COMMENTARY : Cityhood Backers Should Consider Effect on Entire County : It is important to remember that incorporation is felt by many besides those living in the proposed city.

After the city of Irvine’s incorporation in 1971, no new cities were formed within Orange County for 16 years. Since 1988, however, three communities in South Orange County have incorporated: Mission Viejo in March of 1988, Dana Point in January of 1989, and Laguna Niguel in December of 1989.

In addition, the communities of Laguna Hills and El Toro/Lake Forest are in the process of attempting to incorporate after recent cityhood attempts including these areas were defeated by the voters.

Why the sudden interest in municipal incorporations in Orange County? What are the advantages--and disadvantages--of incorporation?

The answers to these questions are complex, and they vary considerably depending on the community. But I believe it is important to remember that the effects of a city incorporation are not only felt by the residents of that new city, but by the residents of the entire county as well.

At the end of World War II in 1945, California experienced a tremendous population increase that resulted in the sporadic formation of cities and special service districts. The unplanned creation of local agencies threatened to result in a wave of duplicative and unnecessary agencies serving illogical and inefficient service areas.

This “incorporation fever” also hit Orange County, where between 1953 and 1962, nine new cities were incorporated in the northern portion of the county.

Gov. Edmund G. (Pat) Brown Sr. and the state Legislature, concerned that the proliferation of new cities in California were hampering efforts to encourage orderly growth and development, created a state-mandated Local Agency Formation Commission for each county. LAFCOs were given the authority to approve or disapprove the formation of new cities and new districts and to determine appropriate boundaries for existing cities and districts.

The recent resurgence of incorporation fever in Orange County is, in part, a reflection of the changing demographics and development patterns apparent in Orange County today.

The older, more urbanized areas of northern Orange County consist almost entirely of incorporated cities. More than 85% of the county’s 2.2 million residents live within cities, most of these in northern Orange County.

South Orange County, which is the focus of most new development, has undergone a tremendous population increase in the last two decades with the construction of newer planned residential communities and related commercial and industrial uses. Along with this development have come urban problems such as traffic, pollution and the loss of open space.

South Orange County communities, like their northern counterparts, have also developed strong individual identities. So, many South County residents now see incorporation as a logical extension of community growth and maturation. They want the opportunity to have a locally elected City Council that would deal exclusively with the issues of their community and set local priorities in allocating tax revenue.

As one of five LAFCO commissioners for Orange County, it is my responsibility to fully evaluate both the positive and the negative aspects of specific incorporation proposals and then either approve the proposal, with or without changes to the boundaries, for voter consideration, or deny the incorporation.

Many issues need to be considered before that final vote.

The incorporation of a new city is a decision that has far-reaching and important consequences for all the residents of Orange County. One of the most important considerations, however, remains the fiscal viability of the proposal.

When a city incorporates, it becomes fully responsible for providing municipal services to its residents, including police and fire protection, public works, planning, parks and recreation, animal control and all other city-related services. The proposed incorporation boundaries must be large enough to adequately serve its present and future residents. The need for a city hall, community centers, corporate yard and parks are just a handful of the issues that must be considered.

In determining the boundaries of a new city, several factors must be considered. Among the most important is the residents’ own perceptions of their community and its boundaries. However, these boundaries must generate substantial revenue to maintain an acceptable level of municipal services over the long term. The cost of running a city is not cheap.

In addition, the boundaries of a proposed city must be analyzed to ensure that residents of surrounding areas are not disproportionately harmed by the formation of a new city. There is a limited amount of revenue available within the county, and the incorporation of a city captures a specified amount of that revenue for use only within the boundaries of the new city. One group of residents must not be allowed to exclusively incorporate their community if it precludes others from the same opportunities.

Incorporation alone does not generate any new tax dollars. Instead, it redistributes existing tax revenue to the new city. LAFCO must, by law, consider the impact this redistribution will have on other agencies. The agency that is most often, and most significantly, affected by incorporation is the county. As a result of the three incorporations since 1988, the county will lose more than $13 million in revenue this fiscal year. Several million dollars more will be lost if the currently proposed incorporations are approved.

These revenue losses come at a time when the county can least afford it. State-mandated social and health care programs continue to be insufficiently funded by the state, while the county’s criminal-justice and corrections systems are in serious need of expansion.

It is each person’s right to live in a city if they so desire, and I encourage the residents of unincorporated areas to continue to work toward this goal by either annexing to existing cities, or incorporating new ones. Each proposal, however, must be analyzed to ensure that one person’s gain will not come at the expense of others, and that the creation of new local agencies will be orderly and logical.