Is There Enough Money?

• LAFCo and its consultant are required by state law to analyze the financial feasibility of a proposed incorporation.  They must find that the incorporation is financially feasible and that any potential negative effects on the county have been mitigated by a Revenue Neutrality agreement between the County and the new town before they can approve the formation of a new town.
• There is a surplus each year, even after paying the county alimony of $1 million.
• There are reserves of $1.2 million at the end of the first operational year, growing to $5.4 million by the end of the tenth operational year.
• Very conservative growth rates for revenue were used in the projections, thereby providing a significant cushion in case of unforeseen events.
• Projections include a 10% contingency factor for expected expenses, again to cover unexpected costs.
• The CFA accounts the full cost of all transferred services.
• The road fund projects a surplus of $3.7 million during the first ten operational years.