Panel Drafts Terms of L.A.-Valley Split

If the proposed secession of the San Fernando Valley from Los Angeles were a marital divorce, you could say that, as of Monday, the judge had a tentative plan for dividing the couple’s assets.

A subcommittee of the Local Agency Formation Commission on Monday wrapped up its work on the terms and conditions of a Valley-L.A. split. The subcommittee’s recommendations now go to the full LAFCO board, which regulates the incorporation of new cities.

The subcommittee’s plan favors secessionists in several areas. It would grant a new city significant assets, including parks, police and fire stations, and libraries. It would also forbid Los Angeles from charging Valley residents higher utility rates than those paid by L.A. customers.

LAFCO is scheduled to decide in May whether to place the secession proposal on the November ballot.

It is also reviewing secession bids for Hollywood and the harbor area.

Under the subcommittee’s terms, a Valley city would pay Los Angeles $36.6 million per year in so-called alimony. That would make up for tax revenue lost by Los Angeles.

The alimony figure is much lower than the original estimate of $65 million, but only because a new city would take on more debt, including to help pay for the physical assets.

Los Angeles would keep its power grid, sewer system and other utilities intact.

It would also keep all property easements related to the utilities, even those that run under assets owned by a Valley city.

A new city would contract with Los Angeles for a variety of vital services, including police and fire protection.