TUSTIN : Annexation Views to Be Given Today
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Opposing sides in north Tustin will testify today before a county agency about whether their community should be incorporated.
The Local Agency Formation Commission will decide whether to proceed with hearings on the incorporation, given the state controller’s finding that the new city would not be feasible without a utility users’ tax implemented the first year.
The controller’s audit of a financial study paid for by incorporation proponents was performed at the request of the city of Tustin.
Tustin also filed three competing annexation applications with LAFCO shortly after incorporation was proposed.
Although issues including boundaries and conditions must be tackled before the incorporation process can proceed, a LAFCO staff report suggests that the commission first address the idea of a utility tax.
The commission has never considered a proposed city that would not be financially feasible based on existing revenue.
In a report to the commission, LAFCO Director James J. Colangelo estimated that the utility tax would initially represent one-third of the city’s revenue and by its ninth year would be the largest revenue source.
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