Get the Facts!

Facts not Fears on Incorporation

• Fear: The city immediately assumes $19.86 million in debt to the County – $1.98 million to be paid each year for 10 years, with a 3.5% charge on the unpaid balance after 10 years.
• The Facts Are: It is an incorrect statement: First, the Comprehensive Fiscal Analysis (CFA) states we are a TOWN not a city and we are assuming NO DEBT in the incorporation. This $1.98 million is money that Madera County is taking away from Oakhurst now (each and every year) and will continue to do so until Oakhurst is incorporated. Some people don’t understand revenue neutrality mitigation (or chose to misstate) and the agreement with the County. Because the Oakhurst area generates far greater income to the County than it costs to provide current levels of service, we are required by law to share those excess revenues with the county for a period of time. We were able to craft a very favorable deal for the Town of Oakhurst by committing to the amount of excess revenue for a ten year period, equaling a total sum of $19.86 million. The CFA clearly identifies (on page 23) the agreed upon payment structure calling for a flat amount of $1 million per year with the balance carried forward and due only when revenues increase beyond annual levels budgeted in the CFA. The CFA also states “ Revenue Neutrality Payments do not accrue Interest”. Since LAFCo and their Consultant agreed that the CFA uses very conservative estimates, we hope to have this revenue sharing amount paid off in 10 to 15 years allowing the Town of Oakhurst to immediately receive a revenue windfall of $2 million or more per year.

• Fear: We already have wildland fire protection through the state. However, State law removes lands from the “State responsibility area” when they are incorporated, requiring the city to assume primary responsibility for the prevention / suppression of fires within its boundaries. Entering into a year to year wild land fire agreement with CAL FIRE to protect undeveloped / underdeveloped lands within City limits is at the discretion of the City Council and CAL FIRE at an additional cost to the City.
• The Facts Are: The CFA already includes any additional cost to contract with the County Fire Department to provide fire service to Oakhurst. Cost estimates were developed by the Consultant in conjunction with the Fire Department. During public meetings some individuals consistently misstated the facts and at one point predicted the Town would go broke when the first fire occurred because they would have to reimburse the State and other fire services for their assistance in suppressing the fire. This is an absolute misstatement as is confirmed in current Fire Chief Mike Martin’s letter to County Administrator Sell Manfredi. The Fire Chief writes “the proposal to incorporate provides that fire department services currently available within the proposed incorporated area will continue, without change, on a contractual basis. As you are probably aware, the fire department assets currently stationed within the proposed incorporated boundaries depend on resources from outlying areas to provide an appropriate level of response for some emergencies. The practice of dispatching the nearest appropriate resources to any emergency within the Oakhurst area will continue under a fire protection contract with the Madera County Fire Department. Additionally, as is the case throughout the State of California, Mutual Aid resources from neighboring jurisdictions, will be requested if, and / when, emergency incident circumstances dictate the necessity for responses in excess of what the local jurisdiction can muster. Mutual Aid Resources are provided to the host agency free of charge, for the duration of need. “

• Fear: Upon Incorporation, we will lose the services of the California Highway Patrol. State Law transfers traffic and law enforcement responsibilities to the City which now must negotiate a contract with the County Sheriff at additional cost.
• The Facts Are: The CFA already includes the cost for providing the accident investigation and traffic enforcement functions currently provided by the CHP, as well as current police protection services. CHP will continue to have responsibility to patrol Hwy 41 and Hwy 49 and may patrol other areas of the town.

• Fear: The Federal, State, and County governments already exercise regulatory and financial control over our lives. Incorporation will increase involvement with LAFCo and we add a City Council. When has creating a new government ever reduced regulations or saved money?
• The Facts Are: Madera County has done a very poor job with planning and growth. They have taken millions of our tax dollars and left us with inadequate roads and infrastructure and a mismanaged downtown sewer system. The CFA reports that they are taking $1.98 Million from Oakhurst each year and spending it elsewhere in the County. That’s the type of government we can do without. Additionally, the CFA shows a transfer of certain services from the county to the Town of Oakhurst—No additional layer of Government, it’s just not accurate. Revenue sources and amounts are the same under either County or Town governance. This is not about saving money it’s about keeping our money here to better fill the needs of our community and stop Madera County from taking $50 to 60 Million of our money over the next 20 years!

• Fear: Retail Sales taxes are the primary source of flexibility and growth in City budgets leading to chain-store sprawl and big –box stores. Say good-bye to our “Mom & Pops.
• The Facts Are: According to the CFA, sales tax revenues only represent 35% of the first operational year’s budget. The spread of revenue sources makes the feasibility more solid. Madera County will let BIG BOX stores in because they will get all the revenues from them. A local Town council can stop BIG BOX stores from coming in. Additionally, the majority of the candidates running for Town Council have pledged “We will not vote to increase taxes. No tax increases are necessary”. The general fund has a surplus every year with over a $1 Million reserve after the first operational year and with an additional inflow of $2 Million per year once revenue neutrality is completed.

• Fear: Incorporation consultants acknowledge additional taxes may be required just to meet the basic municipal service levels and repay County Debt: government fees will increase: reserve funds not included due to the limited budget: actual cost may be higher than projected since contracts have yet to be negotiated.
• The Facts Are: Both the consultants and LAFCo state that the CFA is based on very conservative assumptions. The CFA assumes a 3.5% growth in sales tax, when the County growth rate has been 5.12% over the last 10 years. The CFA assumes a 3.5% growth in TOT, when the County growth rate has been 5.47%. The CFA assumes a 3% growth in property tax, when the County growth rate has been between 5.27% and 14.46% (averaging 9.26%). The majority of the candidates running for Town Council have pledged “We will not vote to increase taxes. No tax increases are necessary”. The general fund has a surplus every year with over a $1 Million reserve after the first operational year and with an additional inflow of $2 Million per year once revenue neutrality is completed. “We will not vote to burden businesses with additional fees. Our businesses have done a great job serving our community and their continued success is vital to our whole area”.

• Fear: We all want local control. We all want to protect our quality of life. We can do this without adding more government, more regulations, more taxes and more fees.
• The Facts Are: Look what has happened under someone else control of our community! Madera County has done a very poor job with planning and growth. They have taken millions of our tax dollars and left us with inadequate roads and infrastructure and a mismanaged downtown sewer system. The CFA reports they are taking $1.98 Million from Oakhurst each year and spending it elsewhere in the County. That’s the type of government we can do without. Local control to protect our rural culture can only happen when local citizens take the responsibility of governance.
• Fear: HANG ON TO YOUR WALLET$-- Incorporation consultants acknowledge that “Incorporation may require the Town to consider additional taxes to meet basic municipal service levels, any revenue neutrality payments, and /or any cost of additional services”
• The Facts Are: Madera County has been in our wallets for a very long time. The CFA validates Madera County is taking $1.98 Million out of our wallet each year and giving us nothing for it. 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.
• Fear: Incorporation is just another layer of Government
• The Facts Are: Incorporation is not an additional layer of Government – It’s a transfer of government responsibilities. The CFA shows the Public service plan and what responsibilities shift from the County of Madera to the Town of Oakhurst. 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.
• Fear: Incorporation will bring Sprawl & Big Box Stores
• Facts Are: Rumor has it BIG BOX stores are looking at Oakhurst right now and Madera County will let them in because it means more revenue to them. Small towns and their town councils have stopped BIG BOX stores just like ours can. We need to take control of our rural culture by having a Town Council that can stop BIG BOX stores and protect our rural culture.
• Fear: Incorporation will place local businesses in a vulnerable position
• The Facts Are: Our businesses are in a vulnerable position right now! Madera County has enacted huge fee increases that will fall as a burden on local businesses. Our businesses have done a great job serving our community and their continued success is vital to our whole area. No new ordinances or business fees are part of the Incorporation. Local citizens are better equipped to make decisions to protect our local businesses.
• Fear: Incorporation is a developer’s dream
• The Facts Are: All current building codes and regulations stay in place under Incorporation. Once again, this is another fear and confusion tactic designed to divert attention from the fact that Madera County has done a very poor job with planning and growth. They have taken millions of our tax dollars and left us with inadequate roads and infrastructure and a mismanaged downtown sewer system. Local citizens are better equipped to make decisions to protect our rural culture.
• Fear: Incorporation will affect water supplies
• The Facts Are: It is not true. 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.
• Fear: There are different versions of the CFA
• The Facts Are: The only FINAL CFA is available at the public Library or on line at www.townofoakhurst.com. Some people use old or incorrect information. They continue to refer to Draft CFAs or ones that needed to be changed due to boundary changes.