In this story from today’s Bee we surmise that a financially strapped county, already unable to take care of the Parkway adequately, will be even more strapped and less able to manage it effectively, once these cityhood plans moving through the process approach completion, as the Rio Linda/Elverta plan appears to be doing.
Here is an excerpt.
Taxes key in cityhood report
By Dirk Werkman -- Bee Staff Writer Published 12:01 am PDT Friday, May 19, 2006
Creating a 31-square-mile city from Rio Linda and Elverta would be tough but not impossible -- and sales tax revenue could make the difference.
That's the preliminary conclusion of a financial consultant hired to evaluate the feasibility of cityhood for the two north-area communities.
Property tax revenue, taken alone, appears to fall 29 percent to 33 percent below the estimated cost of basic city services, financial analyst Sally Van Etten said.
But sales tax revenues will be an important factor in determining whether the city could fund itself.
"Sales tax is usually the thing that tips the scale toward the positive," said Van Etten, a senior project analyst for MuniFinancial, an Oakland firm.
Van Etten presented her preliminary report Wednesday night to the Rio Linda-Elverta Recreation and Park District, which hired the firm for the study.
Cityhood supporters at the meeting said they remained optimistic as they awaited sales tax figures from the state.
Officials of the state Board of Equalization are compiling the amount of sales tax that comes from businesses located within the proposed boundaries of the city.
"I don't think we heard any surprises," said Don Schatzel, administrator of the park district. "In that sense, I'm encouraged."
"I'm not discouraged at all," said Gene Moore, a member of the Committee to Incorporate Rio Linda and Elverta.
