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

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2016/ 2017 Pr

• per

ty T ax R ates F inanc e , Audit and Powe r Committe e

Do ug Dunla p Ma y 19, 2016

Pr

• posals 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

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FAP Agenda Number 4. Attachment.

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CAWCD Pr

• pe 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

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CAWCD Ge ne r al Ad Valor e m Pr

• pe 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

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Sour c e s and Use s of F unds (Gener

al F und)

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Repayment Federal OM&R M&I OM&R Ag Pool OM&R Reserves Power & Basin Fund Revenues



   

M&I Capital Charges



   

Water Delivery Charges ‐ Federal





  

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

SOURCES USES

CAP Sources and Uses of Revenue Ge ne r al Ad Valor

em Pr

• pe 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

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4

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Pr

• pe r

ty T ax R e ve nue s vs. Ag Pr

• gr

am

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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”

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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

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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

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