Santa Clarita, County Settle Rift Over Service Fees

Santa Clarita and Los Angeles County officials have settled a festering financial dispute involving payment for municipal services that had clouded relations between the county and the young city.

Under the settlement, Santa Clarita has agreed to reimburse the county about $2.7 million for services provided to the city immediately after its incorporation. In return, the city will be charged reduced rates for fire protection and will retain the option of starting its own fire department.

Mayor Howard P. (Buck) McKeon said Friday that the settlement should result in better relations between the city and county. City-county relations “were shaky when the city was born,” and the financial dispute had exacerbated the ill feelings, McKeon said.

The dispute centered on who would pay for the fire, police and other services the county provided between the day Santa Clarita incorporated--Dec. 15--and the end of the fiscal year next Thursday.

During the incorporation process last year, cityhood supporters promised the Board of Supervisors that Santa Clarita would pay the county for providing services in the region until the city approved its budget.

But after incorporation, City Council members questioned whether they were bound by the promises of incorporation proponents and said they would not pay the county for the services.

The council’s decision angered supervisors. At one bitter meeting in December, the supervisors warned Santa Clarita council members that the city would have a difficult time winning favors from the county if it refused to pay the service fees.

Reduced by Half

Under the agreement approved Thursday, the county agreed to reduce by half the cost of wildlife fire protection services for the next 18 months. The city will save about $560,000 under the agreement, McKeon said.

At the end of the 18 months, however, Santa Clarita has the option of remaining in the county fire district or starting its own fire department, McKeon said.

The agreement with the county was announced Thursday night as the City Council approved an operating budget of $14.3 million, with $1 million of that total set aside as a reserve.

City Manager George Caravalho said many projections in the budget will have to be revised as the city hires more staff. He said the council will be presented an updated budget before Jan. 1.