I found the notes my comments to you on your website. What I think is crucial for the Board and community to understand is that the guiding document as adopted by LAFCo is the municipal service review and sphere of influence documents. My comments to you were in response to your questions about Prop. 13 and how the district might continue to exist absent water service responsibilities.

It is apparent that the Los Trancos Water District is an anomaly of Prop. 13 in that it was created to provide water service, received a share of property tax as an unintended consequence of implementation of Prop. 13, has implemented an unprecedented rebate of property tax to further reduce water rates and is exploring how to continue to exist absent water service responsibilities.

The legislative intent of prop. 13 was that enterprise districts charge a fee for service that reflects the cost of providing service, making property tax available for highest and best public purpose. Clearly, LTCWD's circumstances were not anticipated by the legislators but there is nothing in the constitution that vests rights over property tax to enterprise districts once they no longer need it and the constitution actually permits transfer of property tax by agencies who no longer need it.

I encourage the District board to revisit the municipal service review and sphere of influence review documents and recognize that the District had the opportunity to dissolve itself, assuming it could resolve district owned lands. It may merit renewed discussion with CalWater and WFPD to examine the possibilities of transfer of the vacant lands and lake.