Supervisors to Offer Guidelines for Those Seeking Cityhood

South County communities considering cityhood are expected to get a boost today from the Orange County Board of Supervisors with the approval of new guidelines for incorporation.

Areas including Rancho Santa Margarita, Aliso Viejo, Foothill Ranch and Leisure World in Laguna Hills have been on an uncertain road to incorporation since state legislation passed in 1992 requiring new cities to pay their counties to offset lost property tax revenue. But it didn’t specify how much cities should pay.

“The law that came down was vague,” said Kelly Pijl, assistant county executive officer. Under it, cityhood advocates were concerned that costs could cripple their fledgling communities.

Now, however, guidelines have been proposed in Orange County which incorporation advocates say are a good beginning. The guidelines were formulated by the Board of Supervisors, the Local Agency Formation Commission and several cityhood advocates working together.

While they do not establish how much each city must pay--that still must be negotiated individually--they help provide a payment ceiling.

Also, each new city will have a maximum of 45 days to negotiate its payment amount with the county, avoiding a drawn-out process. If they can’t agree, LAFCo will set a figure. The plan also provides for flexibility when unforeseen events affect a newly incorporated city’s revenue. Finally, it offers options for methods of payment.

“This definitely bodes well for us,” said Gary Thompson of the Rancho Santa Margarita Cityhood Committee. “This is an encouraging start to this whole process.”

Cityhood advocates for Leisure World, a gated community of about 17,000, have completed tentative negotiations with the county to get their community’s incorporation on the March 1999 ballot. They have agreed to pay Orange County seven annual installments of $409,045.

Tom Marshall, co-chair of the Aliso Cityhood Committee, said the new policy is “a fair approach to the issue. They understand the dynamics of cityhood and are not out to destroy it.”

An advocate for the incorporation of Foothill Ranch was more cautious in her assessment of the plan.

“It’s a step in the right direction,” said Helen Ward, director of Cityhood Now for Foothill Ranch. “I still think the bottom line is that no neutrality agreement should impede an area from incorporating.”