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Council approves city attorney's revenue-neutrality letter to LAFCO over objections
Summary
The City Council approved transmitting a legal opinion from the city attorney to county counsel stating that revenue neutrality applies to special reorganizations and secessions, despite objections from some members who called the letter premature. The motion passed 10-4.
The Los Angeles City Council on June 6 approved sending a legal opinion from the City Attorney's Office to the county counsel and LAFCO's counsel stating that the revenue-neutrality requirement applies to special reorganizations and secessions. The motion passed 10-4.
City Attorney Fred Merkin told the council the letter explains the legal basis for applying a revenue-neutrality standard under the Cortese-Knox Local Government Reorganization Act of 1985 and its later amendments. Merkin said the statute and legislative history indicate that incorporations and special reorganizations should not cause financial harm to the jurisdiction left behind: "We believe that the law provides that revenue…
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