Castro Valley Incorporation Vote in November!

At its meeting of March 14, 2002 the LAFCo decided to proceed with recommending that a proposition be placed on the next November ballot asking the citizens of Castro Valley whether their community should become a city. The proposition would include certain conditions to which the citizens must agree; namely, the adoption of a transient occupancy tax (hotel room tax) and the continuation of the Utility Users Tax beyond its present termination date in 2008. With the addition of these two conditions the new city would be assured of adequate resources to meet all of its obligations for at least the next ten years.

Since these are not new taxes and do not place an added tax burden on local taxpayers, the C4CV is endorsing the findings of the LAFCo .  By a simple majority of the votes cast in favor of cityhood next November Castro Valley  would assume a major responsibility for governing itself. There are still some matters to be settled by the LAFCo before it can adopt its final position including the definition of boundaries for the new city and what the final comprehensive fiscal plan will contain. We are happy to report that the fiscal analyses involving projected revenues and expenditures are looking increasingly favorable and we anticipate that a new city will be able to meet all of its service obligations while accumulating prudent reserves.

On August 2, the first major step was taken to determine whether incorporation makes sense from an economic standpoint.  By unanimous vote, the Alameda County Local Agency Formation Commission (LAFCO) selected a financial consulting firm to perform the Comprehensive Fiscal Analysis (CFA).   Berkeley-based Economic and Planning Systems Inc. was awarded a contract not to exceed $97,920, which will be paid from a budget previously approved by the County Board of Supervisors. 

The commission will also appoint an incorporation study group.  This group of qualified Castro Valley residents will serve as resource to the consultant on such key issues as proposed boundaries and necessary municipal services.  43 applications were received by the commission. From those applicants, seven will be selected as members and seven as alternates.  The selection will be made after interviews and reviews by a LAFCO subcommittee composed of Supervisor Nate Miley and Oro Loma Sanitary District Director Herb Crowle.  It was emphasized by the commission that membership will be representative of all of Castro Valley, from both a geographical standpoint and a variety of opinions on incorporation.  The study group members will be announced at the commission's next regularly scheduled meeting on September 13 at 4:40 p.m. at the Dublin-San Ramon Service District board room, 7051 Dublin Blvd., Dublin.

At the LAFCO August 2 meeting, Executive Director Lou Ann Texeria provided the commissioners with a tentative timeline for the many activities that must take place between August 2001 and November 2002.  LAFCO staff will confer with the newly appointed CFA (Comprehensive Financial Analysis) consultant regarding the timeline.  Any adjustments will be reported in this c4cv.org web site as soon as they are known.  The Castro Valley Incorporation Study Group will provide local input, as necessary.  All meetings involving the study group will be announced in advance and will be open to the public. The following is the tentative timeline as of August 8 and covers August 2001 to the end of the year.  When things become more firm, we will bring you the entire timeline.

August-September 2001:   LAFCO releases year-end fiscal data.  This is critical to the CFA, as California law states, “...an incorporation proposal shall include a CFA using data from the most recent fiscal year. 

August-September 2001:  LAFCO  reviews with the CFA consultant the existing revenue neutrality policy.

September 2001:  LAFCO determines alternative boundary scenarios to be analyzed in the CFA.  (The number and complexity of such alternative boundaries can significantly impact the time involved in preparing the study.)

October 2001:  LAFCO initiates an environmental review, as necessary, with proper notice.  This might involve a consultant or be done entirely by the County planning staff.

January 2002:  If all goes as planned, the Preliminary CFA will be released to applicants, County staff and other interested parties for full, open discussion.

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