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HomeMy WebLinkAboutMINUTES - 04221986 - 1.23 � w TO BOARD OF SUPERVISORS FROM: Phil Batchelor, County Administrator nwt ra DATE: April 16, 1986 CWIQ SUBJECT: Legislation: Senate Bill 1863 (Bergeson) SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION• Adopt a position of support for SB 1863 by Senator Bergeson. BACKGROUND: Existing law requires Local Agency Formation Commissions to determine the number of registered voters residing within an area proposed to be incorporated. Existing law also requires the State Controller to distribute a specified percentage of the vehicle license fees and gas taxes collected by the State in proportion to the population each city bears to the total population of all cities in the State. However, for newly incorporated territory, the Controller is required to ascertain the population by multiplying the number of registered voters by three ( 3 ) . This method of determining the population of a new city can substantially distort the actual population and thereby distort the projected revenue which will be received by the city in the long run. An area proposing to become incorporated which has a high level of voter registration and relatively few minor children will tend to show a projected population using registered voter figures substantially higher than the actual population. Through this mechanism, a newly incorporated city will receive substantially more revenue than would be the case if actual population figures were used. This holds true until the completion of the next census, at which time the new census figures are used. This can result in a substantial reduction in revenue to the city based on the census figures. Senator Bergeson has introduced SB 1863 which requires that the population research unit within the Department of Finance determine the population of a proposed new city both for LAFCO' s purposes and for the Controller' s use in distributing vehicle license fee and gas tax revenues. Since the use of Department of Finance figures is typically used for most other population estimates, it appears more accurate to utilize these figures than to rely on a formula based on the number of registered voters. CONTINUED ON ATTACHMENT: _ YES SIGNATURE: X RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE X APPROVE OTHER SIGNATURE(S): ( G""""/ 11Kl /6� ACTION OF BOARD ON April 22, 1986 APPROVED AS RECOMMENDED OTHER _ VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. County Administrator cc: Exec. Officer, LAFCO ATTESTED ! 4 Auditor-Controller PHIL BA CHELOR, CLERK OF THE BOARD OF Senator Marian Bergeson SUPERVISORS AND COUNTY ADMINISTRATOR Kathy Snodgrass, Jackson/Barish M382/7-83 BY ,DEPUTY S \» Page 2 In addition, SB 1863 eliminates the maximum fee which can be charged by LAFCO for processing an application. The law would continue to allow LAFCO to charge only the amount actually necessary to cover LAFCO' s costs in providing the service. Because SB 1863 uses a more objective and accurate method of projecting the population for a proposed incorporation and distributes revenue more accurately, it is the recommendation of this office that the Board support SB 1863 . In addition, the bill deserves the Board' s support since it removes the artificial limitation on the fee which can be charged by LAFCO thereby allowing LAFCO' s fees to more accurately cover the total cost of processing an application. This may have the effect of reducing General Fund expenditures for LAFCO.