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Mendocino LAFCO adopts FY 2025–26 budget, selects lower-cost option to hold apportionments steady
Summary
The commission adopted a final FY 2025–26 budget and work program on May 5, 2025, choosing Option 2 that reduces the total from $332,000 to $328,500 by using a lower audit fee and increases anticipated fee revenue, keeping apportionments roughly steady at $275,000.
Mendocino County Local Agency Formation Commission on May 5 adopted its final budget and work program for fiscal year 2025–26, selecting the staff-recommended Option 2 that reduces the proposed budget to $328,500 and holds the required apportionments at about $275,000.
Executive Officer E. L. Henman opened the public hearing by summarizing the budget development process and the two options presented to the commission. Henman said the proposed budget covers staffing (an executive officer, a senior analyst and a clerk analyst), services and supplies, professional services (GIS, IT, meeting support) and training, and funds the commission’s prioritized work program, which includes multiple municipal service reviews and sphere updates.
Under the work plan, studies in progress include MSR and SOI updates for the city of Willits, Point Arena, Laytonville County Water District and the Mendocino Coast Recreation and Park District (the latter through a funding memorandum of understanding). Initiated in FY 2025–26 would be a multi-year county-wide MSR and SOI update for fire and emergency medical service providers covering 18 agencies. The packet also notes a potential Mendocino Coast Healthcare District MSR if a funding MOU is reached; staff said the healthcare district has requested an MOU and proposed reimbursing LAFCO for the study over a period of years (staff estimated about $23,000 in work-plan costs attributable to that study if the MOU is approved).
Henman explained revenue assumptions: use of unutilized cash balance to reduce apportionments, a continued share of revenue from application fees, and interest income. Reserves shown in the packet include roughly $50,000 in legal reserves and about $86,500 in operations reserves; staff proposed a work-plan contingency of about $35,000 and forecast an unreserved cash balance of about $16,000 to apply to the next fiscal year. Option 1 presented a $332,000 budget with apportionments of $285,000; Option 2 reduces the audit line (from an $8,000 estimate to a $4,500 estimate using an existing CPA), increases anticipated application fee revenue, and lowers the apportionment to $275,000.
Commissioners asked clarifying questions about unpaid apportionments from special districts, the treatment and display of application-related expenses, and the status of specific planned studies. Henman said two special districts had not yet paid current-year apportionments and that staff had notified the auditor. Staff confirmed Point Arena is ready to proceed with an MSR/SOI update and that the Willits MSR has been initiated. Potter Valley Irrigation District’s study was nearly final pending one outstanding follow-up. Henman also reported a comprehensive overhaul of application forms that are now posted on the LAFCO website.
Commissioner Horsley moved adoption of Option 2 and Commissioner Roden seconded. The commission approved the final budget and work program by unanimous roll call.
Henman was directed to transmit the adopted final budget and work program to member agencies and the auditor-controller as required by state law.
