Myths

"Property taxes will go up"

The Facts:
With the passage of Proposition 13 in 1978, property taxes are limited by the State Constitution to one dollar per hundred dollars of assessed valuation and can only increase a maximum of 2% per year for inflation.

Property taxes go up each time a property changes hands if the selling price is higher than the assessed value, but only to reflect 1% of the new value.

Property taxes also increase if improvements are made on the property to reflect 1% of the value of the improvements.

These increases will occur regardless of the jurisdictional status of the property, i.e., whether it is in an unincorporated area or in a city.

Neither a city nor a county can increase the tax rate beyond the constitutionally-permitted one dollar per one hundred dollars of assessed value.  Nor can the county assessor increase the assessed value of the property beyond the 2% per year as long as the property remains in the same ownership and no improvements are made on it.

"Fees and Charges will go up"

The Facts:
Many cities and counties are increasing what is called "user fees" and "service charges".  What is really happening, however, is local governments are now charging only those constituents who use the service for the cost of that service, rather than funding the service out of general funds and requiring all taxpayers to help pay the cost.

"City Councils respond to special interests"

The Facts:
So do Boards of Supervisors, Special district Directors, Assemblymen, Senators, and school district Trustees.  The words "special interests" have become buzzwords for "special deals".  But Seniors are a special interest, young people are a special interest, the business community is a special interest, so are little leagues, animal lovers, developers, environmentalists and parents.  The function of a political body is to balance the needs of all these special interests.  People who live in cities feel they have a better chance to have their "special interests" heard by Council members who live in their communities, whose children go to their schools, whose businesses are in the town, and who are subject to the same taxes as their constituents.

"Other taxes will go up"

The Facts:
Proposition 13 also outlawed any increases in special taxes without approval by a two-thirds majority in an election.  The State Supreme Court has ruled that any revenue used by a local agency for specific services only is a special tax.

The Court has also ruled that any revenue raised by a local agency that goes into the general fund and can be used for any governmental purpose is not a special tax.  However, Proposition 62, passed by the voters in 1986, prohibits any "general tax" increases without the approval of a majority of the voters.  Thus, no new taxes can be levied by a new city without the voter's approval.

"Sewers will be required"

The Facts:
Sewers are required in only one instance:  where continuing to dispose of liquid wastes through septic tanks is or threatens to become, a health hazard.  In that case, the Regional Water Quality Control Board and the County Health Officer will force the local agency (city or county) to stop all development until the health hazard is removed.  The local agency must then choose between zero development (no building permits could be issued) or the construction of a sewer system

"Paved streets, sidewalks, curbs and gutters will be required"

The Facts:
Cities cannot require property owners to pave streets or build sidewalks, curbs or gutters without the consent of the majority of the property owners fronting on the street where the improvements are proposed.  On the other hand, a city can exclude streets that are not improved to minimum standards (such as unpaved streets) from its maintained road system and leave the maintenance of these substandard streets to the property owners.

"Incorporation means rapid growth"

The Facts:
Many of the most rapidly growing areas in California are unincorporated.  Conversely, most cities establish managed growth policies, if only to assure themselves that they will have the resources needed to provide services to new developments.

"Many cities are facing bankruptcy"

The Facts:
This may be true in other parts of the country, but certainly is not in California.  Only two cities have "disincorporated" in California in the past sixty years.  Most cities are in good financial condition, although the "taxpayers' revolt" of the past and cutbacks in state and federal funding have restricted some of their revenue sources.  Cities and counties are now faced with either ensuring efficient government in order to provide services or, if revenues do not meet service needs, reducing services or asking voters to increase taxes.

"Incorporation will increase the crime rate"

The Facts:
Every city that has incorporated in California in recent years has increased the level of police service, whether by establishing its own police department or by contracting with the Sheriff's Department for a higher level of service.

"There isn't enough local talent to serve on the Council"

The Facts:
Since 1978, 46 cities have incorporated in California.  Nearly half of them have fewer than 10,000 residents.  A good many elected Council members had little or no prior experience in political office.  Yet all of these cities are in good fiscal shape, and are providing their residents with municipal services, usually at higher levels than when the area was unincorporated.

"People run for the Council to make money"

The Facts:
Council members of cities with a population less the 35,000 are authorized by state law to receive a maximum of $300 per month as salary.  These salaries are subject to state and federal withholding and social security taxes.  Council members may also be reimbursed for out-of-pocket expenses for travel while conducting city business.

As for making money from their elected position, under the provisions of Proposition 4 (the Fair Political Practices Act), all elected members (as well as Planning Commissioners) must annually submit a statement of economic interest to be kept on file in the City Clerk's office.  They must publicly declare any financial interest in any matter coming before the Council and disqualify themselves from any vote on such a matter.

"The City  will take over private water companies"

The Facts:
Cities do have the right of eminent domain and can condemn private property for a public purpose.  So long as a private water company is providing efficient and effective service to its customers, there is absolutely no incentive for a city to take on an added burden.  If there is another agency, such as a publicly-operated water agency, also serving with the area, it would be much more logical for that agency, rather than

"A City would create another layer of government"

The Facts:
Rather than "another layer of government", an incorporation involves the transfer of public services from one government to another.  When a city incorporates, the responsibility for law enforcement, planning, land use regulation, building inspection, street lights, etc. simply transfers from the county to the new city.  These public services are generally referred to as "municipal services" and the State laws favor cities in the provision of these services by giving cities more flexibility and better revenue sources than counties are given for supporting these types of services.

"Millions will have to be spent on a new City Hall"

The Facts:
New small and medium-sized cities simply do not build city halls.  Instead, they lease space in an office-professional building complex.  Most new cities find they can lease the amount of space needed for the first few years at very reasonable rates, since the complex owner knows the lease payments will be made and since quite often the existence of city offices attracts desirable professional tenants to the complex.

"Counties are hit hard by incorporation"

The Facts:
This is not necessarily true.  In most cases, while the county may suffer short-term impacts, the long-term impact is generally a wash.  The county loses service responsibility (for services such as law enforcement, planning and road maintenance), but does not lose all the revenue generated within the newly-incorporated community.  Several revenue sources are based on total county population (incorporated as well as unincorporated), and the county continues to get a portion of property tax resulting from new development without any increase in service responsibility.

"I don't want my address to change"

The Facts:
Postal addresses are governed by Zip code and are determined by the United States Postal Service, not by a city.  Therefore, an individual address, either inside the city or outside the city, will stay the same as it was before the incorporation.