Press Release

Action PAC Committee To Support measure C
Contacts
Joe Smith, ACTION 559-683-0212
Dave Herb, LAFCo Executive Officer 559-474-3181
Jim Simon, RSG 714-541-4585

LAFCO Confirms Town of Oakhurst Financially Feasible

The Local Agency Formation Commission (LAFCo), in the impartial ballot analysis has once again declared the incorporation of Oakhurst financially feasible. The analysis states “A comprehensive fiscal analysis of the proposed incorporation, based on existing service levels and revenue sources, and not assuming any increases in the tax rate or the levying of any new assessments, was performed. The results of the analysis estimated that the proposed city would collect approximately $2 million in revenues during the first fiscal year of cityhood (2008/2009), while expending approximately $1 million during that same period for municipal services and other obligations. The $1 million in revenues which have not been appropriated could be used at the discretion of the town council to increase the level of selected services, provide new services, fund capital improvements, accumulate a reserve, or for other municipal purposes. The analysis further shows general fund surpluses each of the first 10 years of the cityhood”. Dave Herb, LAFCo Executive officer, stated “California State Law prohibits LAFCo from moving forward any incorporation petition unless it is found financially feasible. In this case the Town of Oakhurst is clearly financially feasible with excess reserves even after revenue neutrality with the County of Madera”. The mission of LAFCO is to coordinate logical and timely changes in local governmental boundaries and to implement the applicable provisions of State law, namely the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. LAFCO is responsible for reviewing potential simplifications and streamlining of governmental structure and increase cost effectiveness. LAFCo commissioned the firm Rosenow Spevacek Group, Inc (“RSG”) to study the financial feasibility of the Town of Oakhurst. RSG is recognized as a leader in providing consulting services to local government agencies and private clients within California and Nevada for the past 26 years. Headquartered in Santa Ana, California, RSG serves over 130 local government agencies and approximately 20 private clients with its staff of 33 members. During the public meeting to review the CFA, RSG consultant Jim Simon stated “it’s hard to find a more favorable financial picture for a new town than the one for the Town of Oakhurst”. Both Dave Herb of LAFCO and Simon from RSG have indicated the CFA has to be a very conservative document to avoid any problems after incorporation. Joe Smith of the ACTION committee to incorporate Oakhurst commented “We have a CFA that not only shows the financial feasibility of the Town of Oakhurst but produces yearly budget surpluses from $263,116 to $602,494. The CFA also states it is a conservative document by growing revenues much lower than historically experienced. LAFCo and RSG have done this to ensure the financial feasibility, by understating the revenues it creates a cushion for the town going forward. The CFA and the analysis confirms that the Town is financially feasible, without any new taxes. We have said all along that incorporation is not a magic pill that will solve all our problems, but rather an opportunity for us to assume our responsibilities of self governance and take local control of our future rather than leaving it in the hands of those who do not live here. Incorporation is a change in government- not more government, no new taxes, no debt, no ordinance changes, no service reductions, just local citizens making local decisions that can protect our rural culture.”