Challenge Anti-Cityhood Ruling : Calabasas Residents Sue LAFCO

A Calabasas group revived its campaign for home rule Monday by suing the governmental agency that denied its incorporation bid two months ago.

The lawsuit, filed in Los Angeles Superior Court, charges that the Local Agency Formation Commission relied on faulty financial forecasts when it voted 5 to 2 against Calabasas cityhood on Feb. 25.

If LAFCO had supported the cityhood campaign, an election on incorporation would have been held June 7.

Commissioners, citing estimates by the LAFCO staff, said at the time that the proposed city would be $450,000 in debt after its first year of existence.

But the lawsuit filed by the Calabasas Cityhood Study Committee charges that the forecasts overestimated expenses and underestimated potential income.

LAFCO is an independent agency that oversees incorporation efforts in the county.

The lawsuit seeks a court order rescinding LAFCO’s Feb. 25 decision and challenges the methods used to arrive at its financial estimates.

“We have different definitions as to how the budget was calculated,” said Robert S. Hill, president of the cityhood committee.

Cityhood proponents questioned LAFCO’s economic projections repeatedly during their three-year battle to incorporate the 10-square-mile rural community.

By their analysis, cityhood proponents said, the city of Calabasas in its first year would have at least $3 million in income and $1.8 million in expenses.

The proponents said LAFCO’s staff made numerous calculation errors.

In one instance, the cityhood committee said, LAFCO’s executive officer twice billed overhead costs for Sheriff’s Department services, creating a $387,641 error.

LAFCO Executive Director Ruth Benell has defended the figures.