Gloria Alvarez - 8/4/07
EGP Staff Writer

http://www.egpnews.com/index.cfm?fuseaction=browse&id=3&pageid=6384

A draft report to examine the financial viability of unincorporated East Los Angeles becoming its own city, will be presented to the community later this month for review, according to Oscar Gonzales, president of the East Los Angeles Residents Association, one of the groups spearheading the cityhood effort.

Currently, unincorporated East Los Angeles has no independent city council, mayor or local legislative body, but is under Los Angeles County jurisdiction and within Supervisor Gloria Molina’s 1st District, who secured funding for a new City Hall to bring County services closer to local residents of the mostly Latino community.

The campaign to become an incorporated city would give local residents a greater say in planning and revenue expenditures in the area, say supporters of the East Los Angeles incorporation effort.

As part of the process to become its own city, a financial analysis and assessment must be completed and show that the city could be self-sustaining, in other words, that there are enough local resources and revenue, namely fees and taxes to support community services, such as, police, fire, street repairs, trash pick up and the likes. The report must show that incorporation will not result in diminished services to local residents and businesses, according to Gonzalez, who says his group and local chambers of commerce feel strongly that the area will be better off if incorporation takes place.

LAFCO, the Los Angeles Local Formation Committee, which regulates boundary changes proposed by other public agencies or individuals by approving or disapproving such changes, will make the decision as to whether the issue should go to the voters for consideration, based on whether its analysis shows that the city could in fact financially survive if no longer solely under county jurisdiction, but an independent city with its own local governing body.

As part of the process to answer that all important question of sustainability, the East Los Angeles Residents Association has commissioned an “Initial Fiscal Analysis of Proposed Incorporation,” IFA, the draft of which is currently under review by the organization and which will be presented to the public later this month for discussion and review.

According to the Draft IFA, the county estimates that it subsidized services to the East Los Angeles community in 2005-06 to the tune of $20 million with revenues generated outside the community. But according to the draft report, prepared by Burr Consulting, an outside, independent financial consulting firm hired by the resident’s association, “the [County’s] estimate appears to be overstated.”

“The IFA finds that the East Los Angeles community could be financially feasible as a new city if it incorporates prior to the sunset of AB 1602,” which will change the formula under which vehicle license fees and gas tax revenues are generated.

The Draft IFA, examined revenues available through taxes and other services and compared them to expenditures by the County, and estimated costs to city provided versus county provided services, when compared with those paid by other similar cities such as South Gate and Huntington Park.

“The draft report still needs further review,” Gonzalez told EGP. “We think the community, the residents and businesses of East Los Angeles have a right to look at the information and have input,” he said, explaining that a meeting will be held [on October 25].

“We believe East Los Angeles can be its own city, and that’s what we are trying to show,” said Gonzalez.