x o n a • $150,000 ho me is $15.00 pe r ye a r Curre ntly, the Ge ne ra l Ad Va lo re m Pro pe rty T a x ra te • is a t 10 c e nts pe r $100 o f a sse sse d va lue – 4 c e nts is pla c e d in a de sig na te d E xtra o rdina ry Co st re se rve se pa ra te fro m Stra te g ic Re se rve s Curre ntly, the re ma ining 6 c e nts is c o mple te ly • c o nsume d b y the c o st o f the Ag Co nside ra tio n (F ixe d OM&R) a nd Ag I nc e ntive Pro g ra m 6 5/19/2016 3

Pr ope r ty T ax R e ve nue s vs. Ag Pr ogr am 7 5/19/2016 CAWCD “Wate r Stor age ” T ax (4-c e nt tax) Autho rize d mid-1996 to re pla c e the Sta te De mo nstra tio n • Pro je c t 4-c e nt ta x E a c h ye a r the CAP Bo a rd must de te rmine ho w muc h o f • the ta x is ne e de d fo r OM&R o r Re pa yme nt, inc luding AWBA M&I firming - Ba la nc e , if a ny, g o e s to Arizo na Wa te r Ba nking F und Histo ric a lly: • - T a x ra te ha s b e e n se t a t ma ximum 4 c e nts sinc e inc e ptio n - 100% o f the ta x wa s de po site d in the Arizo na Wa te r Ba nking F und thro ug h 2002 - T he ta x ha s b e e n re ta ine d b y CAWCD sinc e 2003 - 2003-2008 “OM&R fo r AWBA M&I firming ” - 2009 “OM&R fo r unde rg ro und sto ra g e ” - 2010-2011 “OM&R” - 2012 -2015 “OM&R o r Re pa yme nt” 8 5/19/2016 4

CAWCD “Wate r Stor age ” T ax (4-c e nt tax) T he re is a sing le ta x ra te fo r a ll thre e c o untie s • – Amo unts c o lle c te d in Pima a nd Pina l c o untie s a re c o nsume d a s q uic kly a s the y a re re a lize d fo r M&I firming b y AWBA – A b a la nc e ha s b uilt up fro m a mo unts c o lle c te d in Ma ric o pa c o unty in e xc e ss o f M&I firming ne e ds – I nte re st inc o me is a va ila b le to he lp fund AWBA o pe ra ting c o sts T he re stric tio n to e xpe nd funds fo r the b e ne fit o f the • c o unty in whic h c o lle c te d o nly a pplie s to funds tra nsfe rre d to the Arizo na Wa te r Ba nking F und I n 2014, a b ill wa s pa sse d in the Arizo na L e g isla ture • a utho rizing the AWBA to purc ha se lo ng -te rm sto ra g e c re dits 9 5/19/2016 CAWCD “Wate r Stor age ” T ax (4-c e nt tax) I n c o njunc tio n with the AWBA lo ng -te rm sto ra g e • c re dit a utho riza tio n, the CAWCD Bo a rd a ppro ve d a n a me ndme nt to the I GA with AWBA a nd ADWR tha t g o ve rns the wa y in whic h 4-c e nt ta xe s c a n b e use d to he lp pa y fo r suc h purc ha se s – T he CAWCD Bo a rd will c o ntinue to e stab lish the Wa te r Sto ra g e T a x ra te a nd use e a c h June unde r the e xisting sta tuto ry a utho rity – L a te r in the ye a r, AWBA ma y ma ke a re q ue st fo r so me a mo unt o f the Wa te r Sto ra g e ta x le vie d fo r the c urre nt ta x ye a r fo r the purpo se o f purc hasing lo ng -te rm sto ra g e c re dits AWBA has re que ste d $3 millio n fo r the Pho e nix AMA fo r 2016 – 10 5/19/2016 5