LAFCO grants FPUD community benefit latent powers

Joe Naiman

Village News Reporter

San Diego County's Local Agency Formation Commission has authorized the Fallbrook Public Utility District to expand FPUD’s latent powers to provide for public community facilities.

The 8-0 LAFCO board vote April 4 expands FPUD’s latent powers to include parks and recreation, street lighting, and roads and streets service functions. FPUD previously had water, recycled water, and wastewater latent powers. The action is subject to a petition signature protest.

“This is really kind of a community spirit,” said Jim Desmond, who is one of two county supervisors on the LAFCO board.

“This is all for the collective purpose of organizing and funding beautification projects,” said LAFCO analyst Priscilla Allen.

The July 2019 FPUD board meeting included a 5-0 vote to authorize the preparation of the application to LAFCO. FPUD's May 2018 meeting included a presentation by the Fallbrook Chamber of Commerce and other community groups proposing the possibility that FPUD might take responsibility for community maintenance. The groups identified approximately 15 maintenance projects, including trash and graffiti removal, which would be undertaken.

In October 2018, FPUD's board voted 4-0 with Milt Davies absent to direct staff to begin an application and to work with LAFCO to determine what would be required for an application.

“We’re agreeable to the condition as it is written,” said FPUD general manager Jack Bebee. “These projects are supplemental to the county.”

The activities from the parks and recreation latent powers would cost approximately $560,000 annually. FPUD receives a portion of property tax payments from district landowners, and the community groups have requested that some of that property tax revenue be used for the community activities.

A new tax would require a public vote. Raising water rates would only require a majority board vote although a cost of service study which shows the relationship between the rates and the agency's cost to provide water would be required to raise rates without a public vote. In November 1996, the state's voters passed Proposition 218, which requires a public vote on benefit assessments.

FPUD and LAFCO worked to have the latent powers expansion funded by the property tax transfer rather than an assessment. If water rates are raised to cover the cost of property tax revenue being used for community benefit projects rather than infrastructure, the estimated increase is $5 per meter per month. The conditions of the latent powers expansion also include that FPUD will attempt a Proposition 218 hearing to free up the $560,000 of property tax revenue for the community beautification.

“We could still lower rates,” Bebee said.

FPUD and the Rainbow Municipal Water District have separate applications to detach from the San Diego County Water Authority and join the Eastern Municipal Water District, which would reduce the cost of water purchased by FPUD and Rainbow. “The 218 process won’t require us to raise rates, but if we stay with the Water Authority and we do this service, then we will have to make things up through rates,” Bebee said.

Volunteers would limit FPUD’s expenses of the community beautification activities. “The community has been very interested in helping maintain facilities,” Bebee said.

“Being an unincorporated community has some challenges. You’ve got to round up some volunteers,” Bebee said. “Our goal in setting this up is to leverage those groups.”

Bebee noted that the type and scope of projects with FPUD involvement will be determined by the local organizations. The application to LAFCO included support from Fallbrook Center for the Arts, Inc., the Fallbrook Beautification Alliance, the Fallbrook Land Conservancy, the Fallbrook Sports Association, the Fallbrook Village Association, Save Our Forests, and The Wildlands Conservancy.

“The community benefit program will ensure the future longevity of these public spaces,” said Michael Griffiths, who represented the Fallbrook Village Association at the LAFCO hearing.

“The funds are needed for new projects,” said Karen Utley, who represented Fallbrook Center for the Arts. “The community benefit program will help us conserve our public art and beautify our village.”

Jerri Patchett helped found the Fallbrook Beautification Alliance in 2004. “These services have been provided by local volunteer groups,” she said.

“Finding volunteers and fundraising have become more difficult,” Patchett said. “The proposed community benefit program would ensure the future of these and many other programs in Fallbrook.”

Jennifer Jeffries is on the Fallbrook Center for the Arts board but spoke as an individual at the LAFCO hearing. “This proposal will secure and preserve scores of beloved community resources,” she said. “These community treasures receive reliable funding sources which this proposal will provide.”

Susan Liebes is the chair of the Fallbrook Land Conservancy. “Latent powers authorization would allow our community to collect funds,” she said.

On March 7, LAFCO approved a municipal service review and sphere of influence update for FPUD, which was utilized in the following month’s decision to grant the latent powers.

“Staff believes the timing of the proposal makes sense,” Allen said.

Desmond’s supervisorial district includes other unincorporated communities which rely on volunteer organizations. “They all pull together and they get stuff done,” he said.

As a county supervisor Desmond appreciates the willingness of FPUD to assist the community groups. “We should be taking care of this, but we have to kind of spread the money throughout the unincorporated areas,” he said.