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The Livermore Area Recreation and Park District filed a claim against East Bay Regional Park District Tuesday for allegedly violating a tax-sharing agreement, including misappropriation of tax revenue since 1992.
Since the voluntary agreement was reached 33 years ago, LARPD has transferred $110 million in property tax revenue from its service area in eastern Alameda County to EBRPD for regional park and trail services in the area, according to LARPD’s statement announcing the claim.
The Livermore park district alleges EBRPD has used less than 20% of the tax revenue consistently with the agreement, with a large portion spent on projects outside of LARPD’s boundaries.
LARPD’s claim states that it is entitled to damages as a result of EBRPD’s multiple breaches of the tax-sharing agreement including compensatory, consequential, restitution and incidental damages. EBRPD has 45 days to respond to the claim. If the matter remains unresolved after that time, LARPD will explore further steps to ensure the tax revenue is used “properly”, according to the statement.
“The tax revenue from local taxpayers should be invested locally to improve parks and trails for the benefit of the community, rather than being used for broader regional initiatives,” LARPD General Manager Mathew Fuzie said in a statement.
EBRPD did not respond to requests for comment as of Tuesday afternoon.
Per the tax-sharing agreement, EBRPD received $0.0075 per $100 assessed valuation for the LARPD service area, also known as Murray Township, during the fiscal years of 1993-94 and 1994-95. EBRPD’s share of the tax revenue grew over the next few years. Since the 2001-02 fiscal year (base year), EBRPD’s share has been calculated as $0.025 of the base year’s assessed valuation plus $0.030 per $100 of all assessed valuation growth over the base year thereafter.
According to LARPD’s claim, the tax-sharing agreement obligates EBRPD to use Murray Township tax revenues from LARPD on facilities within the jurisdictional boundaries of the township. LARPD alleges that EBRPD has used some of the revenue to operate and improve EBRPD facilities outside Murray Township, including Sunset Cliffs.
The claim also states that EBRPD agreed to use tax revenues to develop additional regional parks but has failed to do so. The “substantial tax revenues” EBRPD spent to improve and operate Del Valle Regional Park from 1998 to 2023 violated the agreement because Del Valle was not an “additional” or “future” regional park at the time of the agreement, according to the claim.
LARPD also claims EBRPD agreed to acquire, plan, develop and operate regional multipurpose trail segments from Shadow Cliffs to Del Valle with appropriate staging areas and access from Sycamore Grove and Veterans Park to Del Valle. EBRPD has not completed the trail segment and staging area work, the claim states.
In addition to allegations of improper spending, LARPD also contends EBRPD has failed to comply with the tax-sharing agreement regarding planning. In each EBRPD Master Plan review from 1992 to the present, EBRPD failed to adequately assess the Murray Township regional needs, include LARPD in the planning for all future regional facilities and acquisition and development within Murray Township and include citizens and organizations located within Murray Township in the planning process, according to the complaint.
LARPD filed the claim April 1, following the district’s call for an investigation in August 2024 of EBRPD’s tax revenue spending.
“Our issue with East Bay: that they’re getting money and they’re not providing services,” then-LARPD Chair David Furst said at an Aug. 14 Board of Directors meeting. “East Bay is taking our money.”
At the time, Fuzie said the board did not express the district’s position on the issue, as the board’s opinions were intermixed with data. But the district had been inquiring where EBRPD funds were being used within the Murray Township for years.
The two agencies then met Feb. 28 for a discussion facilitated by the Local Agency Formation Commission of Alameda County, an overseeing agency with authorities such as reviewing jurisdictional boundaries and ensuring the orderly formation of local government agencies.
EBRPD has stated that it has complied with the tax sharing agreement, according to a LAFCO staff report prepared for its March 13 regular meeting. While spending tax revenue from Murray Township exclusively within the township, EBRPD argued that the agreement does not require all funds collected from Murray Township within the jurisdiction. EBRPD also stated that it spends more in the township than it receives in revenues.
LAFCO encourages the agencies to engage in direct discussions regarding the terms and execution of the tax-sharing agreement to reconcile their differing viewpoints, LAFCO Executive Officer Rachel Jones said at the March 13 meeting. If the districts are unable to reach an agreement, they could consider mediation for legal review. The agency is available to facilitate discussions, if formally requested by both parties.
LAFCO requested that the park districts return in six months to give an update on the disagreement, Jones told Livermore Vine in a follow-up conversation. The timeline from LAFCO is independent of the 45-day response period LARPD offered in its statement.
“They both have different definitions of that agreement and they need to work together in understanding the correct language for that to come to a resolution,” Jones said.
LAFCO aims to have as limited involvement as possible, but if the districts cannot reach a resolution, LAFCO may review the dispute further, Jones explained. LAFCO could consider different jurisdictional boundary options which could mean a change of organization proposal or consolidation of one of the agencies.
