Saturday, December 30, 2006

Q and A about Wildomar California

Cityhood: What Does It Mean?
Q - Why Become A City?A– Cityhood means more effective, more efficient and more responsive local government. Decisions that affect Wildomar would be made by people who live and work in Wildomar. Cityhood also means a higher level of services, since local taxes stay at home in Wildomar!
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Q - Will Cityhood Raise My Taxes?A– No. California state law prohibits any incorporation from raising taxes to balance the books. In the future, any tax increase or tax cut would be decided by Wildomar residents, not by supervisors elected by residents as far away as Riverside, Norco or Corona.
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Q - Does Cityhood mean another layer of government?A– No. Incorporation would transfer certain government functions from Riverside County to the City of Wildomar; it would not add any new layer of government! Currently planning and zoing decisions are made by the County. After incorporation, any future development decisions would be made by our own Planning Commission. The General Plan process for our community would include input from Wildomar citizens. Riverside County would no longer be involved: our vision would be our own.
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Q - What is LAFCO? A– The Local Agency Formation Commission is an independent government agency in charge of creating or changing any local districts in California from new cities to fire districts. LAFCO would “referee” the incorporation process.
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Q - What are the proposed boundaries for the City of Wildomar?A– The boundaries are shown on the map (Attachment A) that is on the back of the Petition. The boundaries mirror the current Unincorporated Community (UC) boundaries set by LAFCO in 1997.
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Q - Will Cityhood affect the school district?A– No. Special districts such as the school district are unaffected by the incorporation process.
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Q - What does Cityhood mean to folks in Wildomar?A– This is an exciting time for the folks in Wildomar! The steps we are taking to become a city is democracy in action. What better way to show the young people in our community about the fundamentals of our constitution than to participate in this exercise? Cityhood means that Wildomar citizens will have to be more involved in deciding the issues that affect Wildomar. No longer will we have to accept the County of Riverside’s decisions about our fate. Cityhood means making the commitment to greater citizen participation in our own local government!
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Questions About Cityhood
Q – Wildomar doesn’t have enough revenue to sustain itself as a city.A – That’s simply just not true. What is true is that the potential for generating sales tax within Wildomar has never been realized. The county has never done economic development within the unincorporated community of Wildomar. The new city will have a vested interest in encouraging new business. Currently, the community of Wildomar is subsidizing programs throughout the county with taxes collected locally. In the future those revenues would be kept in Wildomar to be spent on programs and services within our own community. Additionally, the new city will have the ability to apply for grants and funds from the state and federal government that will enhance the total financial picture. Plus, the new city will be able to promote economic development within the borders of Wildomar -- something the county has never done. Primecommercial property, currently sitting idle can be transformed into income generating assets.
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Q -What will happen to the services being provided now by the county?A– The level of service the county provides to the community of Wildomar is being documented via fiscal studies, using county departmental budgets. The new city of Wildomar will contract with the county for most of those services, including sheriff and fire; at the same or increased levels from what the county now provides the community. No services will be lost following ncorporation by the new city.
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Q - The state is going through some financial difficulties and will be looking at cities to assist them in meeting their financial obligations. How does this affect the new city?A– This provides even more reasons for the community to choose self-governance. The same proposal to borrow tax revenue from cities, affects the county in much larger numbers. When the county is put in the position of choosing where to eliminate services to offset their loss in revenue, it is certain that they will follow the same pattern they have used before. They will reduce services to unincorporated communities before they reduce those programs they are required to provide, such as health services and contract services. If we are a contract city the city council sets the level of service the county will provide. Therefore, protecting the community from arbitrary decisions to reduce services. In addition, the city will join the powerful voices of other cities in California in preserving the tax revenues for local government.
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Q - Won’t the new city administration eat up all of the funds that the new city will generate? A– No! The amount budgeted by LAFCO and projected out ten years uses only a fraction of the dollars collected by the new city to provide city administration. Currently, the residents of Wildomar are paying for county positions that have no connection to our community. The amountnecessary to pay for city administration is far less than we currently pay for county bureaucrats to serve other regions of the county.
Q - We’re afraid that a new city council will raise our taxes?A– The new city cannot raise taxes without approval by a two-thirds (2/3) vote of the community! That’s the law. Because we are only a small part of a large county, the rest of the county residents could enact a new tax and we must pay it. Even if the community voted overwhelming against it. We are just a small fish in a big pond. If we form a new city, we are the pond!
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Q - We read in the paper about city councils arguing publicly about issues. How can we guarantee that we will have good competent representation on the council?A– The residents of Wildomar elect the people who represent the community. Our democratic form of government allows everyone to have a voice. That is the absolute best reason to create the new city. It would be refreshing to have residents of Wildomar discussing issues facing our community, within the boundaries of our community. This is what wars have been fought to protect. The fact that some are more passionate and might cause a scene, doesn’t mean that it is not working. We elect people to respond to local issues who we think are fair and open-minded.The proponents of cityhood believe that the community of Wildomar has many residents that have the knowledge and skills required to run a city. And, you won’t have to drive to Riverside to speak to them.
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Q - What services could the city provide that the county does not already do?A– The residents of Wildomar would see a number of services added. They could be in the areas of parks, youth programs, senior programs, beautification projects, extra policing, or partnerships with other agencies. They would be designed by residents of our community for our community.
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Questions About Taxes And Incorporation
Q - Will taxes increase if Wildomar becomes a city? A– No. By law, an incorporating city must be financially feasible without increasing taxes. If the new city will not be financially feasible without new taxes, LAFCO will not approve the petition and incorporation will not go forward.
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Q - I am concerned about taxes. Can the city council raise my taxes?A– No. A city council cannot, solely on its own action, impose or raise taxes. A city, through its council, may adopt a tax, but only subject to voter approval. A majority vote of the electorate is required to impose, extend or increase any general tax. A two-thirds vote is required for a special tax.
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Q - What are these different taxes?A– A "general tax" refers to any tax imposed for general governmental purposes. A "special tax" means any tax imposed for a specific purpose. Below are examples and further explanations of some specific revenues.
Property Taxes--A city council cannot increase the property tax rate. Beginning with Proposition 13 (June 6, 1978), the State constitution, State legislation, and court cases have greatly restricted and controlled this revenue source and its distribution. The State is in control. The property tax rate is limited to 1% of the property's assessed value, plus rates imposed to fund indebtedness approved by the voters, e.g., local bond issues. Cities, the county, school districts and special districts share the revenue from the 1% property tax.
Sales and Use Tax--A city, through its city council, may adopt this tax in accordance with State laws, which control the rate, etc. However, this is subject to voter approval. The basic local government rate is 1%, with any special State statutory authorizations limited to 2.25%. Such special authorizations would require a two-thirds vote of the electorate.
Business License Tax--A city council cannot, solely on its own action, impose, or increase the rate of this tax. The city council's action of adoption would be subject to at least a majority voter approval.
Other Taxes--They are subject to voter approval, as noted above. These taxes are for example, utility users' tax and transient occupancy tax (on usage of hotels, motels, B&Bs).
Special Taxes--Their proceeds must be used for a specific purpose. A city council cannot, solely on its own action, impose special taxes. The council's action is subject to a two-thirds voter approval. These taxes have been used, for example, for library, police, fire, flood, storm drains, emergency medical services, etc.
Fees and Charges--They may relate to revenue producing enterprises (parking lots, garbage collection, etc.), costs of providing a particular service (building permits, connection to a sewer line, etc.), regulatory fees relating to public health, safety and welfare. A city council may establish fees and charges; however, the council is constrained in that the amount cannot exceed the estimated reasonable cost of providing the service or the facility, and the amount of the fee must bear a relationship to the person paying the fee. Fees collected in excess of the cost to provide the service are defined as a tax, which would require a vote of the electorate.

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