Your Interpretation is Not Correct
In response to Mr. Steve Rosenberg’s August 23, 2023 letter, it is easy to interpret the results of Mr. Birkson’s report prepared for LAFCo in the manner you have, especially when you rely on Frank Mellon’s opinions, which you trust based on his former position as an elected official in a special district.
Unfortunately, your interpretation is not correct. There is a big difference in financial knowledge and expertise gained by a special district elected official and an actual city administrator. I served as the City of El Cerrito’s Treasurer, Tax Collector, and Finance Director. I also provided expert financial, budgeting, and management consulting advice to cities and counties across this nation.
Alameda County admits that they take in more revenue from Castro Valley than they spend here (the money is spent elsewhere throughout the County). That is at the heart of the current debate about incorporation. The $7 million gap is an unintended artifact of a state law, and is an amount that is negotiable with a sympathetic Supervisor Nate Miley, who has already indicated he would work with Castro Valley on this issue. Alameda County is not subsidizing us; rather, we are subsidizing the County!
You would not have to make up taxes that might otherwise come from commercial and industrial complexes. Your property taxes would not and could not increase because Proposition 13 regulates them. As part of the 2002 incorporation election, voters from throughout the county (e.g., Livermore, Albany, Oakland, and Fremont) already voted to impose all of those then-new taxes onto us, which they had the power to do only because, ironically, we were not incorporated. All changes in tax levels, where allowed, must be voter approved.
Your valid point is that we may not have the same commercial and industrial tax base as some other cities. Frankly, if we simply had one or two auto dealerships, perhaps adjacent to our excellent freeway access, we would be flush with tax revenues.
–Brian Foster, Castro Valley
