Good news arrived at Fillmore City Hall Tuesday. The long awaited decision of the 5 member California Board of Equalization regarding the issue of tax sharing has issued in favor of the City of Fillmore.

The City of Industry and the City of Livermore petitioned the Board in October of 2007 to invalidate a contract Fillmore entered into with MTS Consulting LC, Inspired development LLC, and Ryan and Co. concerning Owens and Minor, a Virginia based Fortune 500 company, to share sales tax revenue. Fillmore has won at every legal and procedural step. The plaintiffs filed suit in September of 2008 to have the contract set aside.

That lawsuit is still on appeal by the plaintiffs, but according to City Attorney Ted Schneider this should not prevent Fillmore from receiving the tax money which has been withheld for about two years. Continuance of the appeal remaining in Los Angeles Superior Court is now essentially baseless.

60 days remain for plaintiffs to appeal this final decision of the Board of Equalization, and the funds are expected to be released to Fillmore shortly thereafter. The duration of the existing contract is for 20 years and will produce approximately one million dollars per year during that time. It is expected that Fillmore will receive more than $2 million when the tax revenues now withheld are finally released. These funds may reestablish Fillmore’s reserve.

For years the city’s previous council and city manager, Roy Payne, have received harsh and unrelenting criticism from council members Gayle Washburn, Jamey Brooks, and recently elected Brian Sipes, for entering into this contract. This latest validation of the tax contract reveals the criticism was misplaced and that the contract was entered into by the city only after considerable and careful study by the city’s legal counsel. This outcome is a significant financial victory for the previous council and the city as a whole. More details of this decision will be made available as documentation is received.