What’s Ahead Why LAFCo was created LAFCo’s role and functions What are MSRs and SOIs, and why do them anyway? Special District Issues Your questions

Promote orderly growth Prevent sprawl Preserve agriculture and open space Assure efficient, sustainable public services

What Does LAFCo Do?? Creates new cities and special districts Changes boundaries Changes authorized services Allows service extensions Performs municipal service reviews Reorganizes local agencies

Why Create a LAFCo? Post World War II population and housing boom in California Street car suburbs; scramble to finance and extend services City annexation "wars;" proliferation of limited purpose special districts Confusion with multiple local governments

Cover

1970 19,953,134 1980 23,667,902 1990 29,760,021 2000 33,871,648 2009 36,961,664 Nightmare

Chaos

Legislative Solution (1960 to 1963) No state commission or statewide agency Local control; no state appointments A LAFCo in every county Each LAFCo independent

Nearly 50 Years of LAFCo 1963 – Knox Nesbitt Act 1965 – District Reorganization Act 1971 – Spheres of Influence 1972 – Districts seated on LAFCo 1985 – Cortese Knox Local Government Reorganization Act 2000 – Cortese Knox Hertzberg Local Government Reorganization Act

Commissions a Unique Mix 29 LAFCos with Special District Members 2 county supervisors, 2 city council members, 1 public member 29 LAFCos have 2 special district board members An alternate member for each category Members required by law to represent interests of all the public

Jurisdiction Includes: Does NOT include: Counties, cities, most special districts Does NOT include: Redevelopment agencies or JPAs Community facilities or Mello-Roos districts School or college districts County boundary lines Bridge and highway districts Transit or rapid transit districts Improvement districts

As a PLANNING Agency Develop and update Spheres of Influence for cities and districts Prepare Municipal Service Reviews for all local agencies Work cooperatively with public and private interests on growth, preservation and service delivery

As a REGULATORY Agency Manages modification of existing agencies and creation of new ones Approves boundary changes if consistent with spheres Controls extension of public services Is prohibited from directly regulating how land is used, but …

LAFCos Are Independent Commissioners make final decisions Decisions cannot be appealed Adopt local policies Executive Officer accountable to commission and statutes Administrative authority as an independent public agency

LAFCo is Funded Locally Must adopt a budget each fiscal year Funded by the county, cities and special districts in equal thirds Local funding formulas allowed Processing fees help offset expenses

The Courts Support LAFCo Authority Engaged in the pursuit of an overriding State purpose Is quasi-legislative; limited legal challenge to decisions Determinations vs. findings Is the Legislature’s “watch dog” on local governments

The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000

Spheres of Influence §56425 (a) “… the commission shall develop and determine the sphere of influence of each local governmental agency within the county and enact policies designed to promote the logical and orderly development of areas within the sphere.”

Typical Sphere of Influence Map

Spheres of Influence §56425 In determining the SOI the commission considers … Present and planned land uses, including agricultural and open-space Present and probable need for public facilities and services Present capacity of public facilities and adequacy of public services Existence of any social or economic communities of interest

Spheres of Influence §56425 (g) “The commission may recommend governmental reorganizations to particular agencies in the county, using the spheres of influence as the basis for those recommendations.” (added in 2001)

Municipal Service Reviews §56430 “In order to prepare and to update spheres of influence in accordance with Section 56425, the commission shall conduct a service review of the municipal services provided in the county or other appropriate area designated by the commission.” Added in January, 2001

Service Reviews Have Details §56430 Growth projections Present and planned capacity Financial ability of agency Shared facilities Accountability Other matters

When Are SOI/MSRs Done? All spheres updated by 1 January 2008 Subsequent reviews every five years, as necessary 1 January 2013 next deadline MSR required with sphere update

District/LAFCo Issues on the Horizon Viable local agencies and services Consolidation of agencies Regional planning – SB 375 Infrastructure and capacity Urbanization outside of cities Disadvantaged unincorporated communities

Special Districts on LAFCo: Why, Why Not, & How

Why be on LAFCo? Gain a seat at the table If you’re not at the table, then you are on the table Special Districts are becoming more visible; concerns Bring district perspective to LAFCo policy discussions

Districts Benefit from Serving on LAFCo Special Districts have two votes in LAFCo deliberations LAFCo Policies Annexations & reorganizations of cities and districts MSR and Sphere of Influence decisions Latent powers of districts District consolidations and dissolutions

Districts Benefit from Serving on LAFCo LAFCo is the ONLY venue where special districts can fully participate equal to cities and the county All special districts gain stature when seated on LAFCo Build better relationships with county supervisors and mayors

LAFCo Benefits from Districts Districts bring a perspective distinct from general governments Districts are service-focused and bring knowledge of infrastructure Districts are often more in tune with the spirit and intent of LAFCo law Districts alter the dynamics between the county and cities

Cost of Being Seated on LAFCo CSD, San Luis Obispo County - 0.37% $19,756 of $5.3 million O&M budget CSD, Santa Barbara County - 0.09% $1,242 of $1,346,587 O&M budget 56381(1)(a): LAFCo is funded one-third each from the county, cities and independent special districts Can be negotiated . . .

Changes to Districts: No longer “just a small district” Changes the balance of power There will be change, and by being at the table, you have a vote and a voice in the process

On-Line Resources www.calafco.org

Information and resources on LAFCo law and process www.calafco.org Information and resources on LAFCo law and process