Town of Olympic Valley Negotiation Process April 1, 2014

Incorporation Purpose To preserve and protect the spirit of our community by shifting the decision making from the county to the local level, by the people who live here, as a means of greater self-determination Specifically: Improve local services through local management More local control over land use, growth, planning policy Create a politically accountable governing body in a limited geographic area

Negotiation Team IOV Board of Directors Negotiating Team Vito Palermo (Finance) Robert Van Nort (City Government) Fred Ilfeld (IOV Chairman) Michael Colantuono (Legal) Collectively the team has: Been apart of the community for several decades Managed over $5B in fiscal budgets More than 30 years city manager experience and 4 new town incorporations And is one of the leading experts in California local government law

Process The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Act) establishes procedures for city incorporations LAFCO Olympic Valley Proponents Placer County Establish long term fiscal viability Determine revenue neutrality impacts and mitigation 1.Preparation of Comprehensive Fiscal Analysis (CFA) 2.Create Revenue Neutrality Agreement 3.LAFCO Hearing and Decision 4.Incorporation Election

Comprehensive Fiscal Analysis (CFA) LAFCO required by law to prepare CFA Gather Financial & Service Level data from all agencies serving proposed area of incorporation Analyze fiscal implications of proposed changes in services Town may choose between Full Service or Contract service model Establish base year revenue and costs (2012 – 2013) Calculate property tax transfer In proportion to the services transferred to new town Does not include revenue reserved by statute Develop multiyear (8 years) budget projections To determine long term feasibility * IOV Estimate based on data provided by Placer County

Revenue Neutrality Agreement The preliminary CFA determines the amount of the annual mitigation payment The negotiation process determines the terms and the duration of payments LAFCO has the power to dictate terms if parties (County & New Town) can’t agree The new city may have approximately the same revenue base to provide services that the county had prior to incorporation Any proposal should result in a similar exchange of both revenue and responsibility for service delivery among the county, the proposed town and other subject agencies Incorporations have generally resulted in terms designed to facilitate the new towns fiscal health

Timeline (Estimated) Responses to the CFA RFP are due April 7, 2014 The CFA Consultant will be selected at the LAFCO May 12th meeting. The contract will be developed after the consultant is selected. The Consultant will start the process in June and, with County providing timely responses, possibly providing an Administrative Draft in late September The issuance of the Administrative draft could be the starting point for the Revenue Negotiations in October- November. LAFCO Board, could conduct its initial review (Public) of the CFA at the December meeting, continuing the matter until the January,2015 meeting. At that time, the Consultant would be required to provide responses to the public, IOV and or County concerns in the Draft document. At the February or March 2015 LAFCO meeting LAFCO could place OV Incorporation on the ballot. The election would be held either in June and or a Special election. In either case, the effective date for Incorporation could be either July 1, 2015 or more likely October 1, 2015.

Decisions impacting future of town Service Levels of new town Negotiated Revenue Mix Stability and Growth of Tax Base Property Tax and TOT taxes

Required municipal services General Legislative functions Land use planning and control over land development Law enforcement Animal control Maintenance of public roads * all services except for General legislative functions may be contracted to 3 rd parties

Required County Services Special services (welfare, child protective services, etc.) Health services (medical care, mental health, public health) Criminal justice (courts, prosecution, jails, probation, etc.) Regional parks (in some cases) Elections and voters services General government (assessor, treasurer, recorder, tax collector, etc.)

More information IOV – LAFCO –