Secessionists Offer Lower Cost Estimate

San Fernando Valley secessionists asserted Wednesday that they can set up a city for hundreds of millions of dollars less than previously estimated.

The Local Agency Formation Commission, the agency studying secession, has estimated that a new Valley city would face $1 billion in costs for services. But the secession group Valley VOTE released a much lower preliminary estimate of $626 million a year for three years.

Walter Kieser of the consulting firm Economic & Planning Systems Inc., which provided the new estimate, said the analysis is based on an evaluation of calculations made by a LAFCO consultant.

Kieser said the new analysis reduces the costs to account for hundreds of unfilled positions that are currently budgeted by Los Angeles to serve the Valley.

The report, which will be a basis for drafting a more formal budget, was met with skepticism at Los Angeles City Hall.