Proposed 2025-26 Budget

Overall Budget Summary

The Proposed Budget recommends total appropriations of $139,755, funded entirely by a General Fund contribution. The last day budget will include an increase of $25,245 in the County’s share of costs for LAFCO costs to $165,000, following the approval by the LAFCO Commission on April 2, 2025.

Fire District Successor Agencies: Several fire protection districts are facing fiscal and operational challenges, leading them to explore dissolution and successor agency options. Notably, the Pajaro Valley Fire Protection District is preparing a reorganization application to dissolve and designate the County, via County Service Area (CSA) 48, as the successor agency. While no direct fiscal impact is anticipated in FY 2025–26, increased staff or consultant support may be required to process complex reorganizations. In the coming year, LAFCO will continue facilitating stakeholder coordination and processing applications, which may delay other projects. If this trend continues, LAFCO could face sustained workload increases and growing demands on staff and financial resources.

Potential CSA 48 Reorganization: LAFCO has received inquiries about converting CSA 48 from a dependent special district under County oversight into an independent fire protection district, a change that would significantly impact governance and operations. While no immediate fiscal impact is expected, any reorganization effort would likely require detailed fiscal studies, legal review, and stakeholder engagement. In 2025–26, staff may begin preliminary outreach and scoping. If pursued, this change could substantially increase LAFCO’s workload in future years and require expanded capacity for governance and service analysis.

Development Inquiries on the Rise: LAFCO is receiving more inquiries about development near County-operated municipal service systems, particularly the Santa Cruz County Sanitation District and areas near the County’s Urban Services Line. These inquiries often focus on the feasibility of service extensions, which require interagency coordination and technical review. While there is no current fiscal impact, staff time to respond to and analyze these requests is growing. In 2025–26, this may require prioritization of LAFCO resources and could delay other planned activities. If inquiry volumes continue to rise, LAFCO may need to update municipal service reviews or spheres of influence to clarify service boundaries and policies.