Supervisors OK Santa Clarita Pay-Back Plan

Backers of cityhood in the Santa Clarita Valley inched a step closer to their goal Tuesday, but at a price.

The Board of Supervisors unanimously agreed that the proposed city should be allowed to set its own incorporation date, which cityhood backers had demanded.

In return, the new city will have to reimburse the county about $4.4 million for expenditures and revenue losses the county would experience.

The vote represented a compromise fashioned last week after Supervisor Pete Schabarum suggested that the city be barred from incorporating for eight months after the expected November election on cityhood.

Schabarum advocated the delay because the county would continue providing certain services to Santa Clarita until the county’s new fiscal year begins July 1, 1988, but would no longer be able to collect sales-tax revenue in the area.

Cityhood supporters said it would be unacceptable to force those elected to the new city council in November to wait until next summer to assume power.

Consequently, Supervisor Mike Antonovich, who represents the Santa Clarita Valley, offered an alternative Tuesday.

“I recognize that the incorporation of the city of Santa Clarita would result in a large net county cost for the provision of services by the county through the end of the first year of cityhood. However, I also believe strongly in the democratic process of allowing people to pursue their right to organize as a city at the earliest possible time and to begin their process of operating as a government entity as soon as possible after the voters have cast their ballots.”

Under Antonovich’s plan, the city can incorporate in December, as cityhood leaders had hoped, but will pay the county’s costs for providing law enforcement and park and recreation maintenance--an estimated $2.7 million.

Cliff Caballero, an assistant in the office of the county’s chief administrative officer, said the city will pay another $1.7 million to partly compensate the county for its loss in sales-tax revenue.

Cityhood leaders said the new city will be able to pay the bill and will begin doing so 60 to 90 days after incorporation. The Local Agency Formation Commission, which oversees incorporations, has predicted that the new city will enjoy a $3.5-million budget surplus in its first year.

Under Antonovich’s motion, the city will be permitted to pay its obligation over five years.

Cityhood supporters said they supported the compromise because the alternatives--delayed incorporation, or none at all--were unpalatable. “I’d say we’re resigned to it,” said Louis E. Brathwaite, a member of the Santa Clarita City Formation Committee.

And Schabarum said he is happy with the compromise.

The Local Area Formation Committee must approve the supervisors’ action before it can be adopted. The earliest the commission may vote on the matter is June 24.