NEWPORT BEACH : City Studying Costs of Annexing Area

City officials have begun a new study to determine how much it would cost to annex the Santa Ana Heights area.

Based on the results of the study, the city could begin the process of securing the unincorporated area just south of Costa Mesa as part of Newport Beach later this year.

Some Santa Ana Heights residents have pushed for the annexation. They said it would bring the neighborhood improved emergency services.

But city officials are concerned that the move might end up costing hundreds of thousands of dollars.

A city study completed in 1992 found that providing services to Santa Ana Heights would cost about $725,000 a year, said Kenneth J. Delino, the assistant city manager. The area would generate about $425,000 in revenues to the city, leaving an annual deficit of about $300,000, Delino said.

Annexation would also make it necessary for the city to build a new fire station and purchase a new police car, street sweeper and trash truck--at a total cost of more than $2 million, Delino said. Currently, Santa Ana Heights is served by the Orange County Sheriff’s Department and the Orange County Fire Department.

But Delino said the fire station and new equipment would be used in areas of the city beyond Santa Ana Heights, so residents there should not bear all the costs.

“We really don’t need a fire station just for Santa Ana Heights,” Delino said. “Our coverage is (already) spread thin in some areas, and (the annexation) would exceed the threshold. It would be the straw that broke the camel’s back.”

City officials hope to close the annexation deficit by requesting money from the county’s redevelopment agency.

If the city decides to proceed with the annexation, officials will negotiate with the county to divide sales tax revenues generated in the area.

The Local Agency Formation Commission would have to approve the proposal. A vote by Santa Ana Heights residents would occur if significant opposition forms to the annexation.