Contra Costa makes tentative deal with Chevron over $18 million property tax refund

Contra Costa Times ^ | 4/2/10 | Rick Radin

[SmithL]

Contra Costa has reached a tentative agreement to spread over two years payment of an $18 million property tax refund it owes Chevron Corp., easing the blow to the county general fund and the budgets of cities and local agencies.

The county and its agencies will make two payments. The first payment of $6 million will be due Aug. 1 and the second $12 million payment will be due a year later, said Supervisor John Gioia, who with county Administrator David Twa, negotiated the deal.

The county counsel is reviewing the deal to make sure no complications arise.

Cities will feel the bite in December 2011, when the share of the first $6 million they owe will be deducted from the property tax they receive from a county tax trust fund, said county Auditor Stephen Ybarra. The rest of the money will be deducted in December 2012.

Chevron also agreed to suspend interest on the debt, a key provision for the county, which wanted to cap its liability. Contra Costa was facing the expiration of an interest moratorium Thursday.

[Myrddin]

Chevron also agreed to suspend interest on the debt, a key provision for the county, which wanted to cap its liability. Contra Costa was facing the expiration of an interest moratorium Thursday.

Neat. Charging interest on the refund owed. More of us need to look into that.