Assessment of Harbor Area Secession Questioned

The City Council approved a report Wednesday charging that the Local Agency Formation Commission has underestimated the negative impact of harbor-area secession on the area breaking away and on the remainder of Los Angeles.

The report, to be considered as LAFCO completes its financial analysis of the breakaway proposal, also questioned the legality of a plan to have LAFCO give the harbor partial control of the Department of Water and Power and set electricity and water rates for the new city. The report was prepared by the city administrative officer and the city attorney’s office.

Los Angeles City Councilwoman Janice Hahn of San Pedro said it is important for LAFCO to consider the city’s many unanswered questions and develop a more accurate appraisal of the financial feasibility of harbor cityhood.

“Is this new city going to be able to stand on their own, and if they are, does that just mean they get less services? Does that mean they are going to have to pay more?” Hahn said, raising questions she believes have not been fully answered.

She also said the LAFCO study does not adequately address how municipal employees would be divided between the two cities.

LAFCO’s preliminary financial study concluded that a new city created for Wilmington and San Pedro would face a $31-million annual budget deficit.

Harbor-area secessionists released a response last month showing ways they think the new city could close the budget gap, but the report approved Wednesday by the City Council said some of the potential revenue identified by secessionists is overestimated.

Several council members said Wednesday they do not believe harbor-area residents will vote for cityhood once they are informed of the potential negative effects. But Hahn said a full, accurate analysis is important because harbor and San Fernando Valley cityhood proposals may be placed on the November 2002 ballot.