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Sacramento Local Agency Formation Commission (LAFCo)

Incorporation and Annexation Process A Comparison November 1, 2005. Sacramento Local Agency Formation Commission (LAFCo). LAFCo Contact Information. Peter Brundage 874-5935 peter.brundage@saclafco.org Sac LAFCo (Web Site) www.saclafco.org League of Cities (Web Site) www.cacities.org

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Sacramento Local Agency Formation Commission (LAFCo)

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  1. Incorporation and Annexation Process A Comparison November 1, 2005 Sacramento Local Agency Formation Commission (LAFCo)

  2. LAFCo Contact Information • Peter Brundage 874-5935 • peter.brundage@saclafco.org • Sac LAFCo (Web Site) www.saclafco.org • League of Cities (Web Site) www.cacities.org • Office of Planning and Research (Web Site) www.opr.ca.gov Sacramento Local Agency Formation Commission (LAFCo)

  3. LAFCo • LAFCo is a Commission created by the State Legislature • Oversees incorporations and annexations, formation of districts and consolidations of local government • Evaluate service delivery issues and costs • 7 Commissioners • Regional perspective Sacramento Local Agency Formation Commission (LAFCo)

  4. Incorporation • 25% of Registered Voters of affected territory must sign a petition within 6 months, or • Legislative Body may adopt a Resolution Making Application • Incorporation Committee will submit a Master Service Element • Who and How will municipal services be provided • Park, fire, water, sewer, flood control, etc. Sacramento Local Agency Formation Commission (LAFCo)

  5. Incorporation – LAFCo Process • LAFCo prepares an environmental analysis • Prepare a Comprehensive Fiscal Analysis • Prepare Executive Officer’s Report and recommendations • Conduct Public Hearings • If approved, LAFCo will call the election Sacramento Local Agency Formation Commission (LAFCo)

  6. Comprehensive Fiscal Analysis • LAFCo must determine if the city is financially viable, i.e., similar level of service at substantially similar service cost • LAFCo must determine whether or not the city will be required to make a Revenue Neutrality Payment to the County. • Surplus revenue over costs • Term about 25 years Sacramento Local Agency Formation Commission (LAFCo)

  7. General Law v. Charter Cities • California has 478 cities • 108 Chartered • 370 General Law cities • 80% of Residents live in cities • Charter Cities allow for special situations based on local conditions Sacramento Local Agency Formation Commission (LAFCo)

  8. Charter Cities • A charter can only be adopted or changed by a majority of residents living in the city • Citizens can establish the terms and number of council members or impose other limitations upon their city council through a charter provision • State Constitution allows City Charters to provide sub-governments in all or part of a city (township/borough concept) Sacramento Local Agency Formation Commission (LAFCo)

  9. Annexation Process • 5% of Registered Voters in affected territory must sign a petition, or • The City may adopt a Resolution Making Application • No election is required unless there is protest Sacramento Local Agency Formation Commission (LAFCo)

  10. Annexation Process • LAFCo conducts environmental review • City prepares Master Services Element • LAFCo conducts analysis • City and County must agree to a Property Tax Sharing Agreement • If approved, no election is required unless LAFCo receives 25% or more protest from registered voters living in the territory to be annexed Sacramento Local Agency Formation Commission (LAFCo)

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