Castro Valley Deserves Cityhood, County Supervisor Says
Alameda County Supervisor Nate Miley.
Alameda County Supervisor Nate Miley is putting his energy behind an initiative that would make Castro Valley an official city and potentially combine several unincorporated towns in the area.
“I think it would be in the best interest for the residents of Castro Valley to incorporate,” Miley said. “Castro Valley does deserve to be a city, but it's up to the voters.”
Miley made his comments during a presentation last Thursday to the Local Agency Formation Commission (LAFCO) of Alameda County. The state-mandated agency was reviewing an 84-page Initial Feasibility Analysis (IFA) for the potential incorporation of the unincorporated communities of Castro Valley, Ashland, Cherryland, San Lorenzo, Fairview, and Hayward Acres.
Consultant Richard Berkson of Berkson Associates presented three options based on the following boundary options:
Castro Valley by itself
Castro Valley plus Eden Area (Ashland, Cherryland, San Lorenzo, Hayward Acres) and Fairview
Eden Area and Fairview (not Castro Valley)
The report was initiated to provide the pros and cons of incorporation, a realistic analysis of cityhood, indicate what options the County has to improve incorporation feasibility, identify issues requiring further research, and create a framework for a more detailed Comprehensive Fiscal Analysis (CFA).
The full report discusses the need to create a city office with leadership and administrative positions. It also discusses how any boundary options would require increased property, sales, and or business taxes to ensure city services were maintained.
Berkson’s report to LAFCO is the latest step in getting residents to consider incorporating and becoming their own city. The report will now go through a long process of conferring consultant data with various County departments. Those departments would contribute data and information with multiple drafts of the report for internal approval before releasing it to a 30-day public review and comment period.
Which Option Makes Sense?
Which of these unincorporated towns should become a city? Three options are on the table, including one that would combine all of these areas together.
The Berkson report found that the Castro Valley boundary generates the most revenues relative to its population due to its magnitude and mix of commercial uses.
“These revenues are offset by additional service costs attributable to residential and additional commercial uses. The net result is an annual fiscal shortfall. If the new City receives a share of Property Tax in lieu of Vehicle License Fees (PTVLF), the annual net could be virtually break-even considering the preliminary nature of the IFA,” the report said.
If Castro Valley were to incorporate, Alameda County would see an annual $3.44 million shortfall, mostly in the form of property, sales, and utility taxes. But that is less than the $5 million loss the County would take if all the towns came together.
Though he was not specific, Supervisor Miley said he was confident that the County could make up any financial shortfalls in other ways.
“If Castro Valley had moved forward in incorporation in 2002, there still would have been a need for new taxes," Miley said. "Funding for the reduction to the county is a figure that could be up for negotiation."
Combining all the unincorporated towns would be the next most financially feasible option, allowing more governmental efficiency. The study found that the annual financial net could be slightly positive if state vehicle fees (PTVLF) could be included.
Previous attempts to incorporate Castro Valley have failed. The first was back in 1957, when the vote was 75% against. The second attempt was held in 2002 when a vote on incorporation garnered 27.9% in favor and 72.1% against incorporation. The 2002 vote was prompted by a similar financial analysis that LAFCO initiated. The 2002 report found that cityhood would be possible if Castro Valley initiated a transient occupancy tax (also known as a hotel tax) and an ongoing utility users’ tax.
No new cities have been formed in California over the past two decades other than new cities in Riverside County that received a legislative fix to receive PTVLF.
A group of about 30 Castro Valley residents and supporters have launched a grassroots effort to openly discuss the pros and cons of making Castro Valley a city and the recently released LAFCO Report. Their first public meeting is Sunday, July 23, at 2 p.m. at the Castro Valley Library.