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TaxSharingAgreement

LARPD Tax-Sharing Agreement with East Bay Regional Park District

This page will continue to be updated as new information becomes available. 

Background:

In 1992, LARPD entered into an agreement with the East Bay Regional Park District (EBRPD) in which LARPD agreed to share a portion of its property tax revenue for the purposes of EBRPD's acquisition and development of new regional parks, open space, and trails within LARPD’s service area.

Issue:

Rock formations with green grass and moss under a cloudy sky.

EBRPD has not adequately invested the property tax revenue into developing parks, open spaces, and trails in LARPD's service area as required by the agreement. EBRPD argues the funds can be used for any purpose, even outside LARPD's service area.

What About Del Valle?

While the Del Valle Regional Park is within LARPD’s service area, it is exempt from this agreement as it is governed by a separate contract with the State of California and existed prior to the agreement which means it is not considered a “new” facility.

Revenue Implications:

EBRPD has received $110 million from LARPD's service area through the tax-sharing agreement, representing:

  • 2.9% of EBRPD’s Total Revenue: The amount EBRPD receives from this agreement represents just 2.9% of their total annual revenue.
  • 60% Increase in LARPD’s Tax Revenue: If LARPD were to receive these funds, it would result in a 60% increase in LARPD’s annual tax revenue, significantly enhancing its ability to serve residents in LARPD’s service area.
  • Less than 20% of Funds Spent as Intended in Agreement: To date, EBRPD has invested only 19.9% of the funds in local projects consistent with the agreement, meaning less than 1 in 5 dollars have been used as intended.

Current Disagreement:

LARPD and EBRPD have differing interpretations of the agreement's terms. LAFCO has reviewed the situation and suggested both agencies continue discussions to resolve the issue. If an agreement can't be reached, LAFCO recommends arbitration or seeking a judicial ruling on the intent and legal obligations of the parties under the tax sharing agreement.

LAFCO Review of Funds Spent Related to Tax Sharing Agreement in LARPD Service Area

Alameda LAFCo (Local Agency Formation Commission), which oversees local government agreements to ensure fair resource sharing and sustainable service delivery, has requested that EBRPD provide a detailed accounting of the property tax revenue received from the LARPD service area, along with an explanation of how these funds have been allocated within that area.

LARPD is committed to providing the community access to all the details about this issue to ensure taxpayers are receiving the services that had been agreed upon in the tax-sharing agreement with EBRPD.

Update 2/4/2025:

LARPD and EBRPD have submitted detailed revenue and expense information pertaining to LARPD Service Area (Murray Township) to Alameda LAFCo for review. Discussions between LARPD and EBRPD are scheduled to take place in February. This item is slated to be on the agenda for the March 13, 2025 LAFCO meeting.

Update 3/13/2025:

Alameda Country LAFCo shared new suggestions March 13 regarding the tax-sharing agreement. LAFCO suggests that LARPD and EBRPD continue discussions to resolve their differing interpretations of the agreement. If differing viewpoints related to the agreement cannot be reconciled, LAFCO notes that options for next steps include mediation or arbitration.

Next Steps (Update 4/1/25)

LARPD has filed a claim against EBRPD to resolve the tax-sharing agreement. EBRPD has 45 days to respond to the claim. If the issue is not resolved within that time, further steps may be taken to ensure a resolution.

Frequently Asked Questions:

Why did LARPD enter into the tax-sharing agreement with EBRPD? 

In 1992, the LARPD Board of Directors entered into an agreement with EBRPD with the belief that EBRPD would be better equipped to manage and deliver certain regional park services within the LARPD service area.

At the time, this partnership was expected to provide a more effective and efficient approach to managing park resources in the area.

Additionally, in 1992, the amount of funding received by EBRPD under the agreement was more aligned with the direct contributions back to the LARPD service area, ensuring a fair return for the services provided.

What has changed since LARPD entered into the tax-sharing agreement with EBRPD? 

LARPD has raised concerns about the effectiveness of the agreement and believes that the share of property tax revenue that EBRPD receives is not being sufficiently invested in the acquisition and development of regional parks, open space and trails in LARPD’s service area – as is required in the agreement. 

In response, Alameda LAFCo (Local Agency Formation Commission) has requested a full accounting of the property tax revenue received from the LARPD service area and how those funds have been allocated.

What is the difference between a tax exchange and a tax-sharing agreement? 

A tax exchange agreement determines how future tax revenues are redistributed when jurisdictional boundaries change (i.e., during annexation). A tax-sharing agreement outlines how tax revenues from a specific area are divided between agencies. LARPD’s agreement with EBRPD is a tax sharing agreement, where funds are expected to support local park and recreation improvements within LARPD’s service area.

Questions:

If you have questions about this matter, please contact info@larpd.org. 

Additional Information:

We encourage community members to learn more about this important issue. You can find additional details and background information in the following two documents from 1992: