VENTURA LOCAL A F C AGENDA Wednesday, May 20, 2020 · Ventura Local Agency Formation Commission within 72 hours before they are scheduled to be considered will be made available for

VENTURA LOCAL AGENCY FORMATION COMMISSION AGENDA

Wednesday, May 20, 2020

9:00 A.M.

Ventura County Government Center

Hall of Administration, Board of Supervisors Hearing Room

800 S. Victoria Avenue, Ventura CA

COMMISSIONERS AND STAFF

COUNTY CITY DISTRICT PUBLIC

Linda Parks Janice Parvin Elaine Freeman David J. Ross

John Zaragoza Carmen Ramirez, Chair Mary Anne Rooney, Vice-Chair

Alternate Alternate Alternate Alternate

Steve Bennett Claudia Bill-de la Peña John R. (Jack) Curtis Pat Richards

Executive Officer Deputy Executive Officer Office Manager/Clerk Legal Counsel

Kai Luoma, AICP Andrea Ozdy Richelle Beltran Michael Walker

In response to the declared state and local emergencies due to the novel coronavirus, and in

accordance with the California Governor’s Stay at Home order and the County of Ventura

Health Officer’s local order, the Ventura County Government Center Hall of Administration is

closed to the public. Members of the public may electronically attend the Ventura LAFCo

meeting by observing it streaming live at https://www.ventura.lafco.ca.gov/agendas-minutes/.

To submit a general public comment or to comment on a specific matter, members of the

public may exercise one or both of the following options:

1. Submit a comment via e-mail by 5:00 p.m. Tuesday, May 19, to [email protected].

Please indicate the agenda item number in the e-mail’s subject line. The comment will

be placed into the item’s record at the meeting.

2. Submit a comment via e-mail during the meeting to [email protected]. Please

indicate the agenda item number in the e-mail’s subject line (e.g., “Item 5” for general

public comment). A comment submitted during the meeting may not exceed 250

words. Every effort will be made to read the comment into the record, if received

before the conclusion of the agenda item. A comment received during the meeting but

after the agenda item has been heard will be made part of the record.

1. Call to Order

2. Pledge of Allegiance

3. Roll Call

4. Agenda ReviewConsider and approve, by majority vote, minor revisions to Commission items and/orattachments and any item added to, or removed/continued from, the LAFCo agenda andchanges to the order of business to accommodate a special circumstance.

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https://www.ventura.lafco.ca.gov/agendas-minutes/

mailto:[email protected]

mailto:[email protected]

Ventura LAFCo Agenda May 20, 2020 Page 2 of 4

5. Public Comment This is an opportunity for members of the public to address the Commission on any subject matter within the Commission’s jurisdiction.

CONSENT ITEMS

Consent Items 6 and 7 – Review and approve unless an item is removed for discussion and separate action. Consent items are to be routine and non-controversial.

6. Minutes of the Ventura LAFCo February 19, 2020 Meeting 7. Budget to Actual Reports: February, March, and April 2020

RECOMMENDED ACTION: Approval of Item 6, and Receive and File Item 7

PUBLIC HEARING ITEMS

8. LAFCo 20-04 Montalvo Community Services District Dissolution

The project involves the dissolution of the Montalvo Community Services District for the purpose of terminating its existence and ceasing of all of its corporate powers. A. Determine that the action to approve the request is exempt under California

Environmental Quality Act Guidelines § 15320; and B. Adopt resolution LAFCo 20-04 making determinations and approving the dissolution of

the Montalvo Community Services District. RECOMMENDED ACTION: Approval

9. Sphere of Influence Review for the Ventura County Resource Conservation District (VCRCD) Continue the hearing related to the review and/or update of the sphere of influence for the VCRCD for a period of three months. CONTINUED FROM OCTOBER 16, 2019, ITEM 9 RECOMMENDED ACTION: Continue

10. Review and Readopt the LAFCo Fee Schedule for the 2020-21 Fiscal Year

Determine that no changes to the current LAFCo Fee Schedule are necessary and adopt a resolution to readopt the existing LAFCo Fee Schedule for the 2020-21 fiscal year.

RECOMMENDED ACTION: Approval

11. LAFCo Proposed Budget Fiscal Year (FY) 2020-21

Adopt a resolution approving the Proposed Budget for FY 2020-21 and directing staff to transmit the Proposed Budget to the County, each city, and each independent special district.

RECOMMENDED ACTION: Approval

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May 20, 2020 Page 3 of 4

ACTION ITEMS

12. Audited Financial Statements for Fiscal Year Ended June 30, 2019

Receive and file the auditor’s Annual Financial Report for fiscal year ended June 30, 2019.

RECOMMENDED ACTION: Receive and File

13. Amendment to Ventura LAFCo Commissioner’s Handbook Related to Commissioners’ Terms of Office

A. Adopt a resolution to amend Ventura LAFCo Commissioner’s Handbook (Handbook) Section 1.1.3.2 (Term of Office) to establish January 1 as the inauguration date and December 31 as the expiration date for commissioners’ four-year terms; and

B. Waive a second meeting for consideration of the proposed policy amendment and resolution, pursuant to Handbook Section 1.3.9(a)(ii).

CONTINUED FROM FEBRUARY 19, 2020, ITEM 11 RECOMMENDATION A REQUIRES SIX VOTES RECOMMENDED ACTION: Approval

14. Proposed Adoption of Legislative Policies for 2020

Adopt a resolution that establishes legislative policies (i.e., a legislative platform) of the Commission for 2020. RECOMMENDED ACTION: Approval

CORRESPONDENCE RECEIVED Application Received: 20-05 City of Oxnard Reorganization – Rio Urbana EXECUTIVE OFFICER’S REPORT 15. Executive Officer’s Report on Anticipated Future Agenda Items

RECOMMENDED ACTION: Receive and File The next LAFCo meeting will be held on June 10, 2020. COMMISSIONERS’ COMMENTS ADJOURNMENT

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WEB ACCESS: LAFCo Agendas, Staff Reports and Adopted Minutes can be found at: www.ventura.lafco.ca.gov

Written Materials – Written materials relating to items on this Agenda that are distributed to the Ventura Local Agency Formation Commission within 72 hours before they are scheduled to be considered will be made available for public inspection at the LAFCo office, 801 S. Victoria Avenue, Suite 301, Ventura, CA 93003, during normal business hours. Such written materials will also be made available on the Ventura LAFCo website at www.ventura.lafco.ca.gov, subject to staff’s ability to post the documents before the meeting.

Public Presentations – Except for applicants, public presentations may not exceed five (5) minutes unless otherwise increased or decreased by the Chair, with the concurrence of the Commission. Any comments in excess of this limit should be submitted in writing at least 10 days in advance of the meeting date to allow for distribution to, and full consideration by, the Commission. Members of the public who wish to make audio-visual presentations must provide and set up their own hardware and software. Set up of equipment must be complete before the meeting is called to order. All audio-visual presentations must comply with the applicable time limit for oral presentations and thus should be planned with flexibility to adjust to any changes to the time limit established by the Chair. For more information about these policies, please contact the LAFCo office.

Quorum and Voting – The By-Laws for the Ventura LAFCo Commissioner’s Handbook provide as follows: 1.1.6.1 Quorum: Four (4) members shall constitute a quorum for the transaction of business, but a lesser number may adjourn from time to time. 1.1.6.2 Voting: Unless otherwise provided by law or these By-Laws, four affirmative votes are required to approve any proposal or other action. A tie vote, or any failure to act by at least four (4) affirmative votes, shall constitute a denial.

Americans with Disabilities Act – In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the LAFCo office (805) 654-2576. Notification 48 hours prior to the meeting will enable LAFCo to make reasonable arrangements to ensure accessibility to this meeting.

Disclosure of Campaign Contributions – LAFCo Commissioners are disqualified and are not able to participate in any proceeding involving an "entitlement for use" if, within the 12 months preceding the LAFCo decision, the Commissioner received more than $250 in campaign contributions from the applicant, an agent of the applicant, or any financially interested person who actively supports or opposes the LAFCo decision on the matter. Applicants or agents of applicants who have made campaign contributions totaling more than $250 to any LAFCo Commissioner in the past 12 months are required to disclose that fact for the official record of the proceeding.

Disclosures must include the amount of the contribution and the recipient Commissioner and may be made either in writing to the Clerk of the Commission prior to the hearing or by an oral declaration at the time of the hearing. The foregoing requirements are set forth in the Political Reform Act of 1974, specifically Government Code Section 84308.

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VENTURA LOCAL AGENCY FORMATION COMMISSION MEETING MINUTES

Wednesday, February 19, 2020

Ventura County Government Center

Hall of Administration, Board of Supervisors Hearing Room

800 S. Victoria Avenue, Ventura CA



Linda Parks Janice Parvin Elaine Freeman David J. Ross, Chair

John Zaragoza Carmen Ramirez, Vice-Chair Mary Anne Rooney





Agenda Item 6

1. Call to Order The meeting was called to order at 9:05 a.m.

2. Pledge of Allegiance

Commissioner Zaragoza led the pledge of allegiance. 3. Roll Call

The following Commissioners were present: Commissioner Bill-de la Peña Commissioner Freeman Commissioner Parvin Commissioner Zaragoza Chair Ross Alternate Commissioner Richards

Alternate Commissioner Bill-de la Peña sat as a voting member in the absence of city member Ramirez.

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4. Election of Officers for 2020 A. Elect a Chair for 2020. B. Elect a Vice-Chair for 2020.

Motion: Elect Carmen Ramirez as Chair Moved by Claudia Bill-de la Peña, seconded by Janice Parvin Vote: Motion carried 5-0 Yes: Claudia Bill-de la Peña, Elaine Freeman, Janice Parvin, John Zaragoza, and David J. Ross. Absent: Linda Parks and Mary Anne Rooney. Motion: Elect Mary Anne Rooney as Vice-Chair Moved by Elaine Freeman, seconded by Claudia Bill-de la Peña Vote: Motion carried 5-0 Yes: Claudia Bill-de la Peña, Elaine Freeman, Janice Parvin, John Zaragoza, and David J. Ross. Absent: Linda Parks and Mary Anne Rooney. Commissioner Ross served as Chair for the meeting in the absence of newly elected Chair Ramirez and Vice-Chair Rooney. 5. Agenda Review There were no changes to the agenda. 6. Commission Presentations and Announcements

A. Recognition of the reappointment of Linda Parks as a county member for a new four-year term ending January 1, 2024.

B. Recognition of the reappointment of Steve Bennett as the alternate county member for a new four-year term ending January 1, 2024.

C. Recognition of the reappointment of Janice Parvin as a city member for a new four-year term ending January 1, 2024.

D. Recognition of the reappointment of Claudia Bill-de la Peña as the alternate city member for a new four-year term ending January 1, 2024.

7. Public Comment There were no public comments.

CONSENT ITEMS 8. Minutes of the Ventura LAFCo October 16, 2019, Meeting 9. Budget to Actual Reports: October, November, and December of 2019, and January 2020 Motion: Approve Item 8 and Receive and File Item 9 Moved by Elaine Freeman, seconded by Janice Parvin Vote: Motion carried 5-0 Yes: Claudia Bill-de la Peña, Elaine Freeman, Janice Parvin, John Zaragoza, and David J. Ross. Absent: Linda Parks and Mary Anne Rooney.

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ACTION ITEMS

10. Memorandum of Understanding with LAFCo of Los Angeles County for the Exchange of Principal County Status for Determining Spheres of Influence Authorize the Chair to execute the Memorandum of Understanding for Exchange of Principal County Status for Sphere of Influence Changes. Kai Luoma presented the staff report.

Motion: Approve Moved by John Zaragoza, seconded by Elaine Freeman Vote: Motion carried 5-0 Yes: Claudia Bill-de la Peña, Elaine Freeman, Janice Parvin, John Zaragoza, and David J. Ross. Absent: Linda Parks and Mary Anne Rooney. 11. Amendment to Ventura LAFCo Commissioner’s Handbook Related to Commissioners’

Terms of Office A. Adopt a resolution to amend Ventura LAFCo Commissioner’s Handbook (Handbook)

Section 1.1.3.2 (Term of Office) to establish January 1 as the inauguration date and December 31 as the expiration date for commissioners’ four-year terms; and


RECOMMENDATION A REQUIRES SIX VOTES Motion: Continue the item to a future meeting Moved by John Zaragoza, seconded by Janice Parvin Vote: Motion carried 5-0 Yes: Claudia Bill-de la Peña, Elaine Freeman, Janice Parvin, John Zaragoza, and David J. Ross. Absent: Linda Parks and Mary Anne Rooney. 12. Transfer Funds from Contingencies Expense Account to Various Salaries and Employee

Benefits Expense Accounts Approve the transfer of $25,000 from Contingencies (account code 6101) to Salaries and Employee Benefits (various account codes).

Motion: Approve Moved by John Zaragoza, seconded by Janice Parvin Vote: Motion carried 5-0 Yes: Claudia Bill-de la Peña, Elaine Freeman, Janice Parvin, John Zaragoza, and David J. Ross. Absent: Linda Parks and Mary Anne Rooney. CORRESPONDENCE RECEIVED Applications Received: 20-01 OASA – City of Thousand Oaks – 1295 Mountain View Drive 20-02 OASA – City of Thousand Oaks – 348 Acacia Lane 20-03 OASA – City of Thousand Oaks – 364 Acacia Lane

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EXECUTIVE OFFICER’S REPORT 13. Executive Officer’s Report on Anticipated Future Agenda Items

The next LAFCo meeting will be held on March 18, 2020. No action was taken. COMMISSIONERS’ COMMENTS Commissioner Freeman inquired about the status of the Ventura Port District's planned mussel farm. Kai Luoma commented that the Ventura Port District is pursuing new legislation for its planned mussel farm. ADJOURNMENT Motion: Adjourn at 9:25 a.m. Moved by Janice Parvin, seconded by Elaine Freeman Vote: Motion carried 5-0 Yes: Claudia Bill-de la Peña, Elaine Freeman, Janice Parvin, John Zaragoza, and David J. Ross. Absent: Linda Parks and Mary Anne Rooney.

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Approved on this 20th day of May 2020. Motion: _____________________________________________________________________

Second: _____________________________________________________________________

Yes: _____________________________________________________________________

_____________________________________________________________________

No: _____________________________________________________________________

Abstain: _____________________________________________________________________

____________________ ________________________________________________________ Date Chair, Ventura Local Agency Formation Commission

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VENTURA LOCAL AGENCY FORMATION COMMISSION STAFF REPORT

Meeting Date: May 20, 2020

(Consent)









Agenda Item 7

TO: LAFCo Commissioners FROM: Kai Luoma, Executive Officer SUBJECT: Budget to Actual Reports – February, March, and April 2020

RECOMMENDATION: Receive and file the Budget to Actual Reports for February, March, and April 2020. DISCUSSION: Pursuant to the Commissioner’s Handbook policies, the Executive Officer is to provide monthly budget reports to the Commission as soon as they are available. The attached reports have been prepared with the assistance of the County Auditor-Controller staff. No adjustments to the budget are being recommended at this time. Attachments:

1. Budget to Actual Report, February 2020 2. Budget to Actual Report, March 2020 3. Budget to Actual Report, April 2020 4. Expenditures Descriptions

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Summary Budget Adj.Budget To Date

Estimated Sources 830,225 830,225 816,188

Appropriations 830,225 830,225 460,449

Total Variance

Account Proposed Adjusted Revenue/ Favorable

Number Title Budget Adjustments Budget Actual Encumbered Obligation (Unfavorable)

FUND BALANCE

Beginning Balance 618,694.25 618,694.25 618,694.25 618,694.25 -

5700 Committed 100,000.00 100,000.00 100,000.00 100,000.00 -

5995 Unassigned 368,694.25 368,694.25 368,694.25 368,694.25 -

5995 Unassigned - Appropriated 150,000.00 150,000.00 150,000.00 150,000.00 -

REVENUE

8911 Investment Income 8,000.00 - 8,000.00 6,160.51 6,160.51 (1,839.49) 77%

9371 Other Governmental Agencies 657,225.00 - 657,225.00 657,225.00 657,225.00 - 100%

9790 Miscellaneous Revenue 15,000.00 - 15,000.00 2,802.92 2,802.92 (12,197.08) 19%

Total Revenue 680,225.00 - 680,225.00 666,188.43 666,188.43 (14,036.57) 98%

TOTAL SOURCES 830,225.00 - 830,225.00 816,188.43 816,188.43 (14,036.57) 98%

EXPENDITURES

1101 Regular Salaries 390,000.00 - 390,000.00 261,638.43 - 261,638.43 128,361.57 67%

1106 Supplemental Payments 15,500.00 - 15,500.00 10,295.10 - 10,295.10 5,204.90 66%

1107 Terminations (Buydowns) 5,000.00 - 5,000.00 - - - 5,000.00 0%

1121 Retirement Contribution 93,500.00 - 93,500.00 51,229.80 - 51,229.80 42,270.20 55%

1122 OASDI Contribution 22,000.00 - 22,000.00 12,843.85 - 12,843.85 9,156.15 58%

1123 FICA Medicare 6,500.00 - 6,500.00 3,822.93 - 3,822.93 2,677.07 59%

1128 Retiree Health Payment 1099 - - - - - - - 0%

1141 Group Insurance 35,000.00 - 35,000.00 24,078.11 - 24,078.11 10,921.89 69%

1142 Life Insurance for Department Heads and Management 150.00 - 150.00 78.72 - 78.72 71.28 52%

1143 State Unemployment Insurance 300.00 - 300.00 126.41 - 126.41 173.59 42%

1144 Management Disability Insurance 3,000.00 - 3,000.00 1,701.02 - 1,701.02 1,298.98 57%

1165 Worker Compensation Insurance 3,300.00 - 3,300.00 1,978.40 - 1,978.40 1,321.60 60%

1171 401K Plan 12,200.00 - 12,200.00 8,296.10 - 8,296.10 3,903.90 68%

Salaries and Benefits 586,450.00 - 586,450.00 376,088.87 - 376,088.87 210,361.13 64%

2032 Voice Data ISF 3,000.00 - 3,000.00 2,273.57 - 2,273.57 726.43 76%

2033 Radio Communications ISF - 3,600.00 3,600.00 2,000.00 - 2,000.00 1,600.00 56%

2071 General Insurance Allocation ISF 1,900.00 - 1,900.00 954.00 - 954.00 946.00 50%

2114 Facilities and Materials Sq. Ft. Allocation ISF - - - 3,386.00 - 3,386.00 (3,386.00) 0%

2115 Facilities Projects ISF - - - - - - - 0%

2116 Other Maintenance ISF 10,000.00 - 10,000.00 1,785.24 - 1,785.24 8,214.76 18%

2131 Memberships and Dues 9,250.00 - 9,250.00 9,224.00 - 9,224.00 26.00 100%

2158 Cost Allocation Plan Charges 12,200.00 - 12,200.00 6,078.00 - 6,078.00 6,122.00 50%

2163 Books and Publications 500.00 - 500.00 49.95 - 49.95 450.05 10%

2164 Mail Center ISF 2,000.00 - 2,000.00 1,064.85 - 1,064.85 935.15 53%

2165 Purchasing Charges ISF 100.00 - 100.00 56.96 - 56.96 43.04 57%

2166 Graphics Charges ISF 500.00 - 500.00 - - - 500.00 0%

2167 Copy Machine Charges ISF 1,000.00 - 1,000.00 (143.89) - (143.89) 1,143.89 -14%

2168 Stores ISF 50.00 - 50.00 9.96 - 9.96 40.04 20%

2179 Miscellaneous Office Expenses 2,500.00 - 2,500.00 1,381.72 94.09 1,475.81 1,024.19 59%

2181 Board and Commission Member Compensation 1099 5,000.00 - 5,000.00 700.00 - 700.00 4,300.00 14%

2185 Attorney Services (County Counsel) 20,000.00 - 20,000.00 5,933.75 - 5,933.75 14,066.25 30%

2199 Other Professional and Specialized Non ISF 15,000.00 - 15,000.00 490.43 9,000.00 9,490.43 5,509.57 63%

2202 Information Tech ISF 3,600.00 - 3,600.00 1,316.71 - 1,316.71 2,283.29 37%

2203 County Geographical Information Systems Expense ISF 15,000.00 - 15,000.00 7,740.16 - 7,740.16 7,259.84 52%

2205 Public Works ISF Charges 3,000.00 - 3,000.00 - - - 3,000.00 0%

2206 Special Services ISF 100.00 - 100.00 45.00 - 45.00 55.00 45%

2221 Publications and Legal Notices 3,000.00 - 3,000.00 746.12 - 746.12 2,253.88 25%

2241 Building Leases and Rentals Non-County Owned 28,000.00 - 28,000.00 13,860.00 - 13,860.00 14,140.00 50%

2244 Storage Charges ISF 500.00 - 500.00 318.75 - 318.75 181.25 64%

2261 Computer Equipment < $5,000 - - - - - - - 0%

2262 Furniture and Fixtures < $5,000 2,000.00 - 2,000.00 - - - 2,000.00 0%

2272 Conferences / Seminars ISF (Training ISF) 500.00 - 500.00 - - - 500.00 0%

2273 Education Training Conferences and Seminars - - - - - - - 0%

2291 Private Vehicle Mileage 9,000.00 - 9,000.00 6,369.73 - 6,369.73 2,630.27 71%

2292 Travel Expenses (Conferences / Seminars) 20,000.00 (3,600.00) 16,400.00 9,363.17 - 9,363.17 7,036.83 57%

2303 Motorpool ISF 600.00 - 600.00 262.05 - 262.05 337.95 44%

Services and Supplies 168,300.00 - 168,300.00 75,266.23 9,094.09 84,360.32 83,939.68 50%

6101 Contingency 75,475.00 - 75,475.00 - - - 75,475.00 0%

TOTAL EXPENDITURES 830,225.00 - 830,225.00 451,355.10 9,094.09 460,449.19 369,775.81 55%

0.00

Note: Amounts with "( )" in the ACTUAL column reflect FY19 accruals in excess of actual expenditures/revenues to date.

BUDGET TO ACTUAL FY 2019-20

YEAR TO DATE ENDING FEBRUARY 29, 2020 (66.67% of year)

Fund O720, Division/Unit 6170

BUDGET ACTUAL YTD

11

122017

7-1



Appropriations 830,225 830,225 513,385

Total Variance



FUND BALANCE


5700 Committed 100,000.00 100,000.00 100,000.00 100,000.00 -

5995 Unassigned 368,694.25 368,694.25 368,694.25 368,694.25 -


REVENUE

8911 Investment Income 8,000.00 - 8,000.00 8,933.98 8,933.98 933.98 112%



Total Revenue 680,225.00 - 680,225.00 668,916.14 668,916.14 (11,308.86) 98%

TOTAL SOURCES 830,225.00 - 830,225.00 818,916.14 818,916.14 (11,308.86) 99%

EXPENDITURES

1101 Regular Salaries 390,000.00 19,729.00 409,729.00 293,802.83 - 293,802.83 115,926.17 72%

1106 Supplemental Payments 15,500.00 579.00 16,079.00 11,559.30 - 11,559.30 4,519.70 72%

1107 Terminations (Buydowns) 5,000.00 - 5,000.00 - - - 5,000.00 0%

1121 Retirement Contribution 93,500.00 3,642.00 97,142.00 57,574.74 - 57,574.74 39,567.26 59%

1122 OASDI Contribution 22,000.00 407.00 22,407.00 14,862.73 - 14,862.73 7,544.27 66%

1123 FICA Medicare 6,500.00 - 6,500.00 4,295.09 - 4,295.09 2,204.91 66%

1128 Retiree Health Payment 1099 - - - - - - - 0%

1141 Group Insurance 35,000.00 - 35,000.00 27,310.11 - 27,310.11 7,689.89 78%

1142 Life Insurance for Department Heads and Management 150.00 - 150.00 88.02 - 88.02 61.98 59%

1143 State Umeployment Insurance 300.00 - 300.00 142.41 - 142.41 157.59 47%

1144 Management Disability Insurance 3,000.00 32.00 3,032.00 1,901.58 - 1,901.58 1,130.42 63%

1165 Worker Compensation Insurance 3,300.00 54.00 3,354.00 2,221.65 - 2,221.65 1,132.35 66%

1171 401K Plan 12,200.00 557.00 12,757.00 9,316.23 - 9,316.23 3,440.77 73%

Salaries and Benefits 586,450.00 25,000.00 611,450.00 423,074.69 - 423,074.69 188,375.31 69%

2032 Voice Data ISF 3,000.00 - 3,000.00 2,554.63 - 2,554.63 445.37 85%

2033 Radio Communications ISF - 3,600.00 3,600.00 2,400.00 - 2,400.00 1,200.00 67%

2071 General Insurance Allocation ISF 1,900.00 - 1,900.00 954.00 - 954.00 946.00 50%

2114 Facillities and Materials Sq. Ft. Allocation ISF - - - 3,386.00 - 3,386.00 (3,386.00) 0%

2115 Facilities Projects ISF - - - - - - - 0%

2116 Other Maintenance ISF 10,000.00 - 10,000.00 1,785.24 - 1,785.24 8,214.76 18%

2131 Memberships and Dues 9,250.00 - 9,250.00 9,224.00 - 9,224.00 26.00 100%

2158 Cost Allocation Plan Charges 12,200.00 - 12,200.00 6,078.00 - 6,078.00 6,122.00 50%

2163 Books and Publications 500.00 - 500.00 132.59 - 132.59 367.41 27%

2164 Mail Center ISF 2,000.00 - 2,000.00 1,183.14 - 1,183.14 816.86 59%

2165 Purchasing Charges ISF 100.00 - 100.00 64.08 - 64.08 35.92 64%

2166 Graphics Charges ISF 500.00 - 500.00 - - - 500.00 0%

2167 Copy Machine Charges ISF 1,000.00 - 1,000.00 458.98 - 458.98 541.02 46%

2168 Stores ISF 50.00 - 50.00 15.61 - 15.61 34.39 31%

2179 Miscellaneous Office Expenses 2,500.00 - 2,500.00 1,462.75 71.87 1,534.62 965.38 61%

2181 Board and Commission Member Compensation 1099 5,000.00 - 5,000.00 950.00 - 950.00 4,050.00 19%

2185 Attorney Services (County Counsel) 20,000.00 - 20,000.00 5,933.75 - 5,933.75 14,066.25 30%

2199 Other Professional and Specialized Non ISF 15,000.00 - 15,000.00 490.43 9,000.00 9,490.43 5,509.57 63%

2202 Information Tech ISF 3,600.00 - 3,600.00 1,445.57 - 1,445.57 2,154.43 40%

2203 County Geographical Information Systems Expense ISF 15,000.00 - 15,000.00 8,673.83 - 8,673.83 6,326.17 58%

2205 Public Works ISF Charges 3,000.00 - 3,000.00 - - - 3,000.00 0%

2206 Special Services ISF 100.00 - 100.00 45.00 - 45.00 55.00 45%

2221 Publications and Legal Notices 3,000.00 - 3,000.00 746.12 - 746.12 2,253.88 25%

2241 Building Leases and Rentals Non-County Owned 28,000.00 - 28,000.00 16,170.00 - 16,170.00 11,830.00 58%

2244 Storage Charges ISF 500.00 - 500.00 356.59 - 356.59 143.41 71%

2261 Computer Equipment < $5,000 - - - - - - - 0%

2262 Furniture and Fixtures < $5,000 2,000.00 - 2,000.00 - - - 2,000.00 0%

2272 Conferences / Seminars ISF (Training ISF) 500.00 - 500.00 - - - 500.00 0%

2273 Education Training Conferences and Seminars - - - - - - - 0%

2291 Private Vehicle Mileage 9,000.00 - 9,000.00 7,102.44 - 7,102.44 1,897.56 79%

2292 Travel Expenses (Conferences / Seminars) 20,000.00 (3,600.00) 16,400.00 9,363.17 - 9,363.17 7,036.83 57%

2303 Motorpool ISF 600.00 - 600.00 262.05 - 262.05 337.95 44%

Services and Supplies 168,300.00 - 168,300.00 81,237.97 9,071.87 90,309.84 77,990.16 54%

6101 Contingency 75,475.00 (25,000.00) 50,475.00 - - - 50,475.00 0%

TOTAL EXPENDITURES 830,225.00 - 830,225.00 504,312.66 9,071.87 513,384.53 316,840.47 62%

0.00

Note: Amounts with "( )" in the ACTUAL column reflect FY19 accruals in excess of actual expenditures/revenues to date.


YEAR TO DATE ENDING MARCH 31, 2020 (75.0% of year)


BUDGET ACTUAL YTD

12

122017

7-2



Appropriations 830,225 830,225 573,329

Total Variance



FUND BALANCE


5700 Committed 100,000.00 100,000.00 100,000.00 100,000.00 -

5995 Unassigned 368,694.25 368,694.25 368,694.25 368,694.25 -


REVENUE

8911 Investment Income 8,000.00 - 8,000.00 11,707.45 11,707.45 3,707.45 146%



Total Revenue 680,225.00 - 680,225.00 675,389.61 675,389.61 (4,835.39) 99%

TOTAL SOURCES 830,225.00 - 830,225.00 825,389.61 825,389.61 (4,835.39) 99%

EXPENDITURES

1101 Regular Salaries 390,000.00 19,729.00 409,729.00 325,967.23 325,967.23 83,761.77 80%

1106 Supplemental Payments 15,500.00 579.00 16,079.00 12,823.50 12,823.50 3,255.50 80%

1107 Terminations (Buydowns) 5,000.00 - 5,000.00 - - 5,000.00 0%

1121 Retirement Contribution 93,500.00 3,642.00 97,142.00 63,919.68 63,919.68 33,222.32 66%

1122 OASDI Contribution 22,000.00 407.00 22,407.00 16,890.39 16,890.39 5,516.61 75%

1123 FICA Medicare 6,500.00 - 6,500.00 4,769.29 4,769.29 1,730.71 73%

1128 Retiree Health Payment 1099 - - - - - - 0%

1141 Group Insurance 35,000.00 - 35,000.00 30,542.11 30,542.11 4,457.89 87%

1142 Life Insurance for Department Heads and Management 150.00 - 150.00 97.32 97.32 52.68 65%

1143 State Umeployment Insurance 300.00 - 300.00 158.47 158.47 141.53 53%

1144 Management Disability Insurance 3,000.00 32.00 3,032.00 2,102.14 2,102.14 929.86 69%

1165 Worker Compensation Insurance 3,300.00 54.00 3,354.00 2,464.90 2,464.90 889.10 73%

1171 401K Plan 12,200.00 557.00 12,757.00 10,336.36 10,336.36 2,420.64 81%

Salaries and Benefits 586,450.00 25,000.00 611,450.00 470,071.39 - 470,071.39 141,378.61 77%

2032 Voice Data ISF 3,000.00 - 3,000.00 3,061.93 3,061.93 (61.93) 102%

2033 Radio Communications ISF - 3,600.00 3,600.00 2,800.00 2,800.00 800.00 78%

2071 General Insurance Allocation ISF 1,900.00 - 1,900.00 954.00 954.00 946.00 50%

2114 Facillities and Materials Sq. Ft. Allocation ISF - - - 3,386.00 3,386.00 (3,386.00) 0%

2115 Facilities Projects ISF - - - - - - 0%

2116 Other Maintenance ISF 10,000.00 - 10,000.00 1,785.24 1,785.24 8,214.76 18%

2131 Memberships and Dues 9,250.00 - 9,250.00 9,224.00 9,224.00 26.00 100%

2158 Cost Allocation Plan Charges 12,200.00 - 12,200.00 12,155.00 12,155.00 45.00 100%

2163 Books and Publications 500.00 - 500.00 142.58 142.58 357.42 29%

2164 Mail Center ISF 2,000.00 - 2,000.00 1,303.15 1,303.15 696.85 65%

2165 Purchasing Charges ISF 100.00 - 100.00 71.20 71.20 28.80 71%

2166 Graphics Charges ISF 500.00 - 500.00 - - 500.00 0%

2167 Copy Machine Charges ISF 1,000.00 - 1,000.00 535.36 535.36 464.64 54%

2168 Stores ISF 50.00 - 50.00 18.10 18.10 31.90 36%

2179 Miscellaneous Office Expenses 2,500.00 - 2,500.00 1,490.22 44.40 1,534.62 965.38 61%

2181 Board and Commission Member Compensation 1099 5,000.00 - 5,000.00 950.00 950.00 4,050.00 19%

2185 Attorney Services (County Counsel) 20,000.00 - 20,000.00 7,696.25 7,696.25 12,303.75 38%

2199 Other Professional and Specialized Non ISF 15,000.00 - 15,000.00 9,490.43 9,490.43 5,509.57 63%

2202 Information Tech ISF 3,600.00 - 3,600.00 1,574.43 1,574.43 2,025.57 44%

2203 County Geographical Information Systems Expense ISF 15,000.00 - 15,000.00 9,607.50 9,607.50 5,392.50 64%

2205 Public Works ISF Charges 3,000.00 - 3,000.00 - - 3,000.00 0%

2206 Special Services ISF 100.00 - 100.00 45.00 45.00 55.00 45%

2221 Publications and Legal Notices 3,000.00 - 3,000.00 746.12 746.12 2,253.88 25%

2241 Building Leases and Rentals Non-County Owned 28,000.00 28,000.00 18,480.00 18,480.00 9,520.00 66%

2244 Storage Charges ISF 500.00 - 500.00 394.43 394.43 105.57 79%

2261 Computer Equipment < $5,000 - - - - - - 0%

2262 Furniture and Fixtures < $5,000 2,000.00 - 2,000.00 - - 2,000.00 0%

2272 Conferences / Seminars ISF (Training ISF) 500.00 - 500.00 - - 500.00 0%

2273 Education Training Conferences and Seminars - - - - - - 0%

2291 Private Vehicle Mileage 9,000.00 - 9,000.00 7,677.44 7,677.44 1,322.56 85%

2292 Travel Expenses (Conferences / Seminars) 20,000.00 (3,600.00) 16,400.00 9,363.17 9,363.17 7,036.83 57%

2303 Motorpool ISF 600.00 - 600.00 262.05 262.05 337.95 44%

Services and Supplies 168,300.00 - 168,300.00 103,213.60 44.40 103,258.00 65,042.00 61%

6101 Contingency 75,475.00 (25,000.00) 50,475.00 - - 50,475.00 0%

TOTAL EXPENDITURES 830,225.00 - 830,225.00 573,284.99 44.40 573,329.39 256,895.61 69%

-

Note: Amounts with "( )" in the ACTUAL column reflect FY17 accruals in excess of actual expenditures to date


YEAR TO DATE ENDING APRIL 30, 2020 (83.33% of year)


BUDGET ACTUAL YTD

13

122017

7-3

Account

Code

Services and Supplies Explanation of Services

2032 Voice/Data ISF Telephone / FAX services, voice and data network access.

2033 Radio Communications ISF Radio communication and equipment services - microwave express

2071 General Insurance Allocation ISF Liability and general insurance.

2114 Facilities and Materials SQ FT Allocation ISF Custiodial services, facility maintenance, utilities, and special services,

including security (based on square footage).

2115/

2116

Facilities Projects ISF / Other Maintenance Management of facility projects & repairs: heating/air conditioning,

lighting, plumbing, roofing, flooring, painting, etc.

2131 Memberships and Dues CALAFCO and American Planning Association.

2158 Cost Allocation Plan Charges Building use, equipment/software use, general County services:

payroll, financial, business technology, County Counsel, and human

resources.

2163 Books and Publications Newspaper subscription, miscellaneous publications (CEQA,

planning/land use, etc.)

2164 Mail Center ISF Incoming and outgoing U.S. mail and internal brown mail.

2165 Purchasing Charges ISF Procurement services for processing purchase orders, verifying

licenses and insurance coverage, and procurement credit card.

2166 Graphics Charges ISF Printing services for large volume print jobs.

2167 Copy Machine Chgs ISF Metered copies for printing large volume print jobs.

2168 Stores ISF Warehousing and distribution services of surplus inventory.

2179 Miscellaneous Office Expenses Miscellaneous office supplies.

2181 Board and Commission Member Compensation Commission stipend payments.

2185 Attorney Services (County Counsel) County Counsel charges.

2199 Other Professional and Specialized Non ISF

(Independant Auditors and County Accounting

Services)

Independent auditor and County auditing services.

2202 Information Tech ISF MS Office licensing, email, network storage, and IT support.

2203 County Geographical Information Systems (GIS)

Expense ISF

GIS Allocation, GIS services: map preparation & printing, and website

hosting.

2205 Public Works ISF Charges Surveyor updates to LAFCo maps, public inquiries charged to LAFCo.

2206 Special Services ISF Security guard, permit parking, conference room reservations, audio-

visual equipment requests, I.D. badges, etc.

2221 Publications and Legal Notices Public hearing notices published in newspaper.

2241 Building Leases and Rentals Non-County Owned Rent for LAFCo office space

2244 Storage Charges ISF Off-site record storage and retrieval (hard copies).

2261 Computer Equipment < $5,000 Computer equipment under $5,000.

2262 Furniture and Fixtures < $5,000 Furniture and fixtures under $5,000.

2272 Conferences/Seminars ISF (Training ISF) County-offered training classes.

2273 Education Conference and Seminars Tuition and textbook reimbursement.

2291 Private Vehicle Mileage Mileage reimbursement and auto allowance.

2292 Travel Expense (Conferences / Seminars) Expenses for CALAFCO conferences and workshops.

2303 Motorpool ISF Use of County vehicle for official business.

EXPENDITURES

14

122017

7-4











Agenda Item 8

LAFCo Case: LAFCo 20-04 Montalvo Community Services District Dissolution. Project: The project involves the dissolution of the Montalvo Community Services District (MCSD or District) for the purpose of terminating its existence and ceasing of all of its corporate powers. Size: Approximately 322 acres (½ square mile). Location: The proposal area (i.e., the District’s jurisdictional area) is located entirely within the City of San Buenaventura (City) in the southern central region of the City. It includes Victorian Park Mobile Home Park (west of Victoria Avenue) at its westernmost point, and is otherwise bounded, generally, by Moon Drive and Crowley Avenue to the north, Harmon Barranca to the east, and Highway 101 to the south, excepting some land within that general area and including some territory surrounding it (see map above). Proponent: MCSD, by resolution. Notice: This matter has been noticed as prescribed by law. Recommendations: A. Determine that the action to approve the request is exempt under California Environmental

Quality Act (CEQA) Guidelines § 15320; and B. Adopt resolution LAFCo 20-04 making determinations and approving the dissolution of the

Montalvo Community Services District (Attachment 1).

15

LAFCo 20-04 Montalvo Community Services District – Dissolution May 20, 2020 Page 2 of 7

Project Description: Background: The MCSD is an independent district that was formed in 1955 as the Montalvo Municipal Improvement District to provide wastewater collection and treatment service to the then-unincorporated community of Montalvo located south of the City along the Highway 101 corridor. The Montalvo community has been incrementally annexed to the City over a period of many years, and as of 2013 is located entirely within the City. Pursuant to the Agreement Between the City of San Buenaventura and the Montalvo Community Services District for Closure of the MCSD Wastewater Treatment Plant and the Extension of Olivas Park Drive (dated January 26, 2015, and amended on October 21, 2016), the City assumed the District’s wastewater treatment responsibilities in February 2016 after installing infrastructure to connect to the District’s collection system. Consistent with this agreement, on September 16, 2015, LAFCo took several actions, including annexation to the City of the parcel containing the MCSD’s treatment plant. The District’s treatment facility was decommissioned in March 2016 and demolished in May 2016 to accommodate the planned road realignment of Olivas Park Drive and Johnson Drive (immediately north of the Santa Clara River and south of the Ventura Auto Center). The City has since assumed wastewater collection, utility billing, and service fee collection responsibilities from the District. LAFCo staff met with representatives of the District and City on January 29, 2020, and confirmed that the District no longer has a function or serves a purpose. On February 26, 2020, the District’s Board of Directors adopted a resolution of application, requesting that LAFCo initiate proceedings to dissolve the District (Attachment 2). Prior to or in connection with the District’s dissolution, the City anticipates acquisition of the District’s wastewater collection system and all related easements. Upon District dissolution, all remaining District assets will be transferred to the City. Request:

In March 2020, the MCSD submitted an application to LAFCo, requesting that LAFCo initiate proceedings to dissolve the District, and provided a plan for services. City staff has documented its support of the dissolution of the MCSD and its acceptance of the role of successor to the District (Attachment 3). General Analysis:

Government Code § 56668 identifies several factors that the Commission must consider as part of its review of a change of organization proposal. These factors are discussed as follows:

16

LAFCo 20-04 Montalvo Community Services District – Dissolution

May 20, 2020 Page 3 of 7

1. Land Use and Population (Government Code §§ 56668(a), 56668(g), and 56668(o))

Land Area, Land Use, and Consistency with Plans

The proposal area contains land designated by the City’s General Plan as Neighborhood Low up to 8 Units/Acre, Neighborhood Medium 9-20 Units/Acre, Commerce, Industry, Public/Institutional, and Parks and Open Space. Parcels within the proposal area are designated for a variety of residential, commercial, industrial and “urban general” uses, and existing development is consistent with these designations.

Dissolution of the District would not affect surrounding zoning or General Plan designations. The City establishes the allowable land uses for territory within its jurisdiction. Based on application materials submitted, it appears that the proposed dissolution would have no impact on existing or proposed development and is consistent with the City’s General Plan. Likelihood of Growth in the Area

The proposal area is located within the City and is, for the most part, developed. Except for the area surrounding the realignment of Olivas Park Drive and Johnson Drive in the southeast portion of the proposal area (between the Ventura Auto Center and the Santa Clara River) where future commercial development is expected, there are very limited opportunities for additional growth within this area. Topography, Natural Features and Drainage

The proposal area is relatively flat, and is bordered to the east by Harmon Barranca and to the south by the Santa Clara River. Population

According to the County Registrar of Voters, there are 1,115 registered voters who reside within the proposal area. As such, the proposal area is considered to be inhabited, pursuant to Government Code § 56046. Regional Transportation Plan

LAFCo staff did not identify any conflicts of the proposal related to the contents of the Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS) (adopted by the Southern California Association of Governments in 2016).

17


2. Services and Controls – Need, Cost, Adequacy and Availability (Government Code §§ 56668(b), 56668(k), and 56668(l))

The City has assumed all responsibilities of the District, including operational services (e.g., wastewater collection and treatment) and administrative/management services (e.g., utility billing and collection of service fees). The City currently treats the approximately 220,000 gallons per day (gpd) of wastewater generated within the District’s boundaries. The capacity of the City’s wastewater treatment facility is 14 million gpd and it currently treats an average of approximately 7.5 million gpd; therefore, the City has the ability to continue to provide wastewater treatment service within the area previously served by the District. The proposed dissolution is a formal acknowledgment that the District no longer has a function or serves a purpose. The proposal area is located entirely within the City and receives City services.

3. Effect of Proposed Action and Alternative Actions (Government Code § 56668(c)) Staff has not identified any effects of the proposal on adjacent areas, mutual social and economic interests, or the local government structure of the County.

4. Conformity with Adopted Commission Policies (Government Code § 56668(d))

While the proposal is not entirely consistent with Ventura LAFCo Commissioner’s Handbook (Handbook) Sections 3.1.4.2 and 3.1.4.3 (which provide that: (1) the boundaries of a proposal shall follow lines of assessment or ownership and (2) a proposal shall involve only legal lots), these factors are irrelevant in this case because the proposed dissolution would result in the elimination of any inconsistencies between parcel boundaries and jurisdictional boundaries. The proposal is otherwise consistent with the Commission policies for changes of organization that are contained in the Handbook.

5. Impact on Prime Agricultural Land and Agriculture and Open Space (Government Code §§ 56668(d), 56668(e), and 56377)

In evaluating impacts to agricultural and open space resources, LAFCo must apply the definition of prime agricultural land found in LAFCo law (Government Code § 56064) and the definition of open space found in LAFCo law (Government Code § 56059). The proposal area, located entirely within the City, does not meet the definition of prime agricultural land and contains approximately 4.5 acres of open space land consisting of Harmon Barranca (most of which is owned by the City and the Ventura County Watershed Protection District). The dissolution of the MCSD would eliminate the existence of an agency that provides no services and has no function; therefore, the dissolution would have no impact on open space territory within its existing jurisdiction. Based on the information above, implementation of the proposal would not result in the conversion of prime agricultural or open space land.

18


May 20, 2020 Page 5 of 7

6. Boundaries of the Territory (Government Code § 56668(f))

A map of the territory affected by the proposed dissolution (i.e., a map of the existing boundaries of the District) is provided as Exhibit A to Attachment 1.

7. Applicable Spheres of Influence (Government Code § 56668(i))

The entire proposal area is located within the City’s jurisdictional boundaries and sphere of influence. The proposal area is also within the spheres of influence of the Fox Canyon Groundwater Management Agency, Gold Coast Transit District, United Water Conservation District, Ventura County Fire Protection District, Ventura County Resource Conservation District, Ventura County Service Area Nos. 14 and 32, Ventura County Watershed Protection District, Ventura Port District, and Ventura Regional Sanitation District. The dissolution of the MCSD would not result in any changes to the spheres of influence of any local agency.

8. Regional Housing Needs (Government Code § 56668(m))

As the proposal involves the dissolution of the MCSD and the formal reassignment of wastewater collection and treatment services within the MCSD’s service area to the City, it would have no bearing on the City’s ability to meet its regional housing needs obligation. No changes in land use designations or development opportunities would occur as a result of the proposal.

9. Environmental Justice (Government Code § 56668(p))

Approval of the proposal would not result in the unfair treatment of any person based on race, culture or income with respect to the provision of municipal services to the proposal area. Staff did not identify any issues regarding environmental justice.

10. Comments and Additional Information (Government Code §§ 56668(j) and 56668(n))

As of the date of this report, no information or comments have been submitted by any affected local agency or other public agency, landowners, voters, or residents of the affected territory.

California Environmental Quality Act (CEQA): When it adopted a resolution requesting that LAFCo initiate proceedings to dissolve the MCSD, the Board of Directors determined that the project was exempt from the California Environmental Quality Act (CEQA) pursuant to § 15320 of the CEQA Guidelines (Changes in Organization of Local Agencies) because the project would not result in a change in the geographical area in which previously existing powers are exercised; in other words, the City is

19


already providing wastewater collection and treatment services (and associated administrative and management services) for which the MCSD was previously responsible. Staff recommends that the Commission find that the requested dissolution is exempt from CEQA pursuant to CEQA Guidelines § 15320 for the reasons described above. The draft resolution contains a finding that the proposed dissolution is exempt from CEQA. Commission Proceedings – Process Considerations:

Public Hearing Notice: Pursuant to Government Code § 56658(h), the Commission’s actions associated with a request for a change of organization must be taken at a public hearing. Government Code § 56156 requires that mailed notice of a hearing shall be provided at least 21 days prior to the date of the hearing. Government Code § 56157 allows a ⅛-page advertisement to be placed in a newspaper of general circulation instead of mailed notice if the total number of required mailed notices (i.e., to landowners and registered voters) exceeds 1,000. The proposal area contains 669 Assessor’s parcels. According to the County Registrar of Voters, the proposal area contains 1,115 registered voters. As the required number of mailed notices exceeds 1,000, LAFCo provided notice by means of publishing a ⅛-page notice in the Ventura County Star (a newspaper of general circulation) on April 26, 2020, posting on the Ventura LAFCo website and outside the main entrance of the Ventura County Government Center Hall of Administration, and e-mail to the affected local agencies. Conducting Authority: The proposed change of organization may be subject to conducting authority proceedings, otherwise known as protest proceedings (Government Code § 57000 et seq.). However, pursuant to Government Code § 57077.1(c), if a proposed dissolution of a district is initiated by the district’s board of directors and is consistent with a prior action of LAFCo (e.g., adoption of written determinations in a municipal service review), the Commission may immediately approve and order the dissolution without an election or protest proceedings. In the Ventura LAFCo Water and Wastewater Municipal Service Review Report (2004 MSR) accepted by the Commission on December 12, 2003, the Commission: (1) acknowledged that reorganization between the City and District was recommended in both the 1972 Special Districts Study and 2001 Special Districts Study prepared by LAFCo (page 94 of the 2004 MSR), and (2) recommended dissolution of the District and designation of the City as the successor1 agency for the purposes of winding up the affairs of the District. The Commission determined that the City should examine the potential advantages of reorganizing with the District (page B-17 of the

1 Because the District is located entirely within the incorporated territory of a single city (i.e., the City of San Buenaventura), the City is the successor for the purpose of winding up the affairs of the dissolved District (Government Code § 57451(a)).

20


May 20, 2020 Page 7 of 7

2004 MSR) and that the District should analyze the economic and financial impacts of reorganization with the City (page B-28 of the 2004 MSR). The draft resolution approving the dissolution contains appropriate language to waive protest proceedings (Attachment 1). If the Commission does not waive protest proceedings, LAFCo must publish notice of the date and time of a protest hearing within 35 days of the Commission’s hearing. Pursuant to Handbook Section 2.5.1, the Commission has delegated the conducting authority functions and responsibilities to the Executive Officer. Alternative Actions Available: A. If the Commission, following public testimony and review of the materials submitted,

determines that further information is necessary, an action to continue the hearing should include the specific information desired and specify that further Commission consideration occur at a future date.

B. If the Commission, following public testimony and review of the materials submitted, determines that the proposal should be approved subject to any changes or additions to the terms and conditions recommended, an action to approve should clearly specify any changes or additions to the terms and conditions of approval.

C. If the Commission, following public testimony and review of materials submitted, wishes to deny or modify the proposal, the action should include direction that the matter be continued to the next meeting and that staff prepare a new report consistent with the evidence submitted and the anticipated decision.

BY: _____________________________

Andrea Ozdy Deputy Executive Officer

Attachments: 1. LAFCo 20-04 Resolution 2. MCSD Resolution (February 26, 2020) 3. Letter from City of San Buenaventura (March 3, 2020)

LAFCo makes every effort to offer legible map files with the online and printed versions of our reports; however, occasionally the need to reduce oversize original maps and/or other technological/software factors can compromise readability. Original maps are available for viewing at the LAFCo office by request.

21

LAFCO 20-04

RESOLUTION OF THE VENTURA LOCAL AGENCY FORMATION COMMISSION MAKING DETERMINATIONS AND

APPROVING THE DISSOLUTION OF THE MONTALVO COMMUNITY SERVICES DISTRICT

WHEREAS, the above-referenced proposal has been filed with the Executive Officer of

the Ventura Local Agency Formation Commission pursuant to the Cortese-Knox-Hertzberg Local

Government Reorganization Act of 2000 (Section 56000 of the California Government Code);

and

WHEREAS, notice was provided at the times and in the manner required by law; and

WHEREAS, the proposal was duly considered on May 20, 2020; and

WHEREAS, the Commission heard, discussed, and considered all oral and written

testimony for and against the proposal including, but not limited to, the LAFCO Staff Report

including the staff recommendation and recommended exemption from the California

Environmental Quality Act (CEQA); and

WHEREAS, all landowners within the affected territory have not consented to the

proposal; and

WHEREAS, evidence has been provided to the Commission that the affected territory

contains more than 12 registered voters and is considered inhabited as defined by Government

Code § 56046; and

WHEREAS, the Ventura Local Agency Formation Commission finds the proposal to be in

the best interest of the landowners and present and future inhabitants within the affected

territory, and the organization of local governmental agencies within Ventura County.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Ventura Local

Agency Formation Commission as follows:

(1) The Board of Directors of the Montalvo Community Services District has

consented to the dissolution of the District by resolution.

(2) The affected territory is inhabited as defined by Government Code § 56046.

(3) The LAFCO Staff Report and recommendation for approval of the proposal dated

May 20, 2020, are adopted.

Attachment 1

22

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8-1

LAFCO 20-04 Montalvo Community Services District – Dissolution Resolution of Approval May 20, 2020 Page 2 of 4

(4) In concurrence with the Executive Officer’s determination, the Commission

hereby finds the change of organization to be exempt from the California

Environmental Quality Act (CEQA) pursuant to § 15320 of the CEQA Guidelines.

(5) The Commission directs staff to file a Notice of Exemption pursuant to § 15062

of the CEQA Guidelines.

(6) The dissolution of the Montalvo Community Services District, with boundaries as

generally set forth in the attached Exhibit A, is hereby approved and ordered

without an election or protest proceedings pursuant to Government Code

§ 57077.1(c).

(7) The subject proposal is assigned the following distinctive short form designation:

LAFCO 20-04 MONTALVO COMMUNITY SERVICES DISTRICT DISSOLUTION.

(8) Upon the effective date of the dissolution, the Montalvo Community Services

District is dissolved, its existence is terminated and all of its corporate powers

shall cease.

(9) The City of San Buenaventura shall be the designated successor agency to all

rights, responsibilities, properties, equipment, contracts, assets, liabilities,

obligations, powers, and duties of the Montalvo Community Services District

pursuant to Government Code § 57451(a) for the purpose of winding up the

affairs of the District as specified in Government Code § 57453. Upon the

effective date of dissolution, control over all of the District’s moneys or funds,

including cash on hand and any moneys due but uncollected, and all property,

real or personal, is vested with the City for the purpose of winding up the affairs

of the District pursuant to Government Code §§ 57452, 57455, and 57456.

Subject to the provisions of Government Code § 57463, any funds, money, or

property of the District may be used by the City for the purpose of winding up

the affairs of the District and, after distribution to the City, may be used for any

lawful purpose of the City. So far as may be practicable, the funds, money, or

23

LAFCO 20-04 Montalvo Community Services District – Dissolution Resolution of Approval

May 20, 2020 Page 3 of 4

property shall be used for the benefit of the lands, inhabitants, and taxpayers

within the territory of the dissolved district.

(10) Pending the issuance and recordation of a Certificate of Completion the District

shall not: i) approve any increase in compensation or benefits for members of

the governing board, its officers, or the executive officer of the agency; or

ii) appropriate, encumber, expend, or otherwise obligate, any revenue of the

District beyond that provided in the current budget at the time the dissolution is

approved by the Commission; or iii) hire any staff or contractors.

(11) The subject territory is not subject to any bonded indebtedness of the District.

(12) This change of organization shall not be recorded until all LAFCO fees have

been paid to the Executive Officer.

24

LAFCO 20-04 Montalvo Community Services District – Dissolution Resolution of Approval May 20, 2020 Page 4 of 4

This resolution was adopted on May 20, 2020.

AYE NO ABSTAIN ABSENT

Commissioner Freeman

Commissioner Parks

Commissioner Parvin

Commissioner Ramirez

Commissioner Rooney

Commissioner Ross

Commissioner Zaragoza

Alt. Commissioner Bennett

Alt. Commissioner Bill-de la Peña

Alt. Commissioner Curtis

Alt. Commissioner Richards

____________________ ____________________________________________________ Date Chair, Ventura Local Agency Formation Commission Attachment: Exhibit A c: Montalvo Community Services District City of San Buenaventura Ventura County Assessor Ventura County Auditor/Controller Ventura County Surveyor Ventura County Planning Division Ventura County Elections – Registrar of Voters

25

MOON DR

LAFCo 20-04Montalvo Community Services DistrictDissolutionMay 20, 2020

CROWLEY AVE

BRISTOL RD

JOHNSON DRHIGHWAY 101VIC

TORIA

AVE Harmon Barranca

Santa ClaraRiver

I

Montalvo Community Services DistrictCity of San Buenaventura

Montalvo Community Services DistrictCity of

San Buenaventura

OLIVAS PARK DR

0 0.4Miles

26

122017

8-1-A

27

122017

8-2

28

29

122017

8-3







Alternate: Alternate: Alternate: Alternate:




TO: LAFCo Commissioners FROM: Andrea Ozdy, Deputy Executive Officer SUBJECT: Sphere of Influence Review for the Ventura County Resource Conservation District

Recommendation:

Continue the hearing related to the review and/or update of the sphere of influence for the Ventura County Resource Conservation District (VCRCD or District) for a period of three months.

Discussion:

The VCRCD provides technical, financial, and educational assistance to help both rural and urban communities to conserve, protect, and restore soil, water and related natural resources. It focuses on agricultural preservation, open space advocacy, outreach and education on water resources, watershed protection and restoration, and control and eradication of invasive species. In 2017, prompted by concerns related to the then-recently-exposed financial instability of the VCRCD, the Ventura County Board of Supervisors considered whether to continue in Fiscal Year (FY) 2017-18 its historical annual $38,000 contribution to the VCRCD. The Board of Supervisors voted to withhold the County contribution for FY 2017-18, and expressed the intent to monitor the status of the VCRCD and potentially reinstate contributions in the future. At its October 2019 meeting, the Commission continued the subject sphere review for a period of six months to: (1) await the outcome of an anticipated review of the District by the Board of Supervisors in November 2019, and (2) provide additional time for staff to evaluate potential changes to the District’s sphere to reflect that resource conservation districts for which Los Angeles LAFCo is the principal LAFCo contain territory within Ventura County. Since the October 2019 LAFCo meeting, the Board of Supervisors has not re-evaluated the District as anticipated, and District staff has expressed interest in pursuing annexation of Ventura County’s

Agenda Item 9

30

Staff Report – Sphere of Influence Review Ventura County Resource Conservation District May 20, 2020 Page 2 of 2

cities to the District. Staff recommends that the Commission provide an additional three-month continuance for the aforementioned items to be considered as part of LAFCo’s sphere of influence review.

31











Agenda Item 10

TO: LAFCo Commissioners FROM: Kai Luoma, Executive Officer SUBJECT: Review and Readopt the LAFCo Fee Schedule for the 2020-21 Fiscal Year

Recommendation: Determine that no changes to the current LAFCo Fee Schedule are necessary, and adopt the attached resolution to readopt the existing LAFCo Fee Schedule for the 2020-21 fiscal year. Background: Pursuant to Section 2.3.3.1 of the Commissioner’s Handbook, the Commission is to annually review the LAFCo Fee Schedule as a part of the budget process. The LAFCo Fee Schedule was adopted by the Commission on June 9, 2010, and became effective July 1, 2010. It was readopted in 2011, 2012, 2013, and 2014. In 2015, the Commission adopted an updated fee schedule, which resulted in two changes for the 2015-16 fiscal year (a $5/hour increase in the LAFCo staff composite rate charged to applicants and a $100 increase in the non-refundable administrative fee), for a new composite rate of $155 per hour. LAFCo’s fee schedule has remained unchanged since the 2015-16 fiscal year. Application fees cover only the costs associated with processing applications. Fees are based on actual processing costs plus the costs of necessary indirect and administrative functions, and do not exceed the estimated reasonable costs of providing services. They do not typically apply to other types of LAFCo-mandated functions (e.g., the preparation of municipal service reviews and sphere of influence updates). The majority of LAFCo staff time is spent on LAFCo-mandated work that is not defrayed by application fees. As such, application fee revenue provides a relatively small portion of LAFCo’s total revenue. Over the past 15 years, revenue from applications has ranged from approximately 2.5% to 16.8% of total revenue, depending on the number and complexity of the applications processed.

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LAFCo Adoption of Fee Schedule for the 2020-21 Fiscal Year May 20, 2020 Page 2 of 2

Discussion: LAFCo staff recommends that no changes be made to the existing LAFCo Fee Schedule for the 2020-21 fiscal year. Historically, the LAFCo staff composite rate component of the Fee Schedule has been comparable to the Planning Division hourly rate charged by the County of Ventura Resource Management Agency for planners’ time spent processing land use entitlement applications. The Planning Division hourly rate for the 2019-20 fiscal year is $163.39 per hour (which includes a base rate of $135.64 plus various surcharges)1. The LAFCo staff composite rate is currently $155 per hour and is therefore $8.39 per hour less than the current Planning Division rate. Staff does not recommend increases in the LAFCo staff composite rate or administrative fee amounts because: (1) the existing composite rate remains comparable to the current Planning Division rate, and (2) the current fee structure sufficiently covers LAFCo’s costs to process applications. As indicated above, fee revenue comprises a relatively small percentage of LAFCo’s total revenue, so the overall budgetary impact of maintaining fees at existing amounts (compared to increasing the fees) would not be significant. This item has been publicly noticed as prescribed by law. Attachments:

1. Current LAFCo Fee Schedule 2. Resolution Readopting the LAFCo Fee Schedule for the 2020-21 Fiscal Year

1 Resource Management Agency staff has not yet established a proposed hourly rate for planners for FY 2020-21.

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RESOLUTION OF THE VENTURA LOCAL AGENCY FORMATION COMMISSION

READOPTING THE LAFCo FEE SCHEDULE

WHEREAS, California Government Code Section 56383 allows for a Local Agency

Formation Commission to establish a schedule of fees for the costs of proceedings; and

WHEREAS, Section 2.3.3.1(a) of the Commissioner’s Handbook provides that the

Commission will review its fee schedule annually as part of the annual budget process; and

WHEREAS, the Commission adopted a fee schedule on June 9, 2010; readopted it on April

20, 2011, April 18, 2012, April 17, 2013, and April 16, 2014; modified it on April 22, 2015; and

readopted it on April 20, 2016, April 19, 2017, April 18, 2018, and April 17, 2019; and

WHEREAS, the Commission determines that fees should be based on actual processing

costs plus indirect and administrative costs; and

WHEREAS, the Executive Officer gave notice of this matter in the manner required by

law; and

WHEREAS, the Commission discussed and considered all oral and written testimony for

and against this matter including, but not limited to, the LAFCo Staff Report and

recommendation; and

WHEREAS, the Commission duly considered the matter on May 20, 2020.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the Ventura Local

Agency Formation Commission as follows:

(1) The fee schedule set forth in Exhibit A attached hereto is hereby readopted, and

will become effective on July 1, 2020.

(2) The fees set forth in Exhibit A attached hereto do not exceed the estimated

reasonable costs of providing the services for which the fees are charged, and are

necessary to pay the costs of operation of the Ventura Local Agency Formation

Commission.

(3) The Executive Officer is directed to notify all cities and all special districts in

Ventura County of this action by July 1, 2020.

Att. 2

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Readoption of Fee Schedule for the 2020-21 Fiscal Year May 20, 2020 Page 2 of 2

This resolution was passed and adopted on May 20, 2020.

AYE NO ABSTAIN ABSENT Commissioner Freeman

Commissioner Parks

Commissioner Parvin


Commissioner Rooney

Commissioner Ross






_______________________ _______________________________________________________ Date Chair, Ventura Local Agency Formation Commission

Attachment: Exhibit A

Copies: Ventura County Cities Ventura County Special Districts County Executive Office

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VENTURA LOCAL AGENCY FORMATION COMMISSION 801 S. VICTORIA AVENUE, SUITE 301 ⚫ VENTURA, CA 93003

TEL (805) 654-2576 ⚫ FAX (805) 477-7101

VENTURA.LAFCO.CA.GOV

Page 1 of 2

Att. 2, Ex. A

FEE SCHEDULE Readopted on May 20, 2020

Effective July 1, 2020

Fees and deposits are charged and accounted for as described in the Ventura LAFCo Fee and Billing Policies. Each application or petition to LAFCo must be accompanied by payment of the Administrative Fee and the Initial Deposit set forth below. All LAFCo staff time and legal counsel time spent on the proposal shall be billed to the applicant or petitioner at the hourly rates set forth below, and shall be paid from the deposit, with the exception of deposits for incorporation proposals (see below). If the hourly charges exceed the amount of the deposit, the applicant or petitioner shall pay the excess within 15 days of receipt of a statement from LAFCo. Failure to pay may be cause for denial of the application/petition, and no proceeding or proposal shall be completed until all fees due have been paid in full.

TYPE OF ACTION Administrative Fee

(Non Refundable) Deposit Required

(Initial) Total Initial

Payment

Changes of Organization or

Reorganizations1

Annexation to, or

detachment from, a city or district

Does NOT require conducting authority protest proceedings2

$1,850 $1,800 $3,650

Requires, or may require, conducting authority protest proceedings3

$1,850 $3,600 $5,450

Special District - Consolidation, Merger, Dissolution, or Formation of a Subsidiary District

$1,850 $4,500 $6,350

Expansion of Special District Powers $1,850 $1,800 $3,650

Special District Formation $1,850 $5400 $7,250

City Incorporation4 $5,000 $25,000 $30,000

Changes to Spheres of Influence5

Update (filed separately from a change of organization or reorganization)

$1,850 $3,600 $5,450

Amendment (filed in conjunction with a Change of Organization or Reorganization)

$1,850 $900 $2,750

Out of Agency Service

Agreements

Administrative Action

Determination $450 $450

Time Extension $450 $450

Commission Action Determination $1,850 $1,800 $3,650

Time Extension $450 $600 $1,050

Other Actions

Extension of Time Request to Complete Proceedings $1,850 $900 $2,750

Reconsideration Request $1,850 $900 $2,750

Amendment to, Waiver of, or Establishment of New LAFCo Policy

$1,850 $900 $2,750

Fee Waiver or Reduction of Fee Request $600 $600

Other Requests for Commission Action – Administrative fee plus actual time

$450 $450

Pre-application Review and Meetings - 3 hour minimum plus additional actual time in excess of 3 hours - due at time of scheduling)

$450 $450

1 Fee amounts apply regardless of number of agencies involved. 2 Area is uninhabited and all owners and subject agencies consent to the proposal. 3 Area is inhabited or uninhabited and all owners and/or subject agencies do not consent to the proposal. 4 For incorporations, the application deposit shall be held in trust until all outstanding charges are paid and LAFCo proceedings are completed. No LAFCo charges associated with the processing of an incorporation application may be paid from the deposit; the applicant shall be provided with a monthly invoice starting from the date of application submittal in accordance with the applicable LAFCo fee agreement. 5 Fee amounts apply regardless of number of agencies involved.

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Page 2 of 2

LAFCo TIME BILLING RATES

LAFCo staff composite rate $155/hour

LAFCo legal counsel rate Actual Costs

NON-LAFCo FEES

Fees & Charges Related to LAFCo Actions

FEES APPLICANT/PETITIONER SHALL PAY:

Mapping fees Payable to the County Surveyor’s Section of the Ventura County Public Works Agency per the applicable County Surveyor’s Fee Schedule

State Board of Equalization fees

For changes of organization and reorganization; payable to the State Board of Equalization in accordance with its latest fee schedule; collected by LAFCo prior to County and State filing of an action

Publication costs Costs for publishing notices in the newspaper will be charged at actual costs

Consultant costs Costs for any consultants hired by LAFCo (e.g. environmental consultants, fiscal review consultants, etc.) will be charged at actual costs

State Department of Fish and Wildlife fees Payable to the State Department of Fish and Wildlife; collected, as necessary, by LAFCo prior to filing environmental notices of determination

Charges by County Assessor, County Clerk and Recorder or other County agencies for verifying ownership information, registered voter information, filing notices, recording documents, etc.

Actual costs

State Controller’s costs

Costs by the State Controller’s Office for fiscal reviews to be paid by the party making the request; payable to the State Controller in accordance with the Controller’s latest fee schedule; collected by LAFCo prior to submittal to the State Controller.

Special legal counsel and any legal defense costs Actual costs

Reproductions and Copies Per County Ordinance No. 4339

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Agenda Item 11

TO: LAFCo Commissioners

FROM: Kai Luoma, Executive Officer

SUBJECT: Proposed Budget – Fiscal Year 2020-21

RECOMMENDATION:

Adopt the attached resolution approving the Proposed Budget for Fiscal Year (FY) 2020-21 and directing staff to transmit the Proposed Budget to the County, each city, and each independent special district.

BACKGROUND:

The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH) directs each LAFCo to adopt annually a Proposed Budget by May 1 and a Final Budget by June 15. The enclosed Proposed Budget consists of a Budget Message and the line item budget of expenditures and revenue.

DISCUSSION:

In recognition of the uncertain economic future due to the coronavirus pandemic, the recommended proposed budget includes a number of considerations intended to limit the amount of funding that is provided by other governmental agencies. Though the recommended proposed budget does represent a 3.3% increase in total expenditures over the current budget, these increases are largely due to obligations that were approved late last calendar year prior to the pandemic by both the Commission and County Board of Supervisors. As explained in more detail later in this report and in the Budget Message, to keep increases to funding agencies at a minimum, staff has incorporated the following into the proposed budget:

• Staff merit increases – With the concurrence of LAFCo staff, no merit increases will be awarded in the coming fiscal year. This reduces the proposed budget by approximately $20,000.

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Staff Report Proposed Budget FY 2020-21 May 20, 2020 Page 2 of 4

• Vacation buydown – Staff has agreed to not “cash out” any vacation time during the fiscal year, thereby reducing the need to fully fund this account. However, it is recommended that a small amount of funding be provided ($5,000) in the event of unforeseen circumstances.

• Discretionary spending – Discretionary spending has been kept to a minimum. It includes $2,000 for a new computer to replace the Office Manager/Clerk to the Commission’s aging computer which is no longer operating at full capacity. The proposed budget also funds Commissioner and staff attendance at the CALAFCO annual conference and staff workshop, as has been the practice of the Commission.

• Contingencies – The recommended proposed budget reduces the amount of contingencies, from 10.0% of total expenditures to 5.0%, a reduction of approximately $35,000 from the adopted final budget for the current fiscal year. This is consistent with the Commission’s actions during the previous recession.

The FY 2020-21 Recommended Proposed Budget reflects an overall expenditure increase of approximately 3.3%, or $27,205, compared to the FY 2019-20 Adopted Final Budget. This is due to an increase in projected costs for Salaries and Employee Benefits and Services and Supplies as outlined in the attached Budget Message (Exhibit A of Attachment 1) and discussed below.

In February 2020, the Commission approved a budget adjustment to transfer $25,000 from Contingencies to Salaries and Benefits to cover costs associated with salary increases for staff that were not anticipated in the current fiscal year, including a merit increase for the Executive Officer approved by the Commission in October 2019. The following table shows the current year’s adopted budget, the current year’s adjusted budget, the proposed budget, and the increase of the proposed budget over this year’s adjusted budget:

Description FY 19-20 Adopted

FY 19-20 Adjusted

FY 20-21 Proposed

Increase / (Decrease)

Total Salaries and Benefits $ 586,450 $ 611,450 $ 631,600 $ 20,150

Total Services and Supplies $ 168,300 $ 168,300 $ 185,000 $ 16,700

Contingencies $ 75,475 $ 50,475 $ 40,830 $ (9,645)

Total $ 830,225 $ 830,225 $ 857,430 $ 27,205

Expenditures for Salaries and Benefits are proposed to increase by approximately 3.3% as compared to FY 2019-20, from an adjusted amount of $611,450 to $631,600. This proposed increase covers salary obligations for most County employees covered by the County’s Management Resolution, approved by the County Board of Supervisors in December 2019 that

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Staff Report

Proposed Budget FY 2020-21 May 20, 2020

Page 3 of 4

become effective in December 2020, including a 2.5% General Salary Increase. The increase does not include merit increases for LAFCo staff, who have elected to forgo potential merit increases considering the uncertain economic future resulting from the coronavirus pandemic. Services and Supplies are proposed to increase 9.9%, from $168,300 to $185,000. As explained in the Budget Message, the increase in these costs is primarily attributed to increases in amounts charged by the County that are outside LAFCo’s control. Pursuant to the Commission’s budget policies, the budget should provide for contingencies equaling 10.0% of total expenditures, unless the Commission deems that a different amount is appropriate. The contingency amount for the current fiscal year was originally $75,475 (i.e., 10.0%). To cover unanticipated salary increases, including a merit increase for the Executive Officer granted by the Commission in October 2019, the Commission in February 2020 approved the transfer of $25,000 from Contingencies to Salaries and Benefits, leaving $50,475 (i.e., 6.5% of total expenditures) in Contingencies. It is recommended that the FY 2020-21 Proposed Budget include a contingency appropriation of $40,830 (i.e., 5.0% of total expenditures). This will reduce the amount of revenue necessary from other governmental agencies. To further reduce the amount of revenue collected from other government agencies, it is recommended that the budget include a $125,000 appropriation of anticipated unassigned fund balance, estimated to be $323,308 at the beginning of FY 2020-21. Included with the Recommended Proposed Budget are the estimated allocation percentages for the 10 cities and 30 independent special districts that together with the County are responsible for the majority of LAFCo’s revenue. The estimated allocation percentages are based on the FY 2017-18 State Controller Reports, which will be used by the County Auditor-Controller as the basis for collecting revenue from the cities and special districts for FY 2020-21. These are the most current Reports available at this time. Should the State issue updated Reports for FY 2018-19 before the end of June, the County Auditor-Controller will use those Reports as the basis for collecting revenue from the cities and special districts for FY 2020-21. Though the Recommended Proposed Budget represents a 3.3% ($27,205) increase over the current budget, it reflects a 9.3% ($61,206) increase to total revenue from other governmental agencies compared to the FY 2019-20 Adopted Final Budget. This is due to the decrease in anticipated revenue from application fees and appropriated fund balance, as discussed above. When divided equally among the three governmental funding categories (i.e., County, cities, and independent special districts), there will be an increase of $20,402 for each category, as indicated in the following table:

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Staff Report Proposed Budget FY 2020-21 May 20, 2020 Page 4 of 4

Other Governmental Agency Revenue

FY 2016-17 Adopted Budget




FY 2020-21 Proposed

Budget

County $205,676 $208,997 $207,532 $219,075 $239,477

Cities $205,676 $208,997 $207,532 $219,075 $239,477

Independent Special Districts

$205,676 $208,997 $207,532 $219,075 $239,477

Total Other Gov. Agency Revenue

$617,028 $626,991 $622,596 $657,225 $718,431

Over time, the Commission and staff have continued to develop more accurate budgets that more closely reflect actual expenditures and revenues. This means that the amount of excess fund balance will likely continue to decline. As such, staff anticipates that it will take longer to build up a reserve in unassigned Fund Balance in the future compared to previous years. The Recommended Proposed Budget has been transmitted to the County and each city and independent special district for review and comment at any time prior to the adoption of a Proposed Budget. The Recommended Final Budget will also be transmitted to the affected local agencies for review and comment prior to adoption of a Final Budget, which is tentatively scheduled for Commission consideration on June 10, 2020. Attachment:

1. Resolution Adopting a Proposed Budget for FY 2020-21

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RESOLUTION OF THE

VENTURA LOCAL AGENCY FORMATION COMMISSION ADOPTING A PROPOSED BUDGET FOR FISCAL YEAR 2020-21

WHEREAS, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000

(Government Code Section 56000 et seq.) requires the Ventura Local Agency Formation

Commission (Commission) to adopt annually a Proposed Budget by May 1 and a Final Budget by

June 15; and

WHEREAS, at a minimum, the Proposed and Final Budget must be equal to the budget

adopted for the previous fiscal year unless the Commission finds that reduced staffing or

program costs will nevertheless allow the Commission to fulfill the purposes and programs of

the Cortese-Knox-Hertzberg Local Government Reorganization Act; and

WHEREAS, the Commission desires to adopt a Proposed Budget for Fiscal Year 2020-21

that is higher than the adopted Fiscal Year 2019-20 Final Budget; and

WHEREAS, the public and other governmental agencies had an opportunity to comment

and the Commission considered adoption of a Proposed Budget for Fiscal Year 2020-21 on May

20, 2020.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED that pursuant to

Government Code Section 56381, the Ventura Local Agency Formation Commission hereby:

(1) Adopts the Proposed Budget for the 2020-21 fiscal year as set forth in Exhibit A

attached hereto; and

(2) Finds that the Proposed Budget as set forth in Exhibit A attached hereto will not

result in reductions in staffing or program costs to such an extent that the

Commission would be impeded from fulfilling the purpose and programs of the

Cortese-Knox-Hertzberg Local Government Reorganization Act; and

(3) Directs the Executive Officer to forward the Proposed Budget, as adopted, to all

the independent special districts, cities and the County.

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Resolution Adopting a Proposed Budget for FY 2020-21 May 20, 2020 Page 2 of 2

This resolution was passed and adopted on May 20, 2020.

AYE NO ABSTAIN ABSENT Commissioner Freeman

Commissioner Parks

Commissioner Parvin


Commissioner Rooney

Commissioner Ross






_______________ _________________________________________________________ Date Chair, Ventura Local Agency Formation Commission Attachment: Exhibit A c: County of Ventura

Ventura County Cities Ventura County Independent Special Districts

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BUDGET MESSAGE Proposed Budget - Fiscal Year 2020-2021

Hearing Date: May 20, 2020

Introduction

The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Government Code Section 56000 et seq.) (CKH) directs that each Local Agency Formation Commission (LAFCo) adopt a Proposed Budget by May 1 of each year and a Final Budget by June 15 of each year. The Ventura LAFCo will have a hearing on May 20, 2020 to consider this Proposed Budget for Fiscal Year (FY) 2020-21. A public hearing to consider action on the Final Budget for FY 2020-21 is tentatively scheduled for June 10, 2020. Once adopted, the Final Budget will be used by the County Auditor-Controller’s Office to collect revenues as necessary from the County, cities and independent special districts. The Ventura LAFCo Commissioner’s Handbook, the compendium of the Ventura LAFCo’s policies and procedures, contains budget policies in Section 2.3.1 et seq. The Proposed Budget for FY 2020-21 was prepared in accordance with these policies. Budget goals continue to be minimizing expenditures while fulfilling basic functions and providing for effective and efficient compliance with mandates. LAFCo and the County of Ventura entered into a Memorandum of Agreement effective July 1, 2001. While LAFCo is an independent agency, the Memorandum of Agreement provides for the County to provide personnel, support services, offices and materials as requested by LAFCo. All of the personnel, support services, offices and materials to be requested of the County for FY 2020-21 are part of this Proposed Budget. Budget information is formatted using County of Ventura account descriptions and codes. This Budget Message highlights LAFCo’s key responsibilities, reviews the notable work accomplishments and budget information for the first three quarters of FY 2019-20, sets forth a basic work plan for FY 2020-21, and provides background and explanatory information about the anticipated expenditures and revenues in this Proposed FY 2020-21 Budget.

EXHIBIT A

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Ventura LAFCo Proposed Budget FY 2020-21 Hearing Date: May 20, 2020 Page 2

Major LAFCo Responsibilities

• Act on proposals for incorporation of cities; formation, dissolution, consolidation and merger of special districts; and annexation and detachment of territory to and from cities and special districts.

• Determine and establish spheres of influence for cities and special districts.

• Review and, as necessary, update spheres of influence for cities and special districts every five years.

• Conduct municipal service reviews prior to or in conjunction with the determination or update of spheres of influence.

• Perform special studies relating to services and make recommendations about consolidation, mergers or other governmental changes to improve services and reduce operational costs.

• Serve as the conducting authority for the determination of protests relating to proposals for incorporation, formation, and subsequent boundary changes.

• Act on requests for out-of-agency contracts for extensions of services.

• Function as either a responsible or lead agency pursuant to the California Environmental Quality Act (CEQA).

• Review and comment on draft changes/updates to city and county general plans.

• Review and comment on draft environmental documents prepared pursuant to CEQA.

• Provide public information about LAFCo and public noticing of pending LAFCo actions.

• Maintain a website.

• Adopt and update, as necessary, written policies and procedures.

• Adopt an annual budget. FY 2019-20 in Review

Based on information through the end of March 2020, total projected actual expenditures for FY 2019-20 are expected to be approximately:


FY 19-20 Adjusted

FY 19-20 Projected

Estimated Savings

Total Salaries and Benefits $ 586,450 $ 611,450 $ 606,450 $ 5,000

Total Services and Supplies 168,300 168,300 142,961 25,339

Contingencies 75,475 50,475 0 50,475

Total Expenditures 830,225 830,225 749,411 80,814

As shown above, the Commission authorized the transfer of $25,000 from Contingencies to Salaries and Benefits in February 2020 in order to fund a merit increase for the Executive Officer, leaving an unappropriated balance of $50,475. The anticipated savings in Salaries and Benefits, Services/Supplies and Contingencies are projected to total $80,814 for FY 2019-20.

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Page 3

Actual revenue for FY 2019-20 is projected to be approximately:

Account Code


FY 19-20 Projected

Estimated Increases/

(Deficit)

8911 Interest Earnings $ 8,000 $ 14,000 $ 6,000

9790 Other Revenue (from Fees) 15,000 7,800 (7,200)

9371 Other Govt. Agencies 657,225 657,225 0

Total Revenue 680,225 679,025 (1,200)

As shown in the table above, a projected total revenue decrease of $1,200 is anticipated as part of the current budget due to fewer applications received than anticipated. The projected $80,814 savings in Salaries/Benefits and Services/Supplies and Contingencies along with the projected $1,200 of revenue deficit results in a total projected unappropriated Fund Balance of $79,614, which is $70,386 less than the $150,000 appropriated Fund Balance adopted as a part of the FY 2019-20 Final Budget. The following bullet points are the work plan that was adopted as a part of the FY 2019-20 Adopted Final Budget. Substantial progress has been made on each of these work plan items, as discussed below:

• Continue municipal service reviews and sphere of influence reviews/updates in accordance with the approved work plan. In April 2018, LAFCo approved a Work Plan for the 2018-2022 sphere of influence review/update and municipal service review cycle. The Work Plan was revised in October 2018 and specifies that the review of the spheres of influence for 32 special districts, which will include the preparation of a municipal service review for 22 water and wastewater districts, was to be initiated in 2019. The review for most of these districts commenced in late 2018 is ongoing. Though not formally part of the Work Plan, for the current fiscal year, LAFCo has also completed, or is currently processing, 11 applications (e.g., reorganizations, sphere of influence amendments, and out of agency service agreements).

• Continue to review and comment on draft environmental documents and general plan updates as they may be prepared by the cities and the County.

Over the course of the current fiscal year, LAFCo staff has thus far reviewed and/or commented on a total of 11 CEQA notices/documents, general plan updates, and development proposals. These include development proposals within cities and the unincorporated County area.

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• Maintain and enhance operations with a focus on communication with the Commission, the County, cities, districts and the public; budget monitoring and information; staff training and development; and enhanced records management.

Staff continues to keep the Commission informed of notable events/items through monthly update memos, email correspondence, and regularly scheduled meetings. Positive communications and working relationships have been maintained with all cities and districts. Staff continues to attend and participate in meetings with staff and consultants representing cities, special districts and other local public agencies as well as individual members of the public and community groups. As time allows, staff continues to attend meetings of local and regional associations. Staff routinely monitors the budget. An external audit of LAFCo’s financial statements for the year ended June 30, 2019 was performed. This fiscal year, LAFCo staff attended the CALAFCO Annual Conference in October 2019. Staff continues to participate in training sessions offered by the County.

• Update and revise the Commissioner’s Handbook and consider policy additions consistent with the mission and purpose of LAFCo.

Policies regarding the definitions of “new service” and “extended service” as they apply to out of agency service agreements were added to the Commissioner’s Handbook during the current fiscal year. On an ongoing basis and as needed, staff identifies potential policy updates/revisions for Commission consideration.

• Increase public awareness about the mission, purpose and function of LAFCo. Staff routinely meets with members of the public to discuss LAFCo’s role in development. Staff also routinely meets with the staff of the County, cities, and special districts to discuss anticipated proposals, sphere of influence reviews, environmental documents, and other LAFCo-related activities. Staff also welcomes opportunities to discuss the mission of LAFCo with the public or other agencies.

Work Plan The Ventura LAFCo Commissioner’s Handbook provides that LAFCo will annually review and adopt a work plan as a part of the budget development process. For FY 2020-21, the recommended work plan maintains the focus on municipal service reviews and sphere of influence reviews/updates and is otherwise similar to the work plan for this fiscal year.

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Page 5

FY 2020-21 Work Plan

• Continue municipal service reviews and sphere of influence reviews/updates in accordance with the approved work plan.

• Continue to review and comment on draft environmental documents and general plan updates as they may be prepared by the cities and the County.

• Maintain and enhance operations with a focus on communication with the Commission, the County, cities, districts, and the public; budget monitoring and information; staff training and development; and enhanced records management.

• Update and revise the Commissioner’s Handbook and consider policy additions that are consistent with the mission and purpose of LAFCo.

• Increase public awareness about the mission, purpose and function of LAFCo.

Staff believes that the items listed above are realistic provided the number and/or complexity of proposals filed do not increase significantly. PROPOSED BUDGET

Expenditures

The expense portion of the budget is divided into three main sections, the Salary and Employee Benefits section (1000 series account codes), the Services and Supplies section (2000 series account codes), and Contingencies (account code 6101) (see tables on pages 14-16). Including a 5.0% contingency, the Proposed Budget reflects an overall expenditure increase of approximately 3.3% compared to the FY 2019-20 Adopted and Adjusted Final Budget, as indicated in the following table:

Description FY 19-20 Adopted/ Adjusted

FY 20-21 Proposed


Percent Change

Total Expenditures $ 830,225 $ 857,430 $ 27,205 3.3%

Salary and Employee Benefits (1000 series of account codes) Salaries and Employee Benefits continue to be the greatest expense, comprising approximately 74.0% of the total expenditures (more if contingencies are not included). Expenditures for Salaries and Benefits are proposed to increase by approximately 3.3% as compared to FY 2019-20, as adjusted, as indicated in the following table:

Description FY 19-20 Adjusted

FY 20-21 Proposed


Percent Change

Total Salaries and Benefits $ 611,450 $ 631,600 $ 20,150 3.3%

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The increase comes primarily from an anticipated increase to Regular Salaries (account code 1101) and Group Insurance (account code 1141):

Description Acct Code

FY 19-20 Adjusted

FY 20-21 Proposed


Percent Change

Regular Salaries 1101 $ 409,729 $ 426,000 $ 16,271 4.0%

Group Insurance 1141 35,000 42,000 7,000 20.0%

The proposed increase to regular salaries does not include merit increases for LAFCo staff, who have elected to forgo potential merit increases considering the uncertain economic outlook for the upcoming fiscal year1. The increase does, however, reflect a 2.5% general salary increase (GSI) for most County employees covered by the Management, Confidential Clerical, and Other Unrepresented Employees Resolution (Management Resolution), which includes LAFCo staff, to become effective in December 2020. The County Board of Supervisors approved the GSI last December. The increase to Group Insurance represents changes to the structure of the County Flex Benefit Program (i.e. the employer’s contribution toward employee health insurance), also approved by the Board of Supervisors in December 2019. The new structure is tiered so that the contribution increases as the number of covered family members increases. The increase in salaries and employee benefits is partially offset by the reduction of funding to Retirement Contributions (account code 1121):


FY 19-20 Adjusted

FY 20-21 Proposed


Percent Change

Retirement Contributions

1121 $ 97,142 $ 91,000 $ (6,142) - 6.3%

This savings is due to a decrease in the percentage of salaries used to calculate the contribution to retirement, from to 20.34% to 18.36%. The currently authorized and proposed classifications are reflected in the following table:

Title FY 2019-20 FY 2020-21

Executive Officer 1 1

Analyst/Deputy Executive Officer 1 1

Office Manager/Clerk of the Commission 1 1

Total Authorized Positions 3 3

1 Should the Commission choose to fund merit increases for the Deputy Executive Officer and Office Manager/Commission Clerk, the proposed budget for Salaries and Employee Benefits would increase by an additional approximately $20,000.

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Services and Supplies (2000 series of account codes) The Proposed Budget for Services and Supplies is greater than that in the Adopted Final Budget for the current fiscal year, as indicated in the following table:

Description FY 19-20 Adopted/ Adjusted

FY 20-21 Proposed


Percent Change

Total Services and Supplies $ 168,300 $ 185,000 $ 16,700 9.9%

The increase in total Services and Supplies is due, in large part, to a significant increase in Cost Allocation Plan Charges (account code 2158). These charges are set by the County and pertain to costs for County services provided primarily by the General Services Agency, the Auditor-Controller’s Office, County Counsel, and the County Executive Office, including Human Resources. New to the LAFCo budget is account code 2033 – Radio Communications ISF. This account code covers monthly costs related to equipment/services that allow for the LAFCo office to have remote access to the County computer networks via microwave transmission. This cost was not known to LAFCo staff as part of the office move last year and was not included in the current year’s budget adopted by the Commission. However, because these costs began accruing once the office move was complete in September 2019, LAFCo staff coordinated with the County Auditor-Controller Office to add the account code to the budget and transfer funds that were available from account code 2292 (Travel Expense (Conferences / Seminars)) to cover the costs for the remaining nine months of the fiscal year. The following table outlines this budget adjustment:


FY 19-20 Adopted

FY 19-20 Adjusted

FY 20-21 Proposed

Radio Communications 2033 -- $ 3,600 $ 4,800

Travel Expenses 2292 $ 20,000 16,400 16,500

This transfer was approved by the Executive Officer pursuant to Commissioner’s Handbook Section 2.3.1.5 (adjustments between account codes within the same object may be approved by the Executive Officer). The proposed budget includes this cost for the next fiscal year. Contingencies In accordance with the Commission’s budget policies, the budget should provide for contingencies equaling 10.0% of total expenditures, unless the Commission deems that a different amount is appropriate. The contingency amount for the current fiscal year was originally $75,475. To cover unanticipated salary increases, including a merit increase for the Executive Officer granted by the Commission in October 2019, the Commission in February 2020 approved the transfer of $25,000 to Salaries and Benefits, leaving $50,475 (6.5% of total expenditures) in Contingencies. It is recommended that the FY 2020-21 Proposed Budget include a contingency appropriation of 5.0% of total expenditures, or $40,830. This will reduce the amount of revenue necessary from other

52


governmental agencies. Should there be a need for any unanticipated expenditures which might exceed the contingency amount, an appropriation could be made from the unappropriated/unassigned fund balance (which is currently $368,694). Financing Sources

Potential financing sources consist of Fund Balance and Miscellaneous Revenues, including interest earnings and application filing fees (e.g., account codes 8911 and 9790), and Other Governmental Agencies, the revenue to be collected from the County, cities and independent special districts (account code 9371).

Fund Balance Section 56381(c) of CKH provides, “If, at the end of the fiscal year, the commission has funds in excess of what it needs, the commission may retain those funds and calculate them into the following fiscal year’s budget.” As indicated in the “FY 2019-20 in Review” section above, approximately $79,614 is projected to be available at the end of the current fiscal year to appropriate for the FY 2020-21 Budget.

The Commission’s budget policies provide for the maintenance of a Litigation Reserve Account balance in the amount of $100,000 with the intent of limiting its use for unanticipated expenditures resulting from litigation against the Commission that does not occur routinely and would not be reimbursed by another party. This amount is classified as “committed” fund balance with respect to the Governmental Accounting Standards Board (GASB) requirements and the Commission’s fund balance policies. The policies also provide that excess fund balance remaining over and above the committed and assigned fund balances should be classified as unassigned. Currently the LAFCo General Fund does not include any assigned fund balance. The total unassigned fund balance for the current year is estimated to be $323,308. Pursuant to Commission policies, an unassigned (and unappropriated) fund balance of approximately 60 days’ working capital must be maintained. Based on the projected actual expenditures for FY 2019-20 ($749,411), 60 days’ working capital would be approximately $124,902, leaving another $198,406 in unassigned fund balance. The proposed budget includes an appropriated fund balance of $125,000.

Miscellaneous Revenue Miscellaneous revenue includes interest earnings and other revenue, primarily application filing fees. The Proposed Budget for Miscellaneous Revenue is $14,000, which is less than the Adopted Budget amount of $23,000 for the current fiscal year. This decrease reflects a $9,000 reduction in anticipated Miscellaneous Revenue (application fees) (account 9790).

The Commission has a policy to annually review the LAFCo fee schedule as a part of the budget process. The existing fee schedule has been in effect since July 2010. It was updated and adopted by the Commission in April 2015 as part of the budget process for that fiscal year. No changes to the fee schedule are recommended as part of this budget process.

53


Page 9

Revenues from Other Governmental Agencies (the County, Cities and Independent Special Districts) Pursuant to CKH, the LAFCo net operating expenses are to be apportioned one-third to the County, one-third to the cities, and one-third to the independent special districts. The Ventura LAFCo determines net operating expenses as the cost for LAFCo operations net of those funds appropriated for budget purposes plus Miscellaneous Revenue. CKH describes how the County Auditor-Controller is to make this apportionment and collect revenues once LAFCo adopts a Final Budget. Though the Recommended Proposed Budget represents a 3.3% ($27,205) increase over the current budget, the revenue projected to be collected from the County, cities, and independent special districts is proposed to increase by $61,206, or 9.3%, from $657,225 to 718,431 for next fiscal year. This represents a $20,402 increase to $239,477 per each of the County, the 10 cities, and the 30 independent special districts. This is due to the decrease in anticipated revenue from application fees and appropriated fund balance, as discussed above. The table below shows how the amount of revenue from Other Governmental Agencies (the County, cities and independent special districts) has fluctuated since LAFCo first adopted an independent budget in June 2001. As shown in the table, the amount of projected total revenue from Other Governmental Agencies for FY 2020-21 is slightly above the average over the previous five years (83.4%).

Year Adopted Budget –Total

Finance Sources

Amount of Revenue from Other

Governmental Agencies

Percent of Total Revenue from Other


FY 2001-02 $548,737 $468,737 85%

FY 2002-03 $719,130 $568,502 79%

FY 2003-04 $641,215 $390,699 61%

FY 2004-05 $702,503 $473,067 67%

FY 2005-06 $723,226 $361,874 50%

FY 2006-07 $830,154 $621,617 75%

FY 2007-08 $949,269 $715,957 75%

FY 2008-09 $735,422 $488,684 66%

FY 2009-10 $783,101 $587,084 75%

FY 2010-11 $772,892 $590,055 76%

FY 2011-12 $766,598 $570,285 74%

FY 2012-13 $659,706 $550,515 83%

FY 2013-14 $675,769 $573,636 85%

FY 2014-15 $641,949 $519,249 81%

FY 2015-16 $678,977 $576,477 85%

FY 2016-17 $703,028 $617,028 88%

FY 2017-18 $743,490 $626,991 84%

FY 2018-19 $766,096 $622,596 81%

FY 2019-20 $830,225 $657,225 79%

54


Year Adopted Budget –Total

Finance Sources

Amount of Revenue from Other


Percent of Total Revenue from Other


FY 2020-212 $857,431 $718,431 84%

Not formally part of the budget, but included for general information are the percentage shares of the Other Governmental Agencies revenue for each of the cities (Attachment 1) and the independent special districts (Attachment 2). City revenues and Special District revenues are based on the FY 2017-18 State Controller Reports. These are the most current Reports available at this time. Should the State issue Cities and Special District Reports for FY 2018-19 before the end of June, the County Auditor-Controller’s Office will use those Reports as the basis for collecting revenue from the cities and special districts for FY 2020-21. As a further means of comparison, Attachment 3 shows individual agency revenue allocation amounts as a percentage of each agency’s total revenue. Attachment 4 is a comparison of each city’s and district’s allocation that was adopted for FYs 2013-14 through the current proposed allocations for FY 2020-21.

CKH continues to provide the ability for the cities and independent special districts in each County to determine an alternate apportionment method. To date, however, neither the cities nor the special districts have agreed on any alternate apportionment methodology. This means that the City of Oxnard, as the city with the highest gross revenue, and Calleguas Municipal Water District, the largest special district in terms of gross revenue, will continue to pay the largest respective shares of the city and special district portion of LAFCo revenue. Conclusion

The Ventura LAFCo is continuing to exercise fiscal prudence. The Commission and its staff understand the economic realities of the time and the constraints on local government revenues. The Commission’s budgeting process has improved in the last 18 years. Systems and policies are in place to ensure best practices and proper oversight. Mandates are being met and basic services provided with a highly-trained staff that seeks to limit discretionary expenditures. The Proposed Budget for FY 2020-21 was prepared and is being recommended consistent with the Commission’s policies and the knowledge and experience gained from prior years. Respectfully submitted,

Kai Luoma Executive Officer 2 Based on FY 2019-20 Proposed Budget

55


Page 11

ATTACHMENTS: 1. Other Governmental Agencies-Cities Allocation Amounts 2. Other Governmental Agencies-Independent Special District Allocation Amounts 3. Agency Revenue Allocation Percentages 4. Agency Allocations for FYs 2013-14, 2014-15, 2015-16, 2016-17, 2017-18, 2018-19, 2019-20, and 2020-21

56


Appendix Glossary of Terms

ANNUAL (OPERATING) BUDGET: A financial plan that outlines proposed expenditures for the coming fiscal year and estimated revenues which will be used to finance them. APPROPRIATED FUND BALANCE: A portion of existing fund balance that is incorporated into the subsequent year’s budget to “balance” expected expenditures in excess of expected revenues. ASSET: Resources with present service capacity that the government presently controls; for example, money, investments and property. ASSIGNED FUND BALANCE: Comprises amounts intended to be used by the government for specific purposes; for example, appropriated fund balance. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority to assign amounts to be used for specific purposes. AUDIT: A systematic collection of the sufficient, competent evidential matter needed to attest to the fairness of management's assertions in its financial statements or to evaluate whether management has efficiently and effectively carried out its responsibilities. BALANCE SHEET: Also known as a statement of net position, a basic financial statement, and presentation of an entity's net assets and liabilities on a specified date. A balance sheet is usually accompanied by appropriate disclosures that describe the basis of accounting used in its preparation. BUDGET: A plan of financial operation including an estimate of proposed expenditures for a given period and the proposed means of financing them. BUDGET MESSAGE: A written overview of the budget from the LAFCo Executive Officer that discusses the major budget items and LAFCo’s present and future financial condition. COMMITTED FUND BALANCE: Includes amounts that can be used only for the specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision-making authority. Commitments may be changed or removed only by the same decision-making authority taking the same formal action that imposed the constraint originally. CONTINGENCY: A budgetary expenditure allowance (appropriation) to cover unanticipated expenditures or revenue shortfalls during the fiscal year (LAFCo Budget Account Code 6101). The Ventura LAFCo Commissioner’s policies provide that the annual budget include an allocation of 10% of total operating expenses for contingencies, unless the Commission deems a different amount appropriate. Transfers from the contingency account require prior approval of the Commission. DEFICIT: An excess of expenditures or expenses over revenues. EXPENDITURES: Under the current financial resources measurement focus, decreases in net financial resources not property classified as other financing uses; for example, disbursements of cash for the cost of salaries, benefits, services or supplies.

57


Page 13

FINANCIAL STATEMENT: Presentation of financial data including balance sheets, income statements or any supporting statement that is intended to communicate an entity's financial position at a point in time and its results of operations for a period then ended.

FISCAL YEAR: The 12-month period to which the annual operating budget applies and at the end of which a government determines its financial position and the results of its operations.

FUND BALANCE: The difference between a fund’s assets and its liabilities. With regard to a LAFCo budget, Government Code Section 56381(c) provides, “If, at the end of the fiscal year, the commission has funds in excess of what it needs, the commission may retain those funds and calculate them into the following fiscal year’s budget.”

FUND: A complete accounting entity reflecting financial transactions, both receipts and expenditures, of money that is set up to carry out a special function or attain objectives in accordance with established laws, policies, and regulations. The fund concept also applies to budget activities.

GASB: The Governmental Accounting Standards Board (GASB) is the ultimate authoritative accounting and financial reporting standard-setting body for state and local governments. The GASB was established in June 1984 to replace the NCGA (National Council on Governmental Accounting).

GIS: Geographic Information System.

INCOME STATEMENT: Summary of the effect of revenues and expenses over a period of time.

INTEREST: Interest income earned as idle funds are invested with a goal of protecting each investment while achieving the highest rate of return.

INTERNAL CONTROL: Process designed to provide reasonable assurance regarding achievement of various management objectives such as the reliability of financial reports.

INTERNAL SERVICE FUND: A fund that accounts for the provision of services by various County departments on a cost reimbursement basis.

LIABILITIES: Present obligations to sacrifice resources that the government has little or no discretion to avoid; for example, amounts owed for items received, services rendered, expenses incurred, and assets acquired.

LINE-ITEM BUDGET: A budget that lists each expenditure category (salary, materials, telephone service, travel, etc.) separately, along with the dollar amount budgeted for each.

OBJECT: An individual expenditure account.

FINANCING SOURCES: Total amounts available during the fiscal year for appropriation including estimated revenues and appropriated fund balances.

UNAPPROPRIATED FUND BALANCE: The portion of fund balance remaining, following an approved budget

appropriation of fund balance and any commitments.

UNASSIGNED FUND BALANCE: The difference between total fund balance in a governmental fund and its non-spendable, restricted, committed and assigned components. UNRESTRICTED FUND BALANCE: The difference between total fund balance in a governmental fund and its non-spendable and restricted components.

58

Acct

Code

Final

AdoptedFY 2019-20

Final

AdjustedFY 2019-20

Projected

ActualsFY 2019-20

Recommended

Proposed

BudgetFY 2020-21

May 20, 2020

Recommended

Final BudgetFY 2020-201

June 10, 2020


EXPENDITURES

Regular Salaries 1101 390,000 409,729 409,729 426,000Supplemental Payments 1106 15,500 16,079 16,079 17,000Terminations (Buydowns) 1107 5,000 5,000 0 5,000Retirement Contribution 1121 93,500 97,142 97,142 91,000OASDI Contribution 1122 22,000 22,407 22,407 23,000FICA Medicare 1123 6,500 6,500 6,500 6,700Retiree Health Payment 1099 (Mgnt. Retiree Health) 1128 0 0 n/a n/aGroup Insurance 1141 35,000 35,000 35,000 42,000Life Insurance for Deptartment Heads and Management 1142 150 150 150 150State Unemployment Insurance 1143 300 300 300 250Management Disability Insurance 1144 3,000 3,032 3,032 3,200Workers Compensation Insurance 1165 3,300 3,354 3,354 3,800401k Plan 1171 12,200 12,757 12,757 13,500

586,450 611,450 606,450 631,600 0 0

VENTURA LOCAL AGENCY FORMATION COMMISSION

EXPENDITURES AND REVENUE DETAIL

RECOMMENDED PROPOSED BUDGET

FY 2020-2021

Salaries and Employee Benefits

Total Salaries and Employee Benefits

Ventura LAFCo

Recommended Final Budget FY 2020-21

Adopted: May 20, 2020

Page 1459

Acct

Code

Final

AdoptedFY 2019-20

Final

AdjustedFY 2019-20

Projected

ActualsFY 2019-20

Recommended

Proposed

BudgetFY 2020-21

May 20, 2020

Recommended


June 10, 2020





FY 2020-2021

EXPENDITURES

Voice Data ISF 2032 3000 3,000 3,700 3,750Radio Communications ISF 2033 0 3,600 3,600 4,800General Insurance Allocation ISF 2071 1,900 1,900 1,900 1,500Facilities and Materials SQ FT Allocation ISF 2114 0 0 3,386 0Facilities Projects ISF 2115 0 0 0 0Other Maintenance ISF 2116 10,000 10,000 4,800 10,000Memberships and Dues 2131 9,250 9,250 9,250 12,000Cost Allocation Plan Charges 2158 12,200 12,200 12,200 22,000Books and Publications 2163 500 500 200 500Mail Center ISF 2164 2,000 2,000 2,000 2,000Purchasing Charges ISF 2165 100 100 100 100Graphics Charges ISF 2166 500 500 0 500Copy Machine Chgs ISF 2167 1,000 1,000 700 1,000Stores ISF 2168 50 50 25 50Miscellaneous Office Expenses 2179 2,500 2,500 2,500 2,500Board and Commission Member Compensation 1099 2181 5,000 5,000 2,000 5,000Attorney Services (County Counsel) 2185 20,000 20,000 20,000 20,000Other Professional and Specialized Non ISF

(Auditors and County Accounting Services) 2199 15,000 15,000 14,000 14,000Information Tech ISF 2202 3,600 3,600 3,600 5,000County Geographical Information Systems Expense ISF 2203 15,000 15,000 15,000 15,000

Public Works ISF Charges 2205 3,000 3,000 500 3,000Special Services ISF 2206 100 100 100 200Publications and Legal Notices 2221 3,000 3,000 1,200 3,000Building Leases/Rentals Non-County Owned 2241 28,000 28,000 23,100 28,000Storage Charges ISF 2244 500 500 500 500Computer Equipment < $5,000 2261 0 0 0 2,000Furniture and Fixtures < $5,000 2262 2,000 2,000 0 2,000Conferences/ Seminars ISF (Training ISF) 2272 500 500 0 500Education Conference and Seminars 2273 0 0 0 0Private Vehicle Mileage 2291 9,000 9,000 8,000 9,000Travel Expense (Conferences / Seminars) 2292 20,000 16,400 10,000 16,500Motorpool ISF 2303 600 600 600 600

168,300 168,300 142,961 185,000 0 -

Contingencies * 6101 75,475 50,475 0 40,830 0 -

75,475 50,475 0 40,830 0 -

830,225 830,225 749,411 857,430 0 -

Total Contingencies

Services and Supplies

Total Services and Supplies

TOTAL EXPENDITURES

* Pursuant to the Ventura LAFCo Commissioner's Handbook Section 2.3.1.4(a), the annual budget shall include a contingency appropriation of 10% of

total operating expenses, unless the Commission deems a different amount appropriate.

Ventura LAFCo



Page 1560

Acct

Code

Final

AdoptedFY 2019-20

Final

AdjustedFY 2019-20

Projected

ActualsFY 2019-20

Recommended

Proposed

BudgetFY 2020-21

May 20, 2020

Recommended


June 10, 2020





FY 2020-2021

Appropriation of Fund Balance 150,000 150,000 125,000

Investment Income (Interest Earnings) 8911 8,000 8,000 14,000 8,000Miscellaneous Revenue (LAFCo application fees) 9790 15,000 15,000 7,800 6,000Total Miscellaneous Revenue 23,000 23,000 21,800 14,000 -

Other Governmental AgenciesOther Government Agencies (County of Ventura) 9371 219,075 219,075 219,075 239,477 - Other Government Agencies (Cities) 9371 219,075 219,075 219,075 239,477 - Other Government Agencies (Ind. Special Districts) 9371 219,075 219,075 219,075 239,477 -

657,225 657,225 657,225 718,431 -

680,225 680,225 679,025 732,431 -

830,225 830,225 679,025 857,431 0 -

NET INCOME / (LOSS) [PROJECTED USE OF APPROPRIATED FUND BALANCE] (70,386)

Actual

Fund

Balance6/30/19

Projected

Fund

Balance6/30/20

Estimated

Fund

Balance06/30/21

Assigned:Appropriated 150,000 125,000 0

Committed:Litigation 100,000 100,000 100,000

Unassigned:60 Days' Working Capital 111,146 124,902 142,905

Unassigned 257,548 198,406 180,403TOTAL UNASSIGNED 368,694 323,308 323,308

TOTAL FUND BALANCE 618,694 548,308 423,308

Preliminary Fund Balance and Estimated Ending Fund Balance at June 30, 2019

FUND BALANCES

FINANCING SOURCES

Total Other Government Agencies Revenue

TOTAL REVENUE

TOTAL FINANCING SOURCES

Ventura LAFCo



Page 1661

LAFCO NET OPERATING EXPENSES

GOV'T CODE 56381 (b) (1) (A) & (B)1

PROPOSED BUDGET FOR FISCAL YEAR 2020-21

ALLOCATION - CITIES

SOURCE: STATE OF CALIFORNIA, CITIES ANNUAL REPORT, FY 17/18

TOTAL

REVENUE ALLOCATION

CITY PER REPORT PERCENTAGE 239,477$

1 Camarillo 100,195,350$ 8.70% 20,839$

2 Fillmore 22,334,550 1.94% 4,646$

3 Moorpark 33,309,644 2.89% 6,928$

4 Ojai 11,845,922 1.03% 2,464$

5 Oxnard 399,987,854 34.74% 83,199$

6 Port Hueneme 37,305,563 3.24% 7,759$

7 San Buenaventura 230,341,835 20.01% 47,910$

8 Santa Paula 25,648,215 2.23% 5,336$

9 Simi Valley 112,154,654 9.74% 23,327$

10 Thousand Oaks 178,221,659 15.48% 37,069$

TOTAL 1,151,345,246$ 100.00% 239,477$

(1) In counties in which there is city and independent special district representation

on the commission, the county, cities, and independent special districts shall each

provide a one-third share of the commission's operational costs. The cities' share

shall be apportioned in proportion to each city's total revenues, as reported in

the most recent edition of the Cities Annual Report published by the Controller,

as a percentage of the combined city revenues within a county, or by an

alternative method approved by a majority of cities representing the majority

of the combined cities' populations.

Ventura LAFCo

Proposed Budget FY 2020-21


Page 1762

122017

11-1

LAFCO NET OPERATING EXPENSES

GOV'T CODE 56381 (b) (1) (A) & (C)1, (F)2

PROPOSED BUDGET FOR FY 2020-21

ALLOCATION - SPECIAL DISTRICTS

SOURCE: STATE OF CALIFORNIA, SPECIAL DISTRICTS ANNUAL REPORT, FY 17/18

TOTAL

REVENUE PERCENTAGE ALLOCATION

NAME PER REPORT (See Note 2) 239,477$

1 Bardsdale Cemetery District 234,848$ 0.064% 153$

2 Bell Canyon Comm. Services District 586,000 0.160% 383

3 Blanchard / Santa Paula Public Library District 949,805 0.259% 620

4 Calleguas Municipal Water District 151,567,730 41.404% 99,151

5 Camarillo Health Care District 3,871,555 1.058% 2,534

6 Camrosa Water District 23,579,250 6.441% 15,425

7 Casitas Municipal Water District 20,161,167 5.507% 13,188

8 Channel Islands Beach Comm. Serv. Dist. 4,783,178 1.307% 3,130

9 Conejo Recreation & Park District 26,853,901 7.336% 17,568

10 El Rancho Simi Pioneer Cemetery District 184,690 0.050% 120

11 Fillmore-Piru Memorial District 211,583 0.058% 139

12 Fox Canyon Groundwater Mgmt. Agency 2,585,608 0.706% 1,691

13 Hidden Valley Municipal Water District 56,332 0.015% 36

14 Meiners Oaks Water District 1,841,985 0.503% 1,205

15 Montalvo Comm. Services District 854,337 0.233% 558

16 Ojai Valley Sanitary District 9,311,354 2.544% 6,092

17 Ojai Water Conservation District 10,193 0.003% 7

18 Oxnard Drainage District No. 1 35,965 0.010% 24

19 Oxnard Drainage District No. 2 180,413 0.049% 117

20 Oxnard Harbor District 17,600,959 4.809% 11,515

21 Piru Public Cemetery District 67,312 0.019% 44

22 Pleasant Valley Co. Water District 4,780,741 1.306% 3,128

23 Pleasant Valley Rec & Park District 9,540,669 2.606% 6,241

24 Rancho Simi Rec & Park District 24,638,577 6.730% 16,117

25 Saticoy Sanitary District 702,423 0.192% 460

26 Triunfo Sanitation District 19,565,704 5.345% 12,800

27 United Water Conservation District 28,671,357 7.832% 18,755

28 Ventura Co. Resource Conserv. District 429,465 0.117% 280

29 Ventura Port District 9,750,764 2.664% 6,380

30 Ventura River County Water District 2,470,863 0.675% 1,616

TOTAL 366,078,728$ 100.001% 239,477$

(1) In counties in which there is city and independent special district representation on the commission,

the county, cities, and independent special districts shall each provide a one-third share of the

commission's operational costs. The independent special districts' share shall be apportioned in

proportion to each district's total revenues as a percentage of the combined total district revenues

within a county. An independent special district's total revenue shall be calculated for

nonenterprise activities as total revenues for general purpose transactions less aid from other

governmental agencies and for enterprise activities as total operating and nonoperating revenues

less revenue category other governmental agencies, as reported in the most recent edition of the

"Special Districts Annual Report" published by the Controller, or by an alternative method approved

by a majority of the agencies,representing a majority of their combined populations.

(2) No independent special district shall be apportioned a share of more than 50 percent of the total

independent special districts' share of the commission's operational costs, without the consent

of the district. The share of the remaining districts shall be increased on a proportional basis so

that the total amount for all districts equal the share apportioned by the auditor to independent

special districts.

Ventura LAFCo



Page 18

63

122017

11-2

NAME

TOTAL

REVENUE PER

REPORT*

ALLOCATION

PERCENTAGE

OF TOTAL

REVENUE

COUNTY OF VENTURA 1,453,669,180$ 239,477$ 0.02%

CITIES

Camarillo 100,195,350$ 20,839$ 0.02%

Fillmore 22,334,550 4,646 0.02%

Moorpark 33,309,644 6,928 0.02%

Ojai 11,845,922 2,464 0.02%

Oxnard 399,987,854 83,199 0.02%

Port Hueneme 37,305,563 7,759 0.02%

San Buenaventura 230,341,835 47,910 0.02%

Santa Paula 25,648,215 5,336 0.02%

Simi Valley 112,154,654 23,327 0.02%

Thousand Oaks 178,221,659 37,069 0.02%TOTAL 1,151,345,246$ 239,477 0.02%

SPECIAL DISTRICTS

Bardsdale Cemetery District 234,848$ 153$ 0.07%

Bell Canyon Comm. Services District 586,000 383 0.07%

Blanchard / Santa Paula Public Library Dist. 949,805 620 0.07%

Calleguas Municipal Water District 151,567,730 99,151 0.07%

Camarillo Health Care District 3,871,555 2,534 0.07%

Camrosa Water District 23,579,250 15,425 0.07%

Casitas Municipal Water District 20,161,167 13,188 0.07%

Channel Islands Beach Comm. Serv. Dist. 4,783,178 3,130 0.07%

Conejo Recreation & Park District 26,853,901 17,568 0.07%

El Rancho Simi Pioneer Cemetery District 184,690 120 0.06%

Fillmore-Piru Memorial District 211,583 139 0.07%

Fox Canyon Groundwater Mgmt. Agency 2,585,608 1,691 0.07%

Hidden Valley Municipal Water District 56,332 36 0.06%

Meiners Oaks Water District 1,841,985 1,205 0.07%

Montalvo Comm. Services District 854,337 558 0.07%

Ojai Valley Sanitary District 9,311,354 6,092 0.07%

Ojai Water Conservation District 10,193 7 0.07%

Oxnard Drainage District No. 1 35,965 24 0.07%

Oxnard Drainage District No. 2 180,413 117 0.06%

Oxnard Harbor District 17,600,959 11,515 0.07%

Piru Public Cemetery District 67,312 44 0.07%

Pleasant Valley Co. Water District 4,780,741 3,128 0.07%

Pleasant Valley Rec & Park District 9,540,669 6,241 0.07%

Rancho Simi Rec & Park District 24,638,577 16,117 0.07%

Saticoy Sanitary District 702,423 460 0.07%

Triunfo Sanitation District 19,565,704 12,800 0.07%

United Water Conservation District 28,671,357 18,755 0.07%

Ventura Co. Resource Conserv. District 429,465 280 0.07%

Ventura Port District 9,750,764 6,380 0.07%

Ventura River County Water District 2,470,863 1,616 0.07%TOTAL 366,078,728$ 239,477$ 0.07%

* Source: State of California Annual Reports FY 17/18.

For special districts, total revenue excludes aid from other governments.

Ventura LAFCo Budget FY 2020-21

Apportionment of Net Operating Expenses Expressed As Percentage Of Each Agency's Total Revenue

Ventura LAFCo



Page 19 64

122017

11-3

CITIES FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21

Camarillo 17,305$ 14,338$ 14,085$ 17,709$ 17,451$ 16,341$ 16,411$ 20,839$

Fillmore 4,130 2,807 3,324 4,360 4,452 4,485 4,103 4,646

Moorpark 4,819 4,869 5,227 7,301 8,736 8,096 7,146 6,928

Ojai 2,983 2,042 2,191 2,345 2,320 2,393 2,467 2,464

Oxnard 71,647 61,496 61,126 66,043 63,326 67,211 75,563 83,199

Port Hueneme 7,438 7,553 6,706 7,939 8,422 7,836 8,125 7,759

San Buenaventura 30,479 27,338 43,178 34,122 41,883 37,119 44,300 47,910

Santa Paula 7,515 7,361 7,321 7,939 7,566 3,939 4,062 5,336

Simi Valley 16,750 16,031 18,121 19,786 21,130 22,171 22,032 23,327

Thousand Oaks 28,146 29,248 30,880 38,132 33,711 37,941 34,866 37,069

TOTAL 191,212$ 173,083$ 192,159$ 205,676$ 208,997$ 207,532$ 219,075$ 239,477$

SPECIAL DISTRICTS FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21

Bardsdale Cemetery District 128$ 104$ 131$ 109$ 159$ 141$ 147$ 153$

Bell Canyon Comm. Services District 333 280 307 284 326 349 368 383

Blanchard / Santa Paula Library District n/a n/a n/a 502 522 600 554 620

Calleguas Municipal Water District 81,397 76,281 88,562 96,049 92,122 86,136 87,106 99,151

Camarillo Health Care District 2,610 2,217 2,252 2,077 2,224 2,167 2,191 2,534

Camrosa Water District 11,387 9,933 11,816 12,598 12,556 13,994 12,991 15,425

Casitas Municipal Water District 11,184 9,604 10,084 11,090 11,541 11,223 11,804 13,188

Channel Islands Beach Comm. Serv. Dist. 2,721 2,442 2,231 2,546 2,640 2,704 2,857 3,130

Conejo Recreation & Park District 13,371 11,957 11,593 12,145 13,468 14,544 17,040 17,568

El Rancho Simi Pioneer Cemetery District 86 80 90 91 88 108 107 120

Fillmore-Piru Memorial District 119 106 108 123 121 125 145 139

Fox Canyon Groundwater Mgmt. Agency 583 765 811 806 744 1,658 2,471 1,691

Hidden Valley Municipal Water District 17 5 0 4 33 60 44 36

Meiners Oaks Water District 801 730 824 880 1,030 874 995 1,205

Montalvo Comm. Services District 528 441 430 416 458 515 563 558

Ojai Valley Sanitary District 6,325 5,423 5,796 5,681 6,195 6,799 6,476 6,092

Ojai Water Conservation District 6 5 6 4 5 6 6 7

Oxnard Drainage District No. 1 36 30 33 29 33 33 22 24

Oxnard Drainage District No. 2 119 100 102 101 104 104 100 117

Oxnard Harbor District 7,823 7,486 8,467 8,832 10,600 10,642 10,299 11,515

Piru Public Cemetery District 11 21 35 27 38 35 30 44

Pleasant Valley Co. Water District 2,013 1,954 2,579 2,468 2,065 2,434 2,916 3,128

Pleasant Valley Rec & Park District 6,092 4,755 4,800 4,794 7,064 5,514 7,834 6,241

Rancho Simi Rec & Park District 13,436 11,380 11,489 12,223 13,152 13,973 15,383 16,117

Saticoy Sanitary District 216 203 221 276 357 361 429 460

Triunfo Sanitation District 9,735 8,644 9,556 10,160 9,906 10,028 10,954 12,800

United Water Conservation District 13,366 12,178 13,714 14,961 14,904 14,839 16,932 18,755

Ventura Co. Resource Conserv. District 46 38 25 10 27 58 114 280

Ventura Port District 5,759 5,009 4,942 5,078 5,382 6,095 6,780 6,380

Ventura River County Water District 964 912 1,155 1,312 1,133 1,413 1,417 1,616

TOTAL 191,212$ 173,083$ 192,159$ 205,676$ 208,997$ 207,532$ 219,075$ 239,477$

City and District Allocations

Ventura LAFCo Budget FY 2020-21

Ventura LAFCo



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STAFF REPORT










Agenda Item 12

TO: LAFCo Commissioners FROM: Kai Luoma, Executive Officer SUBJECT: Audited Financial Statements for Fiscal Year Ended June 30, 2019

RECOMMENDATION: Receive and file the attached auditor’s Annual Financial Report for fiscal year ended June 30, 2019. DISCUSSION: The Commissioner’s Handbook policies provide for annual independent audits of the LAFCo financial statements (Attachment 1). In October, the Commission approved and directed the Chair to sign a professional services agreement for audit services with Eide Bailly LLP for Fiscal Year (FY) 2018-19. The audit of the FY 2018-19 LAFCo financial statements was completed in March. A representative from Eide Bailly will be available during the meeting to present an overview of the audit process and to answer questions. Attachments:

1. Commissioner’s Handbook Section 2.3.6.1 providing for regular independent audits of the LAFCo financial statements

2. LAFCo auditor’s Annual Financial Report for the year ended June 30, 2019

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SECTION 2.3.6 AUDITS 2.3.6.1 Independent Auditor Role: For the two-year period between July 1, 2007 and June 30, 2009, LAFCo shall arrange for a single audit of its financial statements to be conducted by an independent accounting firm. All subsequent year financial statements shall be audited annually thereafter. LAFCo staff, the Commission, and any Commission committee appointed for the purpose of audit oversight are authorized to communicate directly with the independent accounting firm.

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VENTURA LOCAL AGENCY FORMATIONCOMMISSION

Annual Financial Report

Fiscal Year Ended June 30, 2019

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INTRODUCTORY

SECTION

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ANNUAL FINANCIAL REPORTFOR THE FISCAL YEAR ENDED JUNE 30, 2019

TABLE OF CONTENTS

INTRODUCTORY SECTION

PAGETable of Contents................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................1

FINANCIAL SECTION

Independent Auditors' Report ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................3

Management’s Discussion and Analysis (MD&A - Unaudited)................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................5

Basic Financial Statements:Governmental Fund Balance Sheet/Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................11Statement of Governmental Fund Revenues, Expenditures and Changes in Fund Balance/ Statement of Activities................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................12

Notes to the Basic Financial Statements................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................13

Required Supplementary Information (Other than MD&A - Unaudited):Budgetary Comparison Schedules................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................23Note to the Required Supplementary Information................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................24

COMPLIANCE SECTION

Independent Auditors' Report on Internal Control over Financial Reporting and on Complianceand Other Matters Based on an Audit of Financial Statements Performed in Accordance withGovernment Auditing Standards................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................27

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FINANCIAL

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Independent Auditor’s Report The Commissioners of Ventura Local Agency Formation Commission Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and the general fund of the Ventura Local Agency Formation Commission (Commission), California, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the Commission’s basic financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

What inspires you, inspires us. | eidebailly.com10681 Foothill Blvd., Ste. 300 | Rancho Cucamonga, CA 91730-3831 | T 909.466.4410 | F 909.466.4431 | EOE76

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Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the general fund of the Commission, as of June 30, 2019, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters

Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2020, on our consideration of the Commission’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Commission’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commission’s internal control over financial reporting and compliance.

Rancho Cucamonga, California March 30, 2020

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MANAGEMENT'S

DISCUSSION

AND ANALYSIS

(UNAUDITED)

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MANAGEMENT'S DISCUSSION AND ANALYSIS(UNAUDITED)

The following discussion and analysis of the financial performance of the Ventura Local Agency FormationCommission (Commission) provides an overview of the Commission’s financial activities for the fiscal yearended June 30, 2019. Please read it in conjunction with the basic financial statements and the notes to thosefinancial statements identified in the accompanying table of contents.

OVERVIEW OF THE BASIC FINANCIAL STATEMENTS

The Management's Discussion and Analysis (MD&A) is intended to serve as an introduction to theCommission's basic financial statements. The Commission's basic financial statements include threecomponents: the governmental fund financial statements, the government-wide financial statements, and thenotes to the basic financial statements. The basic financial statements consolidate the two kinds of statementsthat present different views of the Commission. The statements and notes are followed by a section ofrequired supplementary information that provide additional financial and budgetary information.

The two statements presented are the Governmental Fund Balance Sheet/Statement of Net Position, and theStatement of Governmental Fund Revenues, Expenditures, and Changes in Fund Balance/Statement ofActivities. The General Fund columns reflect the governmental fund financial statements that focus on theshort-term. The Statement of Net Position and the Statement of Activities columns reflect the government-wide financial statements that provide both long-term and short-term information about the Commission’soverall financial status. These statements can be found on pages 11 - 12.

Government-wide Financial Statements

The financial statements are designed to provide readers with a broad overview of the Commission's financesin a manner similar to a private-sector business. The statement of net position and statement of activities usethe flow of economic resources measurement focus and accrual basis of accounting. The focus and basisemphasize the long-term view of the Commission's finances.

The statement of net position presents information on all Commission assets and liabilities, with thedifference between the two reported as net position. Over time, increases or decreases in net position mayserve as a useful indicator of whether the financial position of the Commission is improving or deteriorating.

The statement of activities presents information showing how net position changed during the most recentfiscal year. All changes in net position are reported as soon as the underlying event giving rise to the changeoccurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in thisstatement for some items that will result in cash flows in future fiscal periods (e.g., earned but unusedvacation leave).

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MANAGEMENT'S DISCUSSION AND ANALYSIS(CONTINUED)

Fund Financial Statements

Unlike government-wide financial statements, the focus of fund financial statements is directed to specificactivities of the Commission rather than the Commission as a whole. They are groupings of related accountsthat are used to maintain control over resources that have been segregated for specific activities or objectives.The Commission is a single purpose, single fund entity and utilizes a governmental fund to account for itsactivities.

The fund financial statements consist of the balance sheet and statement of revenues, expenditures, andchanges in fund balance. These are prepared on the modified-accrual basis of accounting, while thegovernment-wide statements are prepared on the full-accrual basis.

In general, these financial statements under the modified-accrual basis have a short-term emphasis and for themost part, measure and account for assets that are current financial resources, and liabilities that are expectedto be liquidated with current financial resources. Specifically, cash and receivables collectible within a veryshort period of time are reported on the balance sheet.

Fund liabilities include amounts that are to be paid within a very short time after the end of the fiscal year.The long-term liabilities are not included. The difference between a fund's total assets and total liabilitiesrepresents the fund balance. The committed, assigned, and unassigned portions of the fund balance representsthe amount available to finance future activities.

The operating statement for the governmental fund reports only those revenues and expenditures that werecollected in cash or paid with cash during the current period or very shortly after the end of the year.

The focus of the fund financial statements is narrower than that of the government-wide financial statements.Since the different accounting basis is used to prepare the above statements, reconciliations are required tofacilitate the comparison between the fund statements and the government-wide statements. The reconciliationbetween the total fund balances and net position of governmental activities can be found on page 11.

The reconciliation of the total change in the fund balance for the governmental fund to the change in netposition of governmental activities can be found on page 12.

Notes to the Basic Financial Statements

The notes to the basic financial statements provide additional information that is essential to the fullunderstanding of the data provided in the government-wide and fund financial statements. The notes to thebasic financial statements can be found on pages 13 - 21 of this report.

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GOVERNMENT-WIDE FINANCIAL ANALYSIS

A summary of the government-wide statement of net position follows:

Table 1Net Position - Governmental Activities

2019 2018Assets: Current and other assets $ 655,144 $ 662,242

Total assets $ 655,144 $ 662,242

Liabilities: Current and other liabilities $ 33,317 $ 26,703 Long-term liabilities 43,882 37,812

Total liabilities 77,199 64,515

Net position: Unrestricted 577,945 597,727

Total net position 577,945 597,727

Total liabilities and net position $ 655,144 $ 662,242

As shown in Table 1, the Commission’s total assets in the fiscal year ended June 30, 2019, decreased $7,098or 1.1 percent from the fiscal year ended June 30, 2018. This was primarily due to a decrease in applicationfiling fees revenue which was offset with an increase in interest revenue as well as an increase in both legalfees and contract labor expenses. As shown in Table 2, the amount of revenue from the Commission'sapplication filing fees in the fiscal year ended June 30, 2019, was significantly lower than in past fiscal years.This is a result of processing less complex applications in the current fiscal year than in past years. Netposition as of June 30, 2019, decreased $19,782, indicating a 3.3 percent decline in the Commission’s overallfinancial condition and was primarily attributed to an increase in both legal fees and contract labor expenses.

Table 2Revenue from Filing Fees, FY 2014-19

Fiscal Amount of Revenue fromYear Filing Fees

2013-14 $47,9202014-15 $57,5682015-16 $24,1082016-17 $32,3542017-18 $38,4662018-19 $17,497

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A summary of the government-wide statement of activities follows:

Table 3Changes in Net Position - Governmental Activities

2019 2018Revenues:Program revenues: Charges for services: Apportionments from other governmental units $ 622,596 $ 626,991 Filing fees 17,497 38,466General revenues: Interest 23,239 12,156

Total revenues 663,332 677,613

Expenses:General government 683,114 598,691

Total expenses 683,114 598,691

Change in net position (19,782) 78,922Net position - beginning of year 597,727 518,805Net position - end of year $ 577,945 $ 597,727

As in all other years, the Commission’s major source of revenue in fiscal year ended June 30, 2019, wasapportionments from other governmental units. Since apportionments comprise a significant proportion of theCommission’s total revenue and since the annual apportionment amount is based directly on theCommission’s projected operating expenditures, total revenue generally varies from any given year for thesame reasons as do total expenditures. Filing fees decreased $20,969 or 54.5 percent in fiscal year ended June30, 2019, primarily due to processing less complex applications than the prior fiscal year.

As shown in Table 3, total expenses in fiscal year ended June 30, 2019, increased by $84,423 or 14.1 percent.This was primarily comprised of an increase of $56,896 for contract labor, which was a result of severalfactors including the LAFCo Analyst being promoted to Deputy Executive Officer and subsequentlybecoming eligible for and receiving a 5.0 percent salary increase upon promotion and receiving a 5.0 percentmerit increase after six months' probation during fiscal year 2018-19. Additionally, all county staffrepresented by the Management, Confidential Clerical and Other Unrepresented Employees Resolutionreceived a 1.5 percent general salary increase effective January 2019. Finally, the majority of the remainingincrease in total expenses was due to increased utilization of legal services relating to a policy change andother legal research.

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GOVERNMENTAL FUND FINANCIAL ANALYSIS

As noted earlier, the Commission uses fund accounting to provide proper financial management of theCommission’s resources and to demonstrate compliance with finance-related legal requirements.

Major Governmental Fund. The General Fund is the chief operating fund of the Commission. At the end ofthe fiscal year ended June 30, 2019, total fund balance of the General Fund was $621,827, compared to$635,539 for fiscal year ended June 30, 2018.

GENERAL FUND BUDGET

There were no significant General Fund budget adjustments for the year. Major deviations between the budgetof the General Fund and its actual operating results were as follows:

• Interest revenue:-Interest revenue was more than budgeted, primarily due to an unanticipated increasein the investment rate of return.

• Contract labor:-Salary expenditures were more than budgeted due to the promotion of the LAFCoAnalyst to Deputy Executive Officer as well as both merit and general salaryincreases for the LAFCo contract laborers.

• Services and supplies:-Travel expenditures were less than budgeted, primarily due to fewer Commissionersattending the annual CALAFCo conference than anticipated.

-County Counsel expenditures were more than budgeted due to greater thananticipated utilization of legal services relating to a policy change and other legalresearch.

REQUESTS FOR INFORMATION

This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a generaloverview of the Commission’s finances and to show the Commission’s accountability for the money itreceives. If you have questions about this report or need additional financial information, contact theExecutive Officer at 801 S. Victoria Avenue, Suite 301, Ventura, California 93003-1850.

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BASICFINANCIAL

STATEMENTS

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VENTURA LOCAL AGENCY FORMATION COMMISSIONGOVERNMENTAL FUND BALANCE SHEET/STATEMENT OF NET POSITION

JUNE 30, 2019

Statement ofGeneral Fund Adjustments Net Position

ASSETSCash and cash equivalents (Note 2) $ 647,299 $ - $ 647,299Accounts receivable 498 - 498Interest receivable 7,347 - 7,347

Total assets 655,144 - 655,144

LIABILITIESAccounts payable $ 1,014 - 1,014Contracted labor payable 22,472 - 22,472Due to County of Ventura 9,781 - 9,781Unearned revenue 50 - 50Long-term liabilities (Note 5): Due within one year - 41,722 41,722 Due after one year - 2,160 2,160

Total liabilities 33,317 43,882 77,199

FUND BALANCE/NET POSITIONFund balances: Committed 100,000 (100,000) - Assigned 150,000 (150,000) - Unassigned 371,827 (371,827) -

Total fund balance 621,827 (621,827) -Total liabilities and fund balance $ 655,144

Net position: Unrestricted 577,945 577,945

Total net position $ 577,945 $ 577,945

Fund balances - total governmental fund $ 621,827

Amounts reported for governmental activities in the statement of net position are different because:

Long-term liabilities used in governmental activities are not due and payable in the current period and, therefore, are not reported in the governmental fund. (43,882)

Net position of governmental activities $ 577,945

See the accompanying notes to the basic financial statements11

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VENTURA LOCAL AGENCY FORMATION COMMISSIONSTATEMENT OF GOVERNMENTAL FUND REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE/STATEMENT OF ACTIVITIESFOR THE FISCAL YEAR ENDED JUNE 30, 2019

StatementGeneral Fund Adjustments of Activities

Expenditures/expenses: General government $ 677,044 $ 6,070 $ 683,114

Total expenditures/expense 677,044 6,070 683,114

Program revenues: Charges for services: Apportionments 622,596 - 622,596 Filing fees 17,497 - 17,497

Total charges for services 640,093 - 640,093Net program expense (43,021)

General revenues: Interest 23,239 - 23,239

Total general revenues 23,239 - 23,239Deficiency of revenues under expenditures (13,712) 13,712 -Change in net position (19,782) (19,782)

Fund balance/net position: Beginning of the year 635,539 (37,812) 597,727 End of the year $ 621,827 $ (43,882) $ 577,945

Net change in fund balances - total governmental fund $ (13,712)

Amounts reported for governmental activities in the statement of activities are different because:

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental fund. Change in contract related payables (6,070)

Change in net position of governmental activities $ (19,782)

See the accompanying notes to the basic financial statements12

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VENTURA LOCAL AGENCY FORMATION COMMISSIONNOTES TO THE BASIC FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED JUNE 30, 2019

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the Ventura Local Agency Formation Commission (Commission) conform togenerally accepted accounting principles (GAAP) as applicable to governments. The following is a summaryof the significant policies.

A. Description of the Reporting Entity

Following the end of World War II, California entered a new era of demographic growth and diversity andeconomic development. With this growth came the need for housing, jobs, and public services. To providefor these services, California experienced a wave of newly formed cities and special districts, but withlittle forethought as to how the new agencies should plan for services. The lack of coordination andadequate planning for future governance led to a multitude of overlapping, inefficient jurisdictional andservice boundaries.

In 1963, the State Legislature created Local Agency Formation Commissions to help direct and coordinateCalifornia's growth in a logical, efficient, and orderly manner. Each county within California is required tohave a Commission. The Commissions are charged with the responsibility of making difficult decisions onproposals for new cities and special districts, spheres of influence, consolidations, and annexations.

The Commission's governing board consists of eleven appointed Commissioners: seven voting memberswith four alternate members, who vote only in the absence of a voting member. Two members and onealternate member are selected by the Board of Supervisors of the County of Ventura (County) from theirown membership; two members and one alternate member are selected by the cities in the County; twomembers and one alternate member are selected from special districts by the independent special districtselection committee; and one member and one alternate member are selected to represent the generalpublic, who are appointed by the other Commissioners.

B. New Accounting Pronouncements

GASB Statement No. 83, Certain Asset Retirement Obligations, effective for periods beginning after June15, 2018, enhances comparability of financial statements by establishing uniform criteria for governmentsto recognize and measure certain Asset Retirement Obligations (AROs) and requires disclosures related tothose AROs. The new requirements are not applicable to the Commission.

GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and DirectPlacements, effective for reporting periods beginning after June 15, 2018, improves financial reporting byproviding users of financial statements with essential information that is currently not consistentlyprovided. In addition, information about resources to liquidate debt and risks associated with changes interms associated with debt will be disclosed. As a result, users will have better information to understandthe effects of debt on a government’s future resource flows. The new requirements are not applicable to theCommission.

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FOR THE FISCAL YEAR ENDED JUNE 30, 2019(Continued)

The Commission is currently evaluating its accounting practices to determine the potential impact on thefinancial statements for the following GASB Statements:

GASB Statement No. 84, Fiduciary Activities, effective for reporting periods beginning after December15, 2018, enhances consistency and comparability of financial statements by establishing specific criteriafor identifying activities that should be reported as fiduciary and clarifying whether and how business-typeactivities should report their fiduciary activities. Management believes the new requirements are notapplicable to the Commission.

GASB Statement No. 87, Leases, effective for reporting periods beginning after December 15, 2019,improves accounting and financial reporting for leases and requires recognition of certain lease assets andliabilities for leases that previously were classified as operating leases. It establishes a single model forlease accounting based on the foundational principle that leases are financings of the right to use anunderlying asset. Under this statement, a lessee is required to recognize a lease liability and an intangibleright-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow ofresources, thereby enhancing the relevance and consistency of information about governments’ leasingactivities. The Commission intends to implement the new requirements for the fiscal year 2020-21financial statements.

GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period,effective for reporting periods beginning after December 15, 2019, provides users of financial statementswith more relevant information about capital assets and the cost of borrowing for a reporting period. Theresulting information also will enhance the comparability of information about capital assets and the costof borrowing for a reporting period for both governmental activities and business-type activities.Management believes the new requirements are not applicable to the Commission.

GASB Statement No. 90, Majority Equity Interests-an Amendment of GASB Statements No. 14 and No. 61,effective for reporting periods beginning after December 15, 2018, improves financial reporting byproviding users of financial statements with essential information related to presentation of majority equityinterest in legally separate organizations that previously was reported inconsistently. In addition, requiringreporting of information about component units if the government acquires a 100 percent equity interestprovides information about the cost of services to be provided by the component unit in relation to theconsideration provided to acquire the component unit. Management believes the new requirements are notapplicable to the Commission.

GASB Statement No. 91, Conduit Debt Obligations, effective for reporting periods beginning afterDecember 15, 2020, improves financial reporting by eliminating the existing option for issuers to reportconduit debt obligations as their own liabilities. In addition, requires issuers to recognize liabilitiesassociated with additional commitments extended by issuers and to recognize assets and deferred inflowsof resources related to certain arrangements associated with conduit debt obligations. These reviseddisclosure requirements will provide financial statement users with better information regarding thecommitments issuers extend and the likelihood that they will fulfill those commitments. Managementbelieves the new requirements are not applicable to the Commission.

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GASB Statement No. 92, Omnibus 2020, effective for reporting periods beginning after June 15, 2020,with the exception of the requirements related to the effective date of GASB Statement No. 87 andImplementation Guide 2019-3, reinsurance recoveries, and terminology used to refer to derivativeinstruments which are effective January 2020, the issuance date of GASB Statement No. 92. Thisstatement enhances comparability and consistency in accounting and financial reporting specificallyrelating to leases, intra-entity transfers of assets, postemployment benefits, government acquisitions, riskfinancing and insurance-related activities of public entity risk pools, fair value measurements, andderivative instruments. Management is currently reviewing the effect of this statement on the Commission.

C. Government-wide and Fund Financial Statements

Government-wide Financial StatementsThe government-wide financial statements (i.e., the statement of net position and the statement ofactivities) are prepared using the accrual basis of accounting and the economic resources measurementfocus. The government-wide financial statements report information on all of the activities.

The statement of activities demonstrates the degree to which the direct expenses of a given function orsegment is offset by program revenues. Direct expenses are those that are clearly identifiable with aspecific function or segment. Program revenues include charges for services that are restricted to meetingthe operational or capital requirements of a particular function or segment. Interest and other items notproperly included among program revenues are reported instead as general revenues.

Fund Financial StatementsThe governmental fund financial statements are prepared under the modified accrual basis of accountingand the current financial resources measurement focus. The emphasis of fund financial statements is onmajor governmental funds.

Because the governmental fund financial statements are presented on a different measurement focus andbasis of accounting than the government-wide financial statements, a reconciliation is presented whichexplains the adjustments necessary to reconcile fund financial statements to the government-wide financialstatements.

D. Net Position/Fund Balances

The government-wide financial statements utilize a net position presentation. Net position is categorizedas net investment in capital assets, restricted, and unrestricted.

Net Investment In Capital Assets – This category groups all capital assets, including infrastructure, intoone component of net position. Accumulated depreciation, the outstanding balances of debt, and deferredinflows of resources that are attributable to the acquisition, construction, or improvement of these assetsreduce the balance in this category.

Restricted Net Position (RNP) – This category reflects the component of net position that is subject toconstraints either by creditors (such as debt covenants), grantors, contributors or laws or regulations ofother governments or imposed by law through constitutional provisions or enabling legislation.

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Unrestricted Net Position – This category represents the component of net position not restricted for anyproject or other purpose. Outstanding liabilities that are attributable to this component, reduce the balanceof this category.

Fund Statement - Fund Balances

In the fund financial statements, governmental funds report fund balance as nonspendable, restricted,committed, assigned or unassigned based primarily on the extent to which the Commission is bound tohonor constraints on the specific purposes for which amounts in the funds can be spent.

Nonspendable fund balance - includes amounts that are (a) not in spendable form, or (b) legally orcontractually required to be maintained intact. The “not in spendable form” criterion includes items thatare not expected to be converted to cash, for example, inventories or prepaid amounts and may also includethe long-term receivables.

Restricted fund balance - includes amounts with constraints on their use that are either (a) externallyimposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposedby law through constitutional provisions or enabling legislation.

Committed fund balance – includes amounts that can only be used for the specific purposes determined byformal action of the highest level of decision-making authority, the Commission. All policy decisions bythe Commission are made through the adoption of a resolution; these policies are then incorporated in theCommissioner's Handbook. Commitments may be changed only by the Commission taking the sameformal action that originally imposed the constraint. The Commission has committed $100,000, for aLitigation Account with the intent of limiting the use of the Litigation Account funds for unanticipatedexpenditures resulting from litigation against the Commission that does not occur routinely and would notbe reimbursed by another party.

Assigned fund balance – includes amounts that are constrained by the Commission’s intent to be used forspecific purposes. The intent is expressed by the highest level of decision-making, the Commission.Assigned fund balance does not require the same formal action required for committed fund balance;instead an assignment of fund balance requires a majority vote of the Commission. However, if a portionof existing fund balance is included as a budgetary resource in the subsequent year's budget, theCommissioner's Handbook specifies that portion of fund balance should be classified as assigned. Fundbalance of $150,000 is assigned for the subsequent year's budget "deficit."

Unassigned fund balance – is the residual classification for the General Fund and includes all amounts notcontained in the other classifications.

It is the Commission's policy when restricted and unrestricted (committed, assigned, or unassigned)resources are available, restricted resources are generally considered to be used first, followed bycommitted, assigned, and unassigned resources as they are needed.

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E. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focusand the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded whenthe liability is incurred, regardless of the timing of the related cash flows.

Governmental fund financial statements are reported using the current financial resources measurementfocus and the modified accrual basis of accounting. Under this method, revenues are recognized whenmeasurable and available. Revenues are considered to be available when they are collectible within thecurrent period or soon enough thereafter to pay liabilities of the current period. For this purpose, thegovernment considers revenues to be available if they are collected within 60 days of the end of the currentfiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.However, expenditures related to compensated absences are recorded only when payment is due.

Charges for services and interest associated with the current fiscal periods are all considered to besusceptible to accrual and so have been recognized as revenues of the current fiscal periods. All otherrevenue items are considered to be measurable and available only when cash is received by thegovernment.

Amounts reported as program revenues include apportionments and filing fees. Internally dedicatedresources are reported as general revenues rather than as program revenues.

F. Cash and Cash Equivalents

The Commission considers all highly liquid investments with a maturity of three months or less whenpurchased to be cash equivalents.

The Commission's cash from operations is deposited in the County of Ventura Treasury. The County poolsits funds with other government agencies in the County and invests them as prescribed by the CaliforniaGovernment Code. The only authorized investment for the Commission is the County of VenturaInvestment Pool. The Commission's deposits in the County pool may be accessed any time. TheCommission is allocated interest income on monies deposited with the County based on its proportionalshare of the total pool. All pooled investments are carried at fair value. The fair value of a participant'sposition in the pool is not the same as the value of the pooled shares. The County of Ventura investmentpolicy and related disclosures may be found in the notes to the County's basic financial statements.

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G. Due to County of Ventura

Due to County of Ventura is the payment due to the County for services and support provided by theCounty to the Commission.

H. Fund Balance Policy

The Commission has adopted a policy to achieve a minimum level of unassigned fund balance in theGeneral Fund of approximately 60 days of working capital. Excess fund balance remaining over andabove the committed and assigned fund balances is classified as "unassigned" in the General Fund. Shouldunassigned fund balance fall below 45 days working capital it will be addressed in the next fiscal yearbudget. As of June 30, 2019, available working capital in excess of 60 days was $268,189.

I. Estimates

The preparation of basic financial statements in conformity with GAAP requires management to makeestimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual resultscould differ from those estimates.

2. CASH AND CASH EQUIVALENTS

The Commission participates in the County Treasurer's cash and investment pool. At June 30, 2019, theCommission's total cash and cash equivalents was $647,299; the change in fair value amounted to an increaseof $3,627.

Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of aninvestment. Generally, the longer the maturity of an investment, the greater the sensitivity of the fair value tochanges in market interest rates.

At June 30, 2019, the weighted average maturity of the County of Ventura Investment Pool was 192 days.

Disclosures Relating to Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder ofthe investment. This is measured by the assignment of a rating by a nationally recognized statistical ratingorganization. The County of Ventura Investment Pool has received ratings of AAAf and S1+ by Standard andPoor's Ratings Services, the highest possible ratings given by the agency.

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Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution,a government will not be able to recover its deposits or will not be able to recover collateral securities that arein the possession of an outside party. The custodial credit risk for investments is the risk that, in the event ofthe failure of the counterparty (e.g., broker dealer) to a transaction, a government will not be able to recoverthe value of its investment or collateral securities that are in the possession of another party. The CaliforniaGovernment Code and the Commission's investment policy do not contain legal or policy requirements, otherthan the following provision for deposits. The California Government Code requires that a financialinstitution secure deposits made by state or local governmental units by pledging securities in an undividedcollateral pool held by a depository regulated under state law (unless so waived by the governmental unit).The market value of the pledged securities in the collateral pool must equal at least 110% of the total amountdeposited by the public agencies. California law also allows financial institutions to secure deposits bypledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2019, the Commission had all of its cash pooled with the County of Ventura Treasury. Withrespect to investments, custodial credit risk generally applies only to direct investments in marketablesecurities. Custodial credit risk does not apply to a local government's indirect investment in securitiesthrough the use of mutual funds or government investment pools (such as the money invested by theCommission in the County of Ventura Investment Pool).

Fair Value Measurements

The Commission categorizes its fair value measurements within the fair value hierarchy established bygenerally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure thefair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 includesdirectly observable inputs; Level 3 inputs are unobservable inputs. As of June 30, 2019 the Commission heldno individual investments. All funds are invested in the Ventura County Investment Pool.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy,fair value measurements in their entirety are categorized based on the lowest level input that is significant tothe valuation. The Commission's assessment of the significance of particular inputs to these fair valuemeasurements requires judgment and considers factors specific to each asset or liability.

Deposits and withdrawals in governmental investment pools, such as the Ventura County Investment Pool, aremade on the basis of one dollar and not fair value. Consequently, the Commission's proportionate share ofinvestments in the Ventura County Investment Pool at June 30, 2019 is uncategorized and not defined asLevel 1, Level 2 or Level 3 input.

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3. INSURANCE

The Commission is a member of the County of Ventura's Risk Management affiliated agencies. The scheduleof insurance coverage is as follows:

Coverage Limit of Insurance

Public Employees Blanket Bond $ 15,000,000 Per occurrence/aggregate whereFraudulent Mortgage Rider applicable. $25,000 deductibleFunds Transfer Fraud per occurrence.

General Liability $ 42,000,000 In aggregate. $1,000,000 selfinsured retention per occurrence.

Cyber Liability $ 15,000,000 Per occurrence/aggregate whereapplicable. $100,000 deductibleper occurrence.

Business Travel Accident $ 5,700,000 Aggregate, no deductible.

Risk Property, Boiler & $ 600,000,000 Varies.Machinery, Heavy Equipment,DIC, Library Book Floater

Settlements or judgments have not exceeded commercial coverage for any risk of loss in each of the past threefiscal years.

4. RELATED PARTY TRANSACTIONS

The Commission and the County entered into a Memorandum of Agreement to provide office space, contractlabor, accounting, information technology support, legal service, workers' compensation and liabilityinsurance, administrative support, and maintenance support. Benefits provided to the contract labor includingcompensated absences, health and pension benefits are charged to the Commission on a pay-as-you-go basis.The total expense incurred by the Commission to the County for the year ended June 30, 2019, was $630,105.The total due to the County as of June 30, 2019, was $9,781.

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5. LONG-TERM LIABILITIES

Long-term obligations of the Commission consist of contract labor related liabilities. Contract labor relatedliabilities are liabilities for vacation, vested sick leave benefits, and compensatory time reported as requiredby GASB Statement No. 16 and No. 34 in the governmental activities of the government-wide financialstatements.

A summary of long-term liabilities incurred, outstanding as of June 30, 2019, is as follows:

Outstanding Outstanding Amount DueJuly 1, June 30, Within

Type of Liability 2018 Additions Maturities 2019 One YearContract labor related liabilities $ 37,812 $ 40,131 $ 34,061 $ 43,882 $ 41,722

A liability for contract labor related liabilities are reported in the governmental fund financial statements onlyif they have matured due to employee resignations and retirements.

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REQUIRED

SUPPLEMENTARY

INFORMATION

(OTHER THAN MD&A)(UNAUDITED)

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VENTURA LOCAL AGENCY FORMATION COMMISSIONBUDGETARY COMPARISON SCHEDULE - ON BUDGETARY BASIS

GENERAL FUNDFOR THE FISCAL YEAR ENDED JUNE 30, 2019

OriginalBudget

FinalBudget

Actual onBudgetary Basis

Variance withFinal Budget

Positive (Negative)

Resources (inflows):Apportionments $ 622,596 $ 622,596 $ 622,596 $ -Filing fees 20,000 20,000 17,497 (2,503)Interest 8,500 8,500 20,968 12,468

Amount available for appropriation 651,096 651,096 661,061 9,965

Charges to appropriations (outflows):General government:

Contract labor 548,700 544,000 539,803 4,197Services and supplies 147,750 154,562 137,241 17,321Contingencies 69,646 69,646 - 69,646

Total charges to appropriation 766,096 768,208 677,044 91,164

Deficiency of revenues under expenditures (115,000) (117,112) (15,983) 101,129

Fund balance - beginning 635,539 635,539 635,539 -

Fund balance - ending $ 520,539 $ 518,427 $ 619,556 $ 101,129

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VENTURA LOCAL AGENCY FORMATION COMMISSIONNOTE TO THE REQUIRED SUPPLEMENTARY INFORMATION

FOR THE FISCAL YEAR ENDED JUNE 30, 2019

1. BUDGET AND BUDGETARY ACCOUNTING

As set forth in California Government Code Section 56381 of the Cortese-Knox-Hertzberg (CKH) LocalGovernment Reorganization Act of 2000, the Commission is legally required to adopt a proposed annualbudget for the General Fund by May 1, and a final annual budget by June 15. The Commission adheres to theprovisions of California Government Code Sections 29000 through 29144 concerning budgetary matters,commonly known as The County Budget Act.

The adopted budget can be amended by the Commission to change both appropriations and estimatedrevenues as unforeseen circumstances come to management's attention. Increases and decreases in revenueand appropriations require approval by the Commissioners. Expenditures may not exceed total appropriationsat the individual object level. Any transfer of appropriations between object levels is delegated by theCommission to the Executive Officer. It is the practice of the Commission's management to review the budgetquarterly and, if necessary, recommend changes to the Commission.

The Budgetary Comparison Schedule for the General Fund, as required by GASB 34, presents the originalbudget, final budget and actual amount. The “original budget” includes the adopted budget plusappropriations for prior year approved rollover encumbrances. The “final budget” is the budget as Boardapproved at the end of the fiscal year. The “actual amount” includes the actual revenues and expendituresincurred on a budgetary basis and as adjusted for the basic financial statements. Variances are providedbetween the Final Budget Amounts and the Actual Amounts on a budgetary basis.

This information is presented as Required Supplementary Information. Analysis of the final budget to actualvariances is discussed in the Management’s Discussion and Analysis.

The budget is adopted on a basis of accounting which is different from GAAP. The primary difference is:

For budgetary purposes, changes in the fair value of investments are not recognized as increases or decreases

to revenue. Under GAAP, such changes are recognized as increases or decreases to revenue.

The following schedule is a reconciliation of the difference between the fund balances on the actual on abudgetary basis and the GAAP basis on the fund financial statements at June 30, 2019:

FY 2018-19

General

Fund balance - Actual on budgetary basis $ 619,556

Adjustment:Change in fair value of investments 2,271 Fund balance - GAAP basis $ 621,827

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VENTURA LOCAL AGENCY FORMATION COMMISSIONNOTE TO THE REQUIRED SUPPLEMENTARY INFORMATION


Level of Budgetary Control

The legal level for budgetary control (the level at which expenditures may not legally exceed appropriations)is at the object level: contract labor, services and supplies, and contingencies. Expenditures are classified asgeneral government. Any transfer of appropriations between object levels within the same budget unit isdelegated by the Commission to the LAFCo Executive Officer.

Encumbrances

The Commission utilizes an encumbrance system as an extension of normal budgetary accounting to assist incontrolling expenditures. Under this system, purchase orders, contracts, and other commitments forexpenditures are recorded in order to reserve that portion of applicable appropriations. Encumbrancesoutstanding at year-end are recorded as assignment or commitment of fund balance in the governmental fund.Unencumbered appropriations lapse at year-end. Encumbered appropriations are carried forward in theensuing year's budget.

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COMPLIANCE

SECTION

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Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with

Government Auditing Standards

The Commissioners of Ventura Local Agency Formation Commission

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the general fund of the Ventura Local Agency Formation Commission (Commission), California, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the Commission’s basic financial statements, and have issued our report thereon dated March 30, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Commission’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

What inspires you, inspires us. | eidebailly.com10681 Foothill Blvd., Ste. 300 | Rancho Cucamonga, CA 91730-3831 | T 909.466.4410 | F 909.466.4431 | EOE108

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Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Rancho Cucamonga, California March 30, 2020

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TO: LAFCo Commissioners FROM: Andrea Ozdy, Deputy Executive Officer SUBJECT: Amendment to Ventura LAFCo Commissioner’s Handbook Related to

Commissioners’ Terms of Office

Recommendations: A. Adopt a resolution (Attachment 1) to amend Ventura LAFCo Commissioner’s Handbook

(Handbook) Section 1.1.3.2 (Term of Office) to establish January 1 as the inauguration date and December 31 as the expiration date for commissioners’ four-year terms (approval requires the affirmative vote of six members of the Commission, pursuant to Handbook Section 1.1.8.2); and


Discussion: The Commission’s February 19, 2020, meeting agenda included an item to consider the adoption of an amendment to Handbook Section 1.1.3.2. The staff report for that item is provided as Attachment 2. Because the proposed amendment would consist of a change to the Commission’s by-laws, approval requires the affirmative vote of six members of the Commission; however, only five voting members were present at the Commission’s February 19, 2020, meeting. To avoid an automatic denial of the recommended policy amendment by virtue of an insufficient number of voting members present to approve it, staff requested that the Commission continue the item to the next Commission meeting (i.e., today’s meeting). The Commission supported the requested continuance by a vote of 5-0. Attachments:

1. Resolution Amending Handbook Section 1.1.3.2 2. February 19, 2020, LAFCo Staff Report (without attachment)

Agenda Item 13

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RESOLUTION OF THE VENTURA LOCAL AGENCY FORMATION COMMISSION

MAKING AMENDMENTS TO DIVISION 1 (CHAPTER 1) OF THE COMMISSIONER’S HANDBOOK


(Government Code Section 56000 et seq.) requires each Local Agency Formation Commission to

adopt written policies and procedures; and

WHEREAS, the Ventura Local Agency Formation Commission (LAFCo or Commission)

adopted a revised Commissioner’s Handbook containing its written policies and procedures,

effective January 1, 2002; and

WHEREAS, the Commission periodically adopts revisions to the Commissioner’s

Handbook containing its written policies, procedures, and bylaws as necessary; and

WHEREAS, on February 19, 2020, the Commission continued its consideration of the

recommended amendments to its policies to the following Commission meeting; and

WHEREAS, on May 20, 2020, the Commission heard and considered the Staff Report and

the public had an opportunity to comment on the recommended amendments to the

Commission’s policies.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED that the Ventura Local

Agency Formation Commission hereby:

(1) Amends Chapter 1 (By-Laws) of Division 1 (Operational Rules & Regulations) as

provided in Exhibit A.

(2) Directs the Executive Officer to compile the amendments to the Commissioner’s

Handbook in the form of a replacement page and distribute the amendments to

interested parties.

(3) Establishes the effective date of this resolution as May 20, 2020.

Attachment 1

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Resolution Making Amendments to Commissioner’s Handbook May 20, 2020 Page 2 of 2




Commissioner Parks

Commissioner Parvin


Commissioner Rooney

Commissioner Ross






__________________ ______________________________________________________ Date Chair, Ventura Local Agency Formation Commission

Attachment: Exhibit A c: Ventura County Cities Ventura County Special Districts

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EXHIBIT A

DIVISION 1 – OPERATIONAL RULES & REGULATIONS CHAPTER 1 – BY-LAWS SECTION 1.1.3.2 – TERM OF OFFICE

The four-year term of office for each member shall be as set forth in the CKH Act. The inauguration date of the term of office shall be January 1 in the year in which the term of the member begins, and the expiration date of the term of office shall be December 31 in the year in which the term of the member expires.

Attachment 1 Exhibit A

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13-1-A


Meeting Date: February 19, 2020



Linda Parks Janice Parvin Elaine Freeman David J. Ross, Chair

John Zaragoza Carmen Ramirez, Vice-Chair Mary Anne Rooney





Agenda Item 11

TO: LAFCo Commissioners FROM: Andrea Ozdy, Deputy Executive Officer SUBJECT: Amendment to Ventura LAFCo Commissioner’s Handbook Related to

Commissioners’ Terms of Office

Recommendation: A. Adopt a resolution (Attachment 1) to amend Ventura LAFCo Commissioner’s Handbook

(Handbook) Section 1.1.3.2 (Term of Office) to establish January 1 as the inauguration date and December 31 as the expiration date for commissioners’ four-year terms (approval requires the affirmative vote of six members (four fifths) of the Commission, pursuant to Handbook Section 1.1.8.2); and


Background: LAFCo periodically amends its Handbook to address a specific issue and/or make general improvements to it, in response to a need identified by either the Commission or LAFCo staff. LAFCo staff noted impracticality and potential confusion associated with the Commission’s existing policy related to commissioners’ terms of office. Handbook Section 1.1.3.2 states:

Term of Office: The term of office for each member shall be as set forth in the CKH[1] Act. The expiration date of the term of office shall be January 1 in the year in which the term of the member expires.

1 Government Code § 56334 states, in pertinent part: “The term of office of each member shall be four years and until the appointment and qualification of his or her successor.”

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Amendment to Ventura LAFCo Commissioner’s Handbook – Commissioners’ Terms of Office February 19, 2020 Page 2 of 3

LAFCo’s practice since 2002 has been for commissioners’ four-year terms to span from January 1 of one year to January 1 four years later (i.e., resulting in terms covering four years and one day). Staggered terms are designed to ensure continuity of the Commission by enabling only a limited number of potential changes to the composition of the Commission over a short period of time. Discussion: Ventura LAFCo’s existing practice of staggering terms has worked well to maintain stability and facilitate gradual evolution of the Commission; however, staff recommends that the Commission make a minor adjustment to Handbook Section 1.1.3.2 that would eliminate confusion and better reflect terms of commission members. Staff recommends that the Handbook Section 1.1.3.2 be revised as follows:

Term of Office: The four-year term of office for each member shall be as set forth in the CKH Act. The inauguration date of the term of office shall be January 1 in the year in which the term of the member begins, and the expiration date of the term of office shall be December 31 in the year in which the term of the member expires.

The revision to Handbook Section 1.1.3.2 would have the effect of shortening each current commissioner’s term by one day (i.e., from January 1 to the preceding December 31) and would establish commissioner terms that better reflect the calendar years actually served on the Commission. To illustrate the minor impact of the proposed change, the existing term inauguration dates, existing expiration dates, and proposed expiration dates of the current LAFCo commissioners are provided as follows:

Commissioner Membership Category

Current Commissioner Term Inauguration CURRENT

Term Expiration PROPOSED

Term Expiration

County (Regular) Linda Parks January 1, 2020 January 1, 2024 December 31, 2023

County (Regular) John Zaragoza January 1, 2018 January 1, 2022 December 31, 2021

County (Alternate) Steve Bennett January 1, 2020 January 1, 2024 December 31, 2023

City (Regular) Janice Parvin January 1, 2020 January 1, 2024 December 31, 2023

City (Regular) Carmen Ramirez January 1, 2018 January 1, 2022 December 31, 2021

City (Alternate) Claudia Bill-de la Peña January 1, 2020 January 1, 2024 December 31, 2023

Special District (Regular) Elaine Freeman January 1, 2019 January 1, 2023 December 31, 2022

Special District (Regular) Mary Anne Rooney January 1, 2017 January 1, 2021 December 31, 2020

Special District (Alternate) John R. (Jack) Curtis January 1, 2019 January 1, 2023 December 31, 2022

Public (Regular) David J. Ross January 1, 2017 January 1, 2021 December 31, 2020

Public (Alternate) Pat Richards January 1, 2017 January 1, 2021 December 31, 2020

Furthermore, January 1 is a federal holiday (i.e., no business of the Commission takes place on January 1), and therefore a term expiration date of December 31 is functionally the same as January 1.

115

Amendment to Ventura LAFCo Commissioner’s Handbook – Commissioners’ Terms of Office

February 19, 2020 Page 3 of 3

Pursuant to Handbook Section 1.3.9 (Adoption of New or Amended Commission Policies), the Commission shall consider the adoption of a new or amended policy at two Commission meetings, but may waive the requirement for a second meeting or may otherwise direct staff. Given the non-controversial nature and negligible impact of the proposed policy amendment, staff recommends that the Commission approve the amendment and waive consideration of the proposed amendment at a second Commission meeting. Alternative Actions Available: A. Direct that the proposed amended policy, with or without modification, be agendized for a

second meeting; B. Approve, with modification, the proposed amended policy, and waive a second meeting; C. Disapprove the proposed amended policy, and waive a second meeting; or D. Direct staff as the Commission deems appropriate. Attachment:

1. Resolution Amending Handbook Section 1.1.3.2

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Agenda Item 14

TO: LAFCo Commissioners FROM: Andrea Ozdy, Deputy Executive Officer SUBJECT: Proposed Adoption of Legislative Policies for 2020

Recommendation: Adopt a resolution (Attachment 1) that establishes legislative policies (i.e., a legislative platform) of the Commission for 2020. Background: On January 16, 2019, the Commission adopted a policy (i.e., Ventura LAFCo Commissioner’s Handbook Section 1.5.1), which reads:

The Commission shall adopt legislative policies to guide its actions related to legislative matters. Following adoption of legislative policies, the Commission shall, at a minimum, annually review the legislative policies of the California Association of LAFCos and its own legislative policies, and either revise or readopt its legislative policies.

In compliance with Handbook Section 1.5.1, on March 20, 2019, the Commission adopted legislative policies which are identical to the 2019 legislative policies adopted on December 7, 2018, by the Board of Directors of the California Association of Local Agency Formation Commissions (CALAFCO)1 (Attachment 2). The policies are organized into categories that include: (1) LAFCo Purpose and Authority, (2) LAFCo Organization, (3) Agricultural and Open Space Protection, (4) Orderly Growth, and (5) Service Delivery and Local Agency Effectiveness. In addition, they include “Primary Issues” (i.e., Authority of LAFCo, Agricultural and Open Space

1 CALAFCO annually adopts legislative policies that guide the actions of the CALAFCO Legislative Committee (consisting of a selection of Board members and LAFCo staff) to support LAFCos’ authority to implement the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (i.e., CKH or LAFCo law).

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2020 Legislative Policies May 20, 2020 Page 2 of 2

Protection, Water Availability, and Viability of Local Services) and “Issues of Interest” (i.e., Housing, Transportation, Flood Control, and Adequate Municipal Services in Inhabited Territory). On December 13, 2019, the CALAFCO Board of Directors adopted legislative policies for 2020, which are provided as Exhibit A to Attachment 1. CALAFCO’s 2020 legislative policies differ from its 2019 policies only in the addition of Policy 4.6 (listed under “Orderly Growth”), which states: “Support the recognition of extreme fire events and disaster preparedness when considering growth and service delivery issues.”

Discussion: As demonstrated through its local policies, application of LAFCo law, CALAFCO membership, and involvement in the CALAFCO Legislative Committee, Ventura LAFCo continues to be generally supportive of CALAFCO’s legislative policies. Furthermore, the additional policy acknowledging the significance of disaster planning is relevant locally, given Ventura County’s experiences with destructive wildfires during 2017 and 2018 and a public health emergency (i.e., coronavirus pandemic) in 2020. Therefore, staff recommends that the Commission adopt CALAFCO’s 2020 legislative policies as its own legislative policies for the upcoming year. Alternative Actions Available:

1. Readopt the 2019 legislative policies of the Commission as its legislative policies for 2020.

2. Direct staff to return to the Commission with legislative policies that are separate and distinct from Ventura LAFCo’s 2019 legislative policies and CALAFCO’s 2020 legislative policies.

Attachments:

1. Resolution Adopting Legislative Policies of the Commission 2. Existing Legislative Policies (Adopted on March 20, 2019)

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RESOLUTION OF THE VENTURA LOCAL AGENCY FORMATION COMMISSION ADOPTING LEGISLATIVE

POLICIES


(Government Code Section 56000 et seq.) requires each Local Agency Formation Commission to

adopt written policies and procedures; and

WHEREAS, the Ventura Local Agency Formation Commission (Commission) adopted a

new and revised Commissioner’s Handbook containing its written policies and procedures on

January 1, 2002; and

WHEREAS, the Commission periodically adopts revisions to the Commissioner’s

Handbook containing its written policies, procedures, and bylaws as necessary; and

WHEREAS, on January 16, 2019, the Commission adopted Commissioner’s Handbook

Section 1.5.1, which requires the Commission to annually adopt legislative policies; and

WHEREAS, on March 20, 2019, the Commission adopted legislative policies; and

WHEREAS, on May 20, 2020, the Commission heard and considered the Staff Report and

the public had an opportunity to comment on the recommended legislative policies.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED that the Ventura Local

Agency Formation Commission hereby:

(1) Adopts the legislative policies as set forth in Exhibit A; and

(2) Establishes the effective date of this resolution as May 20, 2020.

Attachment 1

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Resolution Adopting Legislative Policies May 20, 2020 Page 2 of 2




Commissioner Parks

Commissioner Parvin


Commissioner Rooney

Commissioner Ross






__________________ ______________________________________________________ Date Chair, Ventura Local Agency Formation Commission

Attachment: Exhibit A c: Ventura County Cities Ventura County Special Districts County of Ventura

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CALAFCO 2020 Legislative Policies As adopted by the Board of Directors on December 13, 2019

1. LAFCo Purpose and Authority 1.1. Support legislation which enhances LAFCo authority and powers to carry out the legislative

findings and authority in Government Code §56000 et seq., and oppose legislation which diminishes LAFCo authority.

1.2. Support authority for each LAFCo to establish local policies to apply Government Code §56000 et seq. based on local needs and conditions, and oppose any limitations to that authority.

1.3. Oppose additional LAFCo responsibilities which require expansion of current local funding sources. Oppose unrelated responsibilities which dilute LAFCo ability to meet its primary mission.

1.4. Support alignment of responsibilities and authority of LAFCo and regional agencies which may have overlapping responsibilities in orderly growth, preservation, and service delivery, and oppose legislation or policies which create conflicts or hamper those responsibilities.

1.5. Oppose grants of special status to any individual agency or proposal to circumvent the LAFCo process.

1.6. Support individual commissioner responsibility that allows each commissioner to independently vote his or her conscience on issues affecting his or her own jurisdiction.

2. LAFCo Organization

2.1. Support the independence of LAFCo from local agencies.

2.2. Oppose the re-composition of any LAFCo to create special seats and recognize the importance of balanced representation provided by cities, the county, the public, and special districts in advancing the public interest.

2.3. Support representation of special districts on all LAFCos in counties with independent districts and oppose removal of special districts from any LAFCo.

2.4. Support communication and collaborative decision-making among neighboring LAFCos when growth pressures and multicounty agencies extend beyond a LAFCo’s boundaries.

3. Agricultural and Open Space Protection

3.1. Support legislation which clarifies LAFCo authority to identify, encourage and ensure the preservation of agricultural and open space lands.

3.2. Encourage a consistent definition of agricultural and open space lands.

3.3. Support policies which encourage cities, counties and special districts to direct development away from all types of agricultural lands, including prime agricultural lands and open space lands.

3.4. Support policies and tools which protect all types of agricultural lands, including prime agricultural lands and open space lands.

3.5. Support the continuance of the Williamson Act and restoration of program funding through State subvention payments.

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CALAFCO 2020 Legislative Policies 2 As adopted by the Board of Directors on December 13, 2019

California Association of Local Agency Formation Commissions

1020 12th Street, Suite 222, Sacramento, CA 95814 916/442-6536 www.calafco.org

4. Orderly Growth

4.1. Support the recognition and use of spheres of influence as a management tool to provide better planning of growth and development, and to preserve agricultural and open space lands.

4.2. Support recognition of LAFCo spheres of influence by other agencies involved in determining and developing long-term growth and infrastructure plans.

4.3. Support orderly boundaries of local agencies and the elimination of islands within the boundaries of agencies.

4.4. Support communication among cities, counties, and special districts through a collaborative process that resolves service, housing, land use, and fiscal issues, prior to application to LAFCo.

4.5. Support cooperation between counties and cities on decisions related to development within the city’s designated sphere of influence.

4.6. Support the recognition of extreme fire events and disaster preparedness when considering growth and service delivery issues.

5. Service Delivery and Local Agency Effectiveness

5.1. Support the use of LAFCo resources to review Regional Transportation Plans, including sustainable communities strategies and other growth plans to ensure reliable services, orderly growth, sustainable communities, and conformity with LAFCo’s legislative mandates. Support efforts that enhance meaningful collaboration between LAFCos and regional planning agencies.

5.2. Support LAFCo authority as the preferred method of local governance. Support the availability of LAFCo tools which provide options for local governance and efficient service delivery, including the authority to impose conditions that assure a proposal’s conformity with LAFCo’s legislative mandates.

5.3. Support the creation or reorganization of local governments in a deliberative, open process which will fairly evaluate the proposed new or successor agency’s long-term financial viability, governance structure and ability to efficiently deliver proposed services.

5.4. Support the availability of tools for LAFCo to insure equitable distribution of revenues to local government agencies consistent with their service delivery responsibilities.

5.5. Support collaborative efforts among agencies and LAFCOs that encourage opportunities for sharing of services, staff and facilities to provide more efficient and cost effective services. Support legislation which provides LAFCo with additional opportunities to encourage shared services.

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2020 Legislative Priorities

Primary Issues

Authority of LAFCo

Support legislation that maintains or enhances LAFCo’s authority to condition proposals to address any or all financial, growth, service delivery, and agricultural and open space preservation issues. Support legislation that maintains or enhances LAFCo’s ability to make decisions regarding boundaries and formations, as well as to enact recommendations related to the delivery of services and the agencies providing them, including changes of organization and reorganizations.

Agriculture and Open Space Protection

Support policies, programs and legislation that recognize LAFCo’s mission to protect and mitigate the loss of all types of agricultural lands, including prime agricultural lands and open space lands and that encourage other agencies to coordinate with local LAFCos on land preservation and orderly growth. Support efforts that encourage the creation of habitat conservation plans.

Water Availability

Support policies, programs and legislation that promote an integrated approach to water availability and management. Promote adequate water supplies and infrastructure planning for current and planned growth as well as to support the sustainability of all types of agricultural lands, including prime agricultural lands and open space lands. Support policies that assist LAFCo in obtaining accurate and reliable water supply information to evaluate current and cumulative water demands for service expansions and boundary changes including impacts of expanding water company service areas on orderly growth, and the impacts of consolidation or dissolution of water companies providing services.

Viability of Local Services

Support legislation that maintains or enhances LAFCo’s ability to review and act to determine the efficient and sustainable delivery of local services and the financial viability of agencies providing those services to meet current and future needs including those identified in regional planning efforts such as sustainable communities strategies. Support legislation which provides LAFCo and local communities with options for local governance and service delivery to ensure efficient, effective, and quality service delivery. Support efforts which provide tools to local agencies to address aging infrastructure, fiscal challenges, the maintenance of services, and services to disadvantaged communities.

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Issues of Interest Housing

Provision of territory and services to support housing plans consistent with regional land use plans and local LAFCo policies.

Transportation

Effects of Regional Transportation Plans and expansion of transportation systems on future urban growth and service delivery needs, and the ability of local agencies to provide those services.

Flood Control

The ability and effectiveness of local agencies to maintain and improve levees and protect current infrastructure. Carefully consider the value of uninhabited territory, and the impact to public safety of proposed annexation to urban areas of uninhabited territory which is at risk for flooding. Support legislation that includes assessment of agency viability in decisions involving new funds for levee repair and maintenance. Support efforts that encourage the creation of habitat conservation plans.

Adequate Municipal Services in Inhabited Territory

Expedited processes for inhabited annexations should be consistent with LAFCo law and be fiscally viable. To promote environmental justice for underserved inhabited communities, funding sources should be identified for extension of municipal services, including options for annexation of contiguous disadvantaged unincorporated communities. Support policies, programs, and legislation which would provide municipal services to disadvantaged communities. Promote the delivery of adequate, sustainable, efficient, and effective levels of service through periodic updates of Municipal Service reviews, Spheres of Influence, and other studies.

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CALAFCO 2019 Legislative Policies As adopted by the Board of Directors on 7 December, 2018

1. LAFCo Purpose and Authority

1.1. Support legislation which enhances LAFCo authority and powers to carry out the legislative

findings and authority in Government Code §56000 et seq., and oppose legislation which

diminishes LAFCo authority.

1.2. Support authority for each LAFCo to establish local policies to apply Government Code §56000

et seq. based on local needs and conditions, and oppose any limitations to that authority.

1.3. Oppose additional LAFCo responsibilities which require expansion of current local funding

sources. Oppose unrelated responsibilities which dilute LAFCo ability to meet its primary

mission.

1.4. Support alignment of responsibilities and authority of LAFCo and regional agencies which may

have overlapping responsibilities in orderly growth, preservation, and service delivery, and

oppose legislation or policies which create conflicts or hamper those responsibilities.

1.5. Oppose grants of special status to any individual agency or proposal to circumvent the LAFCo

process.

1.6. Support individual commissioner responsibility that allows each commissioner to independently

vote his or her conscience on issues affecting his or her own jurisdiction.

2. LAFCo Organization

2.1. Support the independence of LAFCo from local agencies.

2.2. Oppose the re-composition of any LAFCo to create special seats and recognize the importance

of balanced representation provided by cities, the county, the public, and special districts in

advancing the public interest.

2.3. Support representation of special districts on all LAFCos in counties with independent districts

and oppose removal of special districts from any LAFCo.

2.4. Support communication and collaborative decision-making among neighboring LAFCos when

growth pressures and multicounty agencies extend beyond a LAFCo’s boundaries.

3. Agricultural and Open Space Protection

3.1. Support legislation which clarifies LAFCo authority to identify, encourage and ensure the

preservation of agricultural and open space lands.

3.2. Encourage a consistent definition of agricultural and open space lands.

3.3. Support policies which encourage cities, counties and special districts to direct development

away from all types of agricultural lands, including prime agricultural lands and open space

lands.

3.4. Support policies and tools which protect all types of agricultural lands, including prime

agricultural lands and open space lands.

3.5. Support the continuance of the Williamson Act and restoration of program funding through State

subvention payments.

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CALAFCO 2019 Legislative Policies 2

As adopted by the Board of Directors on 7 December, 2018


1215 K Street, Suite 1650, Sacramento, CA 95814 916/442-6536 www.calafco.org

4. Orderly Growth

4.1. Support the recognition and use of spheres of influence as a management tool to provide better

planning of growth and development, and to preserve agricultural and open space lands.

4.2. Support recognition of LAFCo spheres of influence by other agencies involved in determining

and developing long-term growth and infrastructure plans.

4.3. Support orderly boundaries of local agencies and the elimination of islands within the

boundaries of agencies.

4.4. Support communication among cities, counties, and special districts through a collaborative

process that resolves service, housing, land use, and fiscal issues, prior to application to LAFCo.

4.5. Support cooperation between counties and cities on decisions related to development within

the city’s designated sphere of influence.

5. Service Delivery and Local Agency Effectiveness

5.1. Support the use of LAFCo resources to review Regional Transportation Plans, including

sustainable communities strategies and other growth plans to ensure reliable services, orderly

growth, sustainable communities, and conformity with LAFCo’s legislative mandates. Support

efforts that enhance meaningful collaboration between LAFCos and regional planning agencies.

5.2. Support LAFCo authority as the preferred method of local governance. Support the availability

of LAFCo tools which provide options for local governance and efficient service delivery,

including the authority to impose conditions that assure a proposal’s conformity with LAFCo’s

legislative mandates.

5.3. Support the creation or reorganization of local governments in a deliberative, open process

which will fairly evaluate the proposed new or successor agency’s long-term financial viability,

governance structure and ability to efficiently deliver proposed services.

5.4. Support the availability of tools for LAFCo to insure equitable distribution of revenues to local

government agencies consistent with their service delivery responsibilities.

5.5. Support collaborative efforts among agencies and LAFCOs that encourage opportunities for

sharing of services, staff and facilities to provide more efficient and cost effective services.

Support legislation which provides LAFCo with additional opportunities to encourage shared

services.

126





2019 Legislative Priorities

Primary Issues

Authority of LAFCo

Support legislation that maintains or enhances LAFCo’s authority to condition proposals to address any

or all financial, growth, service delivery, and agricultural and open space preservation issues. Support

legislation that maintains or enhances LAFCo’s ability to make decisions regarding boundaries and

formations, as well as to enact recommendations related to the delivery of services and the agencies

providing them, including changes of organization and reorganizations.

Agriculture and Open Space Protection

Support policies, programs and legislation that recognize LAFCo’s mission to protect and mitigate the loss

of all types of agricultural lands, including prime agricultural lands and open space lands and that

encourage other agencies to coordinate with local LAFCos on land preservation and orderly growth.

Support efforts that encourage the creation of habitat conservation plans.

Water Availability

Support policies, programs and legislation that promote an integrated approach to water availability and

management. Promote adequate water supplies and infrastructure planning for current and planned

growth as well as to support the sustainability of all types of agricultural lands, including prime agricultural

lands and open space lands. Support policies that assist LAFCo in obtaining accurate and reliable water

supply information to evaluate current and cumulative water demands for service expansions and

boundary changes including impacts of expanding water company service areas on orderly growth, and

the impacts of consolidation or dissolution of water companies providing services.

Viability of Local Services

Support legislation that maintains or enhances LAFCo’s ability to review and act to determine the efficient

and sustainable delivery of local services and the financial viability of agencies providing those services

to meet current and future needs including those identified in regional planning efforts such as

sustainable communities strategies. Support legislation which provides LAFCo and local communities

with options for local governance and service delivery to ensure efficient, effective, and quality service

delivery. Support efforts which provide tools to local agencies to address aging infrastructure, fiscal

challenges, the maintenance of services, and services to disadvantaged communities.

127





Issues of Interest

Housing

Provision of territory and services to support housing plans consistent with regional land use plans and

local LAFCo policies.

Transportation

Effects of Regional Transportation Plans and expansion of transportation systems on future urban growth

and service delivery needs, and the ability of local agencies to provide those services.

Flood Control

The ability and effectiveness of local agencies to maintain and improve levees and protect current

infrastructure. Carefully consider the value of uninhabited territory, and the impact to public safety of

proposed annexation to urban areas of uninhabited territory which is at risk for flooding. Support

legislation that includes assessment of agency viability in decisions involving new funds for levee repair

and maintenance. Support efforts that encourage the creation of habitat conservation plans.

Adequate Municipal Services in Inhabited Territory

Expedited processes for inhabited annexations should be consistent with LAFCo law and be fiscally viable.

To promote environmental justice for underserved inhabited communities, funding sources should be

identified for extension of municipal services, including options for annexation of contiguous

disadvantaged unincorporated communities. Support policies, programs, and legislation which would

provide municipal services to disadvantaged communities. Promote the delivery of adequate,

sustainable, efficient, and effective levels of service through periodic updates of Municipal Service

reviews, Spheres of Influence, and other studies.

128









Executive Officer: Deputy Executive Officer Office Manager/Clerk Legal Counsel


Agenda Item 15

TO: LAFCo Commissioners FROM: Kai Luoma, Executive Officer SUBJECT: Executive Officer’s Report – Anticipated Future Agenda Items

RECOMMENDATION: Receive and file. DISCUSSION: LAFCo staff anticipates that the following matters will be placed on a future meeting agenda for Commission consideration: June 10 Commission Meeting: 1. LAFCo Final Budget for Fiscal Year 2020-2021: LAFCo law directs that the Commission adopt

annually a final budget by June 15.

July 15 Commission Meeting: 1. LAFCo 20-05 City of Oxnard Reorganization – Rio Urbana: The proposal involves the annexation to

the City of Oxnard of approximately 10 acres for the development of 167 multi-family residential units and 15,000 square feet of office uses in the El Rio area. The proposal was submitted to LAFCo in late April. LAFCo meeting dates for this item are highly tentative, as currently there is no property tax sharing agreement between the county and city, which is required in order for LAFCo to accept the application as complete.

129

Documents

VENTURA LOCAL A F C AGENDA Wednesday, May 20, 2020 · Ventura Local Agency Formation Commission within 72 hours before they are scheduled to be considered will be made available for