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HomeMy Public PortalAboutTown Incorporation ReportReport TOWN OF TRUCKEE A REPORT ON THE ALLOCATION OF PROPERTY TAXES IN SUPPORT OF COSTS BEING TRANSFERRED TO THE TOWN BY THE COUNTY OF NEVADA UPON THE TOWN'S INCORPORATION FOR THE BASE YEAR 1990-91 AND THE CALCULATION OF PROPERTY TAXES DUE TO THE TOWN OF TRUCKEE FOR THESE TRANSFERRED COSTS FOR THE INITIAL FISCAL YEAR 1993-94 APRIL 1 995 III Management ~l Services Insti~ulre INCOR PO RATED Managernent Services Institute 2521 W LA PALMA A VENUE, SI U?~ A, ANAHEIM. ('A 92801 (71 I) 22(I- 1717 b~X: (71 I) 229-9I 12 April 25, 1995 Mr. Stephen Wright, Town Manager Town of Truckee 11570 Donner Pass Road Truckee, CA 96160 Mr. Wright, This report fulfills Component I of our contract with the Town of Truckee to examine the property tax transfer by the County of Nevada to the Town. MSI has determined that the Town is projected to receive $2,645,966 in property taxes in fiscal year 1993-94, as compared to $2,127,778 which the County has projected. The differences come in the following areas: 1) Building Inspection, Sheriff, and Road Maintenance costs were increased to take into account alternate methods of calculating the costs. 2) There was a minor adjustment made in the percentage of property taxes in support of transferred service costs. Property tax penalties were allocated to "Property Tax Revenues" instead of "Other Revenues", resulting in an increase of the percentage from 58.49% to 60.68%. We recommend that the Town of Truckee negotiate with the County of Nevada in order to obtain the additional taxes caused by the underestimate of the payments for 1993-94 as projected in this study. This, of course, will have a significant impact into the future, as the compounds for these years will build upon what is agreed upon for 1993-94. We will be available if there are any questions regarding this report or future course of action to be taken. Respectfully Submitted, Owen O. Olsen Eric S. ~hnson Vice President Principal Analyst MEMORANDUM DATE: April 20, 1995 TO: Town Manager Stephen L. Wright Town Attorney Dennis Crabb FROM: SUBJECT: Government Code Section 57384(b) - Reimbursement to Nevada County You have requested my opinion as to the meaning of Government Code Section 57384(b) as it relates to County reimbursement. That section provides, in substance, the Town is required to reimburse Nevada County the net cost of post incorporation services if LAFCo so orders. Those costs are determined under the formula set forth in Section 56842(2)(a). It is my understanding that Nevada County is now arguing that the LAFCo determination is conclusive, notwithstanding that subsequent actual cost data shows the original estimates were excessive. If the legislature intended that to be so, they had every opportunity to say so ~- they did not. Nowhere in the statute or in any legislative history I can find is the LAFCo decision made final and binding. ~f such legislative history exists, the burden is upon Nevada County to produce it, particularly in light of the statements of the LAFCo staff that there was no agreement and that these were understood to be estimates at the time of their decision. If the County believes the Town's analysis to be incorrect, they are certainly free to request reconsideration by LAFCo. However, there is, no legal authority which I can find for the proposition that the Town is liable for more than the actual cost, whatever the LAFCo determination may have been. If there are any further questions, please let me know. T~BLE OF CONTENTS Description Tab Amount of Property Tax Transfer 1 Calculation of Auditor's Ratio 2 Calculation of Incremental Changes in Tax Rate Areas 3 Calculation of Transferred Costs 4 Calculation of Costs - Building Inspection 5 Calculation of Costs - Sheriff 6 Calculation of Costs - DOT-Road Maintenance 7 Detail of County Service Area Property Tax Revenues 8 Property Tax Allocation Factors 9 Comprehensive Fiscal Analysis for the Proposed Town of Truckee, Prepared by LAFCO, June 1992 10 Special Procedures Examination by Lund & McSweeney 11 Implementing Resolutions and Ordinances 12 Government Code Section 56842 & 56842.2 13 MEMOI~tNDUM DATE: April 20, 1995 TO: Town Manager Stephen L. Wright FROM: Tovvn Attorney Dennis Crabb ~:~ SUBJECT: Government Code Section 57384(b) - Reimbursement to Nevada County You have requested my opinion as to the meaning of Government Code Section 57384(b) as it relates to County reimbursement. That section provides, in substance, the Town is required to reimburse Nevada County the net cost of post incorporation services if LAFCo so orders. Those costs are determined under the formula set forth in Section 56842(2)(a). It is my understanding that Nevada County is now arguing that the LAFCo determination is conclusive, notwithstanding that subsequent actual cost data shows the original estimates were excessive. If the legislature intended that to be so, they had every opportunity to say so -- they did not. Nowhere in the statute or in any legislative history I can find is the LAFCo decision made final and binding. ~ such legislative history exists, the burden is upon Nevada County to produce it, particularly in light of the statements of the LAFCo staff that there was no agreement and that these were understood to be estimates at the time of their decision. If the County believes the Town's analysis to be incorrect, they are certainly free to request reconsideration by LAFCo. However, there is, no legal authority which I can find for the proposition that the Town is liable for more than the actual cost, whatever the LAFCo determination may have been. If there are any further questions, please let me know. X Managernent Services Institute 252I W LA PALMAAVENUE, ,~4UITEA, ANAtlEIM ('A92~(1! (7~4)220 1717 FAX(714)220 9112 April 28, 1995 Mr. Steve Wright Town of Truckee 11570 Donner Pass Road Truckee, CA 96161 Steve, You have asked us to comment on the status of the Building Department Trust Funds set up by the County. Based upon the September 2, 1993 letter from Larry Hogle to Denis Coliten these are the facts: - There are two funds with the following fund balances as of April 1, 1993: Old Trust Fund (376) $1,286,413.15 New Trust Fund (322) $ 747,230.01 - The percentage of permit revenues related to the Truckee office for 1990 through 1993 was 32.62%. - The revenue related to active permits that were in the Town of Truckee on the date of incorporation for each fund was as follows: New Trust Fund (322) Time and Materials Permits $ 16,238.62 Flat Fee Permits $ 90,483.92 TOTAL: $106,722.54 Old Trust Fund (376) Time and Materials Permits $ 14,533.70 Flat Fee Permits $ 27,731.84 TOTAL: $ 42,265.54 COMBINED TOTAL: $148,988.08 Since the fund balances represent all revenues related to building permits it follows that the Town's share of that fund balance would be its share of the revenues it put in. The best estimate we have of the Town's share is its share of the total revenues related to the Town for the years 1990 through 1993, which has been calculated at 32.62%. Therefore, the Town's share of the two fund's fund balance should be as follows: Fund Total times 32.62% New Trust Fund (322) $ 747,230.01 $243,746.43 Old Trust Fund (376) $1,286,413.15 $419,627.97 COMBINED TOTAL $2,033,643.16 $663,374.40 The Town's share of the two Building Department Trust Funds should be $663,374.40, which represents the Town's share of all the revenues in the trust fund and not just those revenues for active projects, which is only $148,988.08. It is this higher number which we feel in equity is the Town's fair share of the Building Department Trust Funds. It is understood that the County has held these monies in the trust funds to be used solely for providing Building Inspection services to the County areas. Consequently, if this sum is "inherited" by a transfer to the Town, this same obligation would be "inherited" also. These numbers include all funds up to incorporation. A separate analysis would have to be performed for funds due and services rendered, if any, after incorporation. If there should be any further questions on this matter please do not hesitate to call. Sincerely, Eric S. ohnson Principal Analyst AMOUNT OF PROPERTY TAX TRANSFER Based upon this report, the property taxes due to the Town of Truckee for the fiscal year 1993-94 reflects an increase over those calculated by the County of Nevada. The primary cause of this change is differences in the cost of services being transferred to the Town of Truckee. Another element is a minor change to the Auditor' s Ratio based upon a reclassification of the Property Tax Delinquencies. Tab #2 of this report supports this revised calculation. MSI Position - MSI used alternative methods of determining the costs for transferred services. The attached MSI summary of these costs was estimated at $2 , 672 , 138, rather than the $2, 067 ,432 estimated by the County, a net increase in costs of $604 ,706. Tab #4 of this report supports this revised calculation. In accord with the California Government Code, the costs of transferred services were then multiplied by the adjusted Auditor' s ratio of 60 . 68% to arrive at the Base Year property tax transfer of $1, 621,453 . This transfer along with the CSA transfer were then increased by the Assessed Valuation Incremental Factors to arrive at the Cumulative 1993-94 Property Tax Transfer (Refer to Schedule 1) . County Position - The LAFCo Report calculated the cost of transferred services at $2 , 067 , 432 . These costs were then factored by the Auditor' s Ratio (which is elaborated on in Tab #2 of this Report) of 58 . 49%, to arrive at a base year property tax transfer of $1, 209 , 185 (Refer to Schedule A) . However, as can be seen on the attached Schedule B, column h, the Town's Base Year is calculated at $1, 205, 185, which is the amount in the LAFCo Resolution, a minor $4 , 000 difference. The County then increased the base year costs for increases in Assessed Valuations (Detail on these calculations is included in Tab #3 of this Report) for a total General Fund Transfer of $1, 678, 939 on Schedule B, Column (o) . The County then added in the costs for the CSA' s and calculated the Property Tax Transfer (after the ERAF Shift) to be $2 , 127 ,778, as can be seen on the attached Schedule C, column R. MSI has calculated the transfer to be $2,645,966, according to the attached Schedule 1. It is this amount which MSI feels is the Town's fair share of Property Taxes for 1993-94. FILE NAME: TAX DIF2.WK1 TOWN OF TRUCKEE DIFFERENCE IN TAX SHIFT POSITIONS BETWEEN THE COUNTY AND MSl MSI CALCULATION: CUMULATIVE 93-94 PROPERTY TAX $2,645,9661 FROM SCHEDULE 1 COUNTY CALCULATION: CUMULATIVE 93-94 PROPERTY TAX $2,127,7781 FROM TAXES- 94.XLS DIFFERENCE W c~rrr~ W I~- iii co -r'~-- ~0 z <~ zzz ~...~ 1.1- W LU U-I Z ~ ZZZ ~_ k-m:~ C) 00000 ~-~- 000 FILE NAME: CST SUM2.WK1 TOWN OF TRUCKEE SUMMARY OF TRANSFERRED COSTS FY 1990-91 COUNTY MSI ADJUSTED CALCULATED DEPARTMENT NET COST NET COST DIFFERENCE BOARD OF SUPERVISORS $27,125 $27,125 $0 BUILDINGS AND GROUNDS $0 $0 $0 SHERIFF $1,590,969 $1,737,926 $146,957 BUILDING INSPECTION $0 $110,713 $110,713 PLANNING AGENCY $3,976 $3,976 $0 PLANNING DEPARTMENT $101,967 $101,967 $0 ANIMAL CONTROL $167,189 $167,189 $0 DOT-ROAD MAINTENANCE $176,206 $523,242 $347,036 $2,067,432 $2,672,136 $604,706 ADJUSTED AUDITOR'S RATIO 60.68% TRANSFER FROM GENERAL FUND $1,621,453 FILE NAME: CSA DTL. WK1 TOWN OF TRUCKEE DETAIL OF CSA PROPERTY TAX REVENUES FY 92- 93 COUNTY NEW PROPERTY INCLUDE MSI AREA TAXES HOPTR TOTAL CSA 4 $450,751 $11,074 $461,825 CSA 5 $2,701 $53 $2,754 CSA 6 $607 $13 $620 CSA 7 $0 $0 $0 CSA 8 $0 $0 $0 CSA 9 $0 $0 $0 CSA 10 $308 $1 $309 CSA 11 $669 $8 $677 CSA 19 $0 $0 $0 CSA 35 $0 $0 $0 $455,036 $11,149 $466,185 COUNTY PROPERT'Y TAXES INCLUDES CURRENT SECURED & UNSECURED, PRIOR YEAR, SUPPLEMENTAL, AND PENALTIES AND INTEREST ON TAXES. APP£NDI'X A: MZTHODOLOGY Ai'fD ASSUMPTIONS USED lIN 'TH]E COMPREHZNSIlrE FISCAL ANALYSIS Table A-I S~RY OF COST OF SERVICES IN TRUCKEE Truckee Incorporatioa Comprehensive lr~scal Analysis (Actual Fmc. al Year 1990/91 Dollars) Budget Proposed Oescript io~ Unit 8e~dary 8oard of St~oervlsors 501 $27,125 Buildings a~ Gr~ S~ ~ Sheriff 565 S1,590,969 aui tdi~ Ins~cti~ 576 ~ Pta~J~ Ag~y 581 S],976 P~ Oe~r:~t 5~ S101,967 Ani~[ Control 596 S167,189 DOT - Road Nain:e~e 895 s176,206 Total Cost of Services Provid~ s~,067,h32 By Hevada Co~ty Total Transfer Arrt0ca~t Frcm Truckee $1,66~,28~ I CSA #'~1 serving the Tahoe-Oo~qer CArea S) area, represents close to IOOX of :he property tax being trar~ferre~ to the To~n's Genera[ F~r~ frc~ CSAs. Source: Nevada County Auditor Controller's Office. CFA Version 04: .Tune 23, 1992 - 50 - CALCULATION OF AUDITOR'S RATIO In analyzing the original calculation by the County of Nevada in determining the percentage of property taxes in support of the services to be transferred to the newly incorporated Town of Truckee, the basic format conformed to state requirements. The difference between the County's original analysis and the recalculated percentage was in the following specific application: Property Tax Penalties were classified as "General Purpose" revenues rather than "Property Taxes". On its face these revenues are derived from the proceeds of taxes and should be so categorized in support of the transferred services. This involved an increase of $518,811 in property taxes and a corresponding reduction in other revenues. Based upon this correction, the Town of Truckee's share of property tax percentage goes from the original county determination of 58.49% to the recalculated 60.68% of property tax support for the transferred services. The "Other Revenues" column on MSI's analysis has been extrapolated from the Auditor-Controller's attached worksheet as those revenues not classified, and they total $9,829,076. FILE NAME: AUDRATIO.WK1 TOWN OF TRUCKEE PROCEEDS OF TAXES FISCAL YEAR 1990-91 PROPERTY OTHER EXCLUDED REVENUE SOURCE TAXES REVENUES REVENUESI TOTAL ADJUSTED TOTALS $13,848,215 $9,829,076 $22,342,752 $46,020,043 RECLASSIFICATION: PROPERTY TAX PENALTIES $518,811 ($518,811 ) $0 RECLASSIFIED TOTALS $14,367,026 $9,310,265 $22,342,752 $46,020,043 PERCENTAGE PROPERTY TAXES $14,367,026 60.68% OTHER REVENUES $9,310,265 39.32% TOTAL GENERAL PURPOSE REVENUES $23,677,291 100.00% COUNTY OF NEVADA BRUCE A. BIELEFELT Auditor-Controller Eric Rood Adm. Bldg. 950 Maidu Avenue P.O. Box 6100 Nevada City, CA 95959-6100 (916) 265-124~ June 22, 1992 Ms. Jan Bagel, Executive Officer Nevada County LAFCO Post Office Box 6100 Nevada City, CA 95959 -- RE: Auditor's Ratio for the Incorporation of Truckee Dear Ms. Bagel: In accordance with Section 56842 of the Government Code, the Auditor's ratio relative to the incorporation of the town of Truckee has been determined to be 58.4873 percent. The Auditor's ratio provided to you in November 1991 was a preliminary figure that did not include audit adjustments to the 1990-91 financial statements that we received after the calculation nor had the ratio been reviewed by a CPA. The 58.4873 percent ratio includes audit adjustments and recommendated reclassification of some revenue by Ed McSweeney, CPA · For the Commiss-ion's informat'ion, I have attached a cop~ of the spreadsheet that supports this calculation. Please let.:m~, know if you need further assistance. Sincerely, DAVID L. FELT~OUSEN Assistant Auditor-Controller DLF: I f Trke. ratio, ltr '9~ 15:39 LU~D ~ S~NEDULE ~ ACTUAL PROPERTY RESTRICTED COST DESCRIPTION .R. EVENUE TAX REVENUE RECOVERY REF COUNTY CALCULATION 46,151,131 13,848,215 17,715,196 , 2.2.49,539 ADJUSTMENTS: SALES TAX 242,800 1 INTEREST (18,769)-y 1 ACCOUNT 40070 69,642 2 ACCOUNT 45010 1,307,564 2 ACCOUNT 45020 5.110 2 ACCOUNT 45100 330,755 2 ACCOUNT 45150 89,586 2 ACCOUNT 45330 14,731 2 ACCOUNT 4536O 13,969 2 ACCOUNT 45510 534,660j 2 ACCOUNT 45550 28,564 2 ACCOUNT 45770 105,895 2 ACCOUNT 45790 124,765 2 ACCOUNT 45800 (275,000) 3 ACCOUNT 45900 27,756 2 RESIDUAL EQUITY (355.119,/- , ., 4 TOTAL ADJUSTMENTS ' (131,088) 0 0 2.378,017 ADJUSTED TOTALS 46,020,043 , 13,84.8,215 17,715.1,,96.. 4,627,55,.6 LESS: RESTRICTED REVENUE (17,715,198) COST RECOVERY (4,627,5561 GENERAL REVENUE 23,677,291 RATIO CALCULATION: PROPERTY TAX 13,848,215 GENERAL REVENUE 23,677,291 ~j~;~ REF 1-YEAR END AUDIT ADJUSTMENTS NOT INCLUDED IN ~RIGINAL CALCULATION 2-THESE ITEMS REPRESENT REVENUE FROM FEES OR ASSESSMENTS WHICH ARE LEVIED TO OFFSET THE COSTS OF PARTICULAR SERVICES 3-THIS ITEM REPRESENTS S875 REVENUE AND SHOULD NOT BE DEDUCTED AS A COST OF SERVICE 4-THIS IS NOT A REVENUE ITEM, IT IS ONE HALF OF A TRANSFER THROUGH THE GENERAL FUND TO MOVE FUND EQUITY BETWEEN SPECIAL DISTRICTS FILE NAME: CNTY INC.WK1 TOWN OF TRUCKEE CALCULATION OF COUNTY INCREMENTAL iNCREASES $886,037,572 TOTAL ASSESSED VALUATION 1990-91 (FROM SCHEDULE B) $8,860,376 TOTAL PROPERTY TAXES 1990-91 1 2.7340% PERCENTAGE INCREASE 1991-92 $1,128,282 $ INCREMENT 1991-92 (FROM SCHEDULE B) $9,988,658 TOTAL PROPERTY TAXES 1991-92 10.3531% PERCENTAGE INCREASE 1992-93 $1,034,135 $ INCREMENT 1992-93 (FROM SCHEDULE B) $11,022,793 TOTAL PROPERTY TAXES 1992-93 11.9803% PERCENTAGE INCREASE 1993-94 $1,320,563 $ INCREMENT 1993-94 (FROM SCHEDULE B) $12,343,356 TOTAL PROPERTY TAXES 1993- 94 FILE NAME: CSA AV.WK1 TOWN OF TRUCKEE ASSESSED VALUATION INCREASE FOR CSA's ASSESSED VALUATION OLD NEW TRA TRA 1992-93 1993-94 NET CHANGE CSA 4: 77-002 003-001 $502,105,168 $562,992,372 $60,887,204 77- 010 003-006 $0 $0 $0 77-028 003-020 $0 $0 $0 77-036 003-025 $402,780 $441,134 $38,354 77-048 003-033 $423,331 $431,795 $8,464 $502,931,279 $563,865,301 $60,934,022 INCREMENTAL INCREASE: 12.1158% CSA 5: 77-022 003-015 $5,265,813 $5,580,981 $315,168 INCREMENTAL INCREASE: 5.9852% CSA 6: 77-026 003-018 $1,438,587 $4,805,585 $3,366,998 INCREMENTAL INCREASE: 234.0490% CSA 8: 77-016 003-042 $3,596,831 $4,213,390 $616,559 iNCREMENTAL iNCREASE: 17.1417% CSA 9: 77-012 003-008 $39,287,411 $43,039,577 $3,752,166 77-031 003-023 $78,332,985 $88,084,937 $9,751,952 77-055 003-038 $649,020 $662,000 $12,980 77-018 003-012 $7,640,594 $8,979,485 $1,338,891 77-041 003-027 $656,459 $669,586 $13,1 27 77-044 003-030 $2,076,642 $2,251,752 $175,110 77-049 003-034 $875,173 $886,931 $11,758 77-050 003-035 $578,691 $670,164 $91,473 77-052 003-037 $1,242,640 $1,343,711 $101,071 $131,339,615 $146,588,143 $15,248,528 INCREMENTAL INCREASE: 11.6100% .... ,-,J~NIA STATE ~OARD OF EQUALIZATION VALUATION DIVISION $ ~IZ '~T /z NEVADA 2 / TAX-RAT'"~ AREA CODE CHANGE FOR. __ COUNTY NO ...... I,, . TAX DISTRICTS IN¥OLYED IMPORTANT CANCEL TAX-RATE AREA NOS. WHICH APPEAR CITY m COLUMH l, "UT DO .OT OR APPEAR IN ~OLUMN 2 SCHOOL 'DISTRICT COLUMN COLUMN TAX-RATE TAX-RATE AREAS AREAS &FFECTED RESULTING PRI. SEC. PRI. SEC. ( Cent' d. ) Fr¢ m the foll.owin¢ Tax-Rate Areas~ }ella;E!: C h ~t.y -Ce]'v[C~ A~:ea N¢~. 77 002 77010 77028 7~10~ 6 7~ 0,i8 77 022 ) Remove: County IS, mrv: ' 77 016 ) Remove: County From th~ fol~owin¢ Tax-Rate Areas, ~a :c re C~n':y CSJ 9 - Zone FrEm ts] e FoLlowi~ ~ Tax-Rate Areas, R~e CSA 9 - 5one 77 018 77041 77044 '7tl49 77(5 77(5 '""' Ill .1993 ' EF~ECTIV~ ........ ROLL (t.$ A, gel.. C.,,ty O. 1~) T.R.A.M. ND .......... V-520D 16.721 CALCULATION OF INCREMENTAL CHANGES IN TAX RATE AREAS The incremental changes in the assessed valuation for tax rate areas are calculated to determine the percentage increase in property taxes transferred from the base year. The base year (1990-91) is compounded by these three separate percentages to arrive at the amount of property taxes transferred in 1993-94. The assessed valuation information was provided by the Auditor- Controller. No changes are suggested in the incremental changes for the tax rate areas. This information is merely presented for informational purposes. The CSA's were applied a percentage increase which only took into account those Tax Rate Areas that are included in the CSA. CALCULATION OF TRANSFERRED COSTS The County of Nevada used the calculation of transferred costs from those costs determined in the LAFCo Report of June 1992. In order to determine the reasonableness of these costs, MSI recalculated the costs of transferred services and compared them to the County numbers. MSI found differences in the following three areas: Building Inspection, Sheriff, and DOT Road Maintenance. Within this section each of these three areas have a separate narrative on the reasons for the differences in costs. The attached summary of the transferred costs was estimated at $2,672,138 according to MSI, rather than the original $2,067,432 by the County, for a net increase in costs of $604,706. FILE NAME: CST_SUM2.WK1 TOWN OF TRUCKEE SUMMARY OF TRANSFERRED COSTS FY 1990-91 COUNTY MSI ADJUSTED CALCULATED DEPARTMENT NET COST NET COST DIFFERENCE BOARD OF SUPERVtSORS $27,125 $27,125 $0 BUILDINGS AND GROUNDS $0 $0 $0 SHERIFF $1,590,969 $1,737,926 $146,957 BUILDING INSPECTION $0 $110,713 $110,713 PLANNING AGENCY $3,976 $3,976 $0 PLANNING DEPARTMENT $101,967 $101,967 $0 ANIMAL CONTROL $167,189 $167,189 $0 DOT-ROAD MAINTENANCE $176,206 $523,242 $347,036 $2,067,432 $2,672,138 $604,706 APPENDIX A: M~ETHODOLOGY AND ASSUMPTIONS USED IN TH~ CObIPREI'IENSIVE FISCAL ANALYSIS Table A-1 SUM2V/.ARY OF COST OF' SERVICES IN TRUCKEE Truckee Incorporation, Comprehensive Fiscal Analysis (Actual F'~scai Year 1990/91 Dollars) Budget Proposed Description Unit Boundary Board of Supervisors 501 $Z7,125 Sheriff S65 $1,590,969 BuiLding Ins~c=i~ 576 P[a~i~ Ag~y S81 $~,976 P[~i~ Oe~r~ 5~ $101,967 Ani~[ Control 596 S167,189 DOT - Road Naince~e 895 $176,206 Total Cost of Services Provid~ By Neva~ Co~cy A~Jtors Ratio (Revls~ 6/~/q~} Troffer Fr~ CFA Version 04: June 23, 1992 - 50- BUILDING INSPECTION MSI used the financial information for Building Inspection for the base year provided by the County. The total expenditures for Building Inspection for 1990-91 was $1,519,266, while the total revenues was $1,174,903, for a General Fund subsidy of $344,363. 32.15% of Building Inspection revenues were related to the Town of Truckee in 1990-91, therefore 32.15% of the tax-supported subsidy, or $110,713, is related to the Town of Truckee. Since the County made a conscious effort to create a General Fund Subsidy, as the Resolution 90-403 "did not cover Building Department expenses", property taxes were being used to susbsidize Building Inspection services. Therefore the Town of Truckee should receive Property Taxes commensurate with its level of Building Inspection revenues, which MSI has calculated to be $110,713. FiLE NAME: CST BLDG.WK1 TOWN OF TRUCKEE ALLOCATION OF NET COST OF SERVICES BUILDING INSPECTION SERVICES FOR BASE YEAR 90-91 TOTAL EXPENDITURES $1,51 9,266 TOTAL REVENUES $1,174,903 NET COST OF SERVICES $344,363 % OF REVENUES RELATED 32.15% TO TRUCKEE NET COST OF SERVICES $110 RELATED TO TRUCKEE FEB,-i4'95(TUE) 09:14 TO/¥N OF ?RUCI<E TEL:91655177IO Entire County 1989-90 $ 4S3,255.25 c~,~4,5~.0! ~ 1990-91 $ 377,753.~2 ~~ 1991-92 $ 466,038.65 ~l,~i~,=~.bl 32.]~5~ 1992-93 $ 45~,901.97 ~ 12.79% TOTAL $i,755,949.49 $5,607,685.31 31.47% Entire County 1989-90 Expenses were 1990-9~ not broken 1991-92 of budget for 1992-93 Truckee $1,76!,6'?U.0Q ~IF..L~T~J__~.~ Revenue--Entire Expenditures-Entire General Nevada County Nevada County ~ Fund Including Truckee Including Truckee Subsidy 1989-90 $1,6!4,~29.01 $1,32~,51~.46 $~89~012,55 ' _1990-91 $1,174,902.58 $1,519,266.10 199!-92 $1,418,834.61 $1,841,!50,00 <422,315,39> 1992-93 $1,399,419.11 $1,761,670.00 1989-90 Duri!~ the 1989-90 Fimcal year Nevada County was using fee Resolution 85-347 & 86-273 establishing va!ua~ion tablez for building permit fees. !990-9~ On July 17, 1990 The Nevada County Board of Supervisors adopted fee Resolution 90-403 changin~ permit fees ba~ed on value to a flat rat~, whioh resulted in a los~ of revenue. 1991-92 On Februazxj 13, 1991 The Nevada County Board of Superviso~ adopted Resolution 90-708 and 91-100 refunding a portion of the building permit fees collected for the 1986-87'~ 1987-88 and 1988-89 fiscal yeam~. On July 16, 1991 The Board of Supervisors adopted another resolution 91-4!6 to increase the flat fee established ~der Re~o].utlo~% 90-403. Resolution did nQ~_~vill_~u~ild~n3 Dep~%~mant_~xpemse~. Nevada County is currently trying 50 establish a fee schedule tkau works. STATE CONTROLLER STATE OF CALIFORNIA COUNTY BUDGET FOI~"4 cOUNTY BUDGET ACT COUNTY OF NEVADA SCHEDULE 9 GENERAL FUND 101 ..... ADOPTED BUDGET ..... EXPEND ITURE CLASSIFICATION ........ EXPENDITURES ......... OBJECT NAHE 90/91 ACTUAL 91/92 ACTUAL RECOI'~ENDED FINAL 51010 PERMANENT SALARIES 823,137.56 872,172.31 841,127 841,127 51020 TEMPORARY SALARIES 54,817.47 ¢0,037.00 6,506 6,606 ?' 51030 RETIREMENT BENEFIT 138,825.63 150,472.13 158,978 168,978 51040 GROUP INSUP~CE 130,564.13 127,663.62 126,169 126,169 SUB TOTAL 1,147,344.79 1,190,345.06 1,132,780 1,132,780 52030 CO(~4UN ICATIONS 14,116.08 12,490.75 10,714 10,714 !~ 52090 MAINT.-EOUIPMENT 8,869.55 7,182.55 10,350 10,350 ;~' 482. O0 335. O0 542 542 ~ ~'~fi' 52140 OFFICE EXPENSE 57,369.81 43,965.37 ~i 52150 PROF,-SPEC. SERV. 63,716.51 53,948.86 63,762 63,762 52160 PUBLICATIONS- LEGA 282.00 150 150 52180 RENTS-LEASES STRUC 475.00 1,784.39 3,175 3,175 52200 SPEC. OEPT. EXPENS 3,042.47 5,066.74 74,155 74,155 ". ~ 52210 VEHICLE RENTAL 61,500.00 67,592.00 63,797 63,797 ~ ~ . 52220 TRANSPORTATION-TRV 7 , 522.62 4,983.16 4,983 4,983 52250 MI LEAGE- I P-S 769.13 717.96 770 770 ~! 52990 PRIOR YEAR EXPEND! 4,584.74 5,306.95  :' SUB TOTAL 234,219L83 217,916.83 288,996 293,996 ~... 53950 COST PLAN SRV A-87 75,128.00 ?~_ 320,991 .~. SUB TOTAL 75,128.00 239,701.00 320,991 ~ 54020 STRUCTURES-IMPROVE ~.~ 54030 OFFICE EQUIPMENT 35,065.24 3,963.75 -~,.. 54040 AUTOMOTIVE EQUIPME 14,230.22 i 54990 PRIOR YEAR EXPENDI 7,349.08 ~ ~ SUB TOTAL 62,573.48 3,963.75 TOTAL EXPENDITURES ~,519 2~ 1,651,926.64 1,742,767 1,747,767 -119- SHERIFF MSI used the detailed backup information from the Sheriff's Department of their calculation of the cost of service related to the Town, with adjustments made by the Lund & McSweeney Report of June 1992. That information was received from the Auditor- Controller, and is included following. The County calculated the total costs of the Truckee Sheriff's Substation and then allocated those costs back to the incorporation area based on the number of calls during an 8 month period in 1990. The County calculated that the incorporation area made up 87.3% of the calls, and therefore 87.3% of the costs of the Substation. The County arrived at costs of $1,590,969. MSI made a separate analysis of the Sheriff's costs related to the Town based on the 1993-94 contract amount offered by the County to the Town. The contract costs were then allocated back to the base year of 1990-91, based on the California Per Capita Income Percentages, to arrive at the implied 1990-91 costs of $1,737,926. In other words, MSI calculated back from a known quantity -- the 1993-94 Sheriff Contract amount for the Town, and then assumed that inflation should be the only change to that cost. The detail for this calculation is included following. Using the MSI method, the cost of transferred services was calculated to be approximately 9 1/4% higher than using the County's method. FILE NAME: SHRF_SPI_WK1 TOWN OF TRUCKEE REGRESSION ANALYSIS OF COST OF SHERIFF 93-94 92-93 91-92 90-91 CONTRACT SHERIFF COSTS FOR 93-94 $1,847,207 CALIF PER CAPITA INCOME PERCENTAGE 2.72% -0.64% 4.14% IMPUED COSTS $1,798,293 $1,809,877 $1,737,926 IMPLIED SHERIFF'S COSTS FOR 90-91 $1,737,926 MEMORANDUM NEVADA COUNTY SHERIFF-CORONER DATE: November 26, 1991 TO: Pat Ward,~dministrative Analyst I FROM: Bob wood~A~dministrative Assistant - Sheriff SUBJECT: Truckee Incorporation Costs - Sheriff's Dept. Attached are three worksheets, "Truckee Cost S%mu~aries", "Truckee Salaries" and "1990 Truckee Report/Calls for Service Survey". These spread sheets provide information requested for the incorporation study. There are a couple of points you will need to be aware of in working with these figures. First, amounts indicated as allocated to Truckee for other than salary purposes are gene rally 30% of the department totals. This is because 30% of our personnel are assigned to Truckee and the sub station is very much a !'mirror" of the Nevada City operation. All past indications are that 30% is a very accurate figure in determining the cost to operate the Truckee sub station. Salaries for Truckee are approximately 32% to 33% of the department total due to the 8% differential paid county employees in the Truckee area and a slightly higher rate of overtime usage due to vacancies and winter w~ather. Second, in calculating the data applicable to each of the four alternative areas, I used information derived from a 1990 survey of calls for service in the Truckee area which broke calls down into each service area. In this study, we counted 8 months of calls and determined the percent which were received for each of the four areas. This information should be recent enough for the purpose intended. To obtain the calls for service data and present it as requested would require several weeks staff time to individually review thousands of calls. The result of this effort w~uld be statistically insignificant compared to the method I used. Where you see data listed under an alternative, it will generally be the product of the department total x approximately 30% to 33% (Tke) x % CFS, for that alternative area. ? Cost estimates for providing services to the Truckee area are summarized on the "Truckee Cost Summaries" from lines 45 through 53. County costs after incorporation have not been provided. There are numerous decisions to be made regarding levels of service and operational and financial efficiency for both county and city residents before realistic data can be made available. Please feel free to call me if you have any questions. 4 TOTAL OEPT TRLIIL~EE ALT I ALT II ALT III ALT IV 5 6 TOTAL DIRECT LABOR COST 4,~50,526 1,412,843 3~,8.~ 1,233,412 894,330 1,~49,742 7 0 TOTAL DIRECT ~AT'L COST 0~8,112 2~2,434 68,6~8 211,645 153,460 180,122 9 CLS II 764, 7~3 PPg, 411 10 CLS IV 43,4~ 13, 223 3,685 11,369 2,243 9,6?6 1I 12 TOTAL DIRECT COSTS 5,058,630 1,655,277 14 !5 i6 % OF CALLS FOR SERVICE 17 I~( TRUCKEE AREA 19 DIRECT COST ALLOCAll~ 1~655,277 468,443 1,445,~? 1,047,790 1,~9,870 20 TO TRUO(EE ~ TOTAL DEPARTMBN'T DI~CT 4,250,526 24 % ~EPT DIRECT ALL(3CAll~) ~5 TO TRUCKEE 2T TOTAL DEPARTMENT INDIRECT B~8, 112 ~ TOTAL DEPAR~ INDIRECT 24~.,434 30 ALLDCATEI) TO TRUC~,EE 31 ~ TOTAL ALLOCATEI) TO TI~JO~E]E 1,897,711 5.37,~51 1,656~702 1,2~1,~50 36 TDT B~JI)BET (;DST - ~ 1,897,711 ~7 TOT BUO6ET UNIT LESS A-07 5, B~O, 638 3~ % A-07 PiJ.DC'I) TO TRIJC~EE 41 TOTAL A-07 ALLD~qTEI) I)EPT ~" 557,1~7 43 TOTAL A-07 ALLDC'D TO ~ 167,138 47,3~ 14§,91~ 45 DIRECT COSTS 4,25~,5~% 1,A.1~,843 46 ~PT INDIRECT COST B~8,11~ ~,434 47 COUNTY-WII)E I~IRECT COST 557~I~7 167,138 47,3~ 145,91~ 49 TOT COST 5,615,765 1~82~,415 515,743 1,§9~969 1,1S3,588 1~3541054 51 OFF SET REV 2e,~ <'- 53 NET CTY COST 5, 595, 765 54 17,E. INC. WI(SHT. REV3 ~ ~ Page 1 TR~KEE SALARIES 8 H I J K L M N 0 ~T I ALT II ALT III ALT IV F'FE' S F'FE/HR HR/YRFTE COST TOT~ % PS P~(T % CFS ~ % CFS ~R YR S~RI~ 0.2 89,~ 1 89,560 17,912 2B.3% 5,869 87.3% 15,~ 63.3% 11,~ 74.3% 13,3~ U~ER~RI~ 8.1 ~,818 1 75,812 7,581 8,145 6,618 4,799 5,~3 CAPT 1 31.~ 2~8 64,667 ~,667 18,~1 ~,4~ ~,934 ~,~ LT 8 28.66 2~8 59,613 0 8 8 SBT G ~.IB ~8 ~,~ ~1,T3~ 91,~1 8BS, B7~ ~,6~ 839,8;9 DP~ SHF II 14 81.17 8~8 ~,~4 G16,~8 174,~1 5~,I~9 3~,~ 458,~ ~MN ASST 8.15 1L25 ~ ~,8~ 5,388 1,~3 4,698. 3,~7 3,~9 DP~ ~F A~ 1 14.95 8080 31,~ 31,~ 8,8~ 27,14l SHF DISP II 4 13.29 2~ 27,~3 118,~3 31,~8 %,~ 69,~3 88,1~ CIVIL A~T 0.1 11.~ 8888 24,4~ 2,~ 693 2,137 1,~8 1,819 A~T A~T II 0.2 11.~ ~0 84,~2 4,896 1,~ 4,874 3,~ ~W ~ O~ 1 I1.~ 8~0 84,~2 ~4,~ 6,~8 21,372 15,497 18,1~ PARKI~ ~ I 18.86 ~ ~,~ 88,985 5,~ 18,8~7 13,2~5 15,547 TOT~ 1, ~8, 167 34~, ~1 1,878, 1~ ~, 4~ 918,588 O~RTI~ AS % ~ ~ ~,~ 34% 188,418 8B,~17 B7,~ 83,561 74,6~ SHI~ DI~ERE~I~ ~,311 I 62,311 17,6~ 54,398 3~,~3 ~,~7 RESETS AS % ~ ~9 73,1~ ~ 2I,~3 6,813 19,1~ I3,8~ 16,311 ~IS WO~ ~ TOT~ SA~RIES, (~ G), ~ TO ~ T~ 8~RI~S ~TAION. ~ H,J,L, t N INDICA~ T~ PE~ ~ TOT~ TR~ AR~ C~S FOR ~ICE, (~S), ~CEI~ FOR ~ DF ~ F~R ~TI~ A~. ~E ~S AP~I~ ~ TOT~ ~RIES A~ ~ ~ A ~R ~ IN ~ I,K,M~& 0 FOR E~ ~TE~TI~ A~. TKE. INC. SPC. 11/91 ./ Pa~e 1 / 1~90 TRLPJ{EE REPORTS/CP~S FOR SERVICE SURVE~ REPDRT$ C.qLL$ FOR (12 ~NTH SURk,~-Y) (8 M(]f(lmH ~UR~EY) NUMBER PEI~CEI~T NUMBER PERCENT OF OF OF DF REPORTS TOTAL CALLS TOTAL AREA TO RE)~AIN UNINCDRPDRATED 287 11.B% 260 12.7% DEVDNSHIRE SLENSH I RE 3~ 13. 8% 266 13, ~ TAHOE DO~ER 4§4 17,4% 2~A- 11,~ LAKE 83,m~ 31. 9% 716 3~. ~ VILLAGE 677 25. 9% b'TB 20. 3% TnTAL 2615 TRUCXEE REPORTS/CALLS FDR SERVICE ~RVEY LIS'FEI) BY INDIVID(.~AL AREA ALT I ALT II ALT III ALT IV TDTAL VILLAGE ALL q. LA~E~ B/I) T/I)~LP~ TRLmC~ O~.Y INCDRP VI~ VI LLq(~E REDRT$ ~1§ 67'/ 23~8 1074 PERCEICFA~E 1~.~% ~,91~ 09. B% 71,7% ~,~ CALLS FDR SERVICE ~ ~?0 ~ ~ 129~ 1518 PERCEI~TAGE 1~. ~ 20.3% L]~ ~ 63. 3% 1~ TRUCY,15E ~RTS/CALLS FOR ~RVICE ~RV'EY LIE El) BY C81'8I~ AREA WRKL~.I'KE. INC, 11/91 AGREEMENT FOR LAW ENFORCF24ENT SERVICES FOR TOWN OF TRUCKEE WITNESSETH Whereas, the Town of Truckee has incorporated as a new city within the County of Nevada, which incorporation was effective on March 23, 1993; and Whereas, the Town desires to contract with the County of Nevada in order for the County to provide personnel which will be able, subject to limited policy determinations of the Town officials, to provide law enforcement services within the incorporated territory of the Town; and Whereas, in consideration of the County's willingness to assist the Town by providing law enforcement services as set forth herein, the Town acknowledges and agrees that in providing such services the County will be at risk for certain losses that may be the result of the filing of claims and/or litigation against the County stemming from the Sheriff's activities on behalf of the Tow~, and the Town agrees to provide a level of compensation to the County, as set out herein, which will partially compensate the County for incurring such risks. NOW, THEREFORE, BE IT HEREBY RESOLVED BY AND BETW~EEN THE PARTIES that in consideration of the mutual covenants and obligations contained herein, the parties agree as follows: 1. Sheriff Services County agrees that the Sheriff shall provide law enforcement services, as are described in more particular detail herein, within the incorporated limits of the Town of Truckee. The services shall encompass the duties and functions of law enforcement as set out in Exhibit "A, Level of Service, which is incorporated herein by this reference. 2. Level of Service and Staffinq In order that the Town may avail itself of the immunities that are established in the California Tort Claim Act (including but not limited to the provisions of Government Code Sections 818.2, and 820.2) the Town Council shall be responsible for making the basic policy decisions concerning the level of law enforcement staffing that it desires to be provided under this agreement. The parties expressly acknowledge and agree that the effectiveness of the law enforcement for the Town/ and the level of law enforcement service h~files~truckee~sherif-k.doc 1 6/16/93 are directly dependent upon the staffing levels that the Tow~ Council chooses to fund under the terms of this agreement, and the Town at all times shall be solely responsible for such levels of service and the overall effectiveness of the law enforcement based thereon. For the initial term of this Agreement the level of service and staffing shall be as set forth in Exhibit "A". The Sheriff shall employ and assign the staff who shall be assigned to work out of the Truckee substation to provide law enforcement sel-vices within the incorporated area of the Town of Truckee. The level of service shown in Exhibit "A" shall remain in effect unless and until the Town advises the Sheriff in writing of its desire to amend same. Any change in the level of service shall not be effective until reviewed by the Sheriff for his approval. In the event that the Town requests that the level of service be reduced below that which is then in effect, no such reduction shall be effective for a minimum of 60 days from the date of the written notification by the Town Manager to the Sheriff, and only then if agreed to by the Sheriff. If the Sheriff determines that any such reduction unduly impacts the public safety, he shall promptly notify the Town Manager of said determination and attempt to negotiate a reduction that is mutually agreeable to the Sheriff and to the Town. In the event that the Sheriff and the Town cannot reach such an agreement, the Sheriff shall so notify the Board of Supervisors and shall request that the law enforcement services provided under this agreement be canceled as soon as is practical. In the event that the Board concurs in the Sheriff's recommendation to cancel the law enforcement services, the Board shall notify the Town Council of the Board's election to cancel the law enforcement services at a date to be mutually agreed upon provided, however, that the level of services shall not be reduced (per the Town's request) so long as the Sheriff continues to provide service hereunder, and Town shall continue to be liable to County for the full expense (costs) associated therewith. Annually, on or before April 1st of each year, the Town Council' or the Town Manager shall, following consultation with the Sheriff, determine the level of service and staffing that is desired by the Town for law enforcement within the Town. In support of Town's preparation of its annual budget, the Sheriff shall prepare and submit to Town (by March 1st of each year, commencing March 1, 1994) a proposed Service Plan for the next fiscal year (covering the period of July 1 through June 30). The estimated cost for performance of services during the fiscal year being addressed will accompany the Service Plan. The Service Plan shall be prepared in consultation with Town. The parties shall use reasonable efforts to adopt an updated Service Plan, as well as the estimated cost for performance of the Plan, by June 1st of each year, commencing June 1, 1994. Upon formal approval of the updated Service Plan, it shall be deemed to be incorporated into this Agreement. h~files~truckee~sherif-k.doc 2 6/16/93 In the event that (1) the Town desires that the County employ and assign to the Town for Town's law enforcement program a larger number of employees than are then assigned to the Town, and/or (2) there is a resignation or other loss of personnel, the County shall make a good faith effort to recruit and to hire such personnel as soon as is reasonably possible (and within the salary and other budgetary constraints then in effect). The Town acknowledges that County shall not be required to, nor be liable to Town or to any third party for failure to provide employees to the Town if it would result in the County not being able to provide services to any other area within the County, and the County's only duty to the Town in the event that it is unable to employ sufficient personnel to meet the Town's desired staffing levels will be to timely notify the appropriate Town officials of such an event and to work with such officials in an attempt to employ such personnel as will meet the needs of the Tow~. 3. ~irinq and Traininq of Personnel Upon the employment of any law enforcement personnel that is to be assigned to perfor~ the law enforcement services within the Town of Truckee, that person shall receive such training as is customary for the position that is being filled, un wn directs otherwise. In the event that the ~--6~i~s ad~itional~. or other special, training for any employee, Town shall con'-er wltn the Sheriff to lnsure, that such training can substantially disruptlng the ability to pr_ov.i~e law ~nf~rcement services during the absence of the personnel ~n~ t~ained. shall be responsible for the cost of all additional or speciaI~ training that is given to the law enforcement personnel performing services hereunder. Any reimbursement received by County from the State of California Commission on Peace Officer Standards and Training (POST), or from any other non-County funding source, for training provided to personnel assigned to perform services hereunder will be credited to Town. 4. Shift and Proqram Assiqnments Town, either through the Town Council or the Town Manager, shall, following consultation with the Sheriff, be responsible for determining the number of individuals that shall be assigned to the various shifts established in order that law enforcement services be available at all times. Likewise, following consultation with the Sheriff, the Town shall determine that level of staffing that it desires for such special assignments, including, but not limited to, traffic, enforcement, narcotics investigations and other specialized functions. The Sheriff shall, subject to the availability of the appropriately trained personnel, implement the Town's program directives on these h~files~truckee~sherif-k.doc 3 6/16/93 matters unless he determines that it would seriously impair the proper ad~nistration of effective law enforcement within the Town, in which case the Sheriff shall promptly advise the Town officials of such objection and thereafter shall meet with the Town officials in order to expeditiously resolve any such dispute. 5. Supervision and Control of Law Enforcement Personnel The Sheriff shall select the personnel that will be assigned to perform the law enforcement services for the Town under this agreement and to supervise, train and to discipline any such personnel. The Town Manager shall have the responsibility and r%ght to advise the Sheriff (both orally and in writing) if Town officials become aware of any problems in the delivery of the law enforcement services or with the performance by any individual performing such services. The Sheriff shall promptly attempt to address any such problems to the satisfaction of the Town Manager. Notwzthstandlng anything in this agreement to the contrary, th'e~ .... parties agree that the Sherzff shall have the right to utilize any of the law enforcement personnel assigned to provide services hereunder and to handle emergency or other calls for law enforcement services w~th~n the unincorporated territory of th County, as the need may from time to time occur. 6. Designation of Chief With the consent of the Sheriff, the Town Manager may designate the commander of the Truckee substation as the ex officio Chief of Police for the Town (hereinafter referred to as the Chief). The Chief shall be responsible for providing all reports to the Town as may be required hereunder or as may from time to time be requested by the Town. The Chief shall confer with the Town Manager on all questions related to the performance of the law enforcement services to the Town. In addition, the Chief shall solicit the input from and confer with the Town Manager in the preparation of all performance evaluations and disciplinary proceedings concerning all law enforcement personnel providing service to the Town under this agreement. All direction from the Town to the Chief shall come through the Town Manager. To the extent that it does not unduly interfere with the exercise of professional judgment by the Chief, the Chief shall respond to the direction provided by the Town Manager with regard to the .provision of law enforcement services. In the event that there is a disagreement between the Town Manager and the Chief concerning the way that law enforcement services are being provided, the Town Manager shall promptly notify the Sheriff, in writing, to the end that the Sheriff may assist in the resolution of the dispute. h~ files ~truckee~ sherif-k, doc 4 6/16/93 7. Vehicles and EquiDment Except as is otherwise expressly provided for herein County shall provide all equipment, vehicles, facilities and furnishings, and supplies for all personnel assigned to Town under this agreement, all of which is included in the cost to the Town as set out in paragraph 9 hereof. To the extent that the County is required to provide any additional equipment, vehicles, or furnishings in support of this Agreement (above that shown in Exhibit "A"), then Town shall be responsible for the additional cost thereof. Except for routine maintenance, minor repairs, and scheduled replacement of any equipment (due to its age and end of useful life) that is owned by the County, Town shall be responsible for repairing or replacing any vehicle or equipment (whether owned by the County or by the Town) that is broken, damaged, destroyed, lost or otherwise rendered unusable while in use in or assigned to/ be used in the performance of this agreement, unless any such damage is due solely to the gross negligence of the County. In the event that any such equipment is broken or damaged per the above and Town is obligated to pay for such costs of repair or replacement, the parties agree that the expense thereof shall first come from any net savings to Town as set out in paragraph 9 hereof. To the extent that there are insufficient net savings to the Town to pay for any such costs, then the parties shall share equally in the costs for the repair or replacement of the equipment. 8. Extra Services and Personnel At the request of the Town, the Sheriff may agree, but shall not be obligated, to provide extra law enforcement and/or security services for special events and functions occurring within the Town. For all such services the Town shall pay the County at rates that are consistent with the terms and conditions of the this agreement. In addition, the parties agree that from time to time the Sheriff may determine that it is necessary to utilize personnel to provide services to the Town under this agreement who are not otherwise assigned as part of the agreed upon staffing program. In such an event, the Town shall be fully responsible for the full cost of such personnel when performing any law enforcement functions within the Town or otherwise responding as Town's own law enforcement personnel would customarily be expected to. h~files~truckee~sherif-k.doc 5 6/16/93 9. Proqram Cost Town agrees to pay County all cost inc ~ed by County in the delivery of the law enforcement services to the Town, including all direct and indirect costs that county may incur. The Town acknowledges and agrees that in annually calculating such costs, County will include therein the sglaries and fringe benefits (including but not limited to vacation ~n~ sick leaves, holidays, and health insurance programs),-t~ain~ng~ memberships, uniforms, workers compensation and casualty lb~s (including such losses affecting third parties) and all other reasonably related expenses, including but l~m~ted to the reasonable 'rental of the facilities devoted to the use and support of the Sheriff and such administrative overhea~L_~enses which are accounted for by the County as part of its~-8~ost allocation plan.(as such costs a~e reasonable and.-~i~-co-~b~-f~rmity with. the provisions of Californla Governmerrt' Code Section 51350, since in the absence of this agreement, staffing in the administrative support departments ~;~ould be reduced) ~---'~ For the initial term of thls~greement ~he part~es have calculated and negotiated a cost of i~$1,847,207 for the delivery of the services as set forth in Exhibit "B" (which includes all staffing shown therein, payment for suppo~6rt-<rf'"the jail which is in lieu of payment of jail booking fees, rental of facilities, and all other related expenses as discussed herein). Except for such offsets or extra costs as are set out herein, the parties agree that the Town shall pay to the County the above state sum for all of the services that are delivered hereunder. The parties further agree that the Sheriff shall keep account of the actual hours worked by the Sheriff's deputies and other personnel that are shown in the staffing in Exhibit "A" (in accordance with the Sheriff's customary practice for record keeping). To the extent that the Sheriff fails to provide the level of personnel as shown in Exhibit "A", the Town shall be entitled to receive an adjustment in the cost of this Agreement to reflect the savings stemming from the reduction in the personnel assigned to provide the services. The parties acknowledge that such reductions in personnel are not unexpected and typically would stem from the resignation or termination any such employee, and/or the loss of any employee to an injury for which the employee is entitled to workers compensation. In any such event the Town shall be entitled to an offset in the cost to it which cost shall be calculated by the number of days during which the position is unmanned times the rate for the position in Exhibit "A". (The parties expressly agree that a position will not be deemed to be unmanned for the purpose of entitling the Town to an offset in the cost hereof, if the lack of staffing is due to the use of accrued vacation or sick leave.) h~files~truckee~sherif-k.doc 6 6/16/93 The parties also agree that the Town may be required to pay additional costs to the County for any of the following items: 1. The use of additional personnel as may from time to time be requested by the Town Council or Town Manager, or as the Sheriff may independently determine is necessary to address any matter involving an emergency or threat of public safety. 2. Any additional or special training as requested by Town pursuant to paragraph 3. 3. The costs for the repair or replacement of any vehicle or equipment in accordance with the provisions of paragraph 7. In the event that this agreement is renewed for subsequent years, the County shall be entitled to charge Town for any of the increases in the cost to the County incurred under this agreement including, but not l~m{ted to, any increases in the salaries or benefits paid to County employees, cost of equipment, materials and supplies and additional adm{nistrative and overhead expenses. 10. Payment Town shall monthly pay to County 1/12th of the total sum due hereunder for the year provided, however, that if there has been any increase or decrease in the cost of the service during the year, the net amount due County shall be adjusted accordingly. Any such adjustment shall be made on a quarterly basis at the next billing period following the close of the prior quarter. Payment shall be made to County on or before the fifteenth day of each month for the current month and shall be subject to a delinquent penalty consisting of 1% per month (or each portion thereof) until paid in full. In the event that any payment is not paid in full more than 60 days after the due date thereof, the County may proceed to offset any such funds owed to County from any funds in the possession of any County official, or may offset in any other manner that may then be authorized by law (including, but not limited to, the provisions of Government Code Section 907). In the event that the Town disputes County's right to and/or the amount of any offset, Town's sole remedy shall be to contest same in a suit to recover funds, and Town shall not be entitled to sue to block or otherwise prohibit any offset. In addition to the above remedies, the County may immediately cancel this agreement in the event that Town has any such delinquency in payment to County. 11. Policies and Procedures Personnel assigned to provide services hereunder are required to abide by all rules, regulations, policies and procedures applicable to the Sheriff's Department employees, except where such procedures may conflict with any provisions of this agreement. Personnel performing services hereunder may be requested by Town to abide by certain policies or procedures and, except to the extent that such policies and procedures may h~files~truckee~sherif-k.doc 7 6/16/93 otherwise conflict with any County procedure or applicable labor contract, the Sheriff may authorize and instruct such personnel to comply with any such request. 12. Enforcement of Town Ordinances The Sheriff may enforce any ordinance adopted by the Town Council if expressly requested to do so by the Town Manager. Town shall be solely responsible for the validity of any ordinances, rules, regulations, resolutions and other enactments. If at any time any issue is raised with regard to the validity 'of any such ordinance or other enactment, Town shall require the Town Attorney to issue a formal opinion to the Chief and to the Sheriff addressing the validity of any such ordinance. Notwithstanding any other provision within this agreement, the Town shall be required to indemnify and defend the County and any County officer or employee with regard to any claim, demand or litigation filed against the County and any of its officers and employees which is based upon an allegation that any arrest or legal action taken or threatened by such County official is unlawful or inappropriate due to the infirmity or invalidity, in whole or in part, of any Town ordinance. 13. Job Actions By County Employees In the event of a work slow-down, strike, "blue flu", or any other form of job action (or action reasonably perceived to be a job action) by County employees assigned to perform service under this agreement, County agrees to provide temporarily a reduced level of service, and Town will be invoiced for the additional cost thereof (cost in addition to the leave time that may be claimed or taken by any employees participating in the job action). In addition, County reserves the absolute right to take all disciplinary action against any participating personnel without consultation with the Town officials. 14. Licensinq Ordinances With respect to licensing ordinances of the Town that are equivalent to County licensing ordinances designating the Sheriff as the licensing authority, County agrees that the Chief may receive applications for licenses pursuant to said ordinances and to complete any investigations relating thereto. A recommendation of the Chief shall thereafter be forwarded to the Town Manager, and the Town shall be responsible for the issuance or denial of any such license or permit. County shall not provide any support services relating thereto including, but not limited to, any legal services, except for the investigations relating to the processing of specific applications as set forth above. Town shall be solely responsible for conducting any h~ files ~truckee~ sherif-k, doc 8 6/16/93 hearings and for collecting any applicable fees from applicants. Town shall be responsible to County for all costs incurred by County in connection with the performance of such services. The parties agree that the processing of applications for permits to carry concealed weapons is excluded from the provisions of this paragraph. Such applications shall be made directly to the Sheriff's Department and the Sheriff retains authority to grant or to deny such permits consistent with criteria established by the Sheriff's Office and applicable law. 15. Asset Seizures and Forfeitures Fines and forfeitures of bail under Penal Code Section 1463, et seq. resulting from services performed under this agreement shall be distributed as though the persons performing services under this agreement were employees of Town. Any reimbursement received by County from any non-County funding source for services charged to Tow~ under this agreement will be credited to Town, less any County administrative costs directly associated with obtaining or handling the reimbursement. When assets (cash or property) are seized in Town by or with the support of personnel performing services under this agreement and such assets are subsequently forfeited to the Sheriff, the forfeited assets shall be shared with Town, as set forth in this ~rovision, for the purpose of augmenting law enforcement services in Tow~. The sharing of forfeited assets under this provision is subject to approval of the forfeiting agency (U.S. Attorney, State Attorney General, or County District Attorney) of the sharing arrangement and the proposed use of such assets. In cases as described above, should the Sheriff apply to the forfeiting agency for the return of assets to County, the Sheriff shall specify the percentage of any assets returned to County that are proposed to be used to augment law enforcement services in Town. Prior to submission of the application, the Sheriff. will advise the Town Manager of the distribution of assets that will be proposed in the application. The distribution proposed by the Sheriff will be based upon State and Federal guidelines pertaining to asset forfeitures, as well as the following paragraphs. The planned use of such assets will also be specified in the application, as appropriate. In those cases in which assets are seized within Town by personnel assigned to Town pursuant to this agreement, without the involvement of other law enforcement personnel, and in which the seizure is a result solely of activities self-initiated by personnel assigned to Town, or initiated by said personnel in response to a call for service within Town, the Sheriff may apply to the court to have those assets distributed to the Sheriff. Whenever any assets are distributed to the Sheriff, pursuant to Health and Safety Code Section 11489, the Sheriff h~files~truckee~sherif-k.doc 9 6/16/93 shall inform the Town of the availability of the funds and that they are to be used to augment Town's law enforcement services. In any event, the Sheriff may retain a portion of such forfeited assets for Sheriff's Department use based upon the Sheriff's Department involvement in the handling of the assets, the processing of the application, or other similar functions. In those cases in which assets are seized within Town, and in which personnel assigned to Town pursuant to this agreement as well as other law enforcement personnel (not assigned to Town under this agreement) are involved in the seizure, in either a primary or ancillary role, the Sheriff shall d~termine the appropriate percentage of the total forfeited assets that shall be proposed to be used to augment Town's law enforcement services. The Sheriff shall determine the percentage based upon the circumstances of the seizure, considering the prorata involvement of all personnel, including those assigned to Town under this agreement. When a patrol deputy assigned to Towrn provides only uniformed backup at a Sheriff's Narcotic Bureau search warrant location, or when a deputy or investigator assigned to Town participates minimally in the service of a search warrant that was initiated by other non-contract law enforcement personnel, only a minimal percentage of any forfeited assets may be proposed for use in augmenting Town's law enforcement services. Assets that are returned to County by the forfeiting agency with approval to be used to augment Town's law enforcement services shall be used by Town and County solely for such purposes. If the forfeiting agency attaches specific conditions to the use of said assets, Town and County shall abide by such conditions. The Sheriff and Town Manager shall determine the specific use to be made of said assets within the conditions imposed by the forfeiting agency. Subject to conditions imposed by the forfeiting agency, County will either (1) release to Town those non-cash assets that are forfeited to County's Sheriff with approval that they be used to augment law enforcement services within Town, or (2) retain such forfeited cash assets (or non-cash assets that are converted to cash) in an interest-bearing account for use by Town for augmentation of Town's law enforcement services, in compliance with the forfeiting agency's regulations and/or conditions on use. 16. Subroqation To the exten~the County incurs any loss for which it is compensated (~ who~ ) by the Town, the County shall assign all of its rights,nd i~terest %n any claim or cross complaint that it may legally hag~_~ be entitled to assert, to the town. To the extent that the Town incurs any loss for which it is compensated in whole by the County, the Town shall assign all of its rights h~files~truckee~sherif-k.doc 10 6/16/93 and interest in any claim or cross complaint that it may legally have or be entitled to assert, to the County. 17. Status of EmDloyees For the purpose of performing the public services on behalf of~ Town, and for the purpose of giving official status to the\ performance of County employees assigned to and/or performing\ services hereunder, every County officer and employee engaged in~ the performance of any service or function on behalf of the To.wn in the performance of this agreement shall be deemed to be and ls% hereby designated as an agent, officer and/or employee of the Town (as is respectively appropriate). Notwithstanding the agency relationship created by this paragraph, Town shall not be liable/ for any act or omission of any County officer or employee unless/ otherwise specifically provided elsewhere in this Agreement. 18. Indemnification In the event that any claims, demands or lawsuits are filed against or there are any adverse judgments rendered against the Town based upon the delivery of the law enforcement services by the Sheriff and any of his duly authorized personnel performing such services, (referred to herein as "losses") the County shall, subject to the limitations set out herein, indemnify, and defend the Town as to any such losses to the extent that any loss by the Town is based upon the errors, omissions and/or negligence of the County personnel. The County shall not be responsible to indemnify or defend the Town or otherwise be liable to the Town if the basis or asserted basis for any such liability on the part of the Town is due, in whole or in part, to.the actions, directions or decisions or lack thereof of the Town and/or any of its officers, employees or agents. In the event that any claims, demands, or lawsuits are filed against or there are any adverse judgments rendered against the County (referred to herein as "losses") based upon the actions, directions or decisions or the lack thereof by the Town and/or any of its officers, employees or agents, the Town shall indemnify, defend and hold the County harmless from any such liability based thereon. In recognition of the County's self insurance structure and in consideration of the County's agreement to provide law enforcement services in Truckee and the assumption of the risk of liability incurred by the County in conjunction therewith, the Town expressly agrees that the Town shall pay to the County the sum of $100,000 to compensate the County for all of its costs, expenses and the risk of loss to it. From this sum (of $100,000) the County shall be entitled to keep the first $25,000 to compensate it for the risk involved in assuming liability hereunder. The remaining $75,000 shall be used by the County to pay for the first h~files~truckee~sherif-k.doc 11 6/16/93 $75,000 (annually, in the aggregate) of any costs, expenses and losses accruing to the County under the terms of this agreement (and not any of the costs, expenses or losses to the Town), including but not limited to any claim or cause of action commonly referred to as a general liability matter and/or any workers compensation matter. If the annual aggregate of any such costs, expenses, and losses accruing to the County are in excess of $75,000.00, then the Town shall pay all such additional costs, expenses and losses accruing to the County up to an additional maximum amount of $100,000 (so that the Town will, in effect pay for the first $175,000 of the costs, expenses and losses within any fiscal/annual year incurred by the County). The County shall be responsible for all costs, expenses and losses accruing to it under the terms of this agreement in excess of $175,000. As used herein, cost to the County shall include, but shall not be limited to the salaries and other expenses of County Counsel in the defense and/or management of any such matter. In the event that the County does not incur any costs, expenses or losses in any fiscal year which in the aggregate amount to $100,000.00, the County shall be entitled to keep that sum (or the portion remaining from it after such costs, expenses and losses are deducted) to compensate it for assuming the risk of loss as set out herein. In addition to the above stated amounts to be paid by the Town, the Town expressly recognizes and agrees that the rates or charges for the personnel that will perform the services hereunder shall also include the customar~ sums that the County has historically affixed as and for a premium to provide for workers compensation coverage. The parties expressly agree that this extra charge is warranted due to the significant exposure that the County incurs with regard to the workers compensation laws. The parties acknowledges that for the initial year of this agreement this sum is estimated as being approximately $50,000. County shall have absolute discretion to determine the propriety of entering into the settlement of any claim, demand or litigation filed against the County and shall not be required to consult with or to entertain the interest of the Town in the defense or settlement of any such claim or litigation; ~rovided however, that whenever any claim, demand or litigation Ks filed against the County for which the Town would be responsible for payment of all of the cost and losses attributable thereto, as set out hereinabove, the Town shall have the right to take control of any such litigation and to employ such counsel as it may desire (at its own expense) in defense thereof. The sums required to be paid by the Town to the County under the provisions of this paragraph are in addition to the sum set out in paragraph 9 (re Progra~ Costs). h~files~truckee~sherif-k.doc 12 6/16/93 19. Term & Termination This agreement shall be effective as of July 1, 1993 and shall be for a term of one year provided, however, that the term shall automatically be renewed under the sa~e terms and conditions unless either party notifies the other of its intent not to renew, which notice shall be in writing and shall be delivered to th~.~ other party no later than May 1. County shall be entitled/t-~) terminate this agreement at any time if the Town is more tha~ 60 days delinquent in making any payment hereunder to County. Eie~ party shall have a right~~a~,e this agreement without cause by giving the other par~y 180 dayb~dvance written notification of In the event that this agreement is terminated for any reason, the obligations of the Town to make payments or reimbursements to County as set out herein and the obligations of the Town and the County for mutual indemnification shall continue after any such termination. 20. No Obliqations to Third Parties Nothing in this agreement, or any of the addenda hereto, is intended to nor shall it create any right in any person, firm, corporation or entity, other than in the parties hereto, including but not l~m~ted to the employees of the parties, to any of the benefits hereunder. Nothing herein is intended to expand the duties and obligations of the Town and/or the County with regard to any third parties. ponRiqht to Audit Records reasonable notice, either party shall have the right to inspect and audit any records maintained by the other party relevant to this agreement, to the extent allowed by law. 22. Construction of Aqreement This agreement shall be construed and enforced pursuant to the laws of the State of California. 23. Entire Aqreement This document is intended both as the final expression of the agreement between the parties hereto with respect to the included terms and as a complete and exclusive statement of the terms of the agreement. This agreement may be executed in counterparts, each of which shall constitute an original. h~files~truckee~sherif-k.doc 13 6/16/93 24. Amendment This agreement may only be amended in writing by an amendment authorized by the To%rn Council and the Nevada County Board of Supervisors. IN WITNESS W-HEREOF, the parties have executed this agreement on the dates indicated. COUNTY OF NEVADA / - Chairman, Board of ~ Supervisors ATTEST: Cl~rk o~ the Board ~f Supervisors TOWN OF TRUCKEE Town Manager ATTEST: Town Clerk Town 'Attorney -- APPROVED AS TO FORM Co~y Counse~ h~files~truckee~sherif-k.doc 14 6/16/93 SECTION 1-STAFFING LEVEL The basic stafflllg allocation for thc Nevada County Sheriffs Office - for the Truckee Police Department w~ll be as follows: Number of- Full Posi0,'on " Capt~irgChief 1 Lieutenant ' ' Serg4ant (Patrol) 4 Dep~/ 12 DeteCtive (Sergeant) Dete~ :tire (Deputy) Deputy (Reserve) 6 Parkiag Enforcement Officer (2apt~ ~in Secretary Cler~ Dtsp~ tch Supervisor 1 Disp~ tchers 4 This staffing level w~ll be achieved during the period covered by this Service Plan. The ChIefMll begin service im~aediately after the effe. ctive date of the ,Agreement between the Co.u. nty of Nevada and the Town of Truckee. All ,~taff vall begin service ~mme~t~ately after the effective date of the agreement. In the event ¢le. rtcal services are required prior to 3'uly 1, 199~, the Sheriffs Department will supply temporary clerxc$1 support on an as-needed basis, Town will be invoiced for actual cost~ incurred in connection wih service provided. Page 2 of 16 SECTION 2. STAFFING SCHEDULES This section sets forth the schedule anticiFated to be utilhcd during thc contract period. Thc schedules set forth herein are con~ldered guidelines, depicting the appraximate level of coverage per shift. The Chief retal~s the authority to adjust schedules, as necessary, to ensure efficient use of allocated personnel and ~ptimum coverage for the To~m of Truckee.. full Implementation Schedule: Deputy ! 0600 - 1600 D D D D Deputy 2 0600 - 1600 D D D D Deputy 3 0800 - 1800 D D D D Deputy 4 0800 - !800 D D D D Deputy 5 ' 0800. 1800 D D D D Deputy 6 : 0800 - 1800 D D D D Deputy 7 1800 - 0400 N N N N Deputy 8 1800 - 0400 N N N iN Deputy 9 2000. 0600 N N N N Deputy 10 2000 - 0600 N N N ':N Deputy 11 2000 - 0600 N N N N Deputy 12 2000 - 0600 N N N :N Sergeant 1 0700 -1700 D D D D Sergeant 2 0700 - 1700 D D D Sergeant 3 1700 - 0300 N N N N Sergeant 4 1700 - 0300 N N N iN Captain/Chief D D D D D Parking EnfOrcement D D D D D Clerk 1 (Investigation) D D D D D Clerk 2 ' ' D D D D D Clerk (Half-ilme) S S S S S Detective Sergeant (On ~all As Needed) D D D D D Detective (On Call As Needed) D D D D D Page 3 of 16 i flexible work. schedule will be allowed, as necessai7, in order to accommodate evening or week'end activities within the normal 40 hour work week. Time S ~ ~ ~ ~ ~ ~ Dispatch Supervisor* 0900- i700 X D D D D D X Dispatcher; 1 ~00. 0700 X N N N N N X Dispatch~r'~2 0700 - 1500 D D D X X D D Dtspatoher~3 I500 - ~00 N X X N N N N Dispatcher'4 Relief N N N D X X N ' 0700 - 1500 o}~Thursdays Page 4 of 16 SECTION 3 - POSITION DESCRIPTIONS Captain The Captain, a~tfng as the Chief of the Truckee Police Department, will be responsible for the management, direction, and control of all operational and administrative aspects of the law enforcement an~ community crime prevention services within the Town of Truckee. As the primary r~presentative df the Truckee Police Department, the Chief will perform the followin§: . Respondlto the Town Manager and Town Council ' Attend T~wn Council, community, and other meetings as required by Town Manager Provide .~upport to Town policy advisory commissions and committees Act as lit lson to: T('wa Agencies and Staff T~ ackee Schools D~ strict Attorney Si. rte and Federal Law Enforcement Agencies: Function as the Law Enforcement: O.~.S. Co,ordinator ' M~al Aide Coordinator H,~,'MAT Coordinator Perform ~edia ~Relatlons : Act as mSmber of the Town of Truckee executive management staff Daily operation ~nd management of the Truckee Police Depar~nent will involve functions such as the following: Prepare ad manage the Department's budget Develop nd/or review policies and procedures Develop nd/or review Town Ordinances ; Develop 5ng and short term Department goals Deal witl any citizens' complaints Perform ] ersonnel management functions such as: Pe ~onnel selection St; ff development Poi fdrmance evaluation Prepare z ritten status reports Plan and :oOrdinate security for special even~ Overs~ ritical investigations Page 5 of 16 SECTION 3 - POSITION DESCRIPTIONS Lieutenant The Lteutcnant?f thc Truckee Polfce Deparm~ent, will be responsible for the manag¢.ment, direction and control of tall operational aspects of the law enforcentent and community crime prevention servtces within :he Town of Truckee: .. Puncttot. as the Law Enforcement: C E.S. Coordinator (In absence o[ Chief) N atual Afdc Coordinator (In absence of Chic0 · HAZ/MAT Coordinator (In absence of Chief) Perform Media Relations Daily operation:and management of the Truckee Police Deparmmnt will involve functions ~uch as the following: Prepare :tnd manage the Department's budget DevelOp and/or review policies and procedures Develop a~/d/or review Town Ordinances Develop long and short term Departraent goals Deal wit:t any oitizen, s' compl.aint. Handle i ~ternaI affairs invest~gatmn-~ Develop traffic management plum Perform 5er~onnel management functions such as: P~ :~onnel ~election St~,ff dewlopment P~ ~formance ~valuation Perform ~perattonal audits aimed at increasing effectiveness and reducing liability Prepare ~ rritten status reports Plan and coordinate security for spectal events Develop mW crime prevention programs and manage' ex~sttng programs . De, clop .mhanced law enforcement programs such a~ reserves, volunteers, and explorers Assist in :he design of the facilityiheadquarters Re~pond to law enforcement calls as necessary Oversee ritical Investigations Prepare luffing schedules Page 6 of 16 Sergeant The Sergeants ,,~tlI assist the Chief/Lieutenant in the management, direction, and control of tlie enforcement an'd community crime prevention services whhin the Town of Truckee. Typical duties and responsibilities include: Plan, as.~ign, and supemise work of Department staff knpleme nt community oriented policing philosophy . Supervis traffic enforcement gupervts juvenile programs Prepare ~mployee evaluations , Prepare tatting schedules · Implemc[~t directed patrol strategies Review ~nd approve reports Supervis~ explorer and reserve programs Supervis~ evidence collection Manage. md control erLme scenes Supervis~ initial investigation of crimes Investiga :e traffic accidents as necessary including all involving Town employees Respond to calls for service as necessary Provide t ack-up support to primary officer Act as H ~,Z/MAT incident coordinator Tomtit7 ir l Court as required Assign a~t d ma,n_age all law enforcement equipment Handle cttizens complaints Arrange t or prisoner transportation : Meet witl: citizen groups Identify c)mmunity problems and concerns Coordlna e With Town Planning Department Assist wit ~ the developmen! of Town ordinances DevelOp;md implement training programs Assist in ;he development and management of the D6~artment's budget Assist in :he development and management of law enforcement programs Coord{na ~ any multi-agency responses , Perform uties delegated by the Chief/Lieutenant or assigned by the Sheriff in the CI' ets/Lieutenant's absence Page 7 of 16 The Deputies ~erform a variety of law enforcemeut and crime prevention work. They strive maxfiniz¢ posi~v¢ interaction with citizens through performing fuffcttons. ~picai duties and r~¢ponsibiliti~s ~nclud¢: Enfor~'~Iaws, i~¢luding traffic l~ws and To~ ordinanc~ Attend ~ ommuni~ meeti=gs Se~e w~tran~ and make arre~ ~ves~g~,te complatn~ and criminal ~' Gather ~videnee end tnte~ew ~ctims and ~e~es Investtg~ te a~tdenm (including traffic) and a~inist~r basic first aid Testi~ i court as required S~e so ~e legal papers, such as subpoenas Collect ad deposit b~il ~anspo ~ prisoners to Court,jail Prepare 'epor~ regarding crimes, a~iden~, or s~ilar circumstances Receive 'md handle evidence and property Perfo~ ~ackground chec~ of suspec~ ~rest at d inte~og~te suspec~ Perfo~ ;~ke-ou~ and operate su~eillance equipment Report ~tentially unsafe conditions relatlvc to traffic and other law enforcement matters ~nlist co nmuniW support to resolve specific communi~ problems Clerk The clerk will I er.form g~.neral office management and support f'unctions for the Truckee Poltce Department. Typmal dutms and responsibilities include: ' Recel e ~nd direct p. hone calls, visitors, and marl ~ , Provide general clerical support for Department staf£1~ Assist th~ public by answering inquiries regarding services, programs, and records Receive ~nd forward complaints to appropriate staff for resolution Compfle ~elevant information for use by staff in repl)ing to complaint or inquiries. Receive ~riain licensing applications and coordinate With the Sheriff's main office Receive r:equests for crime reports/records and coordinate with the Sheriff's main off/ce Esmblish~nd main~in files .for traffic related reports Enter traffic report m£ormatmn into the automated Records Manage,'nent System Process rqqucsts for copies of traffic reports .. Perforn~ ~hiscellaneous computer data entry and inquiry functions for Department staff Page 8 of 16 Detective The detective '~dll be responsible for the thorough investigation of certain complaints and crimtnal violations. Dutles and responsibilitie, of the detective include the following: Review ~nd t~n,,lyz, certain criminal ¢omplaints Conduct in-depth investigation of criminal activtt7 Obtain vfdence in support of inv~tigattons lnterrog ~te accused persons Intervfe~ ~ v/ctkns nnd witnesses Plan an{ coordinate ~take-outs and operate surveillance equipment Parttoip, lc' in the preparation and senfce of search warrants Make.ar ests a~ necessary Prepare letailed repom documenting ~I1 finding~ Prepnre ,Ses for prosecution by the Distrtct Attorney's off/ce Testify court as required Page 9 of 16 SECTION 4 - PROGRAM DESCRIPTIONS Police Admtn~tratton and Support Services; Police Admtnislration provides for the management, coordination, and administration of all law enforcement activities for the Town el Truckee. Administrative and Support services will be performed by icdividuals who are charged directly to Town under this Agreement, as well as by numerous indi'.Sduals at the Sheriff's main office tn Nevada City whose effort is included withtn ffidirect expens,$. Support from the main office will be provided primarily out of Administrative Management, p~rsonnel, Payroll, Accounting, Purchasing, Central Information, Reception, Pro~er~/ Evidence, and Crime Analysis. . ' - Within the Truo~cee Police Department, administrative functions will be performed primarily by tlm Chief and the Clerk. The Chief is a~signed overall management responsibility for the Department. The Chief's of(errs will focus on providing optimum services to the Tow,t of Truckee through efficient and effective use of available personnel, facilities, and equipment. The Clerk will provide general office m.!ariagement and clerical support for the Trucl~ee Police. The Clerk will also perform certain rcceptioh and records management services at the Deparm~ent headquarters in Truckee,las set forth below: General Ass~sta!~c'e and Informal[ion Department sta~ (primarily the Clerk) will receive and direct phone calls, mail, and visitors coming into the headquarters. Reasonable efforts will be made to answer public inquiries related to Department se~ces, programs, and records. The Agreementlbetween' County and Town provides for the processing of applications for certain licensing ordtnafices of Town. Such applieationa will be received at the Truckee headq~,arters and forwarded to th~: Sherif£s main office for processing by the Central Information and Inve~ttgati6n Bureau~, as set !otth in thc Agreement All persons applyifig for concealed weapons permits will ibc directed to tl.e Sheriffs main office. Registrants (Se~ Narcotic~. and Arson) Individuals will iegister at the Truckee office. Page 10 of 16 Record M jnte[mnce Ail crime reper~, and traffic related incidents, will be reiained at the Truckee Police Department. Said repor~ will be entered into the 8recreated Records Management System {RM$) by the staff sad will b~ maintained at :he Truckee office.' All records maia~ined ia cmmectioa with this Agreement Mil be subject to retention schedules established by the Sheriff. Copies of Re~otd~ ~e Agr~emen~ be~een CounV and Town provides for the copying of certain records that must:be obtained from }he Sheriffs Depar~ent. Requesm for copies ~11 be a~pted at th~ headquarters. Fingerprinting ~f %uckee residen~ (for applications, emp!oymenk or similar positions) will peffo~ed by t~e staff at the T~ckee headquarters during ~ limited number of hours each week. (Specific hour for finge~finting will be posted at the headquarters.) Police Patrol ~nd Traffic Enforcement: The patrol pre,ram Includes a variety of law enforcement activities performed by sworn peace officers. Office~s will perform directed patrolling based upon'patterns of criminal activity occurrin, g, or anticipated tO cz:cur, within specific areas. Officers will respond to calls for service and initiate activity, as required. Other ]aw enforcement activities delineated within the Position Descriptions for deputies (suCh as investigating complaints and criminal ~iolations, arresting and lnterrogatf.ng suspects, preparing report~, etc.) will be performed as requi~d. This agreement ~t0es not presenily provide for specific traffic' enforcement officers; however, to the extent possible,., the patrol officers will enforce the Vehicle Code and traffic/vehicle related ordinances adol~ted by Town. The traffic enforcement program will pro,ride for the investigation and documentation of traffic collisions, as well as for apprehension and arrest of persons drlvir~g under th.e influehoe. The traffic program will provide for routine parking enforcement. The police patrc~l program will provide for initial response to calls for service related to dangerous animal situation¢, or noise disturbances caused by antmals; however, Town will be responsible, separate and ap~.rt from this Agreement, for general animal control and enforcemeut of ordinances/ . code relattng to ,~nimala. i Consistent with {he Department's community oriented policing philosophy, continual effort will made through the patrol program to maximize positive interaction with citizens in an effort to achieve greater "community trust, respect, and support. The patrol officers will strive to butid Page ~.1 of 16 SECTION 5 - TRAINING REQUIREMENTS The training re~lutrements for the period covered by this serVice Plan are as follows: Field Training ~ro~rem: This is a 90 day program. Annu al ?roflctehcy Trainir~g: This is a requ. ired course designe.d to maintain proficiency iii new laws, now proeedurel[, and department operanonal changes. Thru training will be provided to the sergeants and d~puties. Basic Traffic h~vest~tahon: Tlns ls.a 40-hour course that certifies sworn off~cers to cite at the scene of acc/dents and t© -conduct investigation of traffic accidents. This course will be provided to ?II sworn officers. Other Miscellaneous TrMning: Periodically, there may be c~ther training opportunities that wo6Id benefit the staff at the Truckee Police Department, such as those addressing advanced traffic enforcement/investigation, handling of hazardous materials, gang suppression, crime prevcntion,:or other special topic~ of interest to Town. Staff members may, bo authorized to attend such training as deemed apprbprlate by the Chief or as required by law. Page 14 of 16 SECTION 6 - VEHICLE The following v~hic!es shall be furnished by County as contracted for by Town: 3 Unmated Vehicles (assigned to Investigators) 1 Unmated Vehicle (to be assigned on a full-tlme basis to the Captain/Chie0 " 6 Patrol ilehlcles (to be utilized by the Sergeants and Deputies during assigned shifts) 1 Boat (l~atrol Donner Lake) 1 Pick-u!~ Truckee (Primarily Boat Patrol) Page 15 of 16 SECTION 7 - EQUIPMENT REQUIREMENTS During the periCd covered by thts Se~ce Plan, the following equipment purchases are anticipated to be direct charges to Town under this Agreement: " Han4.1mld radio 13 Shotgun 11 Hanc~gun 24 Miscellaneous Equipment (To be determined) Riflei:AR15 4 Sniper Rifle 1 Sea-l~o0 Water Craft !Note: (1) M~cellaneo~ equipment r,quired to meet the operational needx of the Departmel~t th?oughout t{~.e period covered by the ser'.4ce plan may include ttemx $uch ax: cellular phlme; flashlightx; vaItox kit; I.D. Mtn; camerax; tape recorders; and pagerx. (2) $o~ additional new ~afety equipment item~ will be' covered through Indirect (overhead) Page I6 of 16 DOT-ROAD MAINTENANCE County's Position - The County allocated the General Fund Maintenance of Effort Revenue based on center line miles. The percentage of center line miles in the incorporation area is 19.74%. The County then used $892,670 as the 1990-91 Maintenance of Effort Expenditures to arrive at a cost of $176,206 that is related to Town Road Maintenance. Lurid & MoBweeney's Position - LAFCo contracted with Lund & McSweeney to review the County's numbers. Among other changes, Lund & McSweeney recommended that road costs be calculated in another way. A percentage was developed of the Town-related Road Maintenance costs to the total county Road Maintenance Costs, which was determined to be 32.7%. That percentage was then applied to the 1990-91 Maintenance of Effort Expenditures from the Audit Report of $910,254, which was higher then the County's MOE number. Therefore the Town-related costs for Road Maintenance was determined to be $298,326. The county chose not to use this method. MSI's Position - MSI made a separate analysis of the Road Maintenance costs related to the Town based on the estimated 1993- 94 expenditures and revenues from Table V-2 of the LAFCo Report of June 1992. This table was developed by LAFCo to determine the amount of revenue and expenditure loss in 1993-94 due to the Truckee incorporation. MSI then allocated these LAFCo-derived numbers back to the base year of 1990-91, based on the California Per Capita Income Percentages, to arrive at the implied 1990-91 costs of $523,242. The detail for this calculation is included following. FILE NAME: ROAD_SPL.WK1 TOWN OF TRUCKEE REGRESSION ANALYSIS OF COST OF ROAD MAINTENANCE 93-94 92-93 91-92 90-91 EXPENDITURES RELATED TO TRUCKEE $712,185 REVENUES RELATED TO TRUCKEE $156,042 NET EXPENDITURES RELATED TO TRUCKEE $556,143 CALIF PER CAPITA INCOME PERCENTAGE 2.72% -0.64% 4.14% IMPUED COSTS $541,416 $544,904 $523,242 IMplIED ROAD MAINTENANCE COSTS FOR 90-91 :$523,242 NOTE: ESTIMATED EXPENDITURES AND REVENUES FROM LAFCO REPORT OF JUNE 1992. c xrcs v. FAcr 6N Table V-2 IMPACT ON NEVADA COUNTY Lo~ Revenues, Reduced Expenditures and Resulting Fund Balances ;r:~r~¥ Tax '~ $1 ~3 651~$1 450,5~ $I 4~,~08 $1 514,61~ $I 541 ~6 ~ma[ ;rc~r~y Tra~fer Tax ~17,5~ '~' ~105,~1 [I09,695 ~113,~9 ~11~543 Tra~i~n~ Occu~y Tax ~,~ ~,360 ~3,360 ~3,360 ~E3,360 ~3,360 ~3,360 V~ c e C~e Fi~ $16,~49 ~5,~9~ ~5,~94 ~5,394 ~5,39~ ~5,39& Oescription of Revue It~ 1992/93 1~/96' 1~A/95 I~5/96 1996/97 1~7/98 1~8/~ Tccat Road F~ Revue Lass S7~,6~ ~,0~2~ S159,954 $163,825 S167,695 $171,1~ C:T - Ra~ Maince~nce & Snow R~vaL S34~,5~ ~5 ' S~0,215 S~?,~O S~,Z9Q S~,3~0 ~11,35a ~ ~T R~O FU~O (COST]/SAW~GS S267,8~ 56,1~D ) SS~,Z61 SS93,¢~5 ~O?,S9S ~,156 ~7,10S ~T (C~ST)/SAVT~CS ALL FUNDS SI,06~,301 CFA Version 04: Jun~ 23, 1992 - 47 JUN ~ '9~ ll:~ LUHD &_MCSWEEMEY P.5 t MAINTENANCE OF EFFORT ALLOCATION ~i q~/ P3~ ~T~3~ THE COUNTY USED CENTER LINE MILES MILES AS THE BASIS TO ALLOCATE GENERAL FUND MAINTENANCE OF EFFORT(MOE) REVENUE PROVIDED TO DOT FOR ROAD MAINTENANCE. THIS BAS~S ASSUMES THAT THE COST OF MAINTAINING ROADS IS THE SAME COUNTY WIDE, THIS IS NOT THE CASE. IT COSTS SUBSTANTIALLY MORE TO MAINTAIN TRUCKEE ROADS THAN WESTERN NEVADA COUNTY ROADS. WE BELIEVE THAT A TOTAL COST OF ROAD MAINTENANCE IS A MORE EQUITABLE BASIS TO ALLOCATE GENERAL FUND REVENUE. THE TOTAL COST OF ROAD MAINTENANCE IN THE INCORPORATION AREA IN FY1990/91 WAS $1,751,848, THE TOTAL COUNTY WIDE ROAD MAINTENANCE COST WAS $5,345,249. THE PERCENTAGE OF INCORPORATION AREA COST TO TOTAL COST IS 32.7%. THE PERCENTAGE OF CENTER LINE MILES IS 19.74%. WE BELIEVE THAT 32.7% IS A MORE EQUITABLE PERCENTAGE. ADDITIONALLY, THE COUNTY USED $892,670 AS 1990/91 MOE EXPENDITURES, THE STATE CONTROLLERS AUDIT REPORT FOR 1990/91 STATED MOE WAS $910,254. JOHN SEARS AGREED THAT THE AMOUNT IN THE AUDIT REPORT WAS APPROPRIATE. THE RECOMMENDED MOE ALLOCATION IS: ROAD MAINTENANCE COST IN INCORPORATED AREA 1,751,848 COUNTY WIDE ROAD MAINTENANCE COSTS 5,345,249 MOE 910,254 ALLOCATION RATE 32.77% ALLOCATED COSTS "298,326 DETAIL OF COUNTY SERVICE AREA PROPERTY TAX REVENUES Before incorporation, there existed within the Town limits a number of County Service Areas (CSAs) for the purpose of Road Maintenance and Snow Removal. Upon incorporation these CSAs were dissolved and became part of the new Town. Therefore, all of the funding for these CSAs should also transfer to the Town. Most of the funding is made up of property taxes and assessments, and it is the property tax portion which is included here, and earlier in the report, included in the amount of property taxes transferred to the Town by the County. It appears that the County did not include the Homeowners Property Tax Relief (HOPTR) in the calculation of revenues to be transferred to the Town. MSI has included those revenues, which increases the CSA transfer to $466,185 in the base year, as can be seen on the following page. FILE NAME: CSA DTL.WK1 TOWN OF TRUCKEE DETAIL OF CSA PROPERTY TAX REVENUES FY 92- 93 COUNTY NEW PROPERTY INCLUDE MSI AREA TAXES HOPTR TOTAL CSA 4 $450,751 $11,074 $461,825 CSA 5 $2,701 $53 $2,754 CSA 6 $607 $13 $620 CSA 7 $0 $0 $0 CSA 8 $0 $0 $0 CSA 9 $0 $0 $0 CSA 10 $308 $1 $309 CSA 11 $669 $8 $677 CSA 19 $0 $0 $0 CSA 35 $0 $0 $0 $455,036 $11,149 $466,185 COUNTY PROPERTY TAXES INCLUDES CURRENT SECURED & UNSECURED, PRIOR YEAR, SUPPLEMENTAL, AND PENALTIES AND INTEREST ON TAXES. REYENU£S ................................................ Col A Col B Cot C Cot D Activity Codes (See instructions) 18 0 0 0 Activity (specify): ROAD& SNOW (Include supplemental roi[) 1.0 $ - 383947 $ 0 $ 0 $ 0 (Include supplemental roi[) Z.O 15384 0 0 0 Prior Year (Include supplemental roil) 3.0 21600 0 0 0 Special district augmentation fund 4.0 0 0 0 0 Property assessments I (Service type assessments go on line lg.O) 5.0 495613 0 0 0 Special assessments (Do not include 1911 or 1915 Special Assessment Act Bonds) 6.0 0 0 0 0 Penalties & cost on delinquent tax and assessments 7.0 - 6~1 0 0 0 Licenses, permits & franchises 8.0 0 0 0 0 Fines, forfeits & pena(ties g.O 0 0 0 0 Revenue from use of money & property: Interest (Includes gain (loss) on investments) 10.0 23239 0 0 0 Rents, concessions & royalties 11.0 0 0 0 0 Intergovernmental: STATE Aid for construction 12.0 0 0 0 0 Homeowner's property tax relief 13.0 11074 0 0 0 Specla[ supplemental subvention 14.0 0 0 0 0 Other - i.e. Timber Yield (specify): 15.0 0 0 0 0 FEDEP~L Aid for construction 16.0 0 0 0 0 Other (specify): 17.0 0 0 0 0 Other governmental agencies 18.0 0 0 0 0 Charges for current services (Include service type assess~nts) 19.0 0 0 0 0 Other revenues 20.0 166735 0 0 0 Total Revenues 21.0 $ 1124173 $ 0 $ 0 $ 0 CC)MBINED STATE)lENT OF REVENUES, EXPENDII~JRES AND CH~LNGES IN FUND BALANCE PAGE 10 GENEP~AL & SPECIAL REVENUE F1JNDS Part B COUNTY SERVICE AREA NO. 4 EXPENDITURES i Col A Co( B Cai C Col D Activity Codes (See instructions) 18 0 0 0 ' . ':!-. STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE i.!':-" GENERAL & SPECIAL REVENUE FUNDS ~R COUNTY SERVICE AREA NO. § .......... ........................ i .................................. ............................................... Col A Col 8 Col C Col D Activity Codes (See instructions) 18 0 0 0 Activity {specify): ROAD MAINT. SNOW RE)tOVAL Taxes & Assessments: Current secured {Include supplemental roll) 1.0 $ 1826 $ 0 $ 0 $ 0 Current unsecured (Include supplemental roll) 2.0 79 0 0 0 Prior Year (Include supplemental roll) 3.0 143 0 0 0 Special district augmentation fund 4.0 0 0 0 0 Property assessments [Service type assessments go on Line lg.O) 5.0 0 1176 0 0 Speciak assessments (Do not include lgll or lglS Special Assessment Act Bonds) 6.0 0 0 0 0 Penalties & cost on delinquent tax and assess~nts 7.0 43 0 0 0 Licenses, permits & franchises 8.0 0 0 0 0 Fines, forfeits & penalties g.o 0 0 0 0 Revenue from use of money & property: Interest (Includes gain (Loss) on investments) 10.0 610 0 0 0 Rents, concessions & royalties 11.0 0 0 0 0 Intergovernmental: STATE Aid for construction 12.0 0 0 0 0 Homeowner's property tax relief 13.0 53 0 0 0 Special supplemental subvention 14.0 0 0 0 0 Other - i.e. Timber Yteld {specify): 1§.0 0 . 0 0 0 FEDERAL Aid for construction 16.0 0 0 0 0 Other (specify): 17.0 0 0 0 0 Other governmental agencies 18.0 0 0 0 0 Charges for current services (include service type assessments) lg.o 0 0 0 0 20.0 3435 0 0 0 Other revenues .................................. I Total Revenues 21.0 $ 6189 $ 1176 $ COHBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IH FUND RALA~ICE PAGE 10 GENERAL & SPECIAL REVENUE FUNDS Part B COUNTY SERVICE AREA NO. 5 ...... ..................................... Col A Co[ B Col C Co[ O EXPENOIllJRES [ Activity Codes (See instructions) 18 0 0 0 '~ED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 10 GENERAL & SPECIAL REVENUE FUNDS rt A COUNTY SERVICE AREA NO. 6 ............................................... Co~ A Col B Col C Co~ D Activity Codes (See instructions) 18 0 0 0 Activity (specify): ROAO MAINT. SNOW RE)4OVAL (Include supplemental roil) 1.0 $ 438 $ 0 $ 0 $ 0 (IncLude suppLementaL roLL) 2.0 19 0 0 0 (Include suppLementaL roil) 3.0 36 0 0 0 Special district augmentation fund 4.0 0 0 0 0 (Service type assessments go on line 19.0) 5.0 0 435 0 0 [Oo not include 1911 or 191S Special Assessment Act Bonds) 6.0 0 0 0 0 Penalties & cost on delinquent tax and assessments 7.0 11 0 0 0 Licenses, permits & franchises 8.0 0 0 0 0 Fines, forfeits & penalties 9.0 0 0 0 0 {Includes gain (loss) on investments) 10.0 114 0 0 0 Rents, concessions & royalties 11.0 0 0 0 0 STATE Aid for construction 12.0 0 0 0 0 Homeowner's property tax relief 13.0 13 0 0 0 Special supplemental subvention 14.0 0 0 0 0 Other - i.e. Timber Yield (specify): 15.0 0 0 0 0 FEDERAL Aid for construction 15.0 0 0 0 0 Other (specify): 17.0 0 0 0 0 Other governmental agencies 18.0 0 0 0 0 (Inctude service type assess~nts) 19.0 0 0 0 0 20.0 0 0 0 0 21.0 $ 631 $ 435 $ 0 $ 0 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE PAGE 10 GENERAL & SPECIAL REVENUE FUNDS Part B COUNTY SERVICE AREA NO. 6 .- CoL A Co[ B CoL C CoL O EXPENDITURES I i Activity Codes (See instructions) 18 0 0 0 APPROPRIATIONS LIMIT (GA)iN) SCHEDULE Senate Bik[ 8E3 (Chapter lOgS, Statutes of 1987) requires the State Controller's annual report to include the appropriations limit and the total annua{ appropriations subject to the Limit for each special district in accordance with CaLifornia Constitution Art[cie XIII B. PAGE 89 COUNTY SERVICE AREA NO. 7 Appropriations Limit as of the end of fiscal year 1.0 0 Total annual appropriations subject to the limit as of the end of the fiscal year 2.0 0 Amount (over)/under the appropriation limit (Line 1.0 [ess 2.0) 3.0 0 ArticLe XIII B of the CaLifornia Constitution provides exceptions for some Special Districts for establishing an appropriations Itmlt. PLease refer to Section g a-c on the reverse of this form. if any of the fo[ [owing exceptions apply, please fiLL in the appropriate line with the number District's only tax revenues are Oebt Service Taxes 4.0 District did not levy a tax rate greater than 12 1/2 cents per $I00 of assessed valuation and was in ex[stance January 1, 1978 5.0 0 Oistrict is totally funded by sources other than "proceeds of taxes" 6.0 1 Other (exp lain) 7.0 0 yO~ STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL & SPECIAL REVENUE FUNDS COUNTY SERVICE AREA NO. 8 ......... REVENUES i .............................................. CoL A Col B Col C Col O Activity Codes (See instructions) 18 0 0 0 Activity (specify): ROAD MAINT. SNOW REMOVAL T es & Assessments: urrent secured (Include supplemental rolE) 1.0 $ 0 $ 0 $ 0 $ 0 Current unsecured (Include supplemental roil) 2.0 0 0 0 0 rior Year (IncLude supplemental rolE) 3.0 0 0 0 0 Special district au~ntation fund 4.0 0 0 0 0 Property assessments ;e ice type assessments go on Line lg.0) 5.0 0 3786 0 0 pecia[ assessments )o .or include 1911 or 1915 Special Assessment Act Bonds) ~enaLties & cost on delinquent tax and assessments 7.0 0 0 0 0 ~ Lenses, permits & franchises 8.0 0 0 0 0 Fines, forfeits & penalties 9.0 0 0 0 0 Revenue from use of money & property: interest (Includes gain (Loss) on investments) 10.0 706 0 0 0 Rents, concessions & royalties 11.0 0 0 0 0 Intergovernmentat: iTATE Aid for construction 12.0 0 0 0 0 Homeowner's property tax relief 13.0 0 0 0 0 Special suppLementaL subvention 14.0 0 0 0 0 Other - i.e. Timber Ytetd (specify): 15.0 0 0 0 0 FEDERAL Aid for construction 16.0 0 0 0 0 Other (specify): 17.0 0 0 0 0 ~ther governmental agencies 18.0 0 0 0 0 trges for current services (IncLude service type assessments) 19.0 0 0 0 0 ZO.O 0 0 0 0 Other revenues ...................... Zl.O $ 706 $ 3786 $ 0 $ 0 Total Revenues ................. :( LINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BAm~CE t ~E 10 GENERAL & SPECIAL REVENUE FUNDS Part B COUNTY SERVICE AREA NO. 8 ...... EXPENDITURES I Col A Co[ B Col C Co[ O Activity Codes (See instructions) 18 0 0 0 /~ED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALJ~NCE /10 GENERJ~L & SPECIAL REVENUE FUNDS ~/~.rt A COUNTY SERVICE AREA NO. g .............. ........................ i ......................................................... ............................................... Col A Col B Col C Co[ O Activity Codes (See instructions) 18 0 0 0 Activity (specify): SNOW REMOVAL Taxes & Assessments: Current secured (Include supplemental roll) [.0 $ 0 $ 0 $ 0 $ 0 Current unsecured (Include supplemental roE[) 2.0 0 0 0 0 Prior Year (Include supplemental roll) 3.0 0 0 0 0 Speciai district augmentation fund 4.0 0 0 0 0 Property assessments Service type assessments go on line 19.0) 5.0 124442 0 0 0 Special assess~nts (Do not include 1911 or [915 Special Assessment Act Bonds) 6.0 0 0 0 0 Penalties & cost on delinquent tax and assessments 7.0 0 0 0 0 Licenses, permits & franchises 8.0 0 0 0 0 Fines, forfeits & penalties 9.0 0 0 0 0 Revenue from use of ~ney & property: Interest (IncLudes gain (Loss) on investments) 10.0 6856 0 0 0 Rents, concessions & royalties [1.0 0 0 0 0 Intergovernmental: STATE Aid for construction [2.0 0 0 0 0 Homeowner's property tax relief [3.0 0 0 0 0 Special supptementai subvention 14.0 0 0 0 0 Other - i.e. Timber Yield (specify): 15.0 0 0 0 0 FEOERAL Aid for construction 16.0 0 0 0 0 Other (specify): 17.0 0 0 0 0 Other governmental agencies 18.0 0 0 0 0 Charges for current services (Include service type assessments) 19.0 0 0 0 0 20.0 45341 0 0 0 Other revenues .................................................. ............................................ ..... [76639, o, 0, o Total Revenues ............... COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE PAGE 10 GENERAL & SPECIAL REVENUE FUNDS Part B COUNTY SERVICE AREA NO. 9 .. EXPENDXTURES [ Co[ A Cot B Col C Co[ D Activity Codes (See instructions) 18 0 0 0 .~STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -~r GENERAL & SPECIAL REVENUE FUNDS SERVICE A.EA NO. 10 ........ a' ............ ........................ i ................................................. .............................................. Cci A Col B Co[ C Co[ D Activity Codes (See instructions) 18 0 0 ~_ Activity (specify): ROAD PLAINT. SNOW REMOVAL Iaxes & Assessments: Current secured (Include supplemental roil) 1.0 $ 28 $ 0 $ 0 $ 0 Current unsecured (Include supplemental rotE) 2.0 1 0 0 0 Prior Year (Include suppiementa~ roiL) 3.0 3 0 0 0 Special district augmentation fund 4.0 0 0 0 0 Property assessments ervice type assessments go on Line 19.0) 5.0 0 0 0 0 Specie[ assessments {0o not include 1911 or 1gE5 Special Assessment Act Bonds) 6.0 0 0 0 0 Penalties & cost on deEinquent tax and assessments 7.0 1 0 0 0 Licenses, per, its & franchises 8.0 0 · 0 0 0 Fines, forfeits & penalties 9.0 0 0 0 0 Revenue from use of money & property: Interest 0 (Includes gain (Foss) on investments) 10.0 275 0 0 Rents, concessions & royatties 11.0 0 0 0 0 Intergovernmental: STATE 0 Aid for construction 12.0 0 O 0 Homeowner's property tax relief 13.0 1 0 0 0 Special supplemental subvention 14.0 0 0 0 0 Other - i.e. Timber Ytetd (specify): 15.0 0 0 0 0 FEDERAL 0 Aid for construction E6.0 0 0 0 Other (specify): 17.0 0 0 0 - 0 Other governmental agencies 18.0 0 0 0 0 Charges for current services (IncLude service type assessments) 19.0 0 0 0 0 20.0 1450 0 0 0 Other revenues ........................ , Total Neven.es 2E.O $ ETBg $ 0 $ .... ~_~ ........... ~_ CO(4BINED STATEMENT OF REVENUES, EXPENDITURES AND C~LRNGES IN FUND BAI.A~CE PAGE lO GENERAL & SPECIAL REVENUE FUNDS Part B COUNTY SERVICE AREA NO. 10 ........ ' EXPENDITURES { Co[ A Cot B Cot C Col O Activity Codes (See instructions) 18 0 0 0 ZENTOF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE r/ GENERAL & SPECIAL REVENUE FUNDS ~ COUNTY SERVICE AREA NO. 11 REVENUES I Cot A Co[ B Col C Co[ D Activity Codes (See instructions) 18 0 0 0 Activity (specify): ROAD MAINT. ~ ces& Assessments: Current secured (Include supplemental rotE) 1.0 $ 271 $ 0 $ 0 $ 0 ;urrent unsecured (Include supplemental roi[) 2.0 13 0 0 0 Prior Year (IncLude supplemental rotE) 3.0 25 0 0 0 Special district au~ntation fund 4.0 0 0 0 0 )roperty assessments ~,vice type assessments go on tine 19.0) 5.0 0 2034 0 0 Special assessments )r qot include 1911 or 1915 Special sessment Act Bonds) 6.0 0 0 0 0 ~enaities & cost on delinquent tax and assessments 7.0 7 0 0 0 Licenses, permits & franchises 8.0 0 0 0 0 nes, forfeits & penatties 9.0 0 0 0 0 venue from use of money & property: Interest (Includes gain (toss) on investments) 10.0 353 0 0 0 Rents, concessions & royalties 11.0 0 0 0 0 tergovernmenta[: STATE Aid for construction 12.0 0 0 0 0 Homeowner's property tax ret[el 13.0 8 0 0 0 Special supplemental subvention 14.0 0 0 0 0 Other - i.e. Timber Yield (specify): 15.0 0 0 0 0 FEDERAL Aid for construction 16.0 0 0 0 0 Other (specify): 17.0 0 0 0 0 Other governmental agencies 18.0 0 0 0 0 Charges for current services (Include service type assessments) lg.O 0 0 0 0 her revenues ZO.O 1891 0 0 0 TotaL Revenues 21.0 $ 2568 $ 2034 $ 0 $ 0 O~ABINED STATEMENT OF REVENUES, EXPENOIlqJRES AND CHA~GES IN FUND BALANCE PAGE 10 GENERAL & SPECIAL REVENUE FUNDS F 't B COUNTY SERVICE ARF~R NO. 11 EXPENDITURES I Col A Co[ B Co[ C Co[ O Activity Codes (See 1ns[ructions) 18 0 0 0 : A COUNTY SERVICE AREA NO. lg REVENUES I CoL A CoL B Col C CoL D Activity Codes (See instructions) 15 0 0 0 Activity (specify): SNOW REMOVAL Taxes & Assessments: Current secured (IncLude suppLementaL roll) 1.0 $ 0 $ 0 $ 0 $ 0 Current unsecured (IncLude supplemental roi[) 2.0 0 0 0 0 Prior Year (IncLude suppLementaL roiL) 3.0 0 0 0 0 Special district augmentation fund ¢.0 0 0 0 0 Property assessments mrvice type assessments go on kine 19.0) S.O 750 0 0 0 Special assessments kuo not include 1911 or 1915 Special Assessment Act Bonds) 6.0 0 0 0 0 PenaLties & cost on delinquent tax and assessments 7.0 0 0 0 0 Licenses, permits & franchises 8.0 0 0 0 0 Fines, forfeits & penalties 9.0 0 0 0 0 Revenue from use of money & property: Interest (IncLudes gain (Loss) on investments) 10.0 92 0 0 0 Rents, concessions & royalties 11.0 0 0 0 0 IntergovernmentaL: STATE Aid for construction 12.0 0 0 0 0 Homeowner's property tax relief 13.0 0 0 0 0 Special supplemental subvention 14.0 0 0 0 0 Other - i.e. Timber YieLd (specify): 15.0 0 0 0 0 FEDERAL Aid for construction 16.0 0 0 0 0 Other (specify): 17.0 0 0 0 0 Other governmental agencies 18.0 0 0 0 0 Charges for current services (IncLude service type assessments) 19.0 0 0 0 0 Other revenues 20.0 315 0 0 0 Total Revenues 21.0 $ 1157 $ 0 $ 0 $ 0 ~MBINED STATEMENT OF REVENUES, EXPENDIIAJRES AND CHAJtGES IN FUND BALANCE rAGE 10 GENEIL~L & SPECIAL REVENUEFUNDS Part B COUNTY SERVICE AREA NO. 19 EXPENDITURES [ CoL A Col B Col C Col D I Activity Codes (See instructions) 18 0 0 0 ENT OF REVENUES, EXPENOITURES AND CHANGES IN FUNO RAL~NCE 10 GENERAL & SPECIAL REVENUE FUNDS mt A COUNTY SERVICE AREA NO. 35 REVENUES Co[ A Col B Col C Col D Activity Codes (See instructions) 18 0 0 0 Activity (specify): ROAD MAINT. Taxes & Assessments: Current secured (include supplemental roi[) 1.0 $ 0 $ 0 $ 0 $ 0 Current unsecured (Include supplemental roll) Z.O 0 0 0 0 Prior Year (Include supplemental roll) 3.0 0 0 0 0 Special district augmentation fund 4.0 0 0 0 0 Property assessments (Service type assessments go on line lg.o) 5.0 13450 0 0 0 Special assessments (0o not include 1911 or 1915 Spectat Assessment Act 8onds) $.0 0 0 0 0 Penalties & cost on delinquent tax and assessments 7.0 0 Licenses, permits & franchises B.O 0 0 0 0 Fines, forfeits & penalties 9.0 0 0 0 0 Revenue from use of money & property: Interest (Includes gain (loss) on investments) 10.0 91 0 0 0 Rents, concessions & royalties 11.0 0 0 0 0 Intergovernmenta [: STATE Aid for construction 12.0 0 0 0 0 Homeowner's property tax relief 13.0 0 0 0 0 Special supplemental subvention 14.0 0 0 0 0 Other - i.e. Timber Yield (specify): 15.0 0 0 0 0 FEOERRL Aid for construction 16.0 0 0 0 0 Other (specify): 17.0 0 0 0 0 Other governmental agencies 18.0 0 0 0 0 Charges for current services (Include service type assessments) 19.0 0 0 0 0 Other revenues 20.0 16690 0 0 0 Total Revenues 21.0 $ 30231 $ 0 $ 0 $ 0 COMBINED STATEt(ENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE PAGE 10 GENEPJ~L & SPECIAL REVENUE FUNDS Part B COUNTY SERVICE AREA NO. 35 EXPENDITURES ] Col A Col B Co[ C Co[ O Activity Codes (See instructions) 18 0 0 0 PROPERTY TAX ALLOCATION FACTORS The Property Tax Allocation Factor determines the Town's share of the 1% Property Tax. Therefore, the higher the Town's PTAF, the higher its share of the 1% Property Tax. MSI did a comparison between the Property Tax Allocations included in the LAFCo Report (calculated by Angus McDonald) and those calculated by the County. There were some differences in the percentages calculated. Following on PAGE 1 (AngUs McDonald Schedule), Column 5, the sum of this column is $850.545,125. But on PAGE 2 (Nevada County n d ' the sum of that column is $886,037,572. Schedule), colum ~ .... ~A~ is a difference of over $35 Between these two calculations, ~ . · son for this is that the Angus McDonald schedule million. The rea .............. ~ axes in the Base, while (PAGE 1) includes only tne uurren~ ~= ..... T the County schedule (PAGE 2) includes the Current Secured, Public Utility Transfers, Homeowners Exemption, as well as the Unsecured Tax Roll. In that the Town receives a share of taxes from all these sources, MSI believes it should be included in the base when calculating what the Town should receive. The effect of this is that the Angus McDonald percentages on PAGE 1, Column 10 are higher than those calculated by the Nevada County Auditor-Controller. This is because the Total Assessed Valuation ultimately determines the base, or the denominator, when calculating what percentage the Town will receive. In other words, ' tor increases, the Town's percentage or share as the deno~ ...... use the denominator from PAGE_2L Co~mn_~ decreases. ~o ~ ~ ....... ~^~ u~ed bv Angus McDona£~, ~ it increases in relation to nne nu~,~ ....... _ ' ' will since the numerator (taxes from costs of transferre~ services; stay the same, the percentage will decrease. Based upon this fact MSI believes that the percentages on Page 55 of the LAFCO (Angus McDonald) report are overstated and the determination by the County on PAGE 2 is correct. MSI has re- created the County numbers (PAGE 4, column 9), with the only exception being that MSI added in the numbers for CSA 4, which is why TRA 77002 has a higher percentage. We have broken out that TRA on PAGE 5, so one can see how that higher percentage was arrived at. MSI also calculated the TAF in another way, by dividing the taxes in support of the services being transferred into what the County received in taxes (column 7) to arrive at the numbers in column 11, which is the method that Angus McDonald used, now with the lower percentages. Also included is a brief description of the columns on PAGES 3 and 4, labeled here as PAGE 6. DESCRIPTION OF COLUMNS ON TAF_ALOC.WK1 1) Tax Rate Areas 2) These are the Total Assessed Valuations used by Angus McDonald to calculate their numbers. Numbers came from PAGE 1, column 5. 3) These are the Assessed Valuations not used by Angus McDonald in column 2. They include the Public Utility Transfers, Homeowners Exemptions, and the Unsecured Tax Roll. 4) These are the Assessed Valuations used by the County and came from PAGE 2, Column d, as well as other backup material obtained from the County. 5) This is the total property tax received from each TRA, and is 1% of column 4. 6) This is the Property Tax Allocation Factor for each TRA, and represents the percentage of total property taxes (Column 5) that the County received before incorporation. 7) This is the amount of property taxes that the County received prior to incorporation, and is column 5 times column 6. 8) These numbers represent an allocation of the taxes in support of services being transferred ($1,205,185 for the Town and $455,101 for the CSAs). It was allocated by the share of total property taxes in Column 5 and is the method used by the County. 9) This is the Town's share of Total Property Taxes and is column 8 divided by Column 7 multiplied by column 6. 10) This is the Town's share of total property taxes and is column 9 multiplied by column 5, and acts as a check upon column 8. 11) These numbers represent an allocation of the taxes in support of services being transferred ($1,205,185 for the Town and $455,101 for the CSAs). It was allocated by the share of property taxes received by the County in column 7 and is the method used by Angus McDonald. 12) This is the Town's share of Total Property Taxes and is column 11 divided by Column 7 multiplied by Column 6. 13) This is the Town's share of total property taxes and is column 12 multiplied by Column 5, and acts as a check upon column 11. COM-P~HENSI~ FISCAL ANALYSIS FOR THE PROPOSED TOWN OF TRUCKEE Prepared By Jan Hagel Nevada County Local Agency Formation Commission Executive Officer With Technical Assistance From Angus McDonald & Associates Berkeley, California Final Draft For Public Hearing On June 25, 1992 [w:\la fc o002\c fa\c fa.004] CFA Version 04: .Tune 23, 1992 Commis.sion Hearing: June 25, 1992 TABLE OF CONTENTS Table Of Contents CHAPTER I. INTRODUCTION AND SUMMARY A. Introduction B. Disclaimer C. Plan For Public Services ............................... 2 D. Conclusions About Fiscal Feasibility ........................ 3 E. Recommended Terms And Conditions ....................... 3 F. Impact On Nevada County .............................. 5 CHAPTER II. GROWTH AND DEVELOPMENT IN TRUCKEE ............ 9 A. Purpose Of The Development Forecast B. The Development Forecast 1. Setting ..................................... 9 2. Sources Of Demand ............................. 11 3. Sources of Supply .............................. 12 4. Forecast Methodology And Results .................... 15 CHAPTER IXI. PLAN FOR PUBLIC SERVICES ...................... 19 A. Applicable Principles Of Government Organization ............... 19 I. A Preference For Cities To Provide Municipal Services ....... 19 2. Local Political Leadership .......................... 19 3. Voter Satisfaction With Service Delivery ................ 20 4. Economies And Efficiencies ........................ 20 B. The Principles Applied To Truckee ........................ 20 C. Recommended Plan For Public Services ..................... 22 CFA Version 04: ~'tme 23, 1992 Commission Heating: June 25, 1992 TABLE OF CONTENTS CHAPTER IV. FISCAL ANALYSIS ......................... ...... 29 A. Basic Assumptions ................................... 29 1. Level Of Service ............................... 29 2. Contract Services ............................... 29 3. Continuity Of Legal Institutions ...................... 30 ¢. Annual Operations And Capital Expenditures .............. 32 5. Creating A Reserve Fund .......................... 32 6. Start-up Costs ................................. 32 B. Results Of The Fiscal Analysis ........................... 33 C. Conclusions About Fiscal Feasibility ........................ 36 D. Terms And Conditions ................................ 36 1. The First-year Appropriations Limit ................... 36 2. Other Terms And Conditions ........................ 37 CHAPTER V. IMPACT ON NEVADA COUNTY ...................... 44 APPENDIX A. METHODOLOGY AND ASSUMPTIONS USED ............. 48 IN THE COMPREHENSIVE FISCAL ANALYSIS ........... 48 A. General ......................................... 48 1. Continuity Of Legal And Institutional Constraints ........... 48 2. Other Revenue Sources ........................... 48 3. Cost And Revenue Inflation ........................ 48 4. Population For State Subventions ..................... ' 48 B. General Fund Revenues ............................... 49 1. Property Tax .................................. 49 2. How Truckee's Property Tax Base Was Calculated .......... 51 3. Real Property Transfer Tax ......................... 54 4. Sales Tax .................................... 55 5. Transient Occupancy Tax .......................... 56 6. Franchise Tax ....................... ~ ......... 5(5 7. Other Fines, Forfeitures & Penalties ................... 57 8. Vehicle Code Fines .............................. 58 9. Motor Vehicle License Fees ........................ 58 CFA Version 04: June 23. 1992 - ii - Conunission Hearing: June 25, 1992 TABLE OF CONTENTS 10. Cigarette Tax ................................. :58 11. Off-Highway Motor Vehicle Lic4nse Fees ................ :58 12. Use Of Money And Property ........................ :58 13. Tax Anticipation Note ............................ 59 C, Road Fund Revenues ................................. 59 1. Highway Users Taxes -- Tax Rates .................... 59 2. §2104 -- Streets and Highways Code ................... 59 3. §2105 -- Streets and Highways Code ................... 60 4.. §2106 -- Streets and Highways Code ................... 61 5. §2107 -- Streets and Highways Code ................ ;. 61 6. §2107.5 -- Streets and Highways Code ................. 62 D. Ongoing Expenditures ................................ 62 I. General Government ............................. 62 2. Public Safety .................................. 65 3. Planning And Community Promotion ................... 65 4. Public Works ................................. 66 5. Housing Programs .............................. 66 6. State And Federal Grants .......................... 66 7. One-time Expenditures ............................ 66 8. Reimbursement For First-Year Costs ................... 67 9. County Service Areas ............................ 68 APPENDIX B: MINIMAL GROWTI:I SCENARIO ..................... 69 APPENDIX C: LAFCO ACCOUNTANT'S REPORT AND REVISED REPORT THE OF THE ALrDITOR .......................................... 73 REFERENCES ............................................. $5 TABLES 1-1 POPULATION AND HO. USING SUPPLY AT TRUCKEE ........... 8 11-1 POPUIMTION AND HOUSING DATA FOR APRIL, 1980AND 1990 . . 12 1I-2 RESIDENTIAL B UILD1NG PERMIT ACTIV1TY ................ 15 1I-3 ESTIMATE OF VACAp,r']' HOME SITES IN EXISTING DEVELOPMENTS 15 CFA Version 04: J'uae 23, 1992 - iii - Commission Hearing: June 11, 1992 LIST OF TABLES AND FIGURES 1l-4 HOUSING UNITS IN DEVELOPMENT APPLICATIONS .......... 17 11-5 NONRESIDENTIAL FLOOR AREA IN DEVELOPMENT APPLICATIONS 17 11-6 DEVELOPMENT FORECAST FOR TOWN OF TRUCKEE ......... 18 111-1 PUBLIC SERVICE PROVIDERS BEFORE AND A~..HzR INCORPORATION 25 IV-1 TECHNICAL ASSUMPTIONS FOR TRUCKEE INCORPORATION .... 31 IV-2 SUMMARY OF START-UP EXPENSES ..................... 33 1V-3 REVEN-UE ESTIMATES TRUCKEE INCORPORATION COMPREHENSIVE FISCAL ANALYSIS ................................. 34 1V-4 SUMMARY OF EXPENDITURES AND FUND BALANCE Truckee Incorporoaion--March 23, 1993 to June 30, 1999 .......... 35 1V-5 THE APPROPRIATIONS LIMIT FOR THE TOWN OF TRUCKEE, FISCAL YEAR 1993/94 ............................... 37 V-] SUMMARY OF PROJECTED IMPACT ON NEVADA COUNTY GENERAL FUND ......................................... 46 V-2 IMPACT ON NEVADA COUNTY Lost Revenues, Reduced Expenditures and Resulting Fund Balances .... 47 TABLE A-I A-] SUMMARY OF COST OF SERVICES IN TRUCKEE ............. .50 A-2 MARKET VALUE AND TURNOVER RATE ASSUMPTIONS ........ 54 A-3 COMPREHENSIVE FISCAL ANALYSIS ..................... .55 A-4 SUMMARY OF ESTIMATED 1% LOCAL SALES TAX REVENUE (January 1, 1991 through December 31, 1991) ................ 57 A-5 TRANSIENT OCCUPANCY TAX ASSUMPTIONS ............... .57 A-6 CABLE TV ASSUMPTIONS ............................ .58 A- 7 STAFFING PLAN .................................. 63 CFA Version 04: June 23, 1992 - iv - Commission Hearing: June 11, 199:l LIST OF TABLES AND FIGURES List Of Tables And Figures (Continued) A-8 ESTIMATED DEPARTMENT STAFFINO COSTS ............... 64 A-9 CALCULATION OF PROPERTY TAX COr.r~C770N COST ........ 64 A-lO ROAD MAINTENANCE ASSUMPTIONS .................... 66 A-II REIMBURSEMENT TO COUNTY FOR SERVICES .............. 67 TABLE B-1 MINIMAL GROWTH DEVELOPMENT FORECAST FOR THE TOWN OF TRUCKEE ......................... 69 TABLE B-2 EXPENSE R~DUCTIONS USED IN THE 'MINIMAL GROWTH/REDUCF. D EXPENSE' SCENARIO ......... 70 TABLE B-3 SUMMARY OF TOWN REVENUE--MINIMAL GROWTH .......... 71 TABLE B-4 SUMMARY OF TOWN EXPENDITURES AND FUND BAI_.4NCES-- MINIMAL GROWTH ................................ 72 FIGURES l-I BOUNDARIES OF THE PROPOSED TOWN ................... 6 l-2 ANNUAL GENERAL FUND BALANCE 7 H-1 BOUNDARIES OF THE STUDYAREA. S ..................... 14 CFA Version 04: June 23, 1992 - v - Commission Hearing: June 25, 1992 ABBREVIATIONS Abbreviations Used In This Report CDF California Department of Forestry and Fire Prevention CSA County Service Area CSD Community Services District LAFCo Local Agency Formation Commission TAF Tax Apportionment Factor TAV Taxable Assessed Value TFPD Truckee Fire Protection District TOT Transient Occupancy Tax TRA Tax Rate Area CFA Version 04: June 23, 1992 - vi - Commission Hearing: June 25, 1992 CHAI'I ER I. INTRODUCTION AND $1_~IMARY CHAPTER I. INTRODUCTION AND SUMMARY A. Introduction This report presents an evaluation of the fiscal feasibility of an incorporated Town of Truckee. 'Fiscal feasibility" refers to the question as to whether a new Town of Truckee would have the revenue base required to support the municipal services that heretofore have been provided by Nevada County at a Level Of Service equal to or better than that currently being provided by the County. The proposed boundary for the Town of Truckee is shown in Figure I-i. Table I-1 presents basic information about the proposed Town. The boundary shown in Figure I-1 was approved for further consideration by the Nevada County Local Agency Formation Commission (LAFCo) at a Public Hearing on April 23, 1992, following fiscal evaluation of four Boundary Alternatives. The present report constitutes a "comprehensive fiscal analysis" within the meaning of Government Code §56833.1. This comprehensive fiscal analysis is intended as an information document for consideration by the Nevada County LAFCo in determining whether to approve the incorporation of the town of Truckee. Throughout the present report, the references to an incorporated city in the Truckee area refers to the "Town of Truckee." There is no distinction in California law as to the powers of a 'city' and a 'town.' Government Code §56023 states: "City' means any chartered or general law city, including any city the name of which includes the word "town". B. Disclaimer Statements contained in the present report which involve estimates, forecasts, or matters of opinion, whether or not expressly so described, axe intended solely as such and axe not to be construed as a representation of fact.. The present comprehensive fiscal analysis is based on California law affecting local governments as of January 1, 1992. The future of local government finance in California is currently subject to uncerta/nty because of the current state budget crisis and the considerations in the Legislature relative to changes in intergovernmental finance. If any major changes affecting CFA Version 04: June 23, 1992 Commission Hearing: June 25, 1992 CHAI-iER I. INTRODUCTION AND SUMMARY intergovernmental finance in California occur, then the conclusions in the present report are subject to revision. C. Plan For Public Services A city in California is re.q~ired to provide only a limited number of municipal-type services, including: General. legislative functions as provided, in the case of a Town of Truckee, by the Town Council. · Land use planning and control over land use and development. Law enforcement (although this service may be provided by means of a contract with the County Sheriff). · Maintenance of roads and other property and buildings that are owned by the city. (These services may also be provided by means of a contract with Nevada County.) Cities frequently provide a wide range of other services (e.g., fire protection, parks and recreation, water supply, and liquid waste collection and treatment). The first decision that must be made when an area considers becoming an incorporated city, concerns the services that the new city will provide. Certzdn services that have traditionally have been provided by the County -- primarily the so- called 'human services" such as health and welfare services, criminal justice functions (e.g., trial and incarceration) and such administrative services aa provided by the County Assessor and County Recorder -- will continue to be provided by the County, whether or not an area incorporates. The Cortese-Knox Local Government Reorganization Act of 1985 makes the presumption that full-service cities.are preferred to special districts continuing to provide municipal-type services. This presumption is not absolute and is subject to local conditions. After careful consideration of written and oral testimony, LAFCo concluded that reasons to depart from conventional orthodoxy were abundant in the Truckee area. Because the key special districts serving Truckee uniformly serve portions of both Placer County and Nevada County, a change in the status quo would have an adverse effect on access to locally-elected officials by the people of Placer County, with no discernable improvement in governance or the level of public service for the people of Truckee. Further, a recent survey indicated satisfaction with the services that are currently being provided by the special districts. Accordingly, LAFCo concluded that the Town of Truckee should provide only the services listed above (i.e., general legislative functions, land use planning, law enforcement and maintenance of roads and city property). CFA Version 04: Jtllle 23, 1992 - 2 - Commission Hearing: Jun~ 25, 1992 CHAPTER I. INTRODUCTION AND SUM3,tARY D. Conclusions About Fiscal Feasibility The present report presents a comprehensive fiscal analysis for the proposed Town. The results of the fiscal analysis are summarized in Figure 1-2. It can be seen that an annual fiscal surplus will occur if a reasonable level of growth occurs. The surplus is adequate three years after incorporation and the surplus is significant seven years after incorporation. If a very minimal growth scenario is projected, as discussed in Appendix B, a somewhat lower level of service than for~t might be necessary but would still be adequate to serve the basic needs of the community. If incorporation is approved, the Town Council could act to assure both managed growth and an adequate tax base. It is the conclusion of the LAFCo Executive Officer that a reasonable level of growth can be expected, and that the Town is fiscally feasible. E. Recommended Terms And Conditions LAFCo has the power to impose certain Terms and Conditions that will be binding on a new city. The following general Terms and Conditions are recommended to be attached to the approval of the Truckee incorporation: · The first-year Appropriations Limit (Gann Limit) for the town of Truckee is calculated to be $5,019,262. · To the fullest extent permitted by law and public policy, preference should be given by the new Town to hiring Nevada County employees who are currently providing municipal-type services in Truckee for which the responsibility would be assumed by the new Town. · The effective date of incorporation should be March 23, 1993. LAFCo may suggest to the County of Nevada that it consider offering to lend the new to',¥n funds sufficient to carry it through until town tax revenue comes in. · Members of the Town Council should be elected at-large rather than by electoral district. · The "city manager" form of government should be adopted. · The Town Clerk and Town Treasurer should be appointed rather than elected. · CSAs 4, 5, 6, 8, 9, I0, 11, 19 and 35 should all be dissolved and their service responsibility transferred to Truckee. The property tax revenue from these CSAs will CFA Version 04: June 23, 1992 - 3 - Commission Hearing: June 2.5, 1992 CHAI~TER I. II~I'RODUCTION AND SLrl~fM. ARY go tO the Town's General Fund, but revenue from parcel charges shall be maintained in segregated accounts and spent only within the area of the former CSA. The Town will retain the author/ty to levy parcel charges to maintain services in the relevant areas. The two permanent road divisions (PRDs), Prosser Woods and Donner Terrace, should also be continued and transferred to the new town. · CSA 7 for solid waste disposal services should remain in existence and the areas within the CSAs being dissolved should be annexed into CSA 7. · Unencumbered fund balances, contingency reserves, equipment, and facilities of the dissolved CSAs and PRDs should be transferred to Truckee. LAFCo should resolve any disagreement between Nevada County and the new town as to the transfer of these. balances, reserves, equipment, and facilities. · If the town determines not to contract with the County, the County shall offer its surplus road and snow removal and other equipment to the town at depreciated book value. · Nevada County xaould cooperate fully with the new Town in transferring copies of records that will be needed by the new Town. Examples of such records include as-built drawings of roads, drainage improvements, etc., and copies of the files for development applications that are in progress. · ^11 development impact fees, assessments, parcel charges, and other user charges currently levied by Nevada County or by County Service Areas (CSAs) should continue to he levied by the new Town. Unencumbered balances in the appropriate Nevada County accounting funds should be transferred to the new Town. LAFCo should resolve any disagreement between Nevada County and the new Town as to the transfer of fees, charges and assessments. · Projects approvals and development agreement~ issued by Nevada County prior to incorporation shall be honored by the new city, subject only to modifications in the conditions of approval as necessary to reflect the change in jurisdiction. Any conditions on approved subdivision maps requiring formation of county service areas, permanent road divisions, or other financing entity to provide public services shall be enforced, substituting for the county entity, an appropriate city financing entity where necessa~. e The Nevada County LAFCo should adopt a Sphere of Influence for Truckee at the end of the first year after the effec,.five date of incorporation, rather than at the time when LAFCo makes its decision about an incorporation election. · No existing bonded indebtedness or obligation for payment of principal and interest on indebtedness should be affected by the incorporation of Truckee. CFA Version 04: June 23, 1992 - 4 - Commi~ion He~in~: June 2~, 1992 CHAPTER I. INTRODUCTION AND SUlt, fMARY The Town Council should be alert to the possibility that significant investment may be nece~..,%-mdlhng roads and the drainage system up to a bigiv standard. F. Impact On Nevada County A significant portion of a new city's revenue base comes by means ora reduction in the county's revenue base. Although the county is relieved of responsibility to provide municipal-type services (e.g., law enforcement), the revenue loss almost invariably exceeds the cost savings. In the ca.se of Truckee, the net County General Fund loss (considering both revenue loss and reduced expenditures) is substantial. The loss is 7.5 percent of County general fund revenue. Nevada County's Road Fund fares better than its General Fund. A net saving to Nevada County of 6.2 percent will result if the Town of Truckee becomes responsible for road maintenance and snow removal for the proposed boundary area. In addition, the County is relieved of a substantial future liability for reconstruction of roads in Truckee that are currently deteriorating. CFA Vcrsiot: 04: June 23, 1992 - 5 - Commission Hearing: June 25, 1~2 CHAFi ER I. IA~RODUCTION ,MND SIJMMARY lq~ure L1 EAST£t?N N~VADA COUNTY CFA Version 04: June 23, 1992 - 6 - Comm/.~/on Hearing: June 2~, 1991 CHAFI ,ER I. INTRODUCTION AND SUIViMARY F'~mr~ I-2 Figure I-2 Annual General Fund Balance Millions 6 5 4 3 2 1 0 Year 3 Year 7 ~ Revenue ~.Expenditures t t Fu.nd.Ba[anc.e See Tables IV-3 and IV-4 for Data Used CFA Version 04: June 23, 1992 -7 Commission Hemring: June 25, 1992 CHAFI'ER I. IINTRODUCTION AND SLrbfMARY Table I-I POPULATION AND HOUSING SUPPLY AT TRUCKEE Truckee Incorporation Comprehensive Fiscal Analysis Resident Population 8,928 (April 1, 1990) Dwelling Units 6,940 Peak Population~ .17,352 Note: ~ Calculate. ti at 2.5 persons per dwelling unit. Peak population determines the maximum (i.e., peak day} demand for certain public services (e.g., law en fom~ement). Source: U.S. Census, Nevada County planmng Department and Angus McDonald & Associates, Inc. CFA Version 04: June 23, 1992 - 8 - Commission Hearing: June 25, 1992 CHAPTER II, GROWTH AND DEVELOPMENT IN TRUCKEE CHAPTER II. GROWTH AND DEVELOPMENT IN TRUCKEE A. Purpose Of The Development Forecast In order to do a proper assessment of the fiscal feasibility of a new town, it is necessary to examine the risc. al condition of the town over a mid-range future period. Government Code §56833. I require~ the fiscal analysis to cover three fiscal years. In the first three years after incorporation, various initial factors, such as start-up costs and repayment to the County for services provided during the first fiscal year, can mask the true fiscal condition of the town. Therefore, the present analysis looks beyond the start-up period, and forecasts the fiscal condition of the town for seven years after incorporation. It is unrealistic to assume that a town's development would remain stagnant over this seven year period. Development directly affects a town's fiscal condition through increased property and sales tax revenue, as well as a demand for increased services. For this reason, a reasonable assessment of the fiscal feasibility of Truckee over the next seven years depends on a reasonable forecast of development for that same period. The purpose of this Chapter is to discuss how the development forecast was derived. This forecast becomes the underlying growth assumption used in the fiscal analysis discussed in Chapter IV. The development forecast is not a detailed market analysis of the type that would precede a development proposal by a private individual or group. The forecast is more general in nature and serves only to provide a estimate of growth that can reasonably be expected in the Truckee B. The Development Forecast The overall study area is roughly rectangular, extending about a mile south of downtown Truckee, three miles north of downtown, six miles to its east, and six miles to its west. It has been divided into four sub-areas which are quite distinct in character. (They are identified in this study from west to east, with no order of preference implied.) The sub-areas are illustrated in Figure II-1. 1. Setting Sub-area A: Donner Lake. Donner Lake is a large, scenic mountain lake ringed by about 1,600 private homes. A significant majority of these homes are vacation homes. A tourist commercial strip once thrived along its north shore when that was the route of U.S. 40, the main highway to Northern California from the East before construction of Interstate 80. This CFA Version 04: June 23, 1992 - 9 - Commission Hearing: June 25, 1992 CHAPTER II. GROWTH AND DEVELOPbFENT lin TRUCKEE commercial str/p has largely been replaced by new commercial areas closer to the core of Truckee. Commercial activity in the Sub-area now consists primarily of establishments that serve the local population including at least one eating -place. Saniutry sewerage was installed around the lake during the 1970s, and the resulting assessments have tended to accelerate turnover of ownership of the least well-improved properties. The area is virtually built out with the exception of very steep, poorly accessible lots above 1-80, but is likely to continue to increase in value as older homes and cabins are upgraded. A new 166-unit motel is planned for the 1-80-Coldstream Road interchange at the east end of the sub-area and three additional subdivisions have been approved. These subdivisions are expected to add another 121 home sites to the area. Sub-area B: Tahoe-Donner. Tahoe-Donner is primarily a vacation-home area, also. It is oriented toward recreation, with an excellent golf course, nordic skiing complex and a small alpine facility. The Homeowners' Association provides a variety of other recreation facilities. Fewer than half its home sites have been built upon. Twenty-five hundred sites have been developed, including the ridge lines. Approximately 3,370 vacant home sites remain to be developed. Sub-area C: Truckee Village, Gateway and South Truckee. The central sub-area of the study, Sub-area C, is composed of three distinct districts, totalling about 1,500 housing units. Truckee Village is a former railroad service town with a colorful assortment of tourist shops and offices. Historical monument status, a very cramped site, and traffic congestion will constrain further development in the Village Center. There is a vacant tract of about thirty acres on its east side where a lumber mill existed until 1990. This gite could have considerable commercial potential. For the present, however, most commercial growth is apparent west of downtown Truckee, in the Gateway area. 'The Gateway area is a rapidly-growing strip commercial district along Donner Pass Road and Highway 89. It is firmly anchored by several region-serving public facilities such as the Tahoe Forest Hospital, the Nevada County Government Center, the California Highway Patrol, the California Department of Motor Vehicles, the Truckee-Donner Public Utility Disf. rict headquarters, and the Tahoe-Truckee High School. The area has attracted significant retail and office development during the last decade. There is room for considerable infill development in the Gateway area, where a significant amount of square footage is now pending County approvals. South Truckee includes the Hilltop ledge-restaurant complex and the north portion of the Ponderosa Palisades-Sierra Meadows subdivisions. These subdivisions are largely developed in family-oriented smaller single family homes on lots of 7,000-I0,000 square feet but include some rental housing and condominiums. About 140 residential infill lots remain vacant in Sub- area C. CFA Version 04: June 23, 1992 - I0 - Commission Hem-in~: Jtme 25, 1992 CHAPTER Il. GROWTH AND DEVELOPMENT IN TRUCKEE Residential Development. According to the Building Official, building permits generally result in completed structures in the Truckee area. The permit fee averaged $~.85/housing unit in 1991, while plan check fees averaged an additional $247 per unit. There are also annual extension fees of $144 if there is no progress. (This discourages casual applicants.) From 1980 to 1990 Nevada County's Truckee Area Permit Office issued 2,729 residential building permits, as shown in Table II-2. (It should be noted that the Permit Office's jurisdiction is slightly larger than the study area.) Also, a single building permit may be issued for a multifamily structure (i.e. one permit may result in more than one housing unit being built). As a result, Table II-2 indicates 2,729 residential permits were issued from 1980 through 1989, while Table II-I shows that 3,538 units were accounted for during this same time period. Another reason for the discrepancy between the number of units in Tables II-i and II-2 could be because many homes are vacation, or second, homes. When the census was taken in April of 1980 and April of 1990, many people may not have been at their Truckee residence. Therefore, these residential units were not recorded. Not counting these vacation home residents and their dwelling units in both 1980 and 1990 could account for part of the discrepancy. Although the information in Table II-2 does not indicate the exact number of units built, it does show the general building trends in the study area. Since 1989, permit activity has significantly increased, with 4.4~. building permits issued in 1991. Of this recent boom, the Tahoe-Donner area accounted for more than half of the permits issued in 1991. Most of these permits in Tahoe-Donner are likely to be for vacation homes. Vacant Home Sites. In addition to residential permit activity, an estimated 4,260 vacant home sites are located within the Study Area, as shown in Table II-3. Most of these vacant sites were located in the Tahoe-Donner area. These vacant sites are all located within existing developments. Additional sites will become available when newly-approved subdivisions are completed. Non-Residential Development. Commercial and industrial development applications, with the expected completion date, were obtained from the Nevada County Planning Department, as shown in Table II-5. A motel is proposed for the Donner l..m.ke area and two small commercial centers are proposed in Glenshire. However, the bulk of near-term development is expected to occur in the Truckee-Gateway area. A very large commercial complex proposed for the Prosser area is constrained by several environmental factors, including wildlife, growth inducement and visibility, and is therefore not included in the 1991-1998 forecast. CFA Version 04: June 23, 1992 - 13 - Commission Hearing: June 25, 1992 CHAPTER Il. GRO~VTH AND DEVELOPIVfENT liN' TRUCtCEE Figure IL1 CFA. Version ~.: June 23, 1992 - 14 - Commission Hearing: June 25, 199? CHAPTER II. GROWTH AN~ DEVELOPMENT 12q TRUCKEE Table FI-2 RESIDENTIAL BUILDING PERMIT ACTIVITY Truckee Incorporation Comprehensive Fiscal Analysis A. Dot,mr 8. Tahoe- C. Truckee 8. Prosser- BtudyArea 8ui[din~ Per~itz CaLe~ar Yesr Lake O~r GL~hire Total Tr~k~ Offfce 1980-1985 NA 1.813 1996 gA 221 1987 gA 19& 19~3 gA 273 1~ gA 390 1~1~ Z2 26~ ~ 11Z ~ ~' Total 1980-1991 3rgq6 ' Includes ZO permits outside stu~y area in 1991. ~ Percentages used for 1991 sub-area allocation, based on actual Tahoe-Oor~er permits and BuiidingOfficiaLs' estimate of other areas: 5~ 60~ 10~ 25~ Source: Nevada County PLanning Department, Truckee Building Permit Office and Angus McDonald & Associates. Table II-3 ESTllVIATE OF VACANT HOME SITES IN EXISTING DEVELOPMENTS Truckee Incorporation Comprehensive Fiscal Analysis A. Oo¢~er 8. Tahoe- C. Truckee O. Prosser- Study Area SUB-AR~A Lake Dormer Gienshire Total 4. Forecast Methodology And Results Development forecasts were made for the proposed Town of Truckee, as shown in Table II-6. It should be noted that the forecast was made for fiscal years so as to correspond with the fiscal analysis performed. The information obtained from the U.S. Census and the Nevada County Planning Department was in calendar years, so data was adjusted to reflect fiscal years. The CFA Version 04: June 23, 1992 - 15 - Commission Hearing: June 25, 1992 CHAPTER II. GROWTH AND DEVELOPMENT IN TRUCKEE development forecasts are based on the historical building trends, projects in the application or permit stage, and development potential. The forecasts represent the judgment of LAFCo's consultants, Angus McDonald & Associates. As stated, previously, the purpose of the forecast is to provide a reasonable estimate of growth on which to base an analysis of the fiscal feasibility of incorporation. Residential development was forecast based on recent building activity. Development activity is conservatively forecast to continue at a slightly slower rate than has occurred during the past several years. Building permit activity and development potential were examined to determine the quantity and geographic location of new residential units. It is expected that vacation homes will continue to be concentrated in the Tahoe-Donner area and that the number of persons per dwelling unit will remain low. Units used as a primary residence are expected to be concentrated in the Trackee and Glenshire-Prosser areas. Non-residential development forecasts are based on current building permit activity, applications in process and market considerations. As shown in Table II-5, there is a significant amount of commercial. (retail) development in the permit process with completion dates between 1992 and 1994. Given the current economic climate, it is anticipated that the initial completion dates for commercial development shown in Table 1I-5 will not be met. However, it is expected that this space will be constructed during the seven-year time frame of the study as shown in the forecasts and as shown in Table 1I-6. Unlike commercial development, there is relatively little office, industrial, or hotel/motel development in the permit stage. All of this development is expected to be completed by Fiscal Ye. ar 1993/94. Given the current market conditions, and existing supply, no additional office, industrial or hotel/motel development is forecast beyond what is currently in the permit process. This conservative assumption is appropriate to the ouroose of the forecast (i.e., to provide a reasonable but not an overly aggressive growth forecast on which to base a fiscal feasibility study). Appendix B contains an analysis based on a projection of little or no growth in the Truckee community. That "Minimal Growth Projection' is set forth in Table B-1. CFA Version 04: June 23, 1992 - 16 - Commission Hearing: June 25, 1992 CHAPTER II. GRO'~I'H ANI) DEVELOPMENT llq TRUCKEE Table II-4 HOUSENG UNITS IN DEVELOPMTxt~ APPLICATIONS Truckee Incorporation Comprehensive Irrscal Analysis SUB-AREA RESIDENCE TYPE 1. Oo~qer 2. Tahoe- &. Prosser- Study Area Estimmte~ Coml~Leti~ Lake Do.net 3. Truckee Gte~shire Total Year 1992 69 4 & 70 1993 52 14 105 171 1995 &4 84 1~6 20 20 ~JLT I PLE FAMILY 1~2 6 12 I~3 30 30 Total '92-96 121 2G 46 354 545 Table NONRESIDENTIAL FLOOR AREA IN DEVELOPMENT APPLICATIONS Truckee Incorporation Comprehensive F, qcal Analysis SUB-AREA PRCOUCT TYPE A. Donner 8. Tahoe- 0. Truckee O. Prosser- Study Area Estimated C~mpLeti~ Lake Oo~qer GLe~sh~ re Total Year CO'~ERCIAL Co.m~erciaL, 1992 0 0 129,200 50,000 17~,900 Corrmercie{, 1993 0 0 20,000 0 20,000 Conwerciat, 1~94 0 0 30,000 20,000 50,000 OFFICE Office, 19~2 0 0 13,000 36,000 49,000 INDUSTRIAL Ir~u~triat, 1992 0 0 25,000 0 25,000 NOTEL Hotel/mote~ (rooms), 1993 166 O O 0 166 ro~ns TotaL Cs~. ft.) 0 0 217~200 106t000 323r200 So~rce: Nevada County Plarming Department. CFA Version 04: June 23, 1992 - 17 - Commission Hearing: June 25, 1992 CHAPTER II. GROWTH AND DEVELOPMENT IN TRUCKEE Table 1/-6 DEVELOPMENT FORECAST FOR TOWN OF TRUCKEE FY 1992/93-1998/99 Toti[ Lar~iUse Categaty Units 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 Devetc~d rotats ~55 440 380 ~80 380 380 380 CFA Version 04: June 23, 1992 - IS - Commission Hearing: June 25, 1992 CHAPTER III. PLAN FOR PUBLIC SERVICES CHAPTER III. PLAN FOR PUBLIC SERVICES LAFCo must determine the services that will be provided by the new Town as well as determine the future of the special districts now serving the Truckee area, i.e., determine the structure of government. The present chapter presents recommendations for a Plan for Public Services. A. Applicable Principles Of Government Organization The following general principles should be considered when the government structure of any new city is selected. 1. A Preference For Cities To Provide Municipal Services One of the most fundamental principles of the Comese-Knox Local Government Reorganization Act of 1985 is stated in Government Code §56001. The Legislature finds and declares that a single governmental agency, rather than several limited purposes agencies, is in many cases better able to assess and be accountable for community service needs and financial resources and, therefore, is the best mechanism for establishing community service priorities. This preference for city-provided services is not absolute. A recent court decision (r-21),' in a comment relating to environmental concerns, notes: Moreover, this policy statement in the Cortese-Knox Act does not purport to say that incorporation is of such overweening importance that all other concerns are swept aside, .... By an extension of this reasoning, the preference given to city-provided functions is not absoluti, but is subject to Ioca/conditions. 2. Local Political Leadership One reason for consolidating special districts, that is often sound in both theory and practice, is that responsibility for governance and political leadership can be focused exclusively on a five- member Town Council. The residents, voters and taxpayers in Truckee know exactly "who to call" when they have a problem or complaint about any municipal service. A single, politically- responsive elected body is identified as the sole source of responsibility for municipal-type ' Underscored numbers in parentheses refer to References listed at the end of this report. CFA Versiot: 04: June 23, 1992 - 19 - Commission Hearing: June 25, 1992 CHAPTER HI. PLAN FOR PUBLIC SERVICES issues. The issues raised may range from affordable housing and the problems of the homeless to the removal of snow, the repair of pot holes and the efficient functioning of the water and sewer systems. Continuation of the status quo -- i.e., having a number of special districts -- eliminates the opportunity of focusing and identifying the responsibility for political leadership onto a single government agency. 3. Voter Satisfaction With Service Delivery If local residents and voters are dissatisfied with a service that is currently being provided by a pa.rticulas special district, consideration should be given to having the new Town provide these services. The incentive to have this District's functions consolidated into the new Town is enhanced. 4. Economies And Efficiencies District consolidation can lead to opportunities for improved efficiency, if common functions can be consolidated into a single city department. Examples would include a single Town Council rather than a Board of Directors for each District, a single Town Manager with support staff rather than a General Manager for each District, consolidated vehicle maintenance functions, consolidated utility billings, and a single accounting function. Another argument for consolidating District functions is to assure common policies, technical assumptions, etc., regarding the amount and location of services that will be provided to newly-developing areas. B. The Principles Applied To Truckee The principles listed in the preceding section provide useful guidance for determining government structure, but the actual governmental situation in Truckee led the consultants and the LAFCo Executive Officer to recommend a course of action that might not be applicable or orthodox in another jurisdiction. This recommendation followed discussions with officials of the affected special districts, discussions with community leaders, and the application of the consulting team's experience in other jurisdictions. The basic recommendation is that the special districts now serving Truckee continue to serve Truckee. A new Town of Truckee would assume responsibility for those municipal-type services that are currently being supplied by Nevada County. The following paragraphs explain the rationale for this recommendation.' Multi-county Special Districts. The most significant of several considerations that led to the recommendation that the special districts continue to function is that the key special districts all serve a two-county area. California law does not permit an incorporated city to be located in two counties, so a decision to consolidate the special districts as city departments would require CFA Version Oa: .rune 23. 1992 - 20 - Commission Hearing: June 25, 1992 CHAVIER III. PLAN FOR PUBLIC SERVICES significant governmental reorganization in Placer County. This disruption to the patterns of governmental representatives for the citizens in Placer County who are served by the special districts would serve no purpose. Even if State law permitt~ bi-county subsidiary districts and if 60 percent of the land area in the subsidiary district wa~ within the boundary of Truckee (as required by State law), two negative results would occur: · The people served in Placer County would feel disenfranchised; · The Town Council would be dealing with falriy technical issues and subject matters in geographic areas significantly outside their true area of interest. Political Responsibility. There is indeed an argument that political responsibility is enhanced ifasingle, politically-elected governing bodyis accountable forall municipal-type services. One disadvantage of this focus of responsibility was noted above (i.e., the disenfranchisement of the service population located in Placer County). Another disadvantage is that the years of experience that have been accumulated by members of the special district governing bodies regarding highly technical public services provided in an alpine climate would be lost. Satisfaction With Service Delivery. A recent citizen attitude survey (r- 18) indicated satisfaction with the services being provided by special districts. Although concerns were expressed about land use issues and other matters controlled by Nevada County, those who responded to the survey indicated that they we~;e quite satisfied with the municipal-type services provided by the special districts. In addition, the consulting team encountered no evidence of dissatisfaction with the performance of the special districts. Thus, no justification was identified for consolidation of special districts as city departments because of dissatisfaction with their performance. Economies And Efficiencies. With one exception, no opportunities were identified where special district consolidations would produce significant savings. Further, no examples were identified where there was a lack of coordination among special districts regarding extensions of public services to new development. The Truckee Sanitary District and the Truckee-Donner Public Utility District employees provide many of the same t_,~es of services, although the two Districts have different functions. There may well be instances where efficiencies could be achieved if the two Districts were combined. The possibility for achieving efficiencies through consolidation could be explored, whether or not Truckee incorporates as a city. CFA Version 04: June 23, 1992 - 21 - Commission Hearing: June 25, 1992 CHAPTER IIL PLAN FOR PUBLIC SERVICES C. Recommended Plan For Public Services The plan for public services is shown in Table III-I. Table III-1 is based on two fundamental recommendations: · As noted previously, it is recommended that the status quo be retained regarding the role of Special Districts. Fire protection, sewer, water, power, and park and recreation services would continue to be provided by the existing Special Districts. · Accordingly, the Town of Truckee would provide only those services that an incorporated city in California is required to provide. These services include: · General city government as provided by the city's legislative body (in this case, the Town Council of Truckee). · Land use planning and development regulation, including building inspection. · Law enforcement (although it is recommended that the Town Council give careful consideration to providing this service by means of a contract with the County Sheriff'). · Road maintenance and maintenance of other city-owned property. (Here, again, it is recommended that the Town Council consider carefully the advantages of contracting with Nevada County for road maintenance and snow removal.) A number of additional issues of public service delivery are applicable to Truckee. wildland F'tre Protection. Suppressing Midland fires is currently the responsibility of the California Department of Forestry and Fire Protection (CDF) which works closely and cooperatively with the Truckee Fire Protection District but has the basic responsibility. By State law, the role of CDF is limited to unincorporated areas. With certain very limited exceptions relating to efforts to prevent fires in urban areas from spreading into lands under the protection of CDF, suppression of wildland fires in incorporated cities is the responsibility of the city or the special district providing structural fire protection to the city. In the present case if Truckee incorporates, then the Fire Protection District will be responsible for suppressing wildland fires within the incorporated limits of Truckee. This situation presents a potential inequity. The Truckee Fire Protection District would no._.!t be responsible for suppressing wildland fires in areas within its boundary other than in Truckee. The Fire Protection District could depend on CDF for primary responsibility for wildland fires within its territory within Placer County, for example. The inequity arises because the tax base CFA Version 04: June 23. 1992 - 22 - Commission Hearing: June 2S, 1992 CHAPTER HI. PLAN FOR PUBLIC SERVICES of the Fire Protection District would, in effect, be financing a higher Level Of Service in Truckee if the Fire Protection District rather than CDF assumed the cost for suppressing wildland fires in Truckee but not elsewhere in the Fire Protection~District. To prevent this inequity, the feasibility study aso~,rn~s -t-hat the Town of Truckee wotrld make a 'contribution to the Truckee Fire Protection District to cover the expected cost of wildland fire suppression. The estimated cost was provided by the Fire Protection District (r-2q3). This cost is $112,000 for the proposed boundary. This cost estimate allows for necessary additional personnel and the purchase of a wildland engine. It should be understood that the Town of Truckee may be exposed to costs for wildland fire suppression beyond those included in the Truckee Fire Protection District's (TFPD) estimate of the cost of a basic level of service. A catastrophic Midland fire might entail additional expense~ for air tankers or for mutual aid from other agencies. Further consultations with the TFPD reveal that the risk of a catastrophic fire can be significantly minimized by excluding steep and inaccessible areas from the town boundaries; and by maintaining a strong prevention program characterized by patrol activities and assistance to campers and hikers. Based on these discussions with the TFPD, the proposed boundaries have been drawn to exclude as many areas as possible that have physical characteristics that would make it difficult for fire fighters to suppress a wi?land fire. Further, the cost for a continuing fire prevention program has been included in the overall forecast costs for wildland fire suppression. If a fire is the result of human activity, the Town of Truckee may be able to recover from others costs in excess of the basic level of protection provided under contract by the Truckee Fire Protection District. It should also be understood that a contract for wildland fire suppression would not cover the costs of other types of dis.a~ters, such as caused by floods, avalanches or the spill of ha?ardous materials. Finally, it should be understrxxI that the level of effort devoted to prevention of wildland fires would be malnta/ned by the District, under the proposed arrangement, if the U.S. Forest Service is no longer involved in wildland fire management, under mutual aid agreements with CDF. The U.S. Forest Service is active in prevention programs by virtue of its patrol activities and assistance to campers and hikers. The estimated cost for services provided by the Fire Protect/on District includes an allowance for continuing prevention activities that are comparable to those now can/ed out by the U.S. Forest Service. County Sen, ice Areas (CSAs). In addition to the services provided by the County, Truckee is served by nine CSAs and 2 Permanent Road Divisions (PRDs). CSAs and PRDs are intended to pay for a higher Level Of Service than would be possible out of the general revenue. Each CFA Version 04: June 23, 1992 - 23 - Commission He~rin~: June 2~, 1~2 CHAPTER III. PLAN FOR PUBLIC SERVICES CSA that serves Truckee pr/~v~ides some combination of the following services: snow removal (4, 5, 6, 8, 9, 10, 11, l~d maintenance (4, $ and part ofg) and refuse collection (4, 6, 8, 9, 10, 11, 19)~"The two PRDs provide road maintenance services. The boundaries of these CSAs are entirely within the town boundaries of Truckee. It is recommended that ~11 CSAs that serve Truckee, with the exception of CSA 7, be dissolved at the end of Fi..~Y~ 9..2.-9-3~a~ that the annexation into CSA 7 for solid waste services become effecti'~ June 30, '1993. Itas also recommended that the property m.x of these CSAs be transferred to ~ener~ l-'und. The CSA boundaries could b~ replaced by zones of benefit within the Town. The parcel charges could be continued to maint~n the level of service provided by the previous CSA. The two PR. Ds would simply be transferred from County ~o Town jurisdiction but remain intact. The issues relating to the CSAs and PRDs are discussed in greater detail in Appendix A. Remaining County Services. As with any municipal incorporation, the county remains responsible for a significant range of services to a~l of its citizens, whether or not they live in cities. Examples include health and welfare services, management of the criminal justice system and such administrative responsibilities as are provided by the County Assessor and the County Recorder. Redevelopment. Certa/n municipal-type services may or may not be provided in the future by an incorporated city. One example is redevelopment. In the future, the Town of Truckee may or may not consider the advantages of forming a redevelopment agency. Conjectures about future city policy are not germane to the decision about whether a Town of Truckee is fiscally feasible. CFA Version 04: June 23, 1992 - 24 Table ffI-1 PUBLIC SERVICE PROVIDERS BEFORE AND AFTER INCORPORATION Truckee Incorporation Comprehensive Fiscal Analysis PROVIDER BEFORE PROVIX)ER AFTER FUNCTION INCORPORATION INCORPORATION 1. General Government -Governing Body County Board of Supervisors Town Council -C~icf Administrative County Administrative Officer Town Manager Officer -Clerk County Clerk Town Manager Serving as Town Clerk "' -Legal Service County Co~l City Attorney -Finance/Accounting County Auditor/Controller and Admi.lstration Manager Serving Treasurer/Tax Collector as Town Finance Officerm -Persom,~el County Personnel Department Administration Manager Serving as Town Personnel Officera,, -Purchasing County Purchasing Officer Administration Manager Serving as Towu Purchasing Officm~' Non--depar~:nental -Supplies/Central Stores County Central Services Administration Manager Serving as Town Central Service.q" -Risk Management County Administrative Officer Town Manager Serving as Town ILisk Managemunt -Records Management County Clerk Administration Manager Serving as Town Records Management Officee" 2. Planning County plannl,g Town planning Department 3. Housing Programs Department of Hottsing and Town Planning Department Commtmlty Services Note~: ' This is a function. It is no._it a full-time position of an employee. In smaller cities and towns in California, one individual often performs several functions. : For purpo.se~ of the comprehensive fiscal analysis, it was a.~umed that this service would be provided on a contract basis to the Town of Truckee by Nevada County. See discus.sion in Chapter IV. ' With financial support from the Town of Truckee. CFA Version 04: June 23, 1992 Ill. PL,&iN FOR PUBLIC SFRVICFX Table I'H-1 PUBLIC SERVICE PROVIDERS BEFORE AND AFTER INCORPORATION Truckee Incorporation Comprehensive Fiscal Analysis PROVIDER BEFORE PROVI~DER AFI'F.R FUNCTION INCORPORATION INCORPORATION 4. Redevelopment N/A N/A 5. Public Works -Engineer.ag and County Department of Town Public Works Director Adm~n istration Transportation -Street and Storm Drain County Department of Town Public Works Director Maintenance Transportation [Contracz with County DOT] -Street Signals a~d Lighting County Department of Town Public Works Director Transportation ~Buildlng Inspection County Building Inspection Town Public Works Director Department -Subdivision Review County Department of Town Public Works Director Transportation -Maintenance: Public County Building and Grounds Town Public Works Director Buildings -Snow Removal County Department of Town Public Works Director Tranmportation [Contract with County DOT] 6. Public Transit Services for Transit, Aviation Town Public Works Director and Recreation (STAR) 7. Water Service Truckee-Donner Public Utility Truckee-Donner Public Utility District, Private Water Company District, Two Private Water and Private Wells Compa,aies and Private Wells Notes: ' This is a function. It is no~t a full-time position of an employee. In smaller cities and towns in California, one individual often performs several functions. = For purl:roses of the comprehensive fiscal analysis, it was assumed that this service would be provided on a contract basis to the Town of Truckee by Nevada County. See discussion in Chapter IV. ' With financial support from the Town of Truckee. CFA Version 04: June 23. 1992 - 26 - Table III-1 PUBLIC SERVICE PROVIDERS BEFORE AND AFTER INCORPORATION Truckee Incorporation Comprehensive FLscal Analysis PROVIDER BEFORE PROVIDER AFTER FUNCTION I~CORPORATION INCORPORATION 8. San/teti0n and Sewer -Public Collection Truckee Sanitary District Truckee Sanitary District -Public Treatment Tahoe-Truck*e Sanitation Tahoe-Truckee Saturation Agency Agency -Septic Tank Regulation County Department of Environmental Health (DEH) DEH 9. Waste Manage~nent Private Company Financed by Private Company Finuneed by County Service Area 7 County Service Area 7 · Hazardous Waste County Department of County Department of Regulation Environmental Health (DEH) Environmental Health (DEH) 10. Police Protection 42omm~nd/Patrolllnvestiga- County Sheriff Town Police Departmentc~ tion/Crime Prevention [Contract with County Sheriff] -Disaster Preparedness County Office of Emergency County Office of Emergency Services Services -Dispatch County Sheriff Town Police Department~= [Contract with County Sheriff] -A~imal Control County Environmental Health Town~ [Contract with Coumy Department of Environmental Healxh] I 1. Fire Protection Truckee Fire Protection District Truckee Fire Protection District -Structural Fire Protection Truckee Fire Protection District Truckee Fire Protection District -Wildland Fire Protection California Department of Truckee Fir~ Protection Fore~try and Fire Protection DistricP' Note& ' Tkis is a fUnct on. It is no._! a full-time position of an employee. In smaller cities and towns in C. alifomia, one individual oflen performs several functions. : For purposes of the comprehensive risnaI analysis, it was nssumed that this service would be pmvide, d on a cootract basis to the Town of Truckee by Nevada County. See discussion in Chapu:r IV. ~ With financial support from the Town of Truckee. CFA Version 04: June 23, 1992 - 27 - Table III-I PUBLIC SERVICE PROVIDERS BEFORE AND AFTER INCORPORATION Truckee Incorporation Comprehensive Fiscal Analysis PROVIDER BEFORE PROVIDER AFTER FUNCTION INCORPORATION INCORPORATION 12. Parks and Recreation Truckee-Dormer Recreation and Truckee-Dormer Recreation and P~-k District Park District 13. Librm'y County Library Service County Library Service 14. Airport Operations Truckee-Tahoe Airport District Truck~-Tahoe Ai~¥,c,~t District 15. Hospital Tahoe Forest Hosplml Distric~ Tahoe Fo,'~t Hospital District 16. Cemetery Truckee Cemetery District T~ckee Cemetery District 17. Envirommrmta/Health County Department of County Department of Sm-vices: Environmental Health (DEl'{) Environmental Health (DEH) 0,Veil Regulation, Restaurant Inspections, septic tank regulation, hazardous materials regulation, etc.) 15. Huraan Services (e.g., Nevada County Nevada County health, welfare, criminal jnstiee) 19. County Service Areas and County Service Areas Town of Truckee and To,am PRD~ (Snow Removal and Benefit Assessment Districts Road Maintenance) [$ervic~ provided by County DOT ut,der contrac~ with town] Notes: ' This is a function. It is no._~t a full-6me position of an employee. In smaller cities and towns in California, one individual often per£on'rm several functions. ~ For purposes or' the comprehensive fiscal analysis, it was ~sumecl that this service would b~ provided on a contract basis to the Town of Truckee by Nevada County. See discussion in Chapter IV. ~ With financial support from the Town of Truckee. CFA Version 04: 3'une 23, 1992 - 2S - Commission Hearing: June 25, 1~92 CHAPTER IV, FISCAL ANALYSIS CHAPTER IV. FISCAL ANALYSIS A. Basic Assumptions The comparison of revenues and expenditures for the proposed Town of Truckee was done using two different growth projections, the "expected growth" scenario and the "minimal growth' scenario. Other than differing growth projections, the two scenarios use the same assumptions and fiscal models. Technical assumptions are summarized in Table IV-1 and discussed in the present section. More detailed discussion of alt assumptions underlying the analysis is provided in Appendix A. 1. Level Of Service For purposes of the comprehensive fiscal analysis, it was assumed that the Level Of Service for those services provided by the new Town would be at least equal to the Level Of Service being provided by Nevada County. In some cases (e.g., road maintenance and snow removal), the revenue base of the new Town was sufficient to provide a somewhat higher Level Of Service than is currently provided by Nevada County. 2. Contract Services It was assumed for purposes of this analysis, that the new Town of Truckee would contract with Nevada County to provide police services, animal control, road maintenance, and snow removal. The assumption about contract services is not binding on the Town Council or Nevada County and is a recommendation only. Contracting is strongly recommended for the following reasons: Contracting with the County for police, road, and animal control services assures an orderly transfer of responsibility upon incorporation from the County to the Town with no interruption in quality or level of service. Under contract, the Town Council has the authority to expand, decrease or redirect the services provided depending on the needs of the community. Yet, the Town avoids certain costs of recruitment, training, and program development that would be required in starting up these operations. In addition, the expertise and commitment of the local staff who have been serving Truckee for many years is preserved. · Should the Town Council find that any of the contracting arrangement~ are unsatisfactory, it is free to plan for and provide for these services directly. CFA Version 04: June 23. 1992 - 29 - Commission Heating: June 25, 1992 CHAPTER IV. FISCAL ANALYSIS · An important additional consideration relative to the use of contract services is the ability to maintain a unified service operation for the entire eastern area of Nevada County. It would be extremely uneconomic for Nevada County to maintain a separate sheriff's patrol and road maintenance unit for the limited population in eastern Nevada County remaining outside the town boundaries. Contracting with the county for these services allows the continuation of unified operations both within the new town and within the area of eastern Nevada County outside the town. Conversely, if the town determines to provide these services directly to its citizens, the County should strongly consider contracting with the city to provide the services outside the town, in order to avoid the costs of duplicated services. 3. Continuity Of Legal Institutions As noted subsequently in Appendix A, it is assumed that the institutional framework that exists in California on January 1, 1992 will continue. Two assumptions deserve particular emphasis. No Change In State Finance of Municipalities. The State Legislature is currently considering major restructuring of local government finance as part of measures to deal with the state budget crisis. Given the impossibility of predicting the outcome of this legislative process, this analysis assumes no change in the current methods of municipal finance. The Three-times Voter Rule. New cities in California frequently enjoy a significant fiscal. advantage for the first five full fiscal years (plus an initial part/al fiscal year if the effective date of incorporation is other than July I). This advantage occurs when revenues are shared between local governments (or local governments and the State of California), and where the allocation of revenues depends wholly or in part on ~pulation. For the first five full fiscal years, a new city's population is taken as three times the number of registered voters on the effective date of incorporation, for so long as this number is higher than the true estimated I:~. pulafion of the city. The advantage to Truckee of this legislation was summarized in Table IV-1. The advantage is not as great as is typical in other jurisdictions because of the significant number of property owners in Truckee who reside and vote elsewhere. Nonetheless, the three-times voter rule does produce a noticeable advantage for Truckee. CFA Version 04: June 23, 1992 - 30 - Commission Hearing: June 25, 1992 CHAFFER IV. FISCAL ANALYSIS Table rv-1 TECHNICAL ASSUMPTIONS FOR TRUCKEE INCORPORATION Truckee Incorporation Comprehensive Fiscal Analysis Timing Fiscal Year (FY) LAFCo Action Is Completed 1991/92 'Prior Fiscal Year' For Government Code §56842 Calculations 1990191 Da~ Of Incorporation Election November 3, 1992 Effective Date Of Incorporation March 23, 1993 First FY Town Receives Property Tax 1993194 Last FY 'Three-times Voters' Rule Applies"' 1997198 Dat~ By Which Nevada County Must Be Repaidm January I, 1998 Property Tax Transfer (in 1990/91 dollam) Proposed Boundary Transfer From County General Fund (Revised, 6/22/92) $1,205,185 Transfer From County Servic.~ Areas (CSA //4) $ 455,101 Total $1,664,286 Registered Voters And True Population (Estimated 1/1/93) Proposed Boundary Number Of Registered Voters 5,094 ~-times Voters 15,282 Estimat~i Actual Population 9,808 Advantage (%) of Rule for 155.8% Calculation of State Subventions Notes: ' A new city's population is calculated a.s three times the number of registered voters in the formulae that control the sharing of certain revenues between the State of California and cities and comaties in California. : If the county so requests, a new city must repay the county for the net cost of municipal services provided by the county during the city's first fiscal ye-ar. Source: Nevagla County Office of Clerk-Recorder, Election Clerk and Angus McDonald & Associate. CFA Version 04: June 23, 1992 - 31 - Corrmaission Hearing: June 25, 1992 CHAFTER IV. FISCAL ANALYSIS 4. Annual Operations And Capital Expenditures With limited exceptions, the present fiscal analysis is concerned exclusively with the annual cost of providing city services compared to the ann~gl revenues from ongoing revenue sources. The fiscza feasibility analysis does not consider expenditures for capital improvements to provide capacity for new growth. The decision not to analyze the cost of capital improvements is entirely appropriate for new cities in California at the present time. Currently, it is the significant exception rather than the rule to provide for new roads and other facilities out of the Fuel Tax Fund or General Fund of a new city. Instead, financing capacity for growth now depends almost exclusively on some form of development-related financing, such as development impact fees or special assessment districts. It can be assumed that growth will not be approved by a new Town Council of Truckee unless sufficient capacity exists to accommodate this growth or unless some form of development-related financing is imposed as a condition of development. Accordingly, fiscal feasibility has been determined solely on whether annual revenues will be sufficient to supI:x:)rt annual expenditures. There is, however, one area where financing improvements are discussed. Furniture and fixtures that will be required by the new Town are included. As discussed below, the fiscal analysis also considers necessary. "start-up" expenditures. 5. Creating A Reserve Fund As noted previously, a new city enjoys an advantage for (in the case of Truckee) the first six fiscal years after incorporation. Experience in other jurisdictions has confirmed that citizens of a new city would be very wise not to assume that this advantage will continue indefinitely. Instead, good practice (which has been implemented in other new cities in California) requires that the difference between the revenues resulting from Truckee's true population and the revenues from the three-times voter rule should be accrued to a Reserve Fund rather than be used to support day-to-day operations. Appropriations can be made from this Reserve Fund for unusual expenses and start-up items associated with a new city (e.g., preparing the first General Plan). Other uses of the Reserve Fund could be financing for emergencies such as natural disasters. Allocation of the surplus generated by the three-times voter rule to the Reserve Fund has been assumed throughout the analysis. 6. Start-up Costs A new city must be prepared to make certain investments of a "one-time" nature, because the city is first coming into being. The assumptions about start-up expenditures for the proposed Town are summarized in Table IV-2. CFA Version 04: June 23, 1992 - 32 - Conunission Hearing: June 25, 1992 CHAPTER IV. FISCAL ANALYSIS Table tv-2 SI. J2VI1M. ARY OF START-U~ EXPENSES Truckee Incorporation Comprehensive Fmc. al Analysis 1 Z 3 4 S 6 ? Total (3 Ho~ths) Description of Item Costs 1992/95 1993/9& 1996/9S 1995/96 1996/97 1997/98 1998/99 PLA~NI#G $TUOIES G~raL PLan/EIR $200,000 $100,000 S100°000 S:rategic P[a~ing/S~aff Training S5~000 Total S:ar~ Up Ex--es ~0,000 $1~,000 ~0,000 $2~5,000 $0 $0 ~ $0 S~Jrce: Argus NcO~Ld & Associates. B. Results Of The Fiscal Analysis Fiscal feasibility has been tested, given the expected level of growth and development that was described in Chapter II. A conclusion that the Town is fiscally feasible requires that annual revenues exceed annual expenditures by at least i0 percent in Fiscal Year 7 (i.e., 1998/99). In other words, the annual budget must balance (without regard to surpluses that have been accrued to the Reserve Fund in earlier years) after the advantage of the three-time voter rule is over and after certain start-up expenditures have been made. Revenues, expenditures and fund balances are presented, assuming the expected level of development, in Tables IV-3 and IV-4. CFA Vemion 04: June 23, 1992 - 33 - CommL~ion Healing: June 25, 1992 CHAr! ~R 1¥. FLSCAL ANALYSIS Table IV-3 REVENUE ESTIMATES TRUCKEE I~CORPORATION COMTREHENSITE FISCAL ANALYSIS (January 1, 1991 Dollars) 1 2 3 & $ 6 7 (3 No~ths) Oesctlptfon of Item 1992/93 19~/3/9t, 1994/95 1~/96 1~6/9? I~F/98 I~8/~ Pro~rty Tax ~ $1.976,250 S2.~2,3~ S~,103,7~ $2,106,5~ S2,212,~ ~ea[ Pro~r:y rra~fer Tax S17,5~ $110,915 $105.~1 $10g,695 S113,~9 $117,54~ $121,~17 Sates Tax S96.5~ Sl,&l&,]~6 $1,5~.015 S1,601,7~3 S1,695,&52 S1.789,160 Tra~t Occupy Tax ~2,829 S~3,360 S~3.360 S~3,~ S~3,360 S~,3~ S~3,360 Fra~ise Taxes SO S91,670 S~, 116 SI00,S62 SI05,0~ S109,~5& Sl13,900 Ot~er F~nes, Forfeitures & gentiles S1,~7 S10,~O. S10,920 S11,390 Sll,870 S12,~50 V~icte C~e Fi~s S21,~8 S140,131 . S149.h~ S149,&~ S158,815 S158,~15 S1~,157 Interest Earnings $9,300 $145,800 , $151,~00 $156,800 $162,400 S167,600 TOTAL GENERAL FU~O $3~,482 S5.169,833 S5,196,801 S5,383,~9 $5,5~,~1 $5,~3,105 F~L Tax - Secti~ 2~05 S10.5~9 S71,~ s76,0~2 S76,082 S76,117 $76,151 F~L Tax - Section 2106 S15,031 ~2,~12 ~,2~ ~O,O~ S3~,715 S~O,~9 Fue~ Tax - Section 2107 S22,20~ $~.017 ~.DOS ~S~,5~ ~5,902 ~917,19F S929,~1 F~l Tax - Section 2107.5 ~,000 ~,000 ~,000 ~,000 ~,000 ~,000 Tra~fer Fr~ Ge~ra: F~ S0 S1,1~1,~8 Sl,262,128 Sl,3~9.622 Sl,414,2~ Sl.487,428 TOTAL R~ FUNO REVENUES $51.7~ S2,061,~2 $~,213,~0 S2.~14~ $2,~15,000 $2,515,625 S2.616,250 ' These f~gures are forecast in 1990/91 dollars. This assu~es everythingwiil increase at the general rate of infiatio¢~. Source: A~gus McOonaid & Associates. CFA Ve~ioa 04: June 23, 1992 - 34 - Commission Hearing: June 25, 1992 CHArI~R IV. FISCAL ANALYSIS Table IV-4 SLTMMARY OF EXPENDITURES AND FUND BALANCE Truckee Incorporation-March 23, 1993 to June 30, 1999 1 ~ 3 ~ 5 6 ? Description of item 1992/93 1~3/9~ City C~it S16,250 ~5,000 ~,000 ~,000 ~S,O00 ~5,000 ~ger S~5,1~ s181,250 S18~,250 S181,2S0 S181,2S0 S181,2S0 S~81,2S0 A~iniscr~t~ve Services ~,~1 ~1,250 ~1,250 ~1,250 ~1,250 ~1,250 ~1,~0 Ris~ ~a~g~t S33,~0 S135,000 S135,000 S135,000 S135~ 000 S135, O00 S135,000 Xtto~y/Lega~ Services Cost of Pro~rty Tax Collection S0 Leas~ Facilities' S~,250 $0 $136,500 S136,500 $I~,S00 $136,500 $1~,500 $1~,500 Police (Contract) S0 S1,~5,916 S1,~5,143 S1,787,~3 Sl,857,090 S1,~9,810 S1.~7,05g Artist Control (C~tracc) g(~dta~ Fire Prot~ti~ $0 SI~2,292 S~12,292 S1~2,292 S~12,29Z S~12,292 $112,292 Total General Fu~d $298,125 S4.,959,232 S4,96~,234 $5,061,729 S5,229,~,86 S5,319,254 G~rak F~ 5urpL~ COeficit) ~.]57 C~tative ~,357 s278,957 S507,524 ~,553 S1,1~,708 S1,~,560 S2,263,~31' G~raL F~ 22.~ 4.2g 4.6g Ro~ ~ain~e~e Ex~e $0 $~0,125 ~27,~0 ~5,3~ $903,000 $940,625 $978,250 S~ R~vat Ex~e SO SI,3~,000 Sl.3~,OOO S1,~9.000 S1,512,000 s1,s~,ooa s1,~8,ooo Tala: Road F~ Ex~e S0 S2,113,125 $2,213,~0 S2,~1~,3~ S2,415,000 S2,515,625 S2,616,250 i~[~e plan check a~ ~{[di~g ~ns~tJon. CFA Version 04: June 23, 1992 - 35 - Commission Hem-lng: June 25, 1992 CI'IAPTER IV. FISCAL ANALYSIS C. Conclusions About Fiscal Feasibility Under the expected level of development, the Town of '~ruckee will have a positive riscal result after three years, and a positive fiscal balance after the seventh year. The seventh year is important in this analysis as it is indicates the fiscal health of the Town after the benefits from the "3 x Voters" rule have run out. The revenue accumulated in the Reserve Fund from the advantage Truckee will receive from the "3 x Voters" rule was used to offset some start-up costs, as the revenue flowing to Truckee's General Fund was sufficient to pay for the majority of start-up expenses and the reimbursement to the County in the third through fifth year. D. Terms And Conditions The LAFCo has the power to impose Terms and Conditions that will apply to a new city. The present section describes the Terms and Conditions that are recommended for consideration by LAFCo. 1. The First-year Appropriations Limit Article 13B of the California Constitution requires that all local governments in California have established a maximum amount that can be appropriated for expenditure in each fiscal year. This Appropriations Limit is frequently referred to as the "Gann Limit," named after one of the principal proponents of the initiative constitutional amendment that established an appropriations limit. The first-year Appropriations Limit ("Gann Limiff) for a new city is set by the LAFCo (pursuant to Government Code §56842.6) based on estimates included in the comprehensive fiscal analysis. There is no discretion as to what will be the first-year Appropriations Limit. After a new city has a full fiscal year of operating experience, the town council shall propose a Gann limit based on actual expenditures during that year. This Gann Limit is submitted to the voters of the town for approval at the first municipal election after the first fiscal year. The limit approved by the voters becomes the permanent base appropriations limit, subject only to the annual adjustments that are allowed under Article 13B of the California Constitution and by implementing legislation adopted by the California Legislature. The first-year Appropriations Limit for the town of Truckee is calculated to be $5,019,262. The analysis that produced the Appropriations Limit is summa, r/zed in Table IV-5. CFA Version 04: June 23, 1992 - 36 - Commission He~,'ing: June 25, 1992 CHAFFER tv. FISCAL A~NALYSIS Table IV-5 THE APPROPRIATIONS LIMIT FOR THE TOWN OF TRUCKEE, FISCAL YEAR 1993/94 Truckee Incorporation Comprehensive F'rscai Analysis Proposed Description Boundary Taxes Property Tax $1,976,250 Real Property Transfer Tax $110,915 Sales Tax $1,414,326 Transient Occupancy Tax · $733,360 Franchise Tax $91,670 Revenue From Other Agencies State Motor Vehicle In-Lieu $381,860 Interest Earned $145,800 Reserve Fund from 3X Reg. Voters $165,080 Proposed Gann Limit $5,019,262 Note: ~ The Gann limit calculation is less than total annual expenditures, as some expenditures are funded from sources no~ included under the Gann limit. The Gann limit exceeds those expenditures funded from proceeds of taxee. Source: Angus McDonald & Associates. 2. Other Terms And Conditions The following Terms and Conditions are recommended for consideration by LAFCo. These Terms and Conditions would be imposed if LAFCo determines that an election should be held regarding incorporation. The Future Of County Employees. To this point in time, certain public services that are typical of those provided by cities and towns have been provided by employees of the Nevada County SherifFs Department and by other county departments who have stationed staff on a full- time basis in the Truckee area. While-the recent Citizen Attitude Survey (r-l$) revealed concerns about Nevada County's responsiveness to local issues, the Survey did not imply that the working level providers of municipal-type services were inefficient or unresponsive. Field interviews confirmed that locally-based County employees were thought to be highly responsive to community needs. CFA Version 04: June 23, 1992 - 37 - Commission Hem'ing: June 25, 1992 CHAPTER IV. FISCAL ANALYSIS Accordingly, every effort should be made to have expert and motivated employees continue to serve the Truckee community. This concern to provide continuity and responsiveness was one of the significant reasons that led the consultants to- recommend that law enforcement be provided through contract with the County Sheriff. Every effort should be made to preserve existing expertise. To the fullest extent permitted by law and public policy, preference should be given by the new Town to hiring Nevada County employees who are currently based in Truckee and providing the municipal-type services that will become the responsibility of the new Town. Effective Date Of Incorporation. The Nevada County LAFCo determined that the effective date of incorporation for a Town of Truckee should be an appropriate time in March after the March 2, 1993 council election. After analysis by the consultant of the fiscal impacts of differing start dates, this report recommends a March 23, 1993 incorporation date. The March 23rd date was chosen for several reasons: 1. No additional revenue flow to the city would be triggered by an earlier start date. 2. The later the town starts, the longer it puts off the financial responsibility for the services provided by the county within the boundaries of the town. 3. The additional time provides the County Clerk with time to certify the election results. 4. The additional time allows more time for the newly elected council to prepare for its first meeting. As compared with the January 1, 1993 start date originally proposed in the initial fiscal feasibility study, the March effective date results in a significant fiscal benefit to the county. First, it reduces the time that Nevada County must continue to provide municipal-type services to Truckee after incorporation. Although a new city must reimburse the county for its net cost of these municipal-type services, the initial cost must be borne by the county from the date of incorporation through the current fiscal year. Second, the later start date, allows the county to collect the sales tax and transient occupancy tax (TOT) revenue from the town for almost 3 months longer. To the extent that the sales and TOT tax revenue from Truckee exceeds the cost of providing the services funded from these sources, this represents an additional fiscal benefit to the county. The gain to the county from the March start date is achieved largely at the expense of the new town. The sales and TOT tax revenue gained by the county is correspondingly lost to the new town. CFA Version 04: Jo. ne 23. 1992 - 38 - Commi..~sion Hearing: June 25, 1992 CHAFI'ER IV. FISCAL ANALYSI~ Furthermore, it exacerbates the existing initial cash flow problem of the new town. The delayed start date further delays the town's receipt of tax revenue. It was assumed in the Feasibility Study that the Town of Truckee would borrow the revenue necessary for working capital and start-up cash flow using a Tax Anticipation Note. Testimony before LAFCo suggested that one appropriate 'banker" for such a Tax Anticipation Note would be Nevada County itself. In view of the fiscal gain to the county from the later start date, the County Boa.rd of Supervisors may deem it appropriate to return this act of fiscal consideration by advancing revenues to the Town of Truckee, with the understanding that they will be paid with interest, as the Town of Truckee begins to receive tax revenue. Form Of Governance. A new city in California must be established under the laws generally applicable to cities that have not adopted a City Charter. These cities are referred to as "General Law" cities. (A General Law city may subsequently go through the process of becoming a char~er city.) Within the General Law, there are certain choices relative to governance of the town that are available. It is possible to provide that the five members of the Town Council each be elected from a defined electoral district. The other alternative is to provide that ail members of the Town Council be elected at-large and all the voters are able to vote for each of the Council members. There may be instances where district elections are appropriate. Election by districts produces a virtual requirement that Council members "represent their district" often to the exclusion of the interest of the entire community. This may be appropriate in a large city where different parts of the city have very different problems and very different points of view. In a city the size of Truckee, no advantage, and a significant disadvantage, can be visualized if Town Council members are elected from districts. Here there appears to be a broadly-based feeling about the common interest of the entire community, and there do not appear to be distinct "communities of interest" that demand separate representation. Under these circumstances, excessive attention to the "needs' of totally artificial electoral district boundaries only serves to encourage divisiveness. Accordingly, LAFCo has determined that the Town Council should be elected at-large. LAFCo further concluded that two separate elections should be held. The first election, to be held on November 3, 1992, will decide whether the voters approve cityhood for Truckee. The second election, to be held on March 2, 1993, will select members of the first Town Council, if the voters approve cityhood on November 3. A General Law city can select either the Town Manager or Town Administrator form of government. The principal distinction is that in the Town Manager form of government, the Town Manager has responsibility for employee selection and evaluation and appropriate personnel action, and the Town Council can only affect such decisions through the Town CFA Version 04: Juae 23, 1992 - 39 - Commission Hearing: June 25, 1992 CHAFFER IV. FISCAL ANALYSIS Manager. The Town Administrator form of government leaves the Town Council with direct personnel decision-making authority. The Truckee area already has a tradition of strong effective managers of the special districts that provide certa/n key municipal-type services. In furtherance of this tradition, the Town Manager form of government wa~ selected for Truckee. California law provides for the pgssibility of a Town Clerk and a Town Treasurer who are directly elected by the voters. In the case of Truckee, the responsibilities of these positions are not likely to justify them being full-time positions. Direct election would provide no useful purpose that could not be provided equally well through Town Council oversight and an independent annual audit by a Certified Public Accountant. For these reasons LAFCo concluded that the Town Clerk and Town Treasurer should be appointed rather than elected. (In practice, it is likely that appropriate individuals will be designated Town Clerk and Town Treasurer, in addition to their other duties.) Dissolution Of CSAs. It is recommended that CSAs 4, 5, 6, 8, 9, 10, 11, 19 and 35 (if in existence) be dissolved and their service responsibility be transferred to Truckee. The CSAs that are to be dissolved are all within the boundaries of the Town. In addition, the property tax previously received by the CSAs will be transferred to the new town's General Fund. The authority to levy and adjust the parcel charges previously levied by the dissolved CSAs will be transferred to the new Town. These funds, when collected, will be used for extended services only in the area collected. The town council should adopt an ordinance implementing LAFCo's authorization to continue assessing parcel charges for services in the areas of the former CSA's. CSA 7. CSA 7 provides regional refuse collection to most of eastern Nevada County. LAFCo has determined that it is appropriate to leave CSA 7 in effect within the city to continue to provide funding for refuse collection in the town. It is necessary that LAFCo annex the area of the CSA's proposed for dissolution into CSA 7 in order to assure all areas within the town are provided with solid waste disposal services. Permanent Road Divisions. There are two permanent road divisions (PRDs), Prosser Woeds and Donner Terrace, within the proposed town boundaries which charge parcel charges and provide road maintenance services. These PRDs should be transferred from county jurisdiction to city jurisdiction along with all reserves. Property Transfer. If the new Town Council accepts LAFCo's consultant's recommendation to contract with the Nevada County Sheriff for local law enforcement and road maintenance, and if the status quo of the special districts is continued, then the only major property that would be subject to transfer would be the equipment and yard "owned" by CSA 4. An additional exception is the space occupied by the building inspectors. (The feasibility study assumes that the building inspectors will continue to occupy this space but that a fair rent will be paid to Nevada County.) CFA Version 04: June 23, 1992 - 40 - Commi~ion Hesring: Jur~ 25, 1992 CHAFTER IV. FISCAL ANALYSIfi LAFCo should establish, as a term and condition of incorporation, that title to the CSA 4 equipment and yard be transferred to the new town upon dissolution of the CSA. In addition, LAFCo should require road maintenance and snow removal equipment now being used to serve the Truckee area be offered to the Town for pumhase at the depreciated book value of this equipment. The intent is that, if the Town does not contract for services with Nevada County, then equipment that was used primarily or exclusively to serve the Truckee area be available for purchase by the Town. Nevada County shall offer other equipment and related facilities that it de, ms to be surplus to the Town. The County's offering price to the Tov4'n shall not exceed fair market value. Fund Balances, and Other Property -- CSA~. 'The unencUmbered fund balances and contingency reserves available to the CSAs, whose service responsibility is in whole, or in part, transferred to Truckee, as well as any equipment and facilities shot~ld be transferred to Truckee's General Fund..fi'he amount of the transfer shotlld be in proportion to the amount of service responsibility assumed by Truckee In the event a disagreement over transfer of such balances, the matter may be referred back to LAFCo which shall hear and finally determine the appropriate distribution. Books and Records. Nevada County should cooperate fully with the new Town in transferring copies of records that will be needed by the new Town. Examples of such records include as- built drawings of roads, drainage improvements, etc., and copies of the files for development applications that are in progress. Transfer Of Impact Fees. Development impact fees, parcel charges and special assessments are collected for a designated purpose. This purpose is normally to pay for infrastructure that is required to accommodate new development, but special assessments may also be collected for certain maintenance functions. California law requires that there be a direct linkage or 'nexus~ between impact fees and assessments and the burden (or, in the case of. special assessments, benefit) that is imposed by whatever purpo~ the fees or assessments serve. As a specific example, a development impact fee for road improvements must relate to the traffic and use being imposed by the developments that will make the majority of use of the roadway improvement. These pr/nciples, when applied to Truckee, would dictate that impact fees and assessments collected in Truckee be used to finance public improvements (or other permitted purposes) the demand for which are direcdy generated by land uses in Truckee. The requirement for a link or nexus does not prohibit the use of impact fees for projects beyond the geographic boundary of an area. (For example, the demand for roadway improvements outside of Truckee may be generated primarily by Truckee traffic.) This "off-site' argument cannot be carried beyond its logical limits. It would be difficult to argue, for example, that a project in Nevada City is a candidate for financing from development impact fees collected in Truckee. CFA Version 04: June 23, 1992 - 4.1 - Commission Hearing: June 25, 1992 CHAPTER IV. FISCAL ANALYSIS To assure that there be a strict accounting for the relationship between monies collected and monies used, it is recommended that all relevant and previously-collected development impact fees and assessments be transferred to the new city. In .this case, "relevant" fees or assessments would be fees or assessments collected for purposes for which the new city will become responsible. In the event a disagreement over transfer of such fees and charges occurs, the matter may be referred back to LAFCo which shall hear and finally determine the appropriate distribution. Prior Project Approvals. Projects approvals and development agreements issued by Nevada County prior to incorporation shall be honored by the new city, subject only to modifications in the conditions of approval as necessary to reflect the change in jurisdiction. Any conditions on approved subdivision maps requiring formation of county service arems, permanent road divisions, or other financing entity to provide public services shall be enforced, substituting for the county entity, an appropriate city financing entity where necessary. Sphere Of Influence. Government Code §56076 states: "Sphere of influence" means a plan for probable ultimate physical boundaries and service area of a local agency as determined by the [Local Agency Formation] commission. LAFCo is required to determine the new Town's Sphere of Influence within one year of the effective date of incorporation. LAFCo also has the option of determining the Sphere of Influence at the.time it approves a proposal for incorporation. It is recommended that LAFCo wait the full one year after incorporation before adopting Truckee's first Sphere of Influence for the following reasons:. The first Town Council, as the elected policy maker for Truckee, is the appropriate entity to propose the Sphere of Influence for Truckee. The Town has thirty months in which to complete its first General Plan. Until that time, land uses are governed by the County's General Plan. If the Town Council begins the process of General Plan preparation immediately after the effective date of incorporation, the Town's Planning Commission and Council will have a basis for expressing preferences and policies when presenting its proposed Sphere of Influence to LAFCo. Such an orderly process is preferable to a premature determination that represen~ the opinions of consultants and others who might not accurately reflect the analysis and considerations of the first Town Council. · In some circumstances (e.g., if LAFCo is making a clear policy statement that the city boundaries that are approved initially indeed do represent LAFCo's opinion as to the "probable ultimate physical boundaries" . . . of the new city), it is appropriate to adopt a sphere at the same time that the proposal for incorporation is approved. In the case CFA Version (M.: June 23, 1992 - 42 - Commission Heating: June 25, 1992 CHAPTER IV. FISCAL ANALYSIS of Truckee, it would be premature to conclude that the new city should not have the opportunity to present proposals to LAFCo for annexation of additional territory. It is further recommended that the first Town Council move aggressively to begin preparing its first Genem. l Plan. Existing Bonded Indebtedness. There is no pre-existing bonded indebtedness that would be affected by the incorporation of Truckee. Should, for whatever reason, there be a question about responsibility for bonded indebtedness, an appropriate term and condition should be adopted that specifies that bondholders' security will not be impaired. Pre-existing responsibilities of any landowner to continue to be taxed to repay bonded indebtedness should continue. Existing Deficiencies. As discussed in Chapter 5 at greater length, discussions with County staff suggest that the roadways in Truckee and the drainage system are deficient as result of inadequate maintenance. The Town Council should be advised that significant investments will be neces~a'y to bring the roads and drainage system up to a maintainable standard. Rehabilitating the town roads and drainage facilities would be one appropriate use for the town Reserve Fund resulting from the 3x voter rule. CFA Version 04: June 23, 1992 - 43 - Commission Hearing: June 25, 1992 CHAPTER V. IMPACT ON NEVADA COUNTY CHAPTER V. IMPACT ON NEVADA COUNTY Chapters II through IV have dealt with the fiscal feasibility of establishing a Town of Truckee. The present Chapter deals with the impact on Nevada County if the Truckee area incorporates. Our analysis indicates that there is a substantial negative financial impact on Nevada County if Truckee incorporates. This impact is v/rtually unavoidable, given California law pertaining to the formation of new cities and the manner in which they receive their tax base. After a city is created the residual effects on a county can be both positive and negative. On the positive side, for example, the town of Truckee would become responsible for maintaining roads that are now maintained by the County. Since road maintenance and snow removal costs are unusually high in Truckee, incorporation would result in a fiscal advantage to Nevada County in these arms. The costs avoided would significantly exceed the fuel tax revenues that are lost to Nevada County. On the negative side, however, Nevada County would no longer receive significant amounts of revenues, because these revenues would go to the Town of Truckee. The revenue loss to a county can be particularly significant if an area whose local economy is based on recreation and tourism becomes an incorporated city. If Truckee incorporates, for example, Nevada County's revenue from the sales tax and transit occupancy tax would be reduced by nearly $2,000,1300. Nevada County would experience significant savings in law enforcement, road maintenance and snow removal if Truckee incorporates. For example, the City would become responsible for the cost of Sheriff's patrol. In other cases, Nevada County's savings from transfer of services to the new town cannot offset the cost to provide municipal type service. The County Board of Supervisors provides a simple example. Accepted standards of cost accounting requires that the Nevada County's Board of Supervisors role as a body comparable to a city council be acknowledged, when the costs of providing municipal services to Truckee is calculated. This cost cannot be recovered as a savings after incorporation. The makeup of the County Board of Supervisors is unchanged after incorporation. Although the Board of Supervisors no longer deals with land use decisions in Truckee, practical examples in other areas of California suggests that Board matters that could be classified "city/county relations" will consume at least an equal amount of Supervisors' time and effort after Truckee incorporates. In other words a cost is recognized for cost accounting purposes, but this cost cannot be translated into a savings after incorporation. A significant advantag~ will exist for the Nevada County Road Fund if Truckee incorporate. Each alternative will produce a net savings to the Nevada County Road Fund, if the Town of Trackee becomes responsible for road maintenance and snow removal. CFA Version 04: June 23. 1992 - 44 - Commission Hearing: .June 25, 1992 CHAPTER V. IMPACT ON NEVADA COUNTY Transfer of road maintenance responsibilities to the town of Truckee is also likely to produce a benefit to the County greater than that reflect, ed in the figures on the road fund. County Department of Transportation officials have warned that the current maintenance effort on the roads in Truckee is substantially below that needed to keep the roads from deteriorating. As a result, the roads are, for the most part, in poor condition and getting progressively worse. At some point the roads will become hearty impassable or unsafe, necessitating a major expenditure for reconstruction. By transferring the responsibility for the roads to the new town, the County relieves itself of this substantial future liability. The magnitude of this liability is difficult to quantify. However, a 1988 DOT pavement management study indicated at that time that there as some $24,000,000 of "backlog maintenance" at the higher elevations of Nevada County. Since the bulk of the county road miles at higher elevations are within the proposed town boundaries, it is clear that this future liability is significant. The net impact on Nevada County if Truckee incorporates is summarized in Table V-1. Since absolute dollar amounts do not necessarily reflect the true impact of an action, Table V-I expresses the net loss to Nevada County as a percent of Nevada County's net revenues available for general purposes. (As is typical of county governments in California, Nevada County's general fund budget includes significant amounts of revenue that are revenues earmarked for health and welfare programs, for example, and are not, as a practical matter subject, to discretionary allocation by the Board of Supervisors.) The numbers do not reflect the relief of future road maintenance liability resulting from the transfer of the road responsibilities to the new town. Table V-i reveals that if Truckee incorporates, the Nevada County Board of Supervisors will have to make substantial adjustments in the County budget. CFA Version 04: .tune 23, 1992 - 45 - Commission Hearing: June 25, 1992 CHAPTER V. IMPACT ON NEVADA COUNTY Table V-1 SUMMARY OF PROJECTED IM~PACT ON NEVADA COUNTY GENERAL FUND COMPARING FY '93-'94 TO FY '91-'92 Net General Fund Loss~'2 7.5% Net Road Fund Gain~ 6.2% t Tiffs is for General Fund and does not include savings to Nevada County Road Fund. ; The percentages shown in the above Table for the County General Fund are calculated based on the loss to the County General Fund in 1993194 eompa~xi to 1990/91 net County General Fund revenues available for General Purpese.s. It does not take into account normal increases in general fund revenue from '90-'91 to '93-'94. ~ The percentages shown in the above Table for the Road Fund are calculated based on the gain to the County Road Fund in 1993/94 compared to the 1990/91 Road Fund revenues. Source: Angus McDonald & Associates & Nevada County LAFCo CFA Version 04: June 23, 1992 - 46 - CI-IAFTER V. IMPACt 6N NEV~,~a--~tYIN'Ty Table V-2 IMPACT ON NEVADA COUNTY Lost Revenues, Reduced Expenditures and Resulting Fund Balances 1 Z ] 4 5 6 (3 Months) :escriarion of Reyen~e lte~n 199~/93 1993/9& 199&/95 1995/96 1996/97 1997/98 1998/99 ;rzoer:¥ Tax $0 $1 41] 65"~"$1 &50,564 $I 484,208 $1 51&,61& SI,541,796 Sl,565,751 ~ea~ ;rc.~er~y Traf~sfer Tax $17,58f* '~I.~,'9T~' ~105,721 ~109,695 ~113,669 $11~5&3 Sates Tax S96,586 Sl 414,326 $1 508,035 $1 601,743 $1 695,452 $1 789,160 $1 Transient Occupancy Tax $82,829 ~T33,360 ~733,360 ~733,360 ~733,360 ~733,360 ~733,360 ve~icle Cache Fines $16,349 $65,394 t,65,394 $65,394 $65,394 $65,394 $65,394 Interest Earnings $6,400 $111,836 $115,889 $120,125 S12~,270 $123o32~ T~raL General Fur~ Rever~Je Lass $219,748 S3,944,197 -$4,0T?,966 $4,127,812 $4,35&o3~2 $z,,487,408 $4,617,171 planning Agency $1,988 $3,976 $3,9?6 $3,976 $3,976 $8,976 s3t976 $94,586 $199,80~ S208,981 $Z18,160 S2~?,340 S236,520 S245,699 $53,000 $53,000 $53,000 $53,000 s53,00n T~caL Genera( Funci(x~£~iture Savings $I,014,155 S2,157,060 $Z,235,467 $2,237,366 S2,315,773 S2,317,673 S2,384,096 ~ET GENERAL FUHO (COST)/SAV~HGS $7~&,407 ~OA~ FU~O I 2 3 4 5 6 ? Description of Revec~Je [ten~ 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 Fuel Tax ' Section 2104 S33 702 $67 404 $6? 405 $6? 403 $67,400 $67,~98 $67~395 ~uel T~x - Section 2105 ~253 ~915 ~952 ~983 $1,014 $1,046 $1,0T'~ Fuel Tax - Section ZIO~ $40,721 887,722 $91,597 $95,~38 $99,280 $102~T21 $105,7-/3 Tota~ Road Fu~fl Rever~e Lass $74,67-~ $156,042 $159,954 $165,825 $167,695 $171,16/, ~t - Road Maintenance & Snow Re~oveL $342,570 $712,185 $?'~0,215 $757,260 $~,290 S793,320 $811,350 ~ET ~OAD FUNO (COST)/SAVINGS S267,893 S556,143 $570,261 $593,435 $607,595 $622,156 $637,10~ ~T (C~ST)/SAVI~GS ALL FUNDS $1,06~,301 ($1'230'994)($1,272,238)($1,33?,OlO)($1,430,954)(Sl,547,sTg)($1,595,970) CF.4 =rs~oa 04: 1un~ 23, 1992 - 47 - APPENDIX A: 5fETHODOLOGY AND ASSUMTTIONS USED IN TFEE COMPREHENSIVE FISCAL ANALYSIS APPENDIX A. METHODOLOGY AND ASSUMPTIONS USED IN THE COMPREHENSIVE FISCAl, ANALYSIS A. General 1. Continuity Of Legal And Institutional Constraints The analysis was based on assumptions about intergovernmental municipal finance applicable as of January 1, 1992. The analysis assumes the constraints and limitations of Proposition 13. While there are cour~ cases pending that would significantly affect property taxes in California, any assumptions other than present law is highly speculative. 2. Other Revenue Sources The analysis does not include state and federal grants fled to housing and specific capital investment programs. Revenues from grants, if r~eived, would be completely offset by expenditures made in furtherance of the purposes of the grants. In addition, those services that are financed from user charges (e.g., building inspection) were assumed to be self-financing. The user charge was assumed to provide completely for the cost of service with no net cost to Truckee. The analysis does include revenues available from the 1990 increase in the fuel tax. 3. Cost And Revenue Inflation The feasibility study is presented in terms of dollars with .lanuary I, 1991 purchasing power. While the results are presented in constant .Tanuary 1, 1991 dollars, both the general rate of inflation and the rate of property value appreciation affect property tax revenues. The general rate of inflation is assumed to be ,*% per year, and property values are assumed to increase at the rate of general inflation. 4. Population For State Subventions Some subventions from the State to cities are based in whole, or in part, on the population of the city. These subventions include motor vehicle in-lieu taxes, fuel taxes and cigarette taxes. Revenue and Taxation Code §11005.3Co) provides that the population to be used for these subventions for a newly incorporated city is the greater of: (1) The number of registered voters as of the effective date of incorporation multiplied by three, or; (2) The actual population of the incorporated area. This is effective for a new city's "...first five full fiscal years, and any portion of the first year in which the incorporation is effective if less than a full fiscal year." In the case of Truckee the "3 x Votersff provides a population higher than the actual population of the area. As a result, the population figure that will be used to determine the amount of these subventions will be the "3 x Voters" number within the corporate boundaries of Truckee as of the effective date of incorporation. The number of registered voters as of March 5, 1993 (shown in Table IV-l) was estimated based on the number of registered voters as 1990/91 adjusted for anticipated population growth up to the effective date of incorporation. The option of discontinuing the "3 x Voters" rule at the time the Town's true population exceeds the figure produced by this rule is evaluated every year. CFA Version 04: June 23, 1992 -48 - ANALYSIS B. General Fund Revenues 1. Property Tax The original transfer of property tax to a Town of Truckee is controlled by Government Code §56842. The property tax base that would be transferred from the Nevada County General Fund was compiled by Angus McDonald & Associates, based on information received from Nevada County. The base transfer amount under the proposed boundary as of 1990/91 is shown in Table A- I. CSAs that finance road maintenance and snow removal would be dissolved. The property tax entitlement~ of CSAs would be transferred to the Town's General Fund. CSA 7, which extends significantly beyond the boundaries of the largest Boundary Alternative for Truckee, would continue in effect to finance solid waste management and management of ha:'-nrdous materials. CSA 7 is financed almost entirely by parcel charges and has no significant property tax revenue. Estimating increases in property tax revenues is complex because the estimate must consider the interaction of various legal constraints (e.g., Proposition 13 and Assembly Bill 8) and market forces. Proposition 13 (1978) limits property taxes to one percent of the Taxable Assessed Value CrA'v) of real and personal property. Increases in the TAV of a given property may not exceed two percent (2%) per year unless the property experiences a change in ownership, or tz~xable improvements are added to the property. If the property is sold, or improved, the TAV is adjusted by the County Assessor to the property's then current fair market value. The effect of this anomaly is that the property tax revenue flowing to a jurisdiction from a particular property wi!l mo.st likely decline, in real terms, over time. For example, if the increase in the market vatue ota single family home is the same as the rate of inflation then the real purchasing power of property tax revenue from this residence declines over time unless: (1) Price inflation is less than, or equal to, two percent per year, or; (2) The property changes ownership every year. This phenomenon is true for all land uses, in all jurisdictions, throughout the state of California. In light of the above discussion, it is clear that the property turnover rate plays an important role in estimating the amount of property tax revenue that will be generated. The turnover rates and market values used in the analysis are shown by land use category in Table A-2. It should be noted that the turnover of vacant land and the ability of some homeowners to transfer their property tax basis when they purchase a replacement home was not considered in the analysis. Fina/ly, the analysis assumes the market value of residential and non-residential property will increase at the same rate as inflation (the inflation rate is assumed to be 4% per year). An algorithm was constructed by Angus McDonald & Associates that calculates future TAV based on the forecast of future development. The algorithm simulates the process of any given year in which: · the TAV of those properties which change hands, as reflected in the turnover rate, rises to the then current market value, and · the TAV of the properties that were not sold increases by 2%.. CFA Version 04: Juae 23, 1992 - 49 - APPEh'Di'X A: MEETHODOLOGY AND ASSTJMFTIONS USED [N THEE COblPREI{ENSIVE FISCAL AiNALY$IS Table A-1 S~RY OF COST OF SERVICES EN' TRUCKEE Truckee Incorpgra_tion' .C. omprehensive Fiscal Analysis (Actual l:~scal year 1990/91 Dollars) Budge; Pro~osec~ Oescript ic~ Unit Board of S~rvisors 501 S27,125 BuiLdings a~ Gr~ 525 iui tdi~ lns~cti~ 576 Pt a~i~ Ag~y 581 Pt a~i~ Dearth: 5~ ~101,967 Ani~[ Controi 596 S167,189 Total C~st of Services Provided $2,a67,&32 Total Transfer A~t From Truckee ' CSA ff~, serving the Tahoe-Oo~ner (Area a) area, represents close to 100: of the property tax being transferre~ to the Town's General Fund frcx, CSA$. Source: Nevada ¢o~t¥ Auditor Control:er'$ 0ff~ce. CFA Version 04: June 23, 1992 - 50 - APPENDIX A: P. LETHODOLOGY AND ASSUMPTIONS USED IN THE COMPREHENSIVE FISCAL ANALYSIS For each distinct land use category, and each year in the analysis a multiplier is calculated that captures the effect of the general price level inflation, real estate inflation, and the turnover rate of a typical property. The multiplier is, in effect, a probability coefficient in which the probability of the TAV increasing to the market value ia a function of the turnover rate and the probability of the TAV increasing by 2% is one minus the turnover rate. This multiplier is used to adjust the TAV created by new development to account for the effects of Proposition 13. The time at which property tax revenues will accrue to the Town of Truckee is determined by the assessment cycle. The property tax calculation assumed negligible use of the Supplemental Tax Roll and negligible development during .lanua.ry and February of any year. 2. How Truckee's Property Tax Base Was Calculated The distribution of property taxes among taxing jurisdictions is also subject to legislative mandate (Assembly Bill 8). Following the passage of Proposition 13, the greatly reduced property tax revenue was distributed to jurisdictions in accordance with their previous share of the property tax. These shares a.re described formally as Tax Apportionment Factors (TAFs). This section describes and explains the calculations required by statute to determine the property tax transfer and the (TAFs) applicable to Truckee. In addition, this section details the calculations of the property tax transfer prepared for the Comprehensive Fiscal Analysis. a. Determining the Original Property Tax Transfer Amount Government Code §56842 guides the calculation of the original amount of property tax transfer to a new city. The steps to be completed by the LAFCo for agencies not transferring all service responsibility are as follows: (1) Request the county auditor to determine the proportion that the amount of property tax revenue derived by each affected local agency pursuant to subdivision (b) of §93 of the Revenue and Taxation Code bears to the total amount of revenue from all sourer, s, available for general purposes, received by such agency in the prior fiscal year. This ratio is identified as the "Auditor's Ratio" in the text. (2) Determine, based on information submitted by each affected local agency, an amount equal to the total net cost to each affected local agency during the prior fiscal year of providing those services which the new jurisdiction will assume within the area subject to the proposal. (3) Multiply the amount determined pursuant to paragraph (2) for each affected local agency by the corresponding proportion determined pursuant to paragraph (I) to derive the amount of property tax revenue used to provide services by each affected local agency during the prior fiscal year within the area subject to the proposal. The target date for completion of the Nevada County LAFCo's proceedings for thc Truckee incorporation is J'une 1992. Accordingly, LAFCo determined 1990/91 is the correct "prior fiscal year" for the purposes of the above calculation. As a result, 1990/91 was used to determine the revenues and costs relevant to the calculation of the original property tax transfer. The calculation specified in the Government Code (described in the previous 3 step sequence) can perhaps be more clearly understood in the following formula: CFA Ve~ion04: June 23, 1992 AND ASSU1V~I'IONS USED IN TH~ COMPR~HENSi'VE FISCAL A~ALYSLS Formula For Calculating Property Tax Transfer Transferring Agency's Total Net Cost To General Fund That Local A~ency Property Tax Revenue of Providing ,M~ount Of Those Services Properly X Which The New = Tax Revenue Total Net Revenue From All Jurisdiction Will To Be Source.s Available For Assume Within The Tr&usferr~:l General Purposes Area Subject To The Proposal The "Auditor's Ratio" was recently revised by the Auditor in response to the review done by the accountants retained by LAFCo to review the calculations. The reports of the accountant and the revisecl Auditor's report are included in Appendix C to this analysis. b. Tax Apportioranent Factors 1) Tax Rate Areas (TRAs) and The Use of Tax Apportioranent Factors (TAFs) A Tax Rate Area is defined in §95 of the Revenue and Taxation Code as: A specific geographic area all of which is within the juhsdiction of the same combination of local agencies and school entities for the current fiscal year. Every year the Nevada County Assessor measures the change in Taxable Assessed Value (TAV) in each TRA in the County. Under the limits imposed by Proposition 13, one percent of the annual change in TAV represents the total change in property tax that will be shared among the taxing jurisdictions within each TRA. This change in total property tax revenue is referred to as the "Annual Tax Increment" in §97 of the Revenue and Taxation Code. The Nevada County Auditor-Controller has c. atculated a TAF (or Annual Tax Increment factor) for each jurisdiction serving a particular 'IRA. TAFs are defined in §97.5 of the Revenue and Taxation Code. The TAFs in a given TRA are such that: · The TAFs for ail taxing agencies serving the TRA sum to 1.0 for a TRA. · The TAF for each jurisdiction indicates the percent of the total Annual Tax Increment that will be distributed to the jurisdiction. In other words, the TAFs control the share of the property tax revenues generated from the change in TAV that will be ava/Iable to each jurisdiction. · The property tax revenue a jurisdiction receives in a given year is equal to the total property tax reven~e it received in the prior year plus the jurisdicfion's share of the current year's Annual Tax Increment. This calculation is performed for each TRA. CF~. Version 04: June 23, 1992 - 52 - ,*rra.~vlx A: ;~1~. ~ HOi3OLOGY AND ASSUMPTIONS USED IN THE COMPREHIENS,IVE FISCAL ANALYSIS 2) How Tax Apportionment Factors Are Calculated (i). Original Property Tax Transfer Amount When az area, such as Truckee, incorporates, a property tax entitlement is received from those jurisdictions whose services will be provided by the new city. In Truckee's incorporation, jurisdictions that transferred property tax include Nevada County and five of the nine CSAs that had previously served some portion of the area that will be incorporated. If responsibility for providing services is assumed in its entirety, as is the case with the CSAs, ti~en ail the property tax revenues available to the jurisdiction will be transferred to the new city's General Fund. Essentially, the old jurisdiction's TAF is assumed by.the new city. If only a portion of the services are to be provided by the new city, then only a portion of the property tax revenues previously available to the jurisdiction will be transferred to the new city. This is the c2.se with services funded from the Nevada County General Fund which will be provided by Truckee. Thus, only a portion of the Nevada County General Fund TAF is assumed by the new city. (ii). Original Property Tax Transfer Amount Allocated Among The Tax Rate Areas Once the original property tax transfer amount from the Nevada County General Fund and the CSAs has I~een determined, the TAFs must be calculated. The following three steps are required to calculate each TAF: Step One: The property tax amount transferred from the Nevada County General Fund is allocated to each TRA in the new city. This is done based on the proportion of Nevada County General Fund property tax revenues in each TRA to ~he sum of the Nevada County General Fund property tax revenues in all the TRAs in the new city. Step Two: The amount of property tax revenue to be transferred by the CSAs whose services will be provided by the new city is calculated. In the case of the TRAs that are wholly incorporated into the new. city, the entire amount of property tax received by the CSAs will be transferred to the new TRA. Step Three: For each TRA, the sum of the' property tax revenue from the Nevada County General Fund and the property tax revenue from the relevant CSAs is divided by the total property tax revenue available to all agencies generated in the TRA. The result in the TAF, or Annual Tax Increment factor. While Government Code §56842 gives clear direction with respect to the derivation of the property tax transfer amount, it is less than succinct, if not completely silent, regarding the calculation of the TAFs for a new city. The position of LAFCo's consultant, formulated after a well-funded program of research that was done for another project (r-25), is that the TAFs should be calculated in the same LAFCo determined "prior fiscal year" in which the §56842 calculation was prepared. In addition, the growth in property tax revenue accruing to Nevada County in the time period after the "prior fiscal year", but before the effective date of incorporation is added to the base property tax tr~sfer amount from the County to the new city. This latter position recognizes the fact that between the "prior fiscal year" and the effective date of incorporation the service responsibility of the County, and thus the new City, will increase. CFA Version 04: June 23, 1992 53- Arrr. c~L,X A: ~L~II-IL/IDL)LOGY ,4dqD AS.'SUMPTIONS USED IN TI-~ COMPREH~NSI'VE FISCAL AH'ALY$1~ These concepts are reflected in the calculation of the TAFs, and the property tax transfer for Truckee in the alternatives analysis. c. How Truckee's Tax Apportionment Factors Are Calculated Table A-1 shows the net cost of services provided to the Truckee area by Nevada County. The Auditor's Ratio and the resulting base property tax transfer amount to be transferred to Truckee from the County General Fund is also shown. Finally, the total transfer amount, including the transfer from the CSAs, is calculated. Table A-2 MARK.ET VALUE AND TLTRNOVER RATE ASSUMPTIONS Single Family Oaeiting Units $160,000 10.0~ N~-RESIDENTIAL Carr~etciaL Square Feet Office Square Feet Ir~ustriat Square Feet $7'5 5.0~ ~otel/Motet Ro~ ~,OOO 5.~ )4ore: Multi-Family category contains m~bile hc~es and duplex u~its. Source: Angus McOonaLd & Associates. The calculation of the TAFs for Truckee follows the same procedure as outlined in the previous sections. The base transfer amount from the County General Fund was allocated to each TRA in prolmrtion to the TRAs Nevada County General Fund property tax revenue. The allocation to each TRA was then combined with the CSA amount as applicable. This total was then divided by the total property tax available to all agencies within each TRA to determine the TAF for each TRA. The result was that the TAFS within the proposed boundary varied by as much as 89 percent. To account for this variability, a weighted average TAF was calculated for each sub-area, within the proposed boundar7. The TAFs used to calculate Truckee's share of growth in property tax are shown in Table A-3. 3. Real Property Transfer Tax Real property sales (and resales) within Truckee will be taxed by the County at the rate orS1.10 per $I,000 of property value. Half of this revenue will be distributed to the Town after the Town adopts an appropriate ordinance. Sales of new residential, industrial and commercial properties as well as undeveloped properties that transfer ownership are. subject to this tax. The CF/~ Version 04: lune 23, 1992 - 54 - A?PENDIX A: M£THODOLOGY AND ASSUMFrI~3NS usED IN TKE COMPREHENSIVE FISCAL ANALYSIS same assumptions about turnover rates that was used in the property tax calculation, as shown in Table A-2, were used to calculate the Real Property Transfer Tax. Table A-3 - COMPREHENSIVE FISCAL ANALYSIS Tax Appo r~ionment Area A 14.476789% B 24.681719% C 14.468408% D 16. 684219% 4. Sales Tax in general, sales or use taxes are imposed on the retail sale or the use of tangible personal property in California. Items excluded from taxation include property that is purcha.sed for resale, food for home consumption and prescription medicines. Since the initial enactment of sales and use tax laws in California in 1933 numerous other exemptions and exclusions have l~een granted that remove the liability for tax on certa/n types of property and organizations. In general, services are excluded from taxation, although services incidental to the sale of tangible personal property are usually taxable. All cities and counties in the state levy a basic one percent sa/es tax and have the option to levy additional sales taxes under certain circumstances. Sales and use tax revenues are collected by the California State Board of Equalization. The Board of Equalization allocates the local portion of these revenues to the appropriate local governments. The local portion of sales tax revenues generally are allocated according to the location of the sale rather than residence or business location of the purchaser. (Exceptions occur for certain items and for taxes imposed on the use of property.) Sales and Use Tax revenues were estimated in four separate components: 1. Sales tax revenues that would derive from taxable sales by existing business establishments that would be within the new Town's corporate limits; 2. Sales tax revenues that would derive from the taxable sales from the new commercial space that is forecast to be built within the new city's corporate limits; 3. Sales tax revenues that would be generated by taxable sales from guests staying at the new Hotel/Motel facilities that are forecast to be built within the new city's corporate limits; 4. Additional State allocation of sales and use taxes. Sales tax revenues from existing businesses were tabulated by the State Board of Equalization, Research and Statistics Division, and are summarized in Table A-4. (r-13) These revenues CFA Version 04: June 23. 1992 APPENDIX A: METHODOLOGY AND ASSUMI:'TIONS USED 1~/THJg COMPREHENSIVE FISCAL ANALYSIS were assumed to remain constant in real dollars, that is, they were assumed to increase at the general inflation rate. Sales tax revenues from new commercial space were estimated based upon average taxable sales per square foot of floor area. Based on data from other Northern California settings, taxable transactions per square foot of retail space were assumed to be $135.00. Sales tax revenue generated from guests staying at the new 166-unit HotelJMotel in Truckee was based on travel industry data from California. Specifically, taxable expenditures are estimated at $72.00 per occupied room. It should be noted that in practice per square foot taxable sales (and use taxes) from commercial and Hotel uses are subject to wide variation and depend upon the specific tenant mix. Actual sales tax revenues received by local jurisdictions vary from an estimate based on one percent of taxable transactions occurring within that jurisdiction. A major source of the difference is accounted for by the distribution of certain proceeds of sales and use taxes collected by the Board of Equalization but not attributable to a specific point-of-sale. Such revenues are accounted for at both the county and statewide levels. An example of such a revenue accounted for at the county level is proceeds from the sale (or use) of certain construction materials. An example of such a revenue accounted for at the state level is use tax on third-panty sales of used automobiles. These county and state "pots" are allocated to local jurisdictions in proportion to the amount of other sales tax revenues generated within that jurisdiction. In Fiscal Year 1989/90, these additional revenue allocations by the Board of Equalization to the two existing cities within Nevada County averaged 15.69 percent of sales taxes from total taxable transactions within these cities. Accordingly, this component was estimated at 15.69 percent of all other sales and use taxes. 5. Transient Occupancy Tax It was assumed that the Town will adopt a resolution determining a tax based upon gross receipts of hotel/motels operating within the Town. While the actual transient occupancy tax would be determined by the Town Council, for purposes of this analysis, it was assumed that the Town would adopt a rate of I0 percent on gross receipts, which is ~e current rate charged by Nevada County. Assumptions made in the analysis are shown in Table A-5. An incorporategi Town of Truckee might be able to improve its transient occupancy tax collections by an enforcement program to ensure that individual property owners who rent homes to vacationers/recreationists collect the applicable transient occupancy tax for short-term stays. 6. Franchise Tax It was assumed that the Town wilt impose a tax based upon the gross receipts of certain businesses franchised to operate withiti the city. While the actual franchise tax rates that would be imposed would be determined by the Town Council, assumptions were made based upon the rates currently charged by Nevada County. The cable TV franchise fee was assumed to be 5.0 percent of gross receipts derived within the Town. Revenues from Cable TV were derived per household and is shown in Table A-6. There is a franchise tax for electricity at a rate of 2% of adjusted gross revenues charged against Sierra Pacific Power Company. However, this utility CFA Ve~ion 04: .tune 23, 1992 - 56 - APPENDIX A: METHODOLOGY AND ASSUMPTIONS USEI~ IIN-~HE COMPREI-IENSrVE FISCAL ANALYSIS serves only a portion of Area D, and the possible revenues available to Truckee are considered immaterial (under $10,000 per year). 7. Other Fines, Forfeitures & Penalties Fines and forfeitures are collected for violations of local ordinances, criminal violations, and health/safety violations. These revenues were e~timated based on a per capia multiplier of S0.98. The multiplier was derived from an analysis of comparable cities. Table A-4 SLr~IARY OF ESTIMATED 1% LOCAL SALES TAX REYENUE (January_l, 1991 t.hrou~h December 31, 1991) (Restated m 1~90/91 Dollars) ' Total Sales Tax Revenue: Proposed Boundary $I ,032~ 165 Source: Sate Board of Equalization. Table A-5 TRANSIENT OCCUPANCY TAX ASSUMPTIONS Tax Rate: t0% Days In A Yea.r: 365 Average Price Per Room: $60 Occupancy Ra~e: 65 % Source: Amg~s McDonald & Associates. CFA Version 04: luae 23, 1992 APPENDIX A: 3,LETHODOLOGY AND ASb-IJIV~rI~N$ USED IN TH~ COMPREHENSIVE FISCAL ANALYSIS Table A-6 CABLE TV ASSUMPTIONS Monthly C o st_Per._.Dw.e, llin g, ,Unit' $30 Annual Cost ~er ~wehingunit $360 Average Penetration Rate 65 % Rate On Gross Receilxs 5.0% Annual Revenue Per'Dwellin~ Unit $11.70 Source: A~gus McDonald & Associates. 8. Vehicle Code F'mes Vehicle code fines are collected for violations of the vehicle code. The City boundary contains the California Highway Patrol Inspection Station and w/Il receive revenues based on an analysis of revenue generated at the Truckee Municipal Court from Vehicle Code Fines. The analysis was based on revenue generated under Penal Code §1463.001 and the allocation process as outlined in the recent AB 544. The analysis yielded an estimate of approximately $130,000 annually to Truckee. This amount was increased, as additional officers are added to perform the traffic control function. 9. Motor Vehicle License Fees With the exception of a share to cities that did not levy a property tax before Proposition 13, Motor Vehicle License Fees axe distributed by the state to localities solely on the basis of population. The revenue is generated by vehicle registration fees, in-lieu of property tax, and is paid to the California Department of Motor Vehicles. This revenue item was estimated based on a per capita multiplier of $35.79, this is the revised 1990/91 per capita estimate from the State Controllers office. 10. Cigarette Tax Some of the excise taxes collected by the state on tobacco products axe distributed back to localities. The amount of tax so distributed amounts to three cents per pack of cigarettes. The local share is split between cities and counties, based on a formula that includes both population and sales tax. This revenue item was not included in the analysis, as it was assumed the State would retain these revenues in the future. 11. Off-Highway Motor Vehicle License Fees This apportionment is made under Vehicle Code §38240(a). These fees are in lieu of taxes based on value. This revenue item was considered immaterial (less than $1,000 annually) and hence left out of the analysis. 12. Use Of Money And Property The Town w-ill earn return on the investment of idle monies. Idle monies consist both of money deposits in a Reserve Fund and monies that are received in advance of expenditure needs. Revenue in this category depends upon the size of the reserve and the rate of return earned. The estimate is based on an annual three percent real rate of return. CFA Version 04: June 23, 1992 - 58 - APPE.",~IX A: METHODOLOGY AND ASS'UMIrFI~)NS USE~ I~'~I-[E COMPREHENSIVE FISCAL ANALYSIS 13. Tax Anticipation Note In the event of a revenue shortfall in the first fiscal year, brought on by Truckee not receiving tax revenue sufficient to cover its costs, a Tax Anticipation Note is recommended. A first-year cash flow problem may be remedied by pledging the anticipated sales tax revenue aia local bank or financing institution. The Tax Anticipation Note would be repaid with interest once expectett tax revenue materializes. C. Road Fund Revenues 1. Highway Users Taxes -- Tax Rate~ Ail fuel tax revenues were the result of a mathematical model, created by Angus McDonald & Associates, which forecasts statewide fuel usage, and apportions the resulting revenues to localities based on the procedures outlined in the applicable code sections. The model has been tested on historical data, and has produced revenue estimates virtually identical to actual allocations received by cities and counties. The forecasts of fuel consumption a.re consistent with historical trends in California. As a result of the passage of Proposition 111 (June 1990) the $0.09 per gallon tax under the Motor Vehicle Fuel License Tax Law (beginning with §7301 of the Revenue and Taxation code and applicable to gasoline) and the $0.09 per gallon tax under the Use Fuel Tax Law (beginning with §8601 of the Revenue and Taxation code and applicable to diesel fuel) were both increased to $0.14 per gallon effective in August of 1990. Each tax rate was increased to $0.15 per gallon in 1991, and each tax rate will be increased annually by $0.01 through t994 at which time the rate will be $0.18 per gallon. The following sections deta/l the apportionment of highway users tax revenue from the applicable sections of the Streets and Highways code. 2. §2104 -- Streets and Highways Code Under the Streets and Highways {]2104, the net revenue from 2.035 cents ($0.02035) of the SO. 15 per gallon tax on gasoline and 1.80 cents ($0.0180) of the $0.15 per gallon tax on diesel fuel is apportioned only to the counties in California. The apportionment of revenue for subdivisions Iai through If] of {}2104 are explained below. While it is the case that §2104 only applies to Counties, it is anticipated that Nevada County will receive less revenue from §2104[b] due to the transfer of responsibility for snow removal to the town. This loss is estimated based on the percentage of total County road miles transferred to Truckee. The following steps are used to apportion the net revenues under §2104: [al Each county receives an annual fixed allocation of $20,000. [bi The total reimbursable costs for snow removal on county roads filed for pursuant to §2152, or $3.0 million for the entire state, whichever is less is apportioned to counties as follows: (Note: this apportionment is provided for in §2110.) (1) If the amount filed pursuant to §2152 is less than $3.0 million for the state the total amount filed under §2152 is apportioned. CFA Ver$iun 04: June 23, 1992 - 59 - at~p~.'xl.)lx A: ~.11:'I ttODOLOGY AND A.SSU'MPTIONS USED IN TH]E COMPREI-[ENS1W'E FISCAL ANALYSIS (2) If the total amount filed pursuant to }2152 is $3.0 million or more then it is apportioned by adding the reimbursable snow removal expenditures for the three pre. c~ing fiscal years for which the Controller has received reports pursuant to §2152, and dividing this amount by the total reimbursable snow removal expenditures from all the counties during these fiscal years. lc] A total of $500,000 is payable to counties under }2104[c] for heavy rainfall and storm damage on county roads. This money is apportioned to certain counties (31 of the 58) based on fixed percentages ~ presented in the Streets and Highways §2110.5. Nevada County receives 0.718% of this revenue item. Id] Seventy-five percent of the funds payable under §2104 axe apportioned among the counties based on the proportion of fee-paid and exempt vehicles registered in each county to the total number of fee-paid and exempt vehicles registered in the state. Ici Of the remaining funds each county shall receive an amount computed monthly as follows: The number of maintained county road miles multiplied by $60 ($720 annually), less the amount received by the county under }2104[d]. The remainder, if any, shall be paid to the county. [f] The remaining funds, after Ia] through [e], axe apportioned among the counties in the same proportion as in subdivision Id]. 3. §2105 -- Streets and Highways Code In July 1989, SB 300 amended §2105 to the Streets and Highways code to detail the method of apportionment for the additional highway users tax revenue generated by the passage of Proposition 11 I. (a) County Each county, including a city and county, in California is apportioned an amount based on 11.5 % of the amount in excess of $0.09 per gallon as imposed under the Motor Vehicle Fuel License Tax Law (gasoline) and the Use Fuel Tax Law (diesel fuel). As a result, beginning in 1991, $0.00690 per gallon from each of the applicable taxes is apportioned under §2105. The apportionment methodology applicable to counties under }2105 is as follows: (I) $1.0 million is apportioned in proportion to §2104 and §2106 received in the pr/or year. (2) $1.0 million is apportioned based on (a) and Co) below: (i) $750,000. is apportioned based on the proportion of fee-paid and exempt vehicles in the county to the fee-paid and exempt vehicle registration in the state. (ii) $250,000 is apportioned based on the proportion of the number of road miles maintained by the county to the number of road miles maintained by counties in the state. CFA Version 04: June 23, 1992 - 60 - APPENDIX A: M]ETHODOLOGY AND ASSUMPTIONS USED IN TI'{E COblPREHENSIVE FISCAL ANALYSIS (3) Determine a factor for each county as the higher ratio as determined in (1) or (2) divided by the sum of the higher rs§los for all of the counties. (4) The amount to be apportioned to counties is the factor as determined in (3) multiplied by the remaining ~/mount to be apportioned to counties. Co) Town Each city, including a city and county, in California is apportioned an amount based on 11.5% of the amount in excess of $0.09 per gallon as imposed under the Motor Vehicle Fuel License Tax Law (gasoline) and the Use Fuel Tax Law (diesel fuel). As a result, beginning in 199I, $0.00690 per gallon from each of the applicable taxes is apportioned under §2105. The apportionment methodology applicable to cities under §2105 is as follows: (1) The proportion that the city population bears to the total population of all the cities in the state. 4. {}2106 -- Streets and Highways Code Under the Streets and Highways §2106, the net revenue from $0.0104 of the $0.15 per gallon tax imposed on gasoline is apportioned to the cities and counties in California. The following sections derail the apportionment of this revenue source. (a) Each month $400 is apportioned to each city, including city and county, and $800 is apportioned to each county, including city and county. Co) $30,000 per month is transferred to the Bicycle Lane Account in the Sate Transportation Fund. (c) The remaining funds are apportioned as follows: (1) A base amount is calculated for each county using the same proportions of fee-paid and exempt vehicle registration as calculated for {}2104[d]. (2) The ratio of the TAV in the county outside of incorporated cities to total TAV subject to local taxes is applied to the base amount as calculated in (1) above. The resulting amount is distributed to the county. (3) The difference between the base amount calculated in (c)(1) and the amount distributed as calculated in (c)(2) is apportioned to the cities in that county in proportion that the population of each city bears to the total ' population of all cities in the county. · 5. {}2107 -- Streets and Highways Code Under the Streets and Highways §2107, the net revenue from $0.01315 of the $0.15 per gallon tax on gasoline and a $0.0259 of the $0.15 per gallon tax on diesel fuel are apportioned to the cities, and cities and counties, in California. From the revenues collected, snow removal costs equal to one-half of the amount incurred in excess of $5,000, as detailed in the report filed pursuant to §2152, is apportioned to those cities who had such costs and filed pursuant to §2152. o~fe remaining amount of revenue is apportioned based on the proportion that the total population the city bears to the total population of ali the cities in the state. CFA Version 04: June 23, 1992 - 61 APPENDIX A: METHODOLOGY AND ASSLrMPTIONS USED IN TItE COMPREHENSIVE FISCAL ANALYSIS 6. §2107.5 -- Streets and Highways Code Under the Streets and Highways §2107.5, revenue is allocated to cities based on population as de.led in the following section: i Po ~ulation over 500,000 $20 000 Po >ulation 100,000 to 500,000 1£ 000 Po relation 50,000 to 99,999 ' 500 Po ~ulation 25,000 to ,*9,999 Po ~ulation 20,000 to 2,*,999 000 Population 15,000 to 19,999 Population 10,000 to 14,999 Po ulation 5,000 to 9,999 Po ~ulation less than 5,000 000 D. Ongoing Expenditures 1. General Goverranent General Government expenditures include Town Council, Town Manager, Town Attorney, Town Clerk, Administrative Services (Accounting, etc.), and non-depa.rtmental functions such as insurance and risk management. a. Town Council The annual cost for the Town Council was based on an analysis of comparable cities. The annual estimate is $65,000. This cost is the same for each alternative that was analyzed in the feasibility study. b. Town Manager The annual cost for the Town Manager is based on the provision of two positions; Town Manager, and an Administrative Assistant. The staffing plan shown in Table A-7 and Table A-8 details the timing and cost for these positions for each alternative. c. Administrative Services The annual cost for the Administrative Services is based on the provision of two positions; Administrative Services Manager, and an Accounting Technician. The staffing plan shown in Table A-7 and Table A-8 details the timing and cost for these positions for the proposed boundary. d. Risk Management/Insurance The annual cost for the Insurance for the new Town was based on an analysis of comparable cities. The annual estimate is $135,000. Annual premiums are expected to be approximately $135,000 per year. This would include liability for monetary damages from bodily injury, property damage, errors and omissions, and personal injury. The policy would carry a $10.0 million limit per occurrence. This cost estimate includes property loss insurance, but does not include any coverage for toxic or hazardous materials issues. e. Attorney/Legal Services The annual cost for the new Town's Legal Services was based on an analysis of comparable cities. The annual estimate is $75,000. CFA Version 04: Jtme 23. 1992 - 62 - Ar'r'~.",Dt.X A: ?,LEXHODOLOGY AND ASS~IONS USED IN TH~. COMPREI"IENSIVE FISCAL ANALYSIS f. Property Tax Collection Expenditures resulting from the County's processing of property tax revenues to the new Town were calculated as follows: Current net County costs incurred in the implementation of this task is $ 1,879,741. This cost is allocated to each agency receiving revenues from property tax revenues by dividing the total property taxes for each agency by the total property tax revenue collected in the County. The total property tax collected in Nevada County is estimated to be $43,196,291 by the Nevada County Auditor Controller's office. The resulting percentage of the County's cost of collecting property tax is allocated to the proposed boundax7. This calculation is shown in Table A-9. Table A-7 STAFFING PLAN Truckee Incorporation Comprehensive FLscal Analysis Oe~r:~nt SaLary O- 4,001- 7,001- 10,001- 13,001- O- 4,001- 7,001- 10,001- 13,O01- Posl:ion (~/~nef i ts) 40,000 7,000 30~000 13,000 16,000 /%000 7,000 10,000 13,000 16,000 a,~er S90,000 1 T I 1 1 S90,000 S90,000 S90,O00 S~,000 sgo,o00 A~in. Assistant $30,000 0 0 1 1 1 $0 $0 $30,000 ~0,000 S30,000 Secretary I25,000 0 0 I 1 1 $0 $0 $25~000 $~000 $25,000 ~isc. (25X) S36,250 0.~ 0.3 1.0 1.0 1.0 $12,083 $12,083 $~6,250 S~,~0 $~6,250 Oe~r:~c Totat S181,250 $102.0~ S102,083 $181.250 S181,250 S181,250 A~inis~ration Mgr ~0,000 1 1 I 1 1 ~0,000 ~0,000 ~0,000 ~0,000 ~0,000 aisc. C25X) S16,250 0.5 0.5 1.0 1.0 1.0 ~,125 ~,125 $16,250 $16,250 $16,250 Oe~r:~t Tota[ ~l,ZSO ~8,125 Pta~ing Oirec:or ~5,000 1 1 1 1 1 ~5,000 ~5,000 ~5,000 ~5,000 ~5,000 aisc. Costs (30=) S31,~00 0.5 0.5 1.0 1.0 1.0 S15,~0 S15,~0 S31,500 S31,500 S31,~00 O~r:~t To:at $136,500 ~0,~0 ~0,~0 $136,~00 $136,~00 $136,500 a~[~c ~or~s O~r. ~S,O00 1 1 1 1 1 ~5,000 ~5,000 ~5,000 ~5,000 ~5,000 ~ne~r ~5,000 0 0 1 1 1 ~ $0 ~5,000 ~5,000 ~,000 aisc. Costs (gS:) S27,500 0.5 0.5 1.0 1.0 CFA Version 04: June 23, 1992 - 63 - APPENDIX A: METHODOLOGY AND ASSUlVlI:rrlONS USED IN TIlE COMPREHENSIVE FISCAL ANALYSIS Table A-8 ESTIMATED DEPARTMF_ff~ STAFFING COSTS Over Time-Based On Proje. cted Growth Population 1992/93 199]/94 1994/95 1995/96 1996/97 1997/98 1998/99 P r opose~ 8o~xdary 10,102 10,670 11,160 11.650 12,140 12,630 13,121 Staffing Cost 1992/93 t993/94 199&/95 1995/9& 1996/97 1997/98 1998199 Town Manager's Oept. S181,250 $181,250 S181,250 $181,250 S181,250 S181,250 S181~250 l~inistralive Services S81,250 ~1,~50 ~1,150 ~1,250 ~1,250 ~1,250 ~1,250 C~i~y O~veLo~n~ $116,500 $1tt,500 $116,f00 $156,500 $1t6,500 $1t6,500 $1tt,f00 ~t ic Works $137,500 $137,500 S137,500 $137,500 $137,500 $137,500 $137,~00 Table A-9 Sase Transfer An~t To Truckee Existing Taxable Assessed Value $850,545,125 Total Property Tax - ALL Agencies $8,505,451 Average TAF Total Estin~ted Property Tax Revenue $43~196,291 For Fiscal Year 1990/91 Estimated Percent of Collection 3.85~ Source: Nevada County A~dftor ~ootrolter. g. Le~ed D'acJlities The cost of leased facilities was based on providing a certain amount of square footage for each department. The total estimate is approximately 5,000 square feet. This space at a monthly fulI-service rate of $I.55 produces $93,000 per year. CFA Version 04: June 23, 1992 APPENDIX A: METHODOLOGY AND ASSUMFTIONS USED IN TI'{E COMPREItl!iNSIVE FISCAL ANALYSLS 2. Public Safety The assumption used in this analysis is that the Town of Truckee would contract with Nevada County for provision of law enforcement services. The final decision on how police services would be provided would be made by the Truckee Town Council. The Town could decide to create its own police department that would be responsible for protecting and maintaining public order, controlling and preventing crime, and enforcing the motor vehicle laws and regulations within the Town limits. The Level Of Service that was used in the CFA is the same as is currently provided by Nevada County. It is assumed that the current cost of providing police services to Truckee would be the amount that the new Town would be charged by the County for providing this service. In addition, the Town would also be responsible for providing traffic control and accident investigation service previously provided by the California Highway Patrol. To provide this service, three new officers, with the appropriate training, will be added in the first five years. While their primary responsibilities would be traffic control and accident investigation, they would be available to provide additional service to the growing community, along with the addition of a Deputy Sheriff II. These positions are above the current level provided by the Sheriff. Finally, an annual allowance of $73,000 for jail booking fees was included in the cost estimate. It was assumed that the Town of Truckee would also contract with the County for the provision of Animal Control services. For Animal Control serv/ces the current cost of providing this service to each of the boundary areas was assumed to remain constant throughout the study period, and was provided in the survey of County departments. To provide the same Level Of Service for growth, a per capita multiplier based on the current cost estimate provided by the County was applied to the added population. 3. Planning And Community Promotion The Community Development Department would be responsible for developing and executing plans and programs to assure the orderly development of the Town. The Department would include development permit processing, and long range planning and housing programs. The budget for Planning and Community Promotion assumes that a Planning Director would be recruited as soon as possible. In the inter/m, an individual would be appointed to serve on contract. This pattern of staffing reflects experience in other jurisdictions where, in spite of the fact that the County could be required to continue Planning and Community Development services until the end of the first fiscal year, the new Town Council members prefer to deal with someone who is responsible only to their own Town Manager. The annual cost for the Planning Department is based on the provision of two positions; Planning Director, and a staff Planner. The staffing plan shown in Table A-8 details the timing and cost for these positions. The Community Promotion department budget was based on the estimated amount of Transient Occupancy Tax (TOT) Nevada County transfers to the Chamber of Commerce that currently sen'es the Truckee area. Currently the County transfers approximately $53,000 per year, and it was assumed that the city departmen't will have a budget equal to this amount. The County also transfers some amount of TOT to other incorporated areas in Nevada County. While it is possible that Truckee may still receive some funds from the County under this policy, it is conjectural, and hence not included in the analysis. CFA Version 04: June 23. 1992 - 65 ~,,,,,,~,un ~e~rmg: Ju~e 25, 1992 APPE,N~DLX A: METHODOLOGY AND ASS~IoNs USED ~ T~ COMP~NS~ ~SC~ ~YS~ 4. Public Works The Public Works Department is responsible for providing a safe and efficient transportation system and would be the lead department for the installation of public improvements, as well as the implementation of the Town's Capital Improvement Program. The Department would include three functions: Engineering, Road Maintenance, Facilities Maintenance. The Road Maintenance expense shown in the General Fund would be to make up for any deficit in the Road Fund for road maintenance. The cost assumptions used in the CFA with respect to road maintenance and snow removal are summarized in Table A-10. The center line miles shown here are as of 1990/91. The actual road main.tenance cost was based on approximately eight centerline miles added per 500 dwelling units. Table A-10 ROAD MAINTENANCE ASSUMIq'IONS Cost Per Centerline Mile: Road Maintenance $5,375 Snow Removal $9,000 Truckee Centerline Miles (B: 27.024. Truckee Centerline Miles (II}: 138.'~52 Truckee Centerline Miles (liD: 75.752 Truckee Centedine Miles (IV): 104.566 Source: Nevada County D6partrnent of TranslMrtation' and Anwas McDonald & Associates. Facilities maintenance costs are based on a per capita multiplier of $30.00 derived from an analysis of comparable cities. In addition, Engineering and Administration 'costs are based on the staffing plan as shown in Table A-7 and Table A-8. 5. Housing Programs Under State law, the Town of Truckee will be required to have a Housing Element in its General Plan and to adopt programs to assure affordable housing within the Town. As a practical matter, affordable housing programs in cities in California are conventionally accomplished either through regulation or through grant programs that axe available from the Federal Government. The fiscal impact on discretionary revenues (i.e., revenues that can be appropriated at the discretion of the Town Council) is normally negligible. As a result, no allowance for housing programs from discretionary revenues was included in the fiscal analysis. 6. State And Federal Grants State or Federal Grant programs were not included in the fiscal analysis. Insofar as State and Federal Grants axe available, their fiscal impact will be neutral as additional grant revenues will be offset by additional expenditures. 7. One-time Expenditures A new city must make first-time expenditures that are associated with the process of becoming a city. An estimate of one-time expenditures is shown in Table IV-2 in the main text of the re,rt. Certzdn start-up expenses (e.g., the required repayment of the cost of the election if the incorporation election is successful) do not depend on the boundaries of the Town or the rate of growth. Other expenses may be reduced if the Town is not experiencing significant amounts of growth. CFA Version ga: June 23, 1992 APPEN'DLX A: METHODOLOGY A2qD ASSUM3PTIONS USED IN TH3E COMPREHENSIVE FISCAL ANALYSIS . 8. Reimbursement For Fix~t-Year Costs According to Government Code §57384(b), the County Board of Supervisors may request that the new Town reimburse the County for the net cost of providing services during the Town's first fiscal yeax. If requested, LAFCo shall impose this requirement aa a term and condition of the incorporation. The Town is then obliged to reimburse the County within five years of the effective date of incor~ration, unless a longer period is agreed to bythe Board of Supervisors. The analysis assumes the Board of Supervisors will request reimbursement and that the Town will repay the County for these services evenly in the third through fifth full fiscal years. The amount of reimbursement is equal to the amount of net costs for fiscal year 1992/93, as shown in the Table A-ii. The costs axe offset by any revenues that are produced in the new Town but re~ned by the County (i.e., property taxes and sales taxes). The figures shown in Table A-II are the actual reimbursements to be paid to the county as this amount is adjusted annually basexi on the Consumer Price Index (CPI). Reimbursement to the County was programmed to occur over Years 3, 4 and 5. This assumption eases the burden on the new Town during its start-up years, but does not unduly prolong the time over which Nevada County would have to wait for reimbursement. Actual timing of reimbursement would be at the discretion of the Town Council. Table A-11 REIMBURSEMENT TO COUNTY FOR SERVICES March 23, 1993 - June 30, 1993 Descripdon of Item J Cost Public Safety Police (Contract) $433,299 Animal Control (Contract) $47,293 Road Maintenance $185,438 Snow Removal ' $103,500 Total Costs Jj $769,529 Less Revenues Rets/ned by County: Property Tax $87~552 Property Transfer Tax $8,792 Sales Tax ~ $0 Total Revenues j $96,334 Net Payback To County I $673,186 Source: Angus McDonald & Associates. CF..,. 'Version 0,.t: June 23, 1992 - 67 - Commission Hearing: June 25, 1992 APPENDIX A: METHODOLOGY AND ASSUMPTIONS USED IN TI-[E COMPREHENSIVE FISCAL ANALYSIS 9. County Service Areas A tot~ of nine CSAs have been established to finance improved local service for snow removal, road maintenance and for trash and garbage service in Truckee. Historically these county service areas were a mechanism whereby a localized area could elect to increase its property tax to pay for a higher Level Of Service than a county would t)therwise provide. Since the passage of Proposition 13, the effective tax rate on all taxable property in California has been equalized to be one percent of taxable assessed value. (There is the possibility of overrides beyond this basic rate if local voters approve issuance of general obligation bonds.) In other words, although property owners in the CSAs originally agreed to pay a higher tax rate than other areas to receive a higher Level Of Service, the effect of Proposition 13 was to change the situation so that all properties paid the same rate. It was assumed that the property tax from the existing CSAs that are recommended to be dissolved would be transferred to the Town of Truckee's General Fund. If Truckee incorporates, and if the assumption about the property tax that was originally collected for CSAs does not reflect the wishes of the voters, then the Town Council can act to revise this assumption and allocate property tax to specific functions. Further, the parcel charges currently in place would be continued by the Town. These funds would be used strictly to provide extended services to those areas paying the charge. CFA Version 04: June 23, 1992 APPENDIX B: MZNI3J. AL GROWTH SCENARIO A. Description of Scenario T~.e financial feasibility of Truckee was tested using a Minimal Growth Scenario based on very su~ngent assumptions regarding the rate of growth and development in Truckee. The growth assumptions u~ed are shown in Table B-I. · . TaMe 13-1 Mm,maJ^_G.r~o_wt~h Deve[oRment Forecast ior rue lown ot lruckee 1 2 3 4 $ 6 ?,:o~ ~o o o o o o ..... In this scenario, ail construction (whether residential or non-residential) is cut in half the first full fiw. al year (1993/94) and stops altogether throughout the remaining years of the study B. Assumptions and Methodology All base assumptions and methodology used in the Revenue and Expense estimates in the Comprehensive Fiscal Analysis were employed in the Minimal Growth Scenar/o. As a result, those revenue and expense categories that increase due to population growth have been adjusted accordingly. For a detailed description of the methodology used, see Appendix A. Further, some areas of expense were reduced because the Minimal Growth Scenario would reduce staffing reeuirements and eliminate certain expenses that would only be incurred under an Expected Growth Scenario. This scenario also assumes the Town Council would take action to reduce Levels of Service to insure the town remained viable under the Minimal Growth Scena.do. In this case, it was assumed that the Town Council would reduce Police, Animal Control and Road Maintenance by 5%. All other Levels of Service would remain the same. _CFA Ve,'~lon 04: June 23. 1992 - 69 - APPENDIX B: MINIMAL GROW'tH SCENARIO Table B-2 lists those areas where expenses were reduced beyond reductions resulting from minima/population growth. TABLE B-2 EXPENSE REDUCTIONS USED IN THE "MINIMAL GROWTH/REDUCED EXPENSE" SCENARIO City Council Reduced by 60%--Council would use staff support from Town Manager and Administrator Offices Attorney/Legal Reduced by I0% Leased Facilities Reduced by 30% due to reduced personnel in Planning and Engineering Planning Staff cut to a part-time planner plus miscellaneous costs--minimal growth would result in no project review costs Community Promotion All expenses cut Police. Animal Control Reduced by 5% Engineering Reduced by one staff member-minimal growth would result in reduced workload. A Public Work Director with Engineering skills would be hired Facilities Maintenance Reduced by 60%--minimal growth would eliminate prospect of acquiring facilities-maintenance would be restricted to existing facilities Start-up Expenses Minimal growth would forestall Major Projects, eliminating the need for a Major Projects Financing Plan Road Maintenance Reduced by 5% C. Results of the Minimal Growth Forecast The results of the fiscal analysis under the minimal growth scenario are shown in Tables B-3 and B-4. As noted previously, the Minimal Growth Forecast assumes all construction ceases in Trackee after 1993/94. While it is extremely unlikely this will occur, the analysis wu conduct~ to test the extent to which the fiscal health of Truckee depends on future growth. If the Town is "breakeven" under assumptions that are drastically below expectations regarding future development, and if the Town is fiscally healthy under the expected level of growth, there is reason to support the conclusion that the Town is fiscally feasible. The results of the analysis of Truckee's fiscal condition under the minimal growth scenario show Truckee to be "breakeven" and thus fiscally feasible. CFA Version 04: June 23, 1992 - 70 - JUN ~ '~E 11:E3 LUND &_PIESNEENE¥ ~'~ LOCAL AGENCY FORMATION COMMISSION ~'SPECIAL PROCEDURES EXAMINATION RE TRUCKEE INCORPORATION Ka~hryn Whlppk' W(.~g CPA r~h~a A Wivholm CPA M~ ~,~, ........ / grc'SccY [' J'f(l[]Ch~ CPA PhylL~ I Heilzmann CPA June 22, 1992 Ms. Jan Hegel, Executive officer Local Agency Formation Commission P.O. Box 6100 Nevada City, CA 95959 Pursuant to our engagement agreement we have applied agreed upon procedures to certain aspects of Table A-l, Summary of Co~t of Services in Truckee, included in the ~omp~ebenslve Fiscal Analysis for the Proposed Town of Truckee. Our procedures included verifying cost of services data for the Sheriffs Department and Department of Transportation, and Auditors Ratio data to the Fiscal Year 1990/91 audited financial statements, to the current county budgets and other source data. We made inquiry of various county departmental and administrative personnel regarding the methods of cost allocation and the source for the data and we considered alternative allocation methods. Based on the procedures applied, we have calculated an Auditors Ratio of 58.49% and a property tax transfer to Truckee of $1,735,770. The details are presented in the attached summary and schedules. This report is neither a forecast nor a prediction of how the County might respond to the proposed incorporation. Our calculations required assumptions regarding costs and revenues; changes to these assumptions will affect the ultimate fisca% impact. We have not independently verified the accuracy of the information provided by the county. The above procedures do not constitute an examination made in accordance with generally accepted auditing standards. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report relates only to the financial Certified Public Accounts .TUM £E '9~ 11:2~ LUMD &_MCSWEEblEY THE COUNTY USED CENTER LiNE MILES MILES AS THE BASIS TO ALLOCATE GENERAL FUND MAINTENANCE OF EFFORT(MOE) REVENUE PROVIDED TO DOT FOR ROAD MAINTENANCE. THIS BASIS ASSUMES THAT THE COST OF MAINTAINING ROADS IS THE SAME COUNTY WIDE, THIS IS NOT THE CASE. IT COSTS SUBSTANTIALLY MORE TO MAINTAIN TRUCKEE ROADS THAN WESTERN NEVADA COUNTY ROADS. WE BELIEVE THAT A TOTAL COST OF ROAD MAINTENANCE IS A MORE EQUITABLE BASIS TO ALLOCATE GENERAL FUND REVENUE. THE TOTAL COST OF ROAD MAINTENANCE IN THE INCORPORATION AREA IN FY1990/91 WAS $1,751,848 , THE TOTAL COUNTY WIDE ROAD MAINTENANCE COST WAS $5,345,249. THE PERCENTAGE OF INCORPORATION AREA COST TO TOTAL COST IS 32.7%. THE PERCENTAGE OF CENTER LINE MILES IS 19.74%. WE BELIEVE THAT 32.7% IS A MORE EQUITABLE PERCENTAGE. ADDITIONALLY, THE COUNTY USED $892,670 AS 1990/91 MOE EXPENDITURES, THE STATE CONTROLLERS AUDIT REPORT FOR 1990/91 STATED MOE WAS $910,254. JOHN SEARS AGREED THAT THE AMOUNT IN THE AUDIT REPORT WAS APPROPRIATE. THE RECOMMENDED MOE ALLOCATION IS: ROAD MAINTENANCE COST IN INCORPORATED AREA 1,751,848 COUNTY WIDE ROAD MAINTENANCE COSTS 5,345,249 MOE 91 O,254 ALLOCATION RATE 32.77% ALLOCATED COSTS 298,326 LAFCO SCHEDULE 2 ~ATION ACTUAL PROPERTY RESTRICTED COST DESCRIPTION REVENUE TAX REVENUE RECOVERY REF COUNTY CALCULATION 46,151,131 t3,848,215 17,71,5,196 2,249,539 ADJU~ 1 SALES TAX 242,800 1 INTEREST (i 8,769) ACCOUNT 40070 69,642 2 ACCOUNT 45010 1,307,584 2 ACCOUNT 45020 5,110 2 ACCOUNT 45100 330,755 2 ACCOUNT 45150 89,586 2 ACCOUNT 45330 14,731 2 ACCOUNT 45360 13,969 2 ACCOUNT 45510 534,660 2 ACCOUNT 45550 28,564 2 ACCOUNT 45770 105,895 2 ACCOUNT 45790 124,765 2 ACCOUNT 45800 (275,000) 3 ACCOUNT 45900 27,756 2 RESIDUAL EQUITY (355,1191 4 TOTAL ADJUSTMENTS (131,088) 0 0 2,378,017 ADJUSTED TOTALS 46,020,043 13,8~8,215 17,715,196 4,627,556 LESS: RESTRICTED REVENUE (17,715,196) COST RECOVERY /4,627,556/ GENERAL REVENUE 23,677,291 RATIO CALCULATION: PROPERTY TAX 13,848,215 GENERAL REVENUE -- 23,677,291 ~ REF 1-YEAR END AUDIT ADJUSTMENTS NOT INCLUDED IN ORIGINAL CALCULATION 2-THESE ITEMS REPRESENT REVENUE FROM FEES OR ASSESSMENTS WHICH ARE LEVIED TO OFFSET THE COSTS OF PARTICULAR SERVICES 3-THIS ITEM REPRESENTS SB75 REVENUE AND SHOULD NOT BE DEDUCTED AS A COST OF SERVICE 4-THIS IS NOT A REVENUE ITEM, IT IS ONE HALF OF A TRANSFER THROUGH THE GENERAL FUND TO MOVE FUND EQUITY BETWEEN SPECIAL DISTRICTS LAFCO RESOLUTION 92-06 APPROVING THE PROPOSED INCORPORATION OF THE TOWN OF TRUCKEE AND REORGANIZATION OF COUNTY SERVICE AREAS 45360 :~. i~-- 4 5-~: 6 C~ . . ' OFFICIAL RECOROS ~ RE~ JEoTED ;Z/hen CompletedReturn To: NEUADA 1201JHTV LAFCO Nevada County LAFCo 12-24-1992/11:50 BRUCE C. BOLINGER.., P.O. Box 6100 ~EOA~ COU~qTV RECORDER. Nevada City, CA 95959 ~ECORBIt~r~ tEE-lC, eASES ... Certificate of Completion Pursuant to Government Code Section 57200, this Certificate is issued by the Executive O/f/cer of the Nevada County Local Agency Formation Commission. Short Term Designation, as determined by LAFCo, is: Reorganization ii 91-02 - Incorporation of the Town of Truckee The name of each district or city involved in this change of organization or reorganization and the kind or type of change oforgani?ation ordered for each city or district are as follows: · Incorporation of the Tawn of Truckee; · dissolution of Nevada County Service Areas 4, 5, 6, 8, 9, 10, 11, 19, 35; · annexation of the areas of the dissolved CS.4s into CSA 7for solid waste services; · andthetransferoftwoPermanentRoadDivisionsfromCountyjurisdictiontothenew Town. The above listed district is located within the: County of Nevada A description of the boundaries oft he above cited change of organization or reorganization is shown on the attached map and legal description, marked Exhibit "B" and by this reference incorporated herein. The territory is inhabited. The Terms and Conditions of this change of organization are set forth in the LAFCo Resolution //92-06 attached as Exhibit "A." The Resolution ordering this reorganization confuming an order for this change a/ter confu-mation by the voters was adopted on: December 22, 1992 as Resolution ii 92749 by the governing body of the County of lVevadtl I hereby certify that I have examined the resolution cited above, including any Terms and Conditions, and the map and legal description and have found these documents to be in compliance with LAFCo Resolution # 92-06. ~xecutive Of/icer' "~- Date The Effective Date of this action is.///_/~c~ ~{ 92 4536~ NEVADA COUNTY LOCAL AGENCY FORMATION COMMISSION RESOLUTION 92-06 RESOLUTION OF NEVADA COUNTY LOCAL AGENCY FORMATION COMMISSION MAKING DETERMINATIONS AND APPROVING THE PROPOSED INCORPORATION OF THE TOWN OF TRUCKEE AND REORGANIZATION OF COUNTY SERVICES AREAS WHEREAS, on May 16, 1991, the Board of Supervisors of Nevada County adopted Resolution 91-225, expressing its intent to make application to the Nevada County Local Agency Formation Commission ("LAFCO") to incorporate the community of Truckee; and WHEREAS, that application was accepted by the LAFCO Executive Officer, subject to completion of a feasibility study, Comprehensive Fiscal Analysis and initial environmental study for the proposed incorporation; and WHEREAS, the Board of Supervisors and LAFCO entered into an agreement whereby LAFCO would act as lead agency for the preparation of the necessary studies, and the County would reimburse LAFCO for the cost thereof, subject to reimbursement by the new city if formed; and WHEREAS, LAFCO retained the firm of Angus McDonald and Associates as consultants to prepare the initial feasibility study and assist in the preparation of the Comprehensive Fiscal Analysis; and WHEREAS, the Consultant prepared a feasibility study of various boundary alternatives for the new Town, public hearings were held thereon on April 9 and April 23, 1992 and based on that study the Commission determined the boundaries to be considered as part of the final incorporation proposal; and WHEREAS, the Executive Officer prepared a Comprehensive Fiscal Analysis for the incorporation and furnished a copy of the Analysis to each person entitled to a copy; and WHEREAS, public hearings, duly noticed in the Sierra Sun and The Union, were held before LAFCO on the Fiscal Analysis on June 11, and June 25, 1992 at which all persons present were given opportunity to hear and be heard with respect to this proposal and the Comprehensive Fiscal Analysis; and WHEREAS, an initial environmental study was prepared by the Executive Officer and a recommendation made that a negative declaration be adopted for the incorporation proposal; a notice of preparation of the negative declaration was duly published and posted 92 45360 Nevada County Local Agency Formation Resolution Approving Incorporation of the Town of Truckee June 25, 1992 Pg. 2 in accordance with the requirements of Section 15073 of the State CEQA Guidelines giving the public 30 days to make comment on the proposed negative declaration; the negative declaration was circulated to the State Clearinghouse of the Governor's Office of Planning and Research for review by state agencies; a public hearing was held on the proposed negative declaration; and the negative declaration was revised to respond to all comments received; and WHEREAS, the Commission has carefully considered the proposal and the report of the Executive Officer and the proposed Negative Declaration; THEREFORE, BE IT RESOLVED AND DETERMINED by the Nevada County Local Agency Formation Commission that the incorporation of the Town of Truckee and related reorganizations, is approved, subject to the following findings, terms and conditions: [Note:/Ill Statutory References are to the Government Code of the State of California unless otherwise indicated] 1. Short Form Designation. The distinctive short-form designation of the proposed reorganization is LAFCO No. 91-02. The Reorganization includes the incorporation of the Town of Truckee; the dissolution of County Service Areas (CSAs) 4, 5, 6, 8, 9, 10, 11, 19, 35 and any CSAs that are subsequently formed within the boundaries of the proposed Town prior to incorporation; the annexation of the areas of the dissolved CSAs into CSA 7 for solid waste services; and the transfer of two Permanent Road Divisions and any subsequently formed PRDs from County jurisdiction to the new Town. 2. Conducting Authority. The Board of Supervisors of the County of Nevada is the designated conducting authority for this reorganization. 3. Name of New Town. The incorporation proposal to be presented to the voters shall provide for the voters to choose whether the name of the new Town shall be '~Fhe Town of Truckee" or '~he City of Truckee". [The new municipality is referred to herein as a "Town of Truckee" purely for the purpose of clarity and consistency, and without prejudice to the determination of the voters] 4. Boundaries. The boundaries of the proposed Town are set forth in Exhibit "A" attached hereto and made a part hereof. The proposed new Town contains approximately 31 square miles of territory. 92 45360 Nevada County Local Agency Formation Resolution Approving Incorporation of the Town of Truckee June 25, 1992 Pg. 3 5. Effective Date. The effective date of incorporation shall be March 23, 1993. 6. Findings: LAFCO hereby finds that: (a) The territory of the proposed reorganization is inhabited and contains a population of approximately 8,928 residents and 5,094 registered voters as of fiscal year 1990/91. (b) The assessed value for property tax purposes within the area of the proposed incorporation is $850,545,125 as of fiscal year 1990/91. (c) The proposed reorganization is consistent with all affected agencies' spheres of influence. (d) No existing bonded indebtedness or obligation for payment of principal and interest on indebtedness should be affected by the incorporation of Truckee. (e) Pursuant to §56375.1, incorporation of the Town of Truckee is consistent with the intent of the Cortese-Knox Local Government Reorganization Act of 1985 and the policies of Sections 56001, 56300, 56301 and 56377. Although consolidation of the special districts into the municipality would be preferred under the statutory policies of §56001, given the unique circumstances relating to the special districts in this incorporation, as set forth in the Comprehensive Fiscal Analysis, the Commission finds that consolidation at the time of incorporation would not promote orderly development or best serve the public interest. (f') The Commission has reviewed the Comprehensive Fiscal Analysis prepared by the LAFCO Executive Officer and pursuant to §56852.3, the Commission adopts all of the findings and recommendations contained therein. Those recommendations are set forth in greater detail in this resolution. (g) Based on the Comprehensive Fiscal Analysis, the Commission finds that pursuant to §56375.1(e), the proposed Town is expected to receive revenues sufficient to provide services, facilities, and reasonable reserve during the three fiscal years following incorporation. The Comprehensive Fiscal Analysis further analyzed the fiscal stability of the proposed Town seven years following incorporation and found that the Town would maintain reasonable reserves through year seven. Therefore, the Commission finds that the Town of Truckee is financially feasible and that the new Town would be capable of maintaining or improving the level of service now provided in the community. Nevada County Local Agency Formation Resolution Approving Incorporation of the Town of Truckee June 25, 1992 Pg. 4 (h) The Commission finds that the area subject to incorporation will benefit from local control over services currently controlled by the County. (i) The Commission hereby finds that the incorporation/reorganization with thc mitigations required will not have a significant adverse impact on the environment, and thc Executive Officer is instructed to file thc appropriate Notice of Determination with thc County Clerk within five days of adoption of this resolution. 7. Property Tax Transfer. As provided in the Comprehensive Fiscal Analysis, the amount of base property tax transfer to the new Town from the County general fund pursuant to §56842 shall be $1,205,185. This amount in conjunction with thc transfer of the property tax from the CSAs to be dissolved, shall serve as a basis for the computation of property tax revenues to be distributed to the Town of Truckee for FY '93/94 and thereafter. Staff is directed to finalize the base transfer amount subsequent to this hearing to reflect the proper total County Maintenance of Effort (MOE) contribution to the Road Fund and confirm the other calculations. Such final figure shall be submitted to the Board of Supervisors for inclusion in their resolution relative to the incorporation. 8. Gann Appropriations Limit. As provided in the Comprehensive Fiscal Analysis, thc provisional appropriations limit for thc new Town required by Article XIII B of the California Constitution shall be $$,019,262. Pursuant to §$6842.6, thc permanent appropriations limit shall be proposed by the Town Council and subject to approval of thc voters at thc first municipal election following the first full fiscal year of operation. Staff is directed to finalize this Gann Limit amount subsequent to this hearing to reflect any changes in Town revenue resulting from thc corrections provided in Section 7 above. Such calculations shall be submitted to the Board of Supervisors for inclusion in their resolution relative to the incorporation. 9. Continuation of All Existing General Purpose Taxes. An affirmative vote on the incorporation shall bc construed as an affirmation that all sales and use taxes, transient occupancy taxes, real property transfer taxes and other general purpose taxes presently imposed by the County of Nevada or the State of California shall be continued by the new Town, at the same rate and manner of collection, until changed by the Town council. 10. Services to be Provided by the New Town. The new Town shall, at a minimum, provide those services as set forth in the table attached as Exhibit B to this resolution, whether directly or under contract with the County. All County roads, storm drain facilities, easements, and rights-of-way within the boundaries of the new Town shall be transferred to the Town and become the responsibility of the Town. 4 Nevada County Local Agency Formation Resolution Approving Incorporation of the Town of Truckee June 25, 1992 Pg. 5 11. Compliance with Water Quality Requirements. If the incorporation is approved, the new Town shall apply for new waste discharge requirements from the Lahontan Regional Water Quality Control Board for any Town road improvement projects requiring such permits. In addition, the Town may be required to apply for NPDES industrial permits for certain Town facilities such as maintenance yards. 12. County Service A~eas (CSAs} and Permanent Road Divisions (PRDs) (a) CSA 4. CSA 4 shall be dissolved effective Midnight, June 30, 1993. Pursuant to §56844 (m)(r) and (t), the sewices and obligations, rights, duties, parcel charges, reserves, equipment, facilities and other assets of County Service Area 4 for snow removal and road maintenance shall be transferred to the new Town. As the successor agency, the Town shall continue to have full authority to levy parcel charges, adjusted on an annual basis, within the area of the former CSA. All funds derived from these parcel charges and any state subventions for such services, and reserves held by CSA 4 on the date of dissolution and all delinquent parcel charges collected by the County for the CSA to be distributed to the Town after dissolution, shall be maintained in a separate fund and expended only for snow removal and road maintenance and improvement purposes within the area of the former CSA 4. (b) Other County Service Areas. CSAs 5, 6, 8, 9, 10, 11, 19 and 35 and any subsequently formed CSAs within the Town boundaries shall be dissolved effective midnight June 30, 1993. Pursuant to §56844 (m)(r) and (t), the services and obligations, rights, duties, parcel charges, reserves, equipment, facilities and other assets of County Service Areas 5, 6, 8, 9, 10, 11, 19 and 35 and any subsequently formed CSAs shall be transferred to the new Town. As the successor agency, the Town shall continue to have full authority to levy parcel charges, adjusted on an annual basis, within the area of each of the former CSA's. Ail funds derived from these parcel charges and any state subventions for such services, and reserves held by each CSA on the date of dissolution and all delinquent parcel charges collected by the County for the CSA to be distributed to the Town after dissolution, shall be maintained in a separate fund and expended only for snow removal and road maintenance and improvement purposes within the area of the former CSA. (c) Consolidation of Solid Waste Responsibilities in CSA 7. (1) Pursuant to §56844 (m)(r) and (t), the services and obligations, rights, parcel charges and duties of County Service Areas 4, 5, 6, 8, 9, 10, 11, 1.9, 35, and any CSA subsequently formed prior to incorporation, relating to solid waste disposal shall be transferred and consolidated into CSA 7. As the successor agency, CSA 7 shall continue to have full authority to levy parcel charges, adjusted on an annual basis, 92 45360 Nevada County Local Agency Formation Resolution Approving Incorporation of the Town of Truckee June 25, 1992 Pg. 6 within the area of the former CSA's, provided that all funds so derived shall be expended only for solid waste services within the area of consolidated CSA. (2) The Commission expressly finds that, pursuant to §56375(p), the detachment of the area of the Town from CSA 7, as consolidated within the boundaries of the new Town would deprive the residents of solid waste disposal services needed to ensure their health, safety and welfare, and that its continuation within the city would not affect the ability of the Town to provide that service. Therefore, CSA 7, as consolidated, shall continue to function within the boundaries of the new Town, subject only to the Town's right to nullify such continued operation by appropriate resolution adopted within 60 days of the effective date of incorporation. (d) Permanent Road Divisions. The two permanent road divisions, Prosser Woods, Donner Terrace, and such new PRDs formed prior to the effective date of incorporation, shall be transferred to the new Town effective July 1, 1993, along with all fund balances and other assets. The Town shall continue to have full authority to levy parcel charges, adjusted on an annual basis within each PRD provided that all funds so derived shall be expended only for the authorized services within the area of PRD. (e) Resolution of Property Transfer Disputes.. The County and the Town shall jointly determine what constitutes the assets of the CSAs and PRDs to be transferred. Should the Town and County not agree on any item, LAFCO shall resolve the matter. 13. Nevada County Employees.. To the fullest extent permitted by law and public policy, preference should be given by the new Town to hiring Nevada County employees who are currently providing municipal-type services in Truckee for which the responsibility would be assumed by the new Town. Reimbursement of the County. The new Town shall, by the end of fiscal year (FY) ~4~',,n6 ..... ,~,~ r~,~,n~v nf Nevada for the net cost of all services provided by the County during the first fiscal year of the new Town. Said repayment shall be made in three equal annual installments beginning in FY 1995/96, and shall include interest on the costs advanced by the County using the interest rate that the County earned on its own funds for the same period. The Town shall reimburse the County for the costs advanced in connection with the incorporation process in FY 93/94. 15. Purchase of Equipment from County. If the Town determines not to contract with the County, the County shall offer to the 'l'own its surplus road and snow removal, other Nevada County Local Agency Formation Resolution Approving Incorporation of the Town of Truckee June 25, 1992 Pg. 7 equipment, and personal property used to provide servicesto the town, at depreciated book value. This requirement shall remain in effect for a period of 5 years from the effective date of incorporation. 16. Transfer of Books and Records. Nevada County should cooperate fully with the new Town in transferring copies of records that will be needed by the new Town. Examples of such records include as-built drawings of roads, drainage improvements, etc., and copies of the files for development applications that are in progress. 17. Transfer of Development Fees and Charges. All development impact fees, assessments, parcel charges, project mitigations, and other user charges currently levied by Nevada County should continue to be levied by the new Town. Unencumbered balances allocable to Truckee in the appropriate Nevada County accounting funds should be transferred to the new Town. The Commission shall resolve any disagreement between Nevada County and the new Town as to the transfer of fees, charges and assessments. 18. County Ordinances and General Plan. As required by §57376, existing County ordinances shall remain in effect after incorporation for the period specified in that section. The County General Plan and zoning ordinances shall continue in effect within the Town boundaries until such time as the Town has adopted its own General Plan and zoning. 19. Transfer of Portion of County's "Fair Share" Housing Allocation. LAFCO recommends that an appropriate portion of Nevada County's Low Income and Affordable Housing 'Allocation be assumed by the new Town, upon incorporation. 20. Project Approvals. Project approvals and development agreements issued by Nevada County prior to the effective date of incorporation shall be honored by the new city, subject only to modifications in the conditions of approval as necessary to reflect the change in jurisdiction. Any conditions on approved subdivision maps requiring formation of County service areas, permanent road divisions, or other financing entity to provide public services shall be enforced, substituting for the County entity, an appropriate city financing entity where necessary. 21. Wildland Fire Mitigation. The new Town shall pay to the Truckee Fire Protection District an annual wildland fire protection fee in the amount of $112,000.00 and the fire district, shall, in exchange, agree to assume certain responsibilities for wildland fire prevention and suppression within the boundaries of the Town as set forth in the letter attached as Exhibit "C' hereto and made a part hereof. Said fee may be adjusted from time 7 92 45360 Nevada County Local Agency Formation Resolution Approving Incorporation of the Town of Truckee June 25, 1992 Pg. 8 to time through negotiations between the Town and the fire district, to reflect changes in cost and desired service levels. 22. Mitigation of Impacts on the Coun _ty. In order to facilitate mitigation of the impacts on County government from the tax transfers resulting from incorporation of the Town of Truckee, LAFCO recommends that the County and Town, upon formation, implement a mitigation plan along the following lines: (a) That the Town agree to share with the County any general fund surplus for a period of 5 years commencing with the FY 93/94, in order to insure the continued provisions of human services to the Truckee community at present levels of services. Human services provided by the County include social services, mental health services, the library, etc. (b) That the Town agree to make a good faith effort to control spending in order to generate surpluses that can be shared with the County. (c) That LAFCO be available to act as a mediator if the parties are unable to agree on the terms or performance of the mitigation program. 23. City Governance. The incorporation proposal to be presented to the voters shall provide for the following governance provisions: (a) The "city manager" form of government shall be adopted. (b) The elected officials of the Town shall be its five (5) member city council, to be elected at-large throughout the entire Town. The council members shall serve for the initial terms provided in §§ 57377 and 57379. (c) All other officials of the Town, including the Town Manager, the Town Clerk and Town Treasurer should be appointed rather than elected. 24. Incorporation Elections. The incorporation proposal shall be submitted to the voters of the affected territory at the November, 1992 general election and the election for Town council members shall be held on the first lawful election day in 1993 thereafter. (LAFCO understands that this day is March 2, 1993.) 25. Sphere of Influence. LAFCO shall adopt a Sphere of Influence for Truckee at the end of the first year after the effective date of incorporation. 8 92 45360 Nevada County Local Agency Formation Resolution Approving Incorporation of the Town of Truckee June 25, 1992 Pg. 9 26. LAFCO Mediation. In addition to those areas where LAFCO has expressly retained jurisdiction to resolve disputes between the new Town and the County, LAFCO shall be available to mediate any other Town/County dispute arising out of the incorporation, at the request of either party. 27. Effective Date. Unless otherwise specified, the date for any fund or property transfers shall be the effective date of incorporation as provided in this resolution. 28. Directions to Conducting Authority. The Executive Officer is directed to transmit a certified copy of this resolution to the Conducting Authority forthwith, and to each affected agency. The Conducting Authority is directed as follows: (a) To proceed with a public hearing within 35 days of the date of adoption of this resolution to consider setting the matter for an election within the territory of the proposed new Town in accordance with the requirements of §§57000 et seq. (b) The Conducting authority shall not make any changes in the boundaries hereby approved nor shall it modify the terms and conditions hereby imposed unless and until it receives the approval of LAFCO for such changes, pursuant to the procedure for requesting modification of LAFCO action set forth in §56857. (c) Upon completion of its proceedings, the Conducting Authority is directed to adopt its own resolution setting forth its action relating to the proposal and forward the required number of certified copies of the resolution to LAFCO pursuant to §§57075 through 57179. 29. Severability. Each condition contained herein or any part thereof shall be severable. If any condition or portion thereof is determined to be void or unenforceable, the other provisions of this resolution shall remain in full force and effect. 9 92 45360 Nevada County Local Agency Formation Resolution Approving Incorporation of the Town of Truckee June 25, 1992 Pg. 10 The foregoing resolution was duly passed at a special meeting of Local Agency Formation Commission of Nevada County, held on June 25, 1992, by the following roll call vote: AYES: Krieger, Matson, Smith, Sweet, Tucker, Weir, and Zanone NOES: None ABSTAINS: None Signed and approved by me after its passag~this 25 day of June, 1992. Jl~rn W~i~, Chair LOcal Agency Formation Commission County of Nevada ATTEST: agel, E~e~iive Officer [PSB:06-25 -92:W:~MeCO002~RESOLUT.001 ] 10 92 45360 EXHIBIT 'A' TRUCKEE INCORPORATION DESCRIPTION All that area to be incorporated as the Townsite of Truckee. being Section 1, and portions of Sections 10 through 15. Township 17 North, Range 15 East; Sections i through 12. 14 through 18. and a portion of Section 13, Township 17 North. Range 16 East; Sections 5 through 7, and portions of Sections 3, 4, 8 & 18. Township 17 North, Range 17 East~ Section 31 and portions of Sections 32 through 36, Township 18 North, Range 16 East; and Section 33 and portions of Sections 28, 29. 31 and 32. Township 18 North, Range 17 East, H. D. H., more particularly described as follows= Beginning at a point on the Nevada County, Placer County boundary situated on the North-South Centerline of Section 15. T.17 N.. R.15 E., M.D.M., Nevada County. California; Thence northerly along said North-South Centerline to the Quarter Corner common to Sections 15 and 10; thence northerly along the North-South Centerline of Section 10 to the northerly right-of-waY line of Interstate 80 as shown on the CALTRANS right-of-way map for III Ney. SO dated 11/28/58; thence easterly along said northerly right-of-way line of Interstate 80 traversing portions of Sections 10, 11, 12, 13, 14 & 15, T.17 N., R.15 E., H.D.H., to the east line of Section 12, T.17 N., R.15 E., H.D.M.; thence northerly along the line common to Section 12, T.17 N., R.15 E., and Section 7, T.17 N., R.16 E. H.D.M., to the East Quarter Corner of said Section 12; thence westerly along the East-West 1 92 45360 centerline of said Section 12 to the southwest corner of the Southeast Quarter of the Southeast Quarter of the Northeast Quarter of said section 12; thence northerly along the North- South centerline of the East one-half of the Northeast quarter to the northwest corner of the Northeast quarter of the Southeast Quarter of the Northeast Quarter of said Section 12; thence easterly along the East-West centerline of the Northeast quarter to the section line common to said Sections 12, T.17 N., R.15 E., M.D.M. and 7, T.17 N. R.16 E., M.D.M., and being the westerly boundary of Tahoe Donner Subdivision, as shown on that certain Record of Survey for Lakeworld Development Company, Inc., filed February 17, 1971, in Book 4 of Surveys at Page 129, Nevada County Records; thence northerly along the exterior boundary of said Tahoe Donner Subdivision to the section corner common to Sections 6 and 7, T.17 N., R.16 E., and Sections 1 and 12, T.17 N., R.15 E., M.D.M.; thence westerly along the line common to said Sections 1 and 12, to the section corner common to Sections 1, 2, 11 and 12 T.17 N., R.15 E., M.D.M.; thence northerly along the line common to said Sections 1 and 2, to the section corner common to Sections 1 and 2, T.17 N., R.15 E., and Sections 35 and 36 T.18 N., R.15 E., M.D.M.; thence easterly along the line common to said Sections 1 and 36 to the section corner common to Section 1, T.17 N., R.15 E., Section 6, T.17 N., R.16 E., Section 31, T.18 N., R.16 E., and Section 36, T.18 N., R.15 E., M.D.M.; thence northerly along the line common to said Sections 31 and 36 to the section corner common to Sections 30 and 31, T.18 N., R.16 2 92 45360 E., and Sections 25 and 36, T.18 N., R.15 E., M.D.M.; thence easterly along the line common to said Sections 30 and 31 to the section corner common to Sections 29, 30, 31, and 32, T.1B N., R.16 E., M.D.M.; thence southerly along the section line common to said Sections 31 and 32 to a point on the northerly right-of- way line of Alder Creek Road; thence traversing Sections 32, 33 and 34, T.18 N., R.16 E., M.D.M.,in a general easterly direction along said northerly right-of-way line of Alder Creek Road to a point on the westerly line of the Southeast Quarter of the Northeast Quarter of Section 34, T.18 N., R.16 E.; thence northerly along the North-South centerline of said Northeast Quarter to the center thereof; thence easterly along the East- West centerline of the Northeast Quarter to the westerly right- of-way line of State Highway No. 89; thence northerly along said right-of-way of Highway 89 to the section line common to Sections 27 and 34, T.lS N., R.16 E.; thence easterly along said section line to the corner common to Sections 26, 27, 34 and 35, T.18 N., R.16 E., M.D.M.; thence easterly along the line common to said Sections 26 and 35 to the high water mark on the west side of Prosser Creek Reservoir{ thence southerly, easterly and northerly along said high water mark to a point on section line common to Sections 25 and 36, T.18 N., R.16 E., M.D.M.; thence easterly along the line common to said Sections 25 and 36 to the section corner common to Sections 25 and 36, T.1S N., R.16 E., and Sections 30 and 31, T.18 N., R.17 E., M.D.M.; thence easterly along the line common to said Sections 30 and 31 to the 3 92 45360 Quarter corner common to sections 30 and 31, T.18 N., R.17 E., M.D.M.; thence southerly along the North-South centerline of said Section 31 to the Center Quarter thereof; thence easterly along the East-West centerline of said Section 31 to the Quarter Corner common to sections 31 and 32; thence easterly along the East-West centerline of said Section 32 to the northwesterly right-of-way line of Interstate 80, as shown on the CALTRANS right-of-way Maps for III Nev.3S dated 05-22-57, on file with the Nevada County Recorder; thence northeasterly along said northwesterly right-of-way line of said Interstate 80 traversing portions of Section 32, T.18 N., R.17 E., M.D.M., to the northwesterly right-of-way line of the Central Pacific Railroad, as shown on the Act of Congress dated July 1, 1862; thence northeasterly along said northwesterly right-of-way line of the Central Pacific Railroad, traversing portions of Sections 32, 29 and 28, T.18 N., R.17 E., M.D.M., to the section line common to Sections 27 and 28, T.18 N., R.17 E.; thence southerly along the line common to said Sections 27 and 28 to the section corner common to Sections 27, 28, 33 and 34, T.18 N., R.17 E., M.D.M.; thence southerly along the line common to said Sections 33 and 34 to the Section Corner common to Sections 33 and 34, T.18 N., R.17 E., and Sections 3 and 4, T.17 N., R.17 E., M.D.M., thence easterly along the line common to said Sections 3 and 34 to the northeast corner of the Northwest Quarter of the Northwest Quarter of Section 3, T.17 N., R.17 E., M.D.M.; thence southerly along the North-South Centerline of said Northwest Quarter to the center thereof; 4 92 45360 thence easterly along the East-West centerline of said Northwest Quarter to the northeast corner of the Southeast Quarter of the Northwest Quarter of said Section 33 thence southerly along the North-South centerline of said Section 3, to the Quarter corner common to sections 3 and 10, T.17 N., R.17 E., M.D.M.; thence westerly along the line common to said Section 3 and 10, to the section corner common to Sections 3, 4, 9 and 10, T.17 N., R.17 E., M.D.M.3 thence westerly along the line common to said Sections 4 and 9 to the southwest corner of the Southeast Quarter of the Southeast Quarter of Section 43 thence northwesterly to the most southerly corner of Lot 190 of Glenshire No. 2, as shown on the Subdivision Map filed in Book 3 of Subdivisions at Page 41, Official Records~ thence in a general southwesterly direction along the southerly line of said Glenshire No. 2 to a point on the south line of said Section 4; thence S 89 11' 24" W, 352.34 feet along said subdivision and the south line of Section 4 to the South Quarter corner of aforementioned Section 43 thence westerly along the section line common to said Sections 4 and 9 to the corner common to Sections 4, 5, 8 and 9, T.17 N., R.17 M.D.M.3 thence southerly along the section line common to sections 8 and 9 to the southeast corner of the Northeast Quarter of the Northeast Quarter of said section 83 thence westerly along the East-West centerline of said Northeast Quarter to the southwest corner of the Northwest Quarter of the Northeast Quarter of section 8; thence northerly along the North-South centerline of Section 8 to the Quarter Section corner common to 92 45360 Sections 5 and 8; thence westerly long the section line common to said Sections 5 and 8 to the intersection of Harris Creek; thence southerly along said Harris Creek through Section 8 to the section line common to Sections 8 and 17, T.17 N., R.17 E., H.D.H.; thence westerly along the section line common to said Sections 8 and 17 to the section corner common to Sections 7 and 8, T.17 N., R.17 E., and Sections 17 and 18, T.17 N., R.16 E., M.P.H., as described in that certain deed for Tahoe-Truckee Sanitation Agency, dated August 13, 1975, filed in Book 752 at Page 476, Official Records; thence S 88 22'07" W, 1332.79 feet; thence S i 06'11" E, 999.86 feet~ thence N 88 08'53" E, 788.02 feet; thence S 1 08'46" E, 332.46 feet to a point on the East- West centerline of the North One-Half of Section 18, T.17 N., R.17 E., also being the northerly line of the Truckee-Tahoe Airport District~ thence along the boundary line of said Truckee- Tahoe Airport District, as shown on the Record of Survey map filed in Book 9 of Surveys at Page 75, Nevada County Records, the following six courses, $88 O4'57#W 2121.73 feet, and S87 47'00"W, 2482.36 feet to the northwest corner of the Southwest Quarter of the Northwest Quarter of said Section 18; thence S 1 14' 06" E, 1171.22 feet along the section line common to said Section 18, Township 17 North, Range 17 East; and Section 13, Township 17 North, Range 16 East; thence N 61 11'13" W, 2153.45 feet; thence S 28 50'19" W, 600.00 feet; thence N 61 10'38" W, 3002.92 feet to the most northerly corner of said Truckee Tahoe Airport District boundary as shown on the Record of Survey map 6 92 45360 filed in Book 1 of Surveys at Page 197, Nevada County Records; thence continuing along said Truckee Tahoe Airport District boundary, as shown on said Record of Survey map the following five courses, S 29 55' W, 779.98 feet to a point on the easterly line of Martis Drive~ thence along said easterly line of Martis Drive the following three courses, S O 05' E, 42.24 feet; thence along a curve to the left with a radius of 1600 feet, through an angle of 13 03'25~ for an arc distance of 364.62 feet; thence S 13 08'25" E, 124.62 feet; thence S 60 05' E, 3054 feet more or less, to the northwest corner of the Record of Survey map filed in Book 2 of Surveys at Page 157, Nevada County Records; thence continuing along said Truckee Tahoe Airport District boundary, as shown on said Record of Survey map the following two courses, S 29 55' W, 887.06 feet; and S 60 05' E, 1659.78 feet to the westerly line of Airport Road; thence Southeasterly, 80 feet more or less to the easterly line of said Airport Road; thence Northeasterly, 253.06 feet more or less along said easterly line of Airport Road to a point on the southerly line of aforementioned Record of Survey map filed in Book 2 of Surveys at Page 157; thence S 60 05' E, 768.58 feet more or less, along said southerly line to the line common to Nevada County and Placer County; thence westerly along said county boundary line to a point on the North-South centerline of Section 15, Township 17 North, Range 15~ being said point of beginning. John C. Stege~;~/~.~-~--bJ\'~~l~ ~L~'~'~OJ Date 9-09-92 END OF DocUMeNT COUNTY RESOLUTION 92749 CONFIRMING THE ORDER OF INCORPORATION OF THE TOWN OF TRUCKEE RESOLUTION No.92749 OF THE BOARD OF SUPERVISORS OF THE COUNTY OF NEVADA A RESOLUTION CONFIRMING THE ORDER OF INCORPORATION OF THE TOWN OF TRUCKEE WHEREAS, on November 3, 1992, an election was conducted, as part of the General Election, within the territory proposed to be incorporated into the Town of Truckee, wherein a measure was placed on the ballot (Measure "H"), regarding whether or not the Town of Truckee should be incorporated; and WHEREAS, a majority of the voters within the proposed territory voted in favor of the Truckee incorporation. After a canvass of the ballots, the Elections Office determined that a total of 4583 votes were cast on the issue of the proposed incorporation (Measure "H"), with 3331 registered voters voting in favor of the Truckee incorporation, and 1252 registered voters voting against the Truckee incorporation; and WHEREAS, a majority of the voters within the proposed territory elected to name the newly incorporated territory "The Town of Truckee"; and W~EREAS, an election shall be conducted at large on March 2, 1993, within the incorporated territory in order to elect those city officers who will govern the Town of Truckee; and W~EREAS, pursuant to LAFCO Resolution No. 92-06, the effective date of incorporation of the Town of Truckee shall be March 23, 1993; and WHEREAS, the Town of Truckee shall be governed by the city manager form of government. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF NEVADA that the incorporation of the Town of Truckee is hereby confirmed with the following election results: 1. The Elections Office determined that 4583 votes were cast upon the issue of the incorporation of the Town of Truckee (Measure "E"). 3331 of the registered voters voted in favor of the Truckee incorporation, and 1252 of the registered voters voted against the Truckee incorporation. 2. The majority of the voters elected to name the newly incorporated territory "The Town of Truckee". BE IT FURTHER RESOLVED that'an election shall be conducted at large on March 2, 1993, within the territory incorporated as the Town of Truckee for the election of those city officers who will govern the Town of Truckee. The Town of Truckee shall be governed by the city manager form of government. BE IT FURTHER RESOLVED that p~rsuant to LAFCO Resolution No. 92-06, the effective date of the incorporation of the Town of Truckee Shall be March 23, 1993. BE IT FURTHER RESOLVED that the Clerk of the Board of Supervisors is instructed to transmit a certified copy of this Resolution to the Executive Officer of the Local Agency Formation Commission. State Board of Equalization Fees are deferred as per Section 54902.5, Government Code Section 3(h), and payable by City upon receipt of first revenue. PASSED AND ADOPTED by the Board of Supervisors of the County of Nevada at a regular meting of said Board, held on the 22nd , day of December , 19 92 by the following vote of said Board: Ayes~ Supe.)sors Todd Juvinall, Jim Callaghan,Jim Weir, Bill Schultz, 'G" "B" Tucker. Noes: None. ATTEST~ Absent: N 0 ne. CATHY R. THOMPSON ISv*~'-~' - L~'~'~'''/~-'~'Cler~.,2e Boar d o f~ p~js~ r~ ,Abstain: -~.~ None. · Chairman 1tIE FOREGOING INSTRUMENT IS.A .. O^TE CO;,I£S S£,eT TO ~ ~OPY ~ ~E mlGI~L?Z~ 7~ 12-23-92 LAFC0 (3) ON FILE IN 11.118 OFFICE County Clerk/Elections ATTEST: DEO ~ 3 1992 Counsel CATHY R. THOMPSON Administration C~k ,o ,h. ~o~,~ o~ s,~.~.. Atty. John Phel ps-Truckee COUNTY RESOLUTION 93494 AUTHORIZING THE TRANSFER OF CERTAIN CSA AND PRD TRUST FUNDS Q RECEIVED SEP 2 7 1993 AUOITOR-CONIltOLLF. R I~qUC~ A. BELEFELT RESOLUTION No.9 3494 OF THE BOARD OF SUPERVISORS OF THE COUNTY OF NEVADA RESOLUTION AUTHORIZING THE TRANSFER OF CERTAIN CSA AND PRD TRUST FUNDS WHEREAS, the Town of Truckee has incorporated as a new city within the County of Nevada, which incorporation was effective on March 23, 1993; and WHEREAS, pursuant to the provisions of Resolution ~92-06 as adopted by the Nevada County LAFCO, which resolution approved of the formation of the Town, County Service Areas (CSAs) ~4, 5, 6, 8, 9, 10, 11, 19 and 35 are to be dissolved effective as of July 1, 1993, and all of the operational duties and functions for the services that were previously provided by these CSAs and the Permanent Road Divisions (PRDs) as maintained by the County are to be assumed by the Town; and WHEREAS, as of July 1, 1993, the County has in its possession funds, as shown in Exhibit "A", which were raised from the property owners within these CSAs and PRDs and which are restricted by law to be expended directly for the benefit of the property owners for the services for which the funds were collected; and WHEREAS, pursuant to the terms of LAFCO Resolution #92-06 the unexpended CSA and PRD funds are to be turned over to the Town so that the Town may use the funds to provide the specific services to the property owners (who were formerly within the boundaries of these CSAs and PRDs); and truckee~trustfnd.res 1 - 9/9/93 WHEREAS, the County has made an accounting of the funds for each of the subject CSAs and PRDs showing the purpose for which the funds were raised and the balance remaining as unexpended or unencumbered as of July 1, 1993. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE NEVADA COUNTY BOARD OF SUPERVISORS THAT: 1. The County Auditor shall forthwith transfer to the Town all of the funds as shown on Exhibit "A" which are held by the County for the benefit of the property owners within the boundaries of the former CSAs and PRDs. 2 The transfer of these funds shall require that an appropriate public official of the Town acknowledge the receipt of the funds on behalf of the Town. 3. To the extent that the County has encumbered any CSA and/or PRD funds based upon anticipated expenses or costs relating to any CSA or PRD, the County shall promptly transfer any remaining funds to the Town once all known and/or reasonably anticipated expenses attributable to the CSA or PRD have been paid. 4. To the extent that the County has not credited interest earnings beyond the fourth quarter of fiscal year 1992/93 (through June 30, 1993), any subsequent interest accruals to the Trust Fund shall be transferred to the Town. BE IT FURTHER RESOLVED that Resolution 93-362 entitled "A Resolution Authorizing Execution of Agreement with the Town of Truckee pertaining to the Transfer of CSA Funds" is hereby rescinded. truckee~trustfnd.res 2 - 9/9/93 PASSED AND ADOPTED by the Board of Supervisors of the County of Nevada at a regular meeting of said Board, held on the _ 21st day of September , 19 93 , by the following vote of said Board: Ayes: Supervisors Dave Tobiassen, Karen Knecht, Jim Weir, Bill Schultz, R.W. Drake. Noes: None. ATTEST; Absent: None. CATHY R. THOMPSON Clerk °f'"fl~'e ~B°ard °f Sup~v4~°rsBv .-/~'~/~.~'-/('~--.----~==--.--~-~-~---~-------//~/' '-' ' ~'// , Abstain: '~,.~N°n~e" J ~n~-'-- 9-24-93 Administration DOT A-C Tnwn nf Tru£k~e EXHIBIT 'A' C S A and P R D TRUST FUNDS CASH BAL. DtqROES TO TO BE RETAINED NO. NAWE B8/31/93 BE POSTE]) LABOR/PROJECT AVAILABLE 217 4 TA~ D~R 417,~.49 0.~ 417,~.49 2~ 9 Z-I GLENS~IRE 124,6~7.9~ 0.~ 7,431.19 117,176.71 224 10 wqRTIS UALLEY 4,272.92 0.80 234.30 4,838.62 P~ 11 P~OEROSA PALISAI~S 5,137.44 0.~ 107.12 4,95~.3~ 2~5 50L~PlC ~18')T$ 8,~6.43 8.m 44~.8) ~46 6 BIL?Z 836.46 0.~ 11%97 710.49 ~ 8 BILI'Z 13,46~.~ ~.~ 38~.1~ 13, B87.9~ ~59 19 IX]~ER VIEW 1,7~3.(~ 8.~ 13~.~4 1,F~.58 L~98 9 Z-3 F-~RII)6E ESTA]ES I,l~.B7 8.~ I~118. L~ 7~.87 ~ 35 IX~R ~ kEST 18,788.31 8.~ i~5i.68 9,736.63 303 ~ '51~6 35 DOt~ER LOY, E kEST - FORM 1,718.5,?. pRD~s 2~ PRO~ER WOODS 16,113.38 8.~ ~].~9 16,873.99 ~87 iX)MJER TERRI~E 3, 4~. ~ ~. ~ ~. ~ 3, ~. ~3 TOWN ORDINANCE 93-16 IMPLEMENTING TRANSFER OF COUNTY SERVICE AREA AUTHORITY FROM THE COUNTY OF NEVADA TO THE TOWN OF TRUCKEE Town of Truckee California ORDINANCE NO. 93-16 AN URGENCY ORDINANCE OF THE TOWN OF TRUCKEE IMPLEMENTING TRANSFER OF COUNTY SERVICE AREA (CSA) AUTHORITY FROM THE COUNTY OF NEVADA TO THE TOWN OF TRUCKEE FOR CSA'S 4, 5, 6, 8, 9, 10, I1, 19 AND 35 The Town Council of the Town of Truckee Does Ordain as Follows: WHEREAS, the Nevada County Local Agency Formation Commission (LAFCo) adopted Resolution 92-06 on June 25, 1992, providing for terms and conditions for the incorporation of the Town of Truckee and that County Service Areas (CSA) 4, 5, 6, 8, 9, 10, 11, 19 and 35 for snow removal and road maintenance shall be transferred to the Town, and that as the successor agency the Town shall continue to have full authority to levy parcel charges, adjusted on an annual basis within the areas of the CSAs, and that all funds derived from parcel charges and any State subventions for such services and reserves held on the date of transfer and all delinquent parcel charges collected by the County for the CSAs shall be distributed to the Town, and parcel charges collected shall be maintained in a separate fund for each CSA and expended only for snow removal and road maintenance and improvement purposes within each respective CSA; and WHEREAS, the Board of Supervisors of the County of Nevada adopted its Resolution No. 92483 on July 21, 1992, ordering the incorporation of the Town of Truckee subject to the confirmation of the voters therein, and which by paragraph 11 of said resolution provides that the services and obligations, rights, duties, parcel charges, reserves, equipment, facilities and other assets of the CSAs for snow removal and road maintenance shall be transferred to the new Town; that the Town shall continue to have full authority to levy parcel charges, adjusted on an annual basis, within the area of the former CSAs; that all funds derived from these parcel charges and any state subventions for such services, and reserves held by CSAs and all delinquent parcel charges collected by the County for the CSAs shall be distributed to the Town and shall be maintained in a separate fund and expended only for snow removal and road maintenance and improvement purposes within the areas of the respective CSAs; and WHEREAS, on November 3, 1992, at the general election, Measure H was submitted to the voters as follows: "Shall the order adopted on July 21, 1992, by Resolution No. 92-483 of the Board of Supervisors of Nevada County ordering the incorporation of the unincorporated community of Truckee (LAFCO 91-02), and the reorganization of County Service Areas 4, 5, 6, 7, 8, 9, 10, 11, 19, and 35 and the Donner Terrace and Prosser Woods Permanent Road Divisions as described in the order be confirmed subject to the terms and conditions specified in the order?"; and Town of Truck¢c Ordinance 93-16 Page 2 Whereas, Measure H passed by a vote of 3,331 for and 1,252 against, being an approval and adoption in excess of a two-thirds vote; and WHEREAS, pursuant to the authority of Section 56844 (m)(r) and (t) of the Government Code, Section 12 of the said LAFCo Resolution and paragraph 11 of the said Nevada County resolution, and the two-third voter approval of the electorate, authorized the transfer of the service and parcel charge authority of County Service Areas 4, 5, 6, 8, 9, 10, 11, 19 and 35 to the new Town of Truckee effective July 1, 1993; and WHEREAS, the Town Council desires and intends by this Ordinance to establish procedures to implement the transfer of that authority and continue the levy of the parcel charges and provision of extended services within the areas of the former CSA's. NOW, THEREFORE, the Town Council of the Town of Truckee does ordain as follows: 1. Incorporation of Authority. The provisions of Section 12 of the LAFCo resolution 92-06 and paragraph 11 of the Nevada County resolution 92483, as referenced above, and as approved by a two-thirds vote of the electorate by adoption of Measure H on November 3, 1992, are hereby incorporated herein as the order and authority for the Town to accept transfer and continue each CSA as herein provided. 2. Continuation of CSA's as TSSA's. That County Service Areas (CSA) 4, 5, 6, 8, 9, 10, 11, 19 and 35 shall be accepted as transfers to the Town and continued indefinitely with their existing authorities and boundaries as '~Town Special Service Areas" ('~I'SSA") with the following designations: Former CSA # New TSSA # 4 1 5 2 6 3 8 4 9 5 10 6 11 7 19 8 35 9 3. (~0ntinuation of Services. Each of the above TSSA's is hereby authorized to provide the services previously authorized for the CSA that they replace. The services for each TSSA shall be the same as for each CSA; which service as provided by the respective resolutions of the County of Nevada creating and amending respective CSAs is hereby referred to and incorporated herein as if fully set forth. Town of Truckee Ordinance 93-16 Page 3 As provided and authorized in Paragraph 12 of the LAFCo Resolution 92-06 adopted June 25, 1992, and Paragraph 11 of Resolution No. 92483 of the County of Nevada adopted July 21, 1992, and as approved by two-thirds vote of the electorate on November 3, 1992, the Town shall have full authority each year to levy parcel charges, adjusted on an annual basis, within the area of each former CSA. All funds derived from these parcel charges and any State subventions for such services, and reserves held by each former CSA and all delinquent parcel charges collected by the County for a CSA shall be distributed to the Town, shall be maintained in a separate fund and shall be expended only for snow removal, road maintenance, and improvement purposes within the area of each former CSA. 4. Continuation of Parcel Charge Authority. For each subsequent year, the Town Council shall annually establish and levy parcel charges within the boundaries of each TSSA, in the same manner and in accordance with the same procedure as provided for County Service Areas in Section 25210.77a of the Government Code. Charges shall be placed on the tax bill and collected at the same time and in the same manner as ordinary County ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure and sale in case of delinquency as provided for such taxes. 5. 1999-94 Parcel Charges. The levies for the fiscal year 1993-94 shall be established at the sa~e level for each TSSA as was set for that respective area in 1992-93. Those levies shall be re-established by adoption of resolution of the Town Council, and forwarded to the County of Nevada for levy and collection and provided by law. 6. ~. Each TSSA shall be operated in the same manner as for County services areas under the County Service Area Law provided in Section 25210.1 et. seq. of the Government Code, except that the Town Council shall be substituted wherever that law refers to the County Board of Supervisors. 7. Urgency. This Ordinance is hereby adopted as an urgency ordinance and is for the immediate preservation of the public peace, health, and safety. The facts constituting the urgency are that the Town of Truckee incorporated March 23, 1993; that the CSA's will expire at the end of the fiscal year on June 30, 1993; that it is necessary to preserve the parcel charge authority of the CSA's as ordered by LAFCo, and the Board of Supervisors of Nevada County, and as approved by a two-third vote of the electorate, in order to Town of Truckee Ordinanc~ 93-16 Page 4 maintain snow removal, road maintenance and other authorized improvement purposes within the respective benefit areas. Unless this Ordinance takes effect immediately to transfer funding authority, the funding authority may expire to the great hardship and detriment to property owners within the respective areas. The foregoing Ordinance was adopted as an urgency ordinance a Regular Meeting of the Council of the Town of Truckee, held on June 24, 1993, by Council Member Cross who moved its adoption, which motion being duly seconded by Mayor Eagan and upon roll call carried by the following vote: AYES: Council Members: Aguera, Cross, Drake and Mayor Eagan NOES: None ABSENT: Council Member Botto Kathleen Eagan, Mayor A'ITEST: C. W. Mas6nheimer, Town Clerk TOWN OF TRUCKEE GOVERNMENT CODE SECTION ~56842 & ~56842.2 WEST'S ANNOTATED CALIFORNIA CODES (1993 CUMULATIVE POCKET PART) West's ANNOTATED CALIFORNIA CODES GOVERNMENT CODE Sections 56000 to 65799 Volume 36B 1993 Cumulative Pocket Part Replacing 1992 Pocket Part in back of volume includes laws through the 1991-1992 Regular and first and Second Extraordinary Sessions and the Hovember 3, 1992, Election § 56841 (g) Consistency with city or county genera! and specific pisas. GOVER.NM~NT CODE GOVERNMENT C( (h) The sphere ' ' determining whether t reviewed, of influence of any local agency which may be applicable to the proposal being paragraph (3) shall (i) The COmments of any affected local agency. ~he proposed city or st (Added by Stats.1985, c. 541, ~ 3, elf, Sept. 9, ]985, opera~ve Jan, 1, 1986.) (A) The total amount ulcor!coration, the corn~ Is~ Le~t.l. Uon Historical and Statutory Notes (B) The fiscal impact ~-mea,.dment of tl~ section byt 16 of St~ta 1985 L~ ~,t~lS~Ct because of the .eto of.LB No. 164 on (C) Any other reteva The decision of the con ~ 5C~42. Property lax revenues; - decision, tion; IppljeaUon Proportional amotmts for ' of section affected local ~enctes: de~'mlna. (d) If the proposal w, (a) ~.~ If the' proposal includes the ' · . proposed city or district, revenue local a~.,., ........--~---.~ me amount of orope..~- tax--' as ....... m ~,ctiun 5604~, ° · · -, generated for t --~ sect~n ~d-,~tio~ [',r~ revenue to be exchun~ed ~. ..... ~ transmit that information g If~poea! incl-,~ ,.~...- ~ ...... .a~o.., . - ..... me affected (e) The exec'~t;~ve office .... ~uc, me commission shall ~ . -~ -=,m~u m Secgun ~.-- (3) of subdivision (c) or su exchanged by ~etermine the am ...... '~*o of the Revenue within which red the pro the affected ]ocs! agency pursuant to this se~un'['~ ox property tax ' , · to be jp~eCti~o~.) .T~.e commlsaion shall notif7 the coun . pursuant to paragraph (4) n :.P,~.poses to assume ~ ,~,?.a._u_ditor .of,.the proposal and the servl ........ completion purunant to Se f ~-,o w~uun the area subieet -- -- "~ ~,~a, ann meniify for tho o.a:, .,---= wmun the new shall transfer that amount .~.~ ~u u~e proposal. - --,~mr ~ne exinl~g service ~e)po~ILth~tyP (f) The amendments to t! P r~rpoc~i~c°~l~J~°Lml~r~s~:naiL°df ~e :gu~e,n~c~/s .se..~ce reapons~illties ~o the ~caol~dae~P~wiY.t~ any propo~ aff~e~(1) mr sllall do all of the following: the county r. The county auditor shall determine the proponiun that _(g) For purposes of this derived by each affected local agency puruna~t ~b)eo~mS~tun°~93pro?.rty tax revenue ctata on actual direct and Tan~tiun CocIe bears to the total amotmt to subdh~isiun ~_r~. ~ve~ by each affected local -- °.frevunue fcornallseureas a...n .... ozthe Revenue and this sectiun am available r ue~ermmation and *~-: -- · ?&ency m the prior fis,~ .~ , .~,,u~aoie Zor general p~_~ the city's proposal to inco~ · --=use sot genera ,,-~- .,~--~' '~-~ paragraph (3t "~,,*.~ -- -~- .~ .,- mai~mg this (h) A~ action breug'ht by agency mar Use on ~-,~uaes means the total amo,;~,~ ^;"~'~_ maoun[,o! revenue from all the commission with regard · ' ' ~,- ,,- r~venue which an affected local Inca! agency pursuant to (A) Revenue whi~, by statute, is required to be used Jot a specific purpose, incorporated or by any dizti~ a diecretio~cy ba.szs for any purpose and do~s not include any of the following:, ~he city's incorporation or th (B) Revenue from fees, charges, or assessments wMch are ]evied to specifically offset the cust of (i) This seci~un appbes to a partlcu]~ services and do ant exceed the cost reazunabJy borne in providing these services. 2986. (C) Revenue received from the federal goveramant which is required to be used for a specific - ~und purpose. (2) The cornmis~io~ shall determine on i~f · · un .a~,.Ount equal to the tots! net cos[,b~- ed ~ ..ormatiun subrmtted by prmnamg those se-~ ..... w ea~ a~zected l~ , each affected local =o~ (Added by Stats. 1985, c. 541, wtuch were fun~'~'_°_~; -~s. paragraph, "total net cost" ~-~-.,,~.,w~mm the area subieet'*^ ,£.- elf. Oct. 27, 1992, opera,ye J~ portion of the total cost -,: - purpose revenues of the aff~--: , tal direct and mdlrect subparagraphs IAI na~ ~_w~m,cn~ was funded by uny rove-- .~.,~ lcoai agency and ..... ,, ann ~) of paragraph (1) ' ..es o~ that agency which are s .u.~ any · * ~ in 1986 _.(.3) The comm~aaion aha~ radial7 the amotm~ d ' ' ~rt. eeamCteamoduJntct~tC~oof~groenpe~rtTbYte~thereC°ve.rrme~,,.,ponding proport/o~detee-r~into'rn~nede~ otu'sumu,~,,.,t to paragraph (2) fo. each The ]986 amendment rewroto th Prior fiscal . . enueusedto revid · F'-oUunt to para . "a · deacriK~,.i lY.~e~m_'_ w~tl~ the area unbject to ~ez ... e se ~rv~ct,,~s,,,~ by eacli affected ! .g~a_~p_h_ (I?o. derive eib( ~Itd ~' P~Pe~I mcl~de~ th in r~,L~,.~ .,-.ale pre'anus sentence b~ +~* *-:- ~."fPeaaL ~ne COUnty audi**- .l~_o~. -~,?,,cy aurmg the -., eezmed m Section ~6043, or ta~;~' to the fiscal year in which the .~9..5)~of. Part..0.$.of D/vision 1 of the e procedures ~ forth provisions of sub4/vision fo), deter~ ...... ~ ~y or aistrict receives ~*. ~-:.~ ,l~..ven}l.e and Taxation property ~ reveeue to · ,- ,~ua~ a~location of property local qeney, be (4) For ~urposes of this subdivisi · , , of the Calfforri/a Cons~tution o..~ .o~,~m a~.y county m which, nrior ,~ .~- - · di '~) I~ n~king ~a detel'~;.~ion coeaisting of revenues derived i"rom the unincorporated " -,,ns or Zunds were established "(11 Request the eeu~ty aad/tor .... ~nunumg thereafter, a seo~te'~..~Lc aao. ption of Article XIII A vl~mn (a), the C~mmi.~ion ~ dO area of :he county and from which fund or der/red by each ~ected ]oc~l ~m~euLr~ep~ed~d.~:vuvd~ede ~ototh_e~pe~a~=_=_u ~g~°hr~33),ramat'n~'dy, ~a~atheha~ereberebC~n~ p~d, the &mount of prope~/w t~. d/v~io~ (b)of Sec~on 2237 o~tbe Ael~lUona or changun ot to exceed 12 fiscal yeana fo]lo~,~?.m_ .m~s*. s~.°n' be t~u~ferrod Cede bea~ to the total ~oant o~ IndJcated by unde_.~UIn~o; ~letiorm by ~tort~ks * -. * each aHected ~eal agency L~ the 10o GOVERNMEN~ CODE GOVERNMEN~ CODE § 56842 .... detor~i.ing whether the trausfer of the amount of property tax revenues ?e .te~.od purau~nt W. parsgr~ph (3) shall occur en~acely witch the fiscal y~s.r uun~ed~tely following the mcorpors~ou ox be applicable W the proposal berg the proposed cit~ or shall be phased in over · period not W exceed 12 full fiscal years fallowing the incorporation, the commission shall conalder each of the following: lA) The total ·mount of revenue from all so~'cos ay·liable to the proposed cit~. Jan. 1, 1986.) lB) The fiscal impsc~ of the proposed *a~nsfer on the ~nsferring agency. ~s (C) A~y other rolevant fac'~ which interosu-~d par~ies to the exchange may present to the comm£~-sion in wri~en form. ~ b~c~use of ~he veto of A.B. No. 164 on ' · - ' ' ' 35. The decialon of the conmUSsiou shall be supported by written findings set'~ng forth the ha~s for f~ decision. (d) H the proposal would ~nsfer all of ~n affected agency's ser~ce respous~ilities to the ae~'d Io~1 agencies: al·terrains- proposed c~ty or diz~ric~ the corn ,m,~samn .shall _r~q_.~u~e_st coy·hue genera~~d for the sffec~m ser~ce pro~uc, o o~ ~ ~ U-·remit that inforn~tion to the commissinn. - defined in Sec~on 56043, ' ' ' the (el The ex·Curve officer shall no~' the auditor of the amount de,ermined pursuant to paragraph te to be exchan~'ed by the sff~ (3) of sub,vision lc) or subdivision (d), az the rase may be, and, where applicable, the period of ~ w~Y,.hin which and the procedure by wMch the Wa~zfer of proper*~'y t~x revenues ~ be effected · ~ount of proper~:y t~x ° ° ° to be ~- shall ~ranzfer that amount to the new juris~c~ion. ~osal and the services which the new for the auditor the exis~ng service (fl The ameedments to this sec~on enacted during the 1985-8~ Regular Session of the shall apply to any proposal described in subdivision (·) for wMch a cer~ffirato of completion is receded with the count~ recover on or after January I, 1987. ~_ditor ~1~! do all of the following: ~ on actual direct and indirect costs ~nd revenues uee~eu m po,.~ · ~;. o~on are ·variable m~-ding the fiscal yezx in which the commission approves by r~solufiou the amoun~ of property tax revenue ~ s ...... f b) of Sec~on 93 of the Revenue and the city's proposal to incerporato or the district's proposal to orrn. ~ ear. For purposes of making this the comn~slon with rogl~rd to the amount o! proper~, ~-~ ~-~ . (3), "iota] amount of revenue from all local ~gency pursuan~ to this section shall be commenced within three yes~'~ of the eff~t~e d~te of -nt of revenue which an affected loc~] the city's incerpora~on or the district's formation. These actions may be brought by any tit7 that oes ~ot include ~ny of the following:, incerperal~d or by any district that formed on or after January 1, 1986. ~pecific purpose. (~ This sec~on applies to any city that incorporated or dls~ict that formed on or after J~umu7 1, le~'ied to specifically offset the cos~ of 1986 . berne in providing these services. ~ The calcuint~ons ~ed procedures s_ .W~. ed [n.this.~s~.e?'on shall be m~de prior to ~nd sl~n be ~ requLred to be used for · specific :.,~q)orated into the ~,~l~t~uns spec~od m Sec~on (Added by St~ts.1985, c 541, § 3, eH. Sept 9, 1985, operative J~n. 1, 1986. Amended by StamJ.9~6, ubrMtted by each affected local ~gency, e. 956, § 1; Sta~s.1992, ¢. 365 (S.B.140~), § 1 eft. Ju y 27, 1992 Stats.1992, c 1~69 (A.B.80~), ! ~ency dur~g the prior fiscal year of eft. Oct. 27, 1992, operate J~n. 1, 1993.) ~ . .. . ~rne within the are· subject to the H~tortcal und Stotutor~ Notes . .! .. . ffecfed loral agency and excludes any 1~ l.~t~tio~. "(2) Determine, b~l' o~ ~or~t~on submitmt by each ~fec~l loc~ &genc~, a~ ~mo~t e~u~ ~o the ."(·) If the propo~l includes ~e tncorpor~?n ~. · y~m' of pro~ding ~ serv~es which ..he ~,-,.,~- ~on ~ ~ume within ~e ~ subjec~ to the peopo~. !a pursuant to paragraph (2) for 'each dY/, u defined in Sec~n 1$o043, or ~he formaUon ot · "{8) Multiply t~ ~mo~ut /em. miami p~---~"'~ to :ined pm-suant to paragraph (1) to derive dim/c~ ~/elicit in Se·don 2215 of th, I~v~ue ~ud p~.~mph (2) for ~ ~tf~-'~ed ~1 ~-~ by each affected local agency during the ou~t~y s. ud~tor shall adjttst the Mltount pro~sio~ o! subdi~isio~ (b), determine the amount of accor~ng to the pn~..eduros set forth I~pe~Y ~x revenue to be e~h~ng~l by the aff~ted ~moh (1) to de,re the ~mou~t o! pwper~ ~ ~l to provide services by each affect~ k~l a~ncy )ivialon ! of the Revenue and Tsy~t~on k~l ~genc~. ' ' cc·ives it~ initial allocation of property 'ih) In making its determi~lton u rt~q...uire~i. ,,by ~ub- during ~e prior fiscal ye~ within ~he ar~ subject to division (s), the comm~ssiou shall do ~11 o~ me zouoV,.ug: t~e proposal ., "Il) p~ues~, the ~ou~ty suditor to de~ermine d~e "lc) Following the sppr~val ot · pro~., subi~ prior to the adoption of Article XIII A i~po~ou ,~t the ·mount of pr~per~ ~x r~venue ~ section, U',e ex·curve officer sl~ll no.~/_, t~. &,u,~.' ~eparato fu~d or fund~ were established terived by ~ affected local agency pursuant to sub- ~or of ~e amount determined i~ par~p~ I~} o! suoc~ of the county and from which fund or divisio~ lb) of Seciion 2237 of ~e Eeveuue ~md T~u~iou vision en Prod, the amount of property tax Code ~ to ~he to~l amount of revenue from ~11 lion of the commission, be t~utsferced sour~, sv~able for g~uer~l pull,os·s, received by 1~ years following its incorporation. In ~sch sa'fectafl locsl agency in Oae prior f'~csl ),esr. Stats,1992, e. $65 (S.B,1406), § 2 pr~vid~ 101 § 56842 GOVERNMENT CODE GOVERNMENT CODE ex]stag law." "SecOon 56482.2 [5o m original. Pr read 'Section 5~42.2'] of the ~ve~e 3. To~ ~ ~venue ~ ~2.5. ~ for fo~aflo~ 1. ~ fun~ ~ w~ ~g i~ m~ p~ ~ ~ven~, If a p~] ~clud~ '" * ~e f ~m a ~o~ y~ or ~ de~v~ ~m ~ for ~w ~ ~. ~, ~d such s~ ~ ~w ~ment ~ ~2.6. ~s ~ciuding ~. ~ n~ ~ nu~ ~ ~ ~1~ ~ n~ ~, ~ y~ fi~ for (a) If a p~sal ~cludes ~e ~co~ ~ shoed ~ude ~ ~ su~ ~ ov~h~ ~ ~f~ mint ~ ~ for ~ ~ u~ app~p~go~ hmit of ~e d~ ~ ac ~ m ~ ~ m ~w d~, for p~ of ~m~u~ Ci~ of ~d v. ~ of ~ ~ fol]o~g ~ w~ would ~ dl~ W 5~. ~ of ~gh- 11~4, ~g ~ ~d m~ ~w de~ (1) ~ ~e amo~t of ~ve1 ~es for ~e ~t ~ ~ml y~ c (2) Adjust ~e ~o~t de~e~ ~ ~12. ~ny ~ ~venue deflation; city in~ ~ fi~ 1~7-78 ~d ~puhgon in ~e next hl] ~i~ by ~cle ~II B of ~e ~y 5~ w~ch w~ ~co~m~ d~g ~e 1~7-78 fm~l y~ my apply W ~e ~sion for a ~) ~e ~ve~g ~y of ~e cit de~in~on of ~e mo~t of pm~ ~ ~venue w ~ ~c~g~ by ~e ~f~ l~ agent. ~e ~ W ~ subm~d ~ ~e you ~e ~mlssion sM]I ~e ~e de~ins~on ~ 120 ~ys fo~o~g ~e ~ of ~e apph~o~ ~e ~m~sion sMl] ~e ~ de~on ~ ~ce ~ ~on ~7~.3 ~ ff ~at s~n (1} De~e ~e ~o~t of ~w ~ not ~n ~led by Chap~t ~1 of ~e S~s of 1985, p~d~ ~t ~e comm~sion s~l ~e f~t f~ f~l y~ of o~m~c ~u~ ~e ~ount de~m~ p~t ~ ~: s~on by ~e ~ount of ~e pm~ ~ ~venues (2) Adi~t ~e ~ount de~e ~eiv~ by ~e d~ ~ a ~ult of ~e wn~nt or subsequent ~]u~on of s~ ~c~ or ~e ~d ~p~on ~ ~e n~ ~l] f~ ~nv~ion of s~l ~ ~m subsi~ ~. No~s~g ~y o~er pm~ion of ~, ~ by ~cle ~II B of~ · e ~o~t de~ p~u~t W ~ s~on s~l not ~uee ~e ~ount of pm~ ~ ~venue (c) ~e ~ent app~p~o~ w~ a d~ ~ ~n ~ei~g. ~ he~ ' ' ' follo~g ~e ~e ~o~t of pm~ ~ ~venue ~ ~ ~ged ~ de~ed p~u~: m ~ s~on s~ ~ge ~ ~e app~pm~o~ h~t c ~ payable w ~e ci~ commen~g ~ ~e fm~l ye~ next follo~g ~e fb~l y~ E which ~e de~on ~ m~e. (Add~ by S~.1989, c. 1~, For p~es of ~ s~on, ~y ~fe~nce ~ Section ~ w "pgor fh~l y~r" m~ ~e i 56~3. ~ndi~on~ appmv~ ot (a) In ~y ~m~sion o~er For p~ses ~f ~ s~on, ~ ~g ~e ~h~on ~ by p~ph (1) of su~ion (c} co--ion ~y ~e ~t sppm~' of ~on ~2, ~e ~ au~wr s~ ~clude ~e ~o~t of pm~ ~ ~v~ue ~ m ~e ~s sM~ of Me~-~l ~d SSI/~P ~s~, ~e amour of p~ ~ ~venue ~m b~ (1) ~y of ~e ~n~gom set for ~venm~ w~ ~ supp~ by ~ ~ ~on of moor v~e ~e f~ subven~om (2) ~e ~on, ~duc~ or W ~ p~u~t W C~p~r ~8 of ~e S~m~ of 19~, ~d ~e ~o~t of pm~ ~ ~enue ~i~on. w~ ~ ~ ~ ~ heal~ s~ ~d ~ supp~ by ~e subven~on for ~ h~ (3) ~e ~pmv~ or ~pp~v~, ~ ~ by P~ 4.5 (~g ~ ~on 1~) of D~ion 9 of ~e WeH~ ~d ~y ~olu~on or o~i~n~ o~en: ~m~o~ ~e. ~1 of ~e s~ve ~o~ s~] ~ ~dud~ ~m ~ ~e "~o~t of ~ ~ ~venue,' ~ us~ ~ ~on ~ ~d ~e "m~ ~o~t of ~venue ~m ~l ~s a~ble ~) H ~e ~ion ~ for gene~ p~ses," ~ defm~ ~ ~on ~, exit for ~e ~o~t of pm~ ~ ~enue p~t W ~ ~ion ~ ~n~l ~m b~ess ~ven~g~ w~ch s~ ~ ~elud~ only ~m ~e "amo~t of p~ ~ ~venue.' ~io~ not w ~ s~ mot (c) ~e ~m~sion o~er may s ~e w~ au~Wr my ~sess ~ ~ w~ ~es ~ app~oo for ~e ~ ~ of m~g ~on or ~.i~gon s~II ~ ~11~ · e de~i~om ~ by ~ ~on ~d ~on ~ ~ of ~y el~on W ~ ~lled, (Add~ by S~.198~, ~ 1210, ~ 1.) ~on. Add~o~ or ~es IM~tN ~ ~de61~; ~UOnl ~ ~teH~ * ' * Add~ ~ ~anges ~02 GOVERNMENT CODE ' GOVERNMENT CODE § 56843 ~ r~v~nue § 56842.5. Proposal for formation of district; determination of appropriations limit Icula~g i~ tootl property ~x r~venue~, If a proposal includes * * ' the formation of a districi, the comminsion shall determine the o! de~erm~i,~ ~lloc~ion of portion of such appropriagons ' ' * limit ot the distric~ in acoordanes with Section 7902.7 and Article XIII B of the 74, rehearing de~iefl a~d me, ii, ed, re- (Added by Steu.1986, c. 1242, § 4. Amended by St~to.19SS, c. 190, § 2; Stuts.1989, c. 1~4, § 10.) § ~o842.$. Proposals including incorporation of city;, determination of provisional and Iocau~t to new city, ba.~e year figure for la/ If a proposal includes the incorporation of.~ city, ~he com..missio.n .sha. ll, ~t be ad~ztod for increases in ~ssessed *ppropriations limit of the city m accordance w~th Section 7902,7 aha A.~cle .'~ill 1~ Ol Ui ir pl~e between base year nd £u~t year of Cosatitution. The commission shall determine the previsional appropriations limit of the city in the City of Highland v. County of Sa~ Ber~ following manner. "sk1992) 6 Cal.Rp~r.2d 346, 4 CaZApp.4th (1) Estimate the auloullt of revenue anti~ipeted te be reesived by the city from the proceeds of ~xes for the fi~t full fiscal year of oporat~om (2) Adjust the amount determined in paragraph (1) for the estimated change in the cost of living ~-ated in fiscal 1977-78 and population in the next full f~ssal year of oporal~on and such other changes es may be reqinred or permitted by Articis XIII B of the California Consgtution. · may apply to the commission for a (b) The governing body of the city shall determine the proposed perrr~nent apprepciatioes ~ of 'J~saged by the affected local agency, the city to be submitted fo the voters in the following manner. following the date of the application. , · h So.ion 54790.3 a~ if that ses~on (I) Detorn~ine the amount of revenue actually toe.wed by the city from the proceeds of k~.xes for I)rovided that the commission shall the firot full f'~cdi year of oporagon. amounI of the property tax revenues (2) Adjust the amount determined in paragraph (1) for the estimated change in the cost of living t dissolution of special dizwicts or the and popdiatiou in the next full fiscal year of operation and such other changes es may be required.or ' tanding any other prevision of la~, permitted by At,cie XIII B of the California Consilmtion. he amount of property tax revenue The permanent appropriations limit of the city ahall be set at. the fu~t municipal electioll which ~rnmied pursuant to this section shall ct~.nge in the appropri~idans limit of the city purauant te S~;l,on 4 o! .arucie .~. ~ o~ ~,e ~ owing the fiscal year in which the Constitution. (Added by Stats.1989, c. 1~84, § L1. Amended by Stats.2990, e~ 95? (A.B.I~5), § ~.) ¢2 to "prior fiscal yea~' means the §,r~84~. Conditional approval of change of organixa~on or reorganlz~tio~: factors considered . (a) In any commlssinn order g~ng approval to any change of org~u~zation or reorganization, the by paragraph (1) of subd~vislon (c) rommission rsay make that approved cond~onal upon any of the following fucfors: , property tan revenue related fo the property tax revenue from business (1) A~y of the couditioes set forth in Section 56844. ~tor veMcie license fee subventions . (2) The initLation, conduct, or completion of procoed~gs for another change of org~ni,~tiou or a ~e ares:mt, of property rex revenue resrg~insation. ~y the subvention for county bedith (~) The spprowl or disapproval, wi~ or without elect~on, ns may be provided by t. Ms d~ion, of O) of Division 9 of the Welfare and any resolution or oraln~ee ordering that c~nge of organination or reorg~v~tion. ~-om both the "amount of property · · revenue from all souroes available (b) If the commission so conditions its approval, the comn~ns~on may order that any further action e amount of property tax revenue pursuant fo ~ division be continued and held in abeyance for the period of t~ne desig~u~ted bY the e "amount of property tax revenue." esmmmsion, not to exceed six months from the date of that cond~onsl approval. (c) The commission order may also provide that any election called upon any change of org~,~- ~.tion for the actual costa of making tion or reorgszuzSt~on sha~ be called, held, and conducted before, upon the same date a~, or after the date of any election fo be called, held, and conducted upon any other change of org~misa2es or reorganization. 105 § 56843 c,O~EP~r~E~er CODE GOVERNM~ENT CODi (d) The commission order may ~lso provide that in ~ny election at which the questions of (m) The designation of · nnexation and d~trict reorganization or incorporation and dis~-ict reergam~tion are W be cortaid- ex~nKuished a~ a result ered at the same time, there shall be s single question appearing on the ballot upon the issues of succeed~g to all of the ri~ a~nexation and district reergamzafion or iusorpor~tion a~d district reorg~mzation, to enforcement, performs: other contracts and obliger (Added by Stats.1985, c. 541, § 3, eft. Sept" 9, 1985, operative Jan. 1, 1986.) (n) The designation (1) c § 56844. Change of organization or reerg~nization; terms and conditions dis~'ict or (2) the numb~ consolidation, or a reorgam Any change of organization or reorganization may provide for, or be made subject to one or more principal act provides for of, the following terms and conditions. However, none of the following tsrms and conditions shall members, or both. directly regulate land use, property development, or subdivision requirements: (o) The iin~ation, condu~ (a) The paTment of a fixed or determinable amount of money, either as a lump sum or in to, this division. installments, for the acquisition, ~usfer~ use or right of use of all or any pan of the exisimg property~ real or personal, of any ciD', county, or distric~ ' (p) The ft~ng of the Section 57202· fo) The levying or f'~ing and the collec~on of any of the folinwing, ~or the purpose of providing for any payment required pursuant to subdivisinn (a): (q) A~y farms and cend change of org~ni~on. (1) Special, extraordinary, or additional ~xes or assessments. (r) The con~nuation or p: (2) Special, ex~ordhm~, or eddi~onal service charges, ren~ls, or r~tez, be provided by an official (3) Both taxes or asseusmante and service charges, rentals, or cates~ (s) The levying of anses~ (c) The imposition, eXemption, l~ansfer, division, or apportionment, us among any affected cites, 6~5484.3 or the approval by affected counties, affected dis~-ic~, and affected territecy of liability ~er payment of all or any par~ impesitlon of a fee us a c~ of principal, interest, and any other a~ounts which shall become due on account og all or any part of regnlation of land use, pro} any outetaeding or then authorized but therez~C'ter issued bonds, including revenue bonds, or other (t) The continuation of ~i contr~c~ or obligations of any e~y, coumy, dis~ict, or any improvement district with~ & lscal local agency. agency, and the levying or ruing and the collec~on of any (1) ~.~es or assessments, or (2) seawico charges, rentals, or cafes, or (3) both t~xes or assessments and service charges, ren'~ls, or rstes, in (u} The ~-ansfer o~ autho the same m~nner us provided in the origlsal authorization of the bonds and in the amount necessary affected districts for the to provide for that payment. . no~ limited to~ the leVying (d) H, as a result og any term or condkion made pursuant to subdivision (c), the liability og any determination of the annual affected city, affected county, or affected dis~-ict for poyment of the principal of any bonded yet issued at the ~me of indebte~ess is increased or deereazed, the term and condition may speedy the amount, ff any, af authonzedl supervision of that incre~e or decrease which shall be included in, or excluded from, the outstanding bonded adminis~ation of agreemen~ indebtedness of that entity ~or the purpose of the appllsafion of any s~atute or charter provision and all other rights and res imposing a limitation upon the principal amount of outstanding bonded indeb~eciness of the entity, that would have applied to t (e) The forma~inn of a new improvement disu-ict or dis~icte or the annexation or detachment o! (v) A~y other maWer~ n~ territory to, or from, any exin*~ng improvement dis~ict or districts, sec~an. (~ The incUrr~g of new indebt~me~s or habliity by, or on behalf o~, nil or any psx~ of ~cy local (Added by Stats.1985, c. 541 agency, ineindi~g territory being un~exed to ~ny local agency, or of any exisimg or proposed new c. 1019, § 22; Stats.19$7, c. improvement distric~ within that lo~l agency. The new indebtedness m~y be the obligation solely o! § 3.) territery to bo annexed ff the local agency has the authority to establish zones for in~-urring indebtedness. The indebtedness or lisbi~ty shall be incurred substan~lly in accerdnnce w~th the laws otherwise applicable to the leeal agency. 19s? (g) The issuance and sale of uny bonds, including authorized but unissued bonds of a local agency, Sec~o. 2 of St~tz.19~7. c. 21. either by that local agency or by a local agency designated us the successor to any local agency '~he voters ~ppmved ~u~ init which is extinguished us a result o~ ~ny change of orgn~z~on or reerg~-i,~tlon. Propos~on 62 ~t the {h) The acquisition, improvement, disposition, sale, ~causfer, or division of any property, res] or vember 1986. Among other ~i ute requires voter ~ppr~v~l befo perso~L imp~ed by a ~ g~ver~men (~ The disposi~on, tr~us~er, or division of any moneys or funds, including cash on hand and voters m~y be ~ke~ to vote on moneys due but uncollected, and any other obligations, cities which are p~po~d to b~ (l') The fixing and establishment of priori~es of use, or right of use, of water, or capacity rights in any public improvements or ~acllities or of any other property, real or personal. (k) The establishment, conllnuatioe, or termination of any office, depar~usnt, or beard, or the Enforceme=~ against age. cie: ~nsfer, combining, consolidation, or separagon of any offices, departments, or boards, or any of the. torn, see § 5~122. ftmctious of those offices, departments, or boards, if, and to the extent that, any of those matters is authorized by the principal act. § 56845. Incorporation: e (l) The empinyment~ ~ausfer, or discharge of employees, the continuation, modifisation, or u..,rmlnation of existing employment con~racts, civil service rights, seniority rights, retirement rights, (a) It is the intent of the ·. result in a similar mreh~nge and other employee benefits and rights. Adclltlonl o~' ch~ngel IndlMtsd by underline;, diltionl by Iltlrtskl ' * * Addlttorm or ch~ ~OV~P,N~E~r COOE OOWERrO~NT COOE § 56845 ,t which the questions of (m) The desig'nation of a city, county, or c~str~ct, as the successor to say Io~l ~gency wklch is ~rganiaation are to be consid- exfing'uished az a result of any ~l,.-~e of org~u'~ation or ~or~ni,~tinn. for the purpose of 'ke ballot upon the issues of succeeding to all of the rights, duties, s. nd obligations of the exting'U~Shed local agency with respect an/zation, to enforcement, performance, or p~yment of any outstanding bon~, including revenue bonds, or J6.) other contracts and obligations of the extinKuished local agency. (n) The designation (I) of the method for the selection of members of the leg/siative body of a ditions dlst~ct or (2) the number of those members, or (3) beth, where the proceec~gs are for a consolidation, or a roorgan~ation providing for a consolidation or formation of a new d~trict and the ade subject to one or moro prlnclpal act provides for alternative method~ of that selection or for varTmg numbers of those .~ terms and conditions shall members, or beth. (o) The ini~tion, conduct, or completion of proceedings on a proposal made under, sad pursuant ,er az a lump sum or in to, this c~visien. ' any part of the exiating Lo) The fixing of the effective date of any change of orged~zation, subject to the limitations of · the purpose of providing for Sec~on 57202. (q) Any terms and conditions authorized or required by the principal act with re~poct to any ates. (r) The continuation or provision of any acrrice provided at that time, or previously authorized to be provided by aa official act of the lac~ agency. (s) The lecymg of assessments, including the imposition of a fee pursuant to Section 50029 or ~mong any affected cities, 66484.3 or the approval by the voters of general or specml taxes. For the purposes of this section, .. payment of all or say part imposition of a fee az a condition of the issuance of a bulldog permit does not constitute direct account of all or any part of rog~intion of land use, property development, or subdivision requi~ementz. '~g revenue bonds, or other .~nt district within a local (t) The continuation of say previously authorized charge, fee, assessment, or tax by a successor ~essmento, or (2) service local agency. charges, rental, or rates, in (u) The U-ausfer of authoritT and respousibilRT ~mong an)' affected cities, affected court,es, and and in the amouat necessary affected districts for the adminlsu~tion of sPeem! tax and specL~ assessment dis~-ictsr mclu .d~. g, but not limited to. the leVT~ng sad collecting of special taxes end special ~eseesmento~ including the on (c), the liability of say determination of the sanual special te~ rate w~th~ authorized lhn~; the management of redemption, he principal of say bonded roacrve~ spec~t reserve, and ¢onstrac~on funds~ the issuance of bonds wMch are authorized but not yet issued at the time of the transfer, including not yet issued per'dons or phases of bonds which are ecify~e authorized; superV~ion of constructien p~ud for with bond or special tax or assessment proceeds; , outstanding bonded ~tute or char~r provision ~drnlniat;ratioa of agreements to acquire public facilities and reimburse advances nmde to the dist~ct~ , .adebteciness of the entity, sad all other rights and responsibilities with respect to the leries bends, funds~ end use of proceeds ~rmexation or detachme;~t of that would have applied to the local agency tlmt created the special tax Or specml assessment district. (v) Any other n~tters necessary or incidental to say of the terms and conditions specified in th~ esction. I or say part of any local ~y existing or proposed new (Added by State.1985, c. 541, § 3, eff. Sept. 9, 1985, operative Jan. I, 1986. Amended by Stats.1986, ~y be the obligation solely of c 1019, § 22; Stats.1987, c. 21, § I, eft. May 13, I987; Stats.1987, c. 1349, § 2; State.1988, c. 190, ~liah zones for incurring § 3.) y in accordance with the glatorical sad Statutorf Notes ued bonds of a local agency, lts7 l~t~l~lon taxes. Av~rd~gly, in order to allow these voters the ~esor to say loral agency on of any property, rea] Or w~nber 1986. Among other'th~gs, this laf~t~ve stat- Stete.1987, c 1349, § 8 provides: imposed by a lecal government or dJst~c:, r~trther, "lee Legislature finds and declares that the w~ter, or capacity rights in ~erannal. Cross References rt~ent, or board, or the Enforcement against agencies, bondholdera or cre~- ~, or boards, or any of the ton, see § hat, say of those matters is § 56845. Incorporation; equal revenues and expenditures; negative fiacal effect rights, retirement rights, (a) It is the intent of the Le~lature that ' ' ' ~7' proposal that includes sa incorporation should ~lt in a similar exchange o~ beth revenue and responsibility for service deliver7 ' ' ' among the , litel-lak~l · · · Addlt~onls or chnnges Indlclted lay undel~lne; detsUonl by ~tedaka ' ' ' ~05 § 56845 GOV~P~IE~r CODE GOVERN1VLENT COD] co.unry, the proposed city, and other subject agencie2. I~ is the further intent of the Legis{ature that authorized by Sec'don 568 · * an incorporation should not occur prtmanily for financial reasons, ness or liabLllry which is Co) The commission * ° ' shall not approve s proposal ' ' ' that includes an incorporation unless of A.,-tic]e X'VI of the Call it finds that the following two quant/ties are substantially equal: except as pruvided in Sect (1) Revenues currently received by the ' ' · local agency transferring the affected territory (Added by State. 198.5, c. 5< which, but for the oporal/on of this section, would accrue to the ' ' ' local agency, receiving the § 56848. Repealed by affected territory. (2) Expenditures currently made by the · ' ' local agency transferring the affected territory for those services which will be azsumed by the ' ° ' local agency receiving the affected territory. S~Uon 5~48, perishing to (c) Not-withstanding subdivision (b), the comm~siou may approve s proposal that includes an 1985, c. 541, § 3. See, now, § incorporation if it £mds either of the folinWmg: (1) * · * The count}, and all of the * * ' subject agencies agree to the proposed transfer. § 56848.3. Anner~tion of (a) This section shall apl (2) The negative fiscal effect has been adequately m/tigated by ~.x sharing agreements, lump-sum protection disu-ic~ which /s payments, payments over a ftxed period of time, or any other terms and conditions · ' * pu~uant to (commencing with Sec~on Sec~on 56844. territory is or is proposed d~ N, o.thi~.g in this sec~on is intended to ch~ge the dls~'bution of growlh on the revenues within Co) Prior te the adoptio · the, affected territory unless otherwise provided in the agreement or agreements specified in determinations, the district · paragraph t2) of subd/vision (c). , . requirement t~t the legis{ · conlrsct shall require: (e) Any terms and conditions that mitigate the negative fiscal effect of a proposal that cout~in~ an (I) That the affected ter incorporation shall be included in the commission resalutien mak/ng determinations adopted pursuant (2) That the cky sha]{ pa to Section 56851 and the terms and conditions specified in the questions pursuant to Section 57134. amounts and on terms spe~ (Added by Stats.1992, c. 697 (S.B.1559), § 10. Amended by State.1992, c. 1369 (A.B.302~, § 3, eft. (3) Any other conditions Oct. 27, 1992, operative Jan. 1, 1993.) (Added by Stats.1987. c. Historical and Statutery Notes § 5~848.5. Propo~l to Former § 56845, ~lded by S~ts.1985, c. 541.' § 3, enaa re~oamb{e pruvisions for counties in order was ~epealed by Ststs.1988, c- 826, § 8. - . _ faces seven serace reductions due to the 1992-93 f~ either by petition or by ap The Senate Jour~i for the 1991-92 Regular Sessioz~ "However, the b/l] conta/ns ~eve~J clr~ft/ug errurs sphere of influence of any page 8295, conlamed the following signalm~ {et~r d~t- ~g~ding annex~t/on procedures and the ques~on of (Added by Stats.1985, ed Sep~ 14, 1992, ~m the C-over,or re~2m:~g $.B. funding for m~lk~ ~re for ~mates/n immedla~ ~iou. Th/s bill would a~o PmmUde several ame~&~en~s SB 1559. ciari/y that c/~/em shall not be liable for to the pr~visions of SB 2557,/uciuding oueto=llowa calcostswhloh~cruemmar~ultofac/typeaceo/ficer § 56849. Annexation or ~ son arrested by a sm~e m'r~t/ng agency. Finally, this booking them /rite the county ~il and w/ll make other commission may determine ueumil for the county, legislation." following conditions: (a) Only within the terri~ § 56846. Change of organization or reorganization; almlmliC~bility of terms and (b) Both within the terri~ Any of the terms and conditions authorized by Sect/on 56844 may be made applicable to all or any district wMch is outside of part of any dty or dls~-ist or any improvement district within that local agency or any terr/tecy (Added by Stats.1985, c. annexed to, or detached fi'om, any c/ty or distr/ct or improvement distr/ct within that local agency. (Added by State.1985, c. 541, § 3, eft. Sept~ 9, 1985, operat/ve Jan. 1, 1986.) § ~0850. Older approvin{ § 56847. Cha~ge of or{~d,~flon or renrg~nizaflon; app{icability of terms and conditions to city In any order approving a or county;, encelmtion for indehtedne~s or liability of inhabited ~erritory If any change of organinatlou or r~or~=-~on pertah~s to dt~ or district territory which is annexed equals one-hal/, located, in whole or in par~ w/thin the boundaries of any dry or county, any terms and condition~ rolls, or the number of ceg Addltion~ or (:hlnge~ Indlmlted 'by uncle/tine; deletions by alterlika · "· Addltlon~ or ct'