CHAIRMAN
George Gaekle -  Former City Manager and County Administrator
Patricia Burke - Castro Valley Resident
Pat Devine - Castro Valley Resident
Mickey Hansen - Castro Valley Resident
Ken Mercer - Mayor, City of Pleasanton and LAFCO Commissioner
Steve Salomon - City Manager, City of Albany
Peter Snyder - Councilman, City of Dublin and LAFCO Commissioner
Sal Tedesco - Castro Valley Resident 

SUMMARY OF FISCAL FEASIBILITY FINDINGS

If the city assumes responsibility for municipal services including the Castro Valley Fire Protection District (Table IV), the city would incur a deficit the first full year of operation of $1,350,909. Therefore, incorporation is not feasible under this situation despite being the preferred organizational option.

Under an organizational option without the Fire Protection District (Table V), the city would have an annual net balance of $548,059 the first full year of operation. Under this organizational structure, the Committee found that the City would satisfy the legal requirements under state law; namely, the ability to meet three years of financial obligations for identified services and provide for a reasonable reserve.

Over the long run, the City Council will need to be prudent and cautious in its financial management. While the City is financially feasible, without the fire district, they will still have to make a concerted effort to maintain revenues and plan for the loss in eight years of $1.6 million in State subventions (see Appendix I).

The Committee believes the loss can be made up since the City will no longer be responsible for the 5-year transition cost annually estimated at $1,099,417 and is expected to have generated an annual operating surplus averaging approximately $500,000 per year. However, the City will still need to examine options for cost efficiency (such as consolidation of police and traffic investigation) and look at revenue enhancements such as development fees or other sources of revenue.